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Lunceford v. Houghtlin5/31/2005
Opinion Vote: REVERSED AND REMANDED. Smith, C.J., and Spinden, J., concur.
Opinion:
Kimbra and Christopher Lunceford appeal a summary judgment holding that a general release of one tortfeasor in a motorcycle accident also released two other torfeasors. Because there is a genuine dispute of material fact whether the release intended to release other tortfeasors and as to whether the release was capable of reformation on grounds of mistake by the parties to the release, we conclude that it was error to grant summary judgment.
In May 2002 Kimbra and Christopher Lunceford were injured in a motorcycle accident. After settling with Christopher Lunceford's liability insurance carrier, Kimbra and Christopher brought a suit for their individual injuries against Michael Houghtlin and Glen Graybill, two other motorcyclists who allegedly precipitated the accident that injured the Luncefords. Respondents sought summary judgment based upon the defense of release, premised upon a release executed by each of the Luncefords ("individually and as husband and wife") in connection with the earlier settlement that purported to release "all other persons" from all claims arising from the accident. The Luncefords argued that the release was the product of mutual mistake and that the settling parties did not intend to release the liability of anyone other than Christopher and his insurers, presenting a "corrected release" that they claimed correctly stated the intent of the parties to the original release. The trial court granted respondents' motion and entered summary judgment against the Luncefords, who bring the present appeal.
Factual and Procedural Background
Appellants Kimbra and Christopher Lunceford were riding together on a motorcycle as part of a charity ride being held on May 5, 2002. Christopher was operating the motorcycle, while Kimbra was riding behind him as a passenger. Ahead of them, respondents Michael Houghtlin and Glen Graybill were driving separate motorcycles, riding abreast of each other.
As Houghtlin and Graybill navigated a curve on Highway H in Platte County, Missouri, Houghtlin lost control of his motorcycle. He collided with Graybill, causing his motorcycle to tip over, as well. Christopher Lunceford, in an attempt to evade the accident, steered to the right side of the road and applied his brakes. Unfortunately, the rear tire lost traction with the road, causing the motorcycle to crash into a ditch alongside the road.
Christopher sustained minor injuries in the crash, while Kimbra suffered more severe injuries, including broken bones in her right shoulder and left ankle. The treatment cost for those injuries exceeded $100,000, and she also lost wages as a result of her injury in an amount exceeding $20,000.
Christopher was insured by a policy issued by GuideOne Specialty Mutual Insurance Company, with American Modern Home Insurance acting as reinsurer on that policy. A claim was made under that policy and settled with the insurers for the policy limits of $50,000. As part of that settlement, the Luncefords executed a document entitled "General Release" on December 15, 2002, that included the following language:
Each of the undersigned, CHRISTOPHER LUNCEFORD AND KIMBA LUNCEFORD, BOTH INDIVIDUALLY AND AS HUSBAND AND WIFE (ONLY) for the sole consideration of FIFTY THOUSAND DOLLARS & 00/100 Dollars ($50,000) paid to one or more of them, the receipt of which is acknowledged, does release and forever discharge CHRISTOPHER LUNCEFORD AND AMERICAN MODERN/GUIDEONE INSURANCE, his, her, their or its agents and servants and all other persons, firms, associations, and corporations of and
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