 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
Taylor v. State Farm Mutual Automobile Insurance Co.9/22/1994
VOSS, Judge
This appeal and cross-appeal stem from the judgments of the trial court in a bad-faith action brought by Appellant Bobby Sid Taylor ("Taylor"), against Appellee State Farm Mutual Automobile Insurance Company ("State Farm"). We hold that Taylor's bad faith claim was barred by the two-year tort statute of limitations and therefore reverse the judgment entered for Taylor.
FACTS AND PROCEDURAL HISTORY
This case arises from an automobile accident that occurred on April 9, 1977. In that accident there was a collision involving a pickup truck driven by Taylor, a pickup truck driven by Douglas Wistrom ("Wistrom"), and a car driven by Anne Ring ("Ring") in which her brother, James Rivers ("Rivers"), was a passenger. The accident occurred at the intersection of Central and Maryland Avenues in Phoenix. Taylor had liability coverage for $50,000 with State Farm. The facts are set out in greater detail in our first opinion, Ring v. Taylor, 141 Ariz. 56, 59, 685 P.2d 121, 124 (App. 1984). Three lawsuits arose out of this accident.
1. Ring v. Taylor: Accident Liability
After the accident, Taylor and his parents employed Attorney Norman Bruce Randall to file suit against Ring for personal injuries and to make sure that Taylor's "better interests" were protected. However, Anne Ring, her husband, Royce Ring, and Rivers filed a personal injury action against Taylor and Wistrom first. State Farm accepted the defense and retained Phoenix Attorney Leroy W. Hofmann to represent Taylor. Randall remained in the lawsuit as Taylor's personal attorney and filed a counterclaim against Ring based on the injuries that Taylor sustained in the accident. Before trial, Rivers and the Rings entered into a covenant with Wistrom not to execute on any judgment that they obtained against Wistrom. That agreement was reached because Wistrom had no insurance and was judgment proof.
On March 30, 1981, the jury awarded Anne Ring and Rivers $1.3 million each and awarded Royce Ring $21,500 for loss of consortium. State Farm appealed the judgment on behalf of Taylor without filing a supersedeas bond or obtaining a stay of execution.
On August 4, 1981, while the original case was on appeal, Taylor's attorney, Randall, drew up an agreement that State Farm accepted. This agreement provided that Taylor would release any claims he had against State Farm under the policy and, in exchange, State Farm would pay $15,000 to him under his underinsured motorist coverage.
On March 1, 1984, we affirmed the judgment against Taylor in favor of Rivers and the Rings. Ring v. Taylor, 141 Ariz. 56, 685 P.2d 121.
2. Ring v. State Farm: Garnishment
During the pendency of the appeal of the liability issues, the Rings filed a garnishment action against State Farm seeking $50,000 (Taylor's liability insurance policy limits). They also sought the excess amount of the judgment against Taylor and State Farm due to the alleged bad faith of State Farm in failing to settle the Rings' claim within policy limits. The trial court granted State Farm's motion for summary judgment on the garnishment action.
In October of 1985, approximately nineteen months after we affirmed the judgment against Taylor in Ring v. Taylor, we ruled in favor of State Farm on the Rings' garnishment action. We held in part that the Rings could not bring a garnishment proceeding against State Farm for an alleged bad faith failure to settle within policy limits because they had not obtained an assignment of Taylor's rights. Ring v. State Farm Mut. Auto. Ins. Co., 147 Ar
Page 1 2 3 4 5 6 7 Arizona Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|