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Matter of Estates of Woodty9/7/1993
The trial court approved settlement of minors' claims for their mother's wrongful death. The settling defendant later sought
by reformation to enlarge the trial court's order to include among those released from liability a previously unmentioned non-party at fault insured by the same liability insurer. We reverse the order of reformation because the trial court was given no basis to find that the settlement remained reasonable if so enlarged.
PROCEDURAL HISTORY
On March 1, 1987, appellant's wife, Hazel Woodty, died in a fire at the Page Boy Motel in Page, Arizona. At the time of her death, appellant was serving time in a federal prison in Michigan and, through rulings of the Children's Court of the Navajo Nation, their two oldest children were permanent wards of William and Karlene Hayes and their youngest child was a temporary ward of Nancy Fanny Sanders.
After the District Court of the Navajo Nation appointed Ms. Sanders the personal representative of Hazel Woodty's estate, Ms. Sanders filed a wrongful death action in the Superior Court in Coconino County on behalf of the children, naming Weston's Lamplighter Motels, Inc., dba Page Boy Motel ("Weston's") as defendant. Appellant later filed a separate wrongful death action against Weston's on his own behalf. See Woodty v. Weston's Lamplighter Motels, 171 Ariz. 265, 830 P.2d 477 (App.1992).
In 1989, the Hayeses and Ms. Sanders petitioned to be appointed conservators for the children and asked court approval of a settlement of the children's wrongful death claims with "CIGNA Property and Casualty Companies, the insurer of Weston's Lamplighter Motels, Inc. dba Page Boy Motel, and its employees." The proposed structured settlement had a then-present value of approximately $21,000 per child. Appellant opposed the petition, claiming he had priority to be conservator and that the settlement amount was inadequate. The Hayeses and Ms. Sanders filed a response asserting that the settlement was in the best interest of the children, but inviting the court, if concerned over the issue, to appoint an attorney for the children to make sure that their interests were protected. In a separate response, Weston's argued that the settlement was adequate to resolve a case in which the negligence claim against Weston's was weak, decedent's contributory negligence was great, and the children's damages were small. After conducting a hearing, the trial court entered an order on July 19, 1989, appointing the Hayeses and Ms. Sanders conservators of the children's estates, approving the settlement agreement, and releasing "WESTON's LAMPLIGHTER MOTEL, INC., dba PAGE BOY MOTEL and others from all claims arising out of the death of Hazel Woodty." Appellant did not appeal from that order.
In 1990, Weston's filed the petition that is the subject of this appeal, asking the trial court to reform the releases to include Carrier Corporation, the manufacturer of the air conditioner/heating unit installed in the motel. CIGNA, the insurer for Weston's, is also the insurer for Carrier Corporation. The trial court granted reformation, ultimately reducing its ruling to an order dated March 18, 1991. Appellant objected to reformation in the trial court and now brings this appeal.
STANDING
In its answering brief, Weston's argues that appellant is not a party and lacks standing to object to the trial court's approval and reformation of the releases. Weston's ignores Ariz.Rev.Stat.Ann. ("A.R.S.") section 14-5405(A) (1975 & West Supp.1992), which requires statutory notice to appellant,
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