Indemnity Insurance Co. of North America v. Guidant Mutual Insurance Co.
99 So. 3d 142
| Miss. | 2012Background
- This is the second appeal after Guidant I; INA seeks defense-cost reimbursement and contribution from Guidant.
- Hingle's accident (1994) involved Guidant auto and umbrella policies and INA (primary vs excess) through Marshall County.
- Andersons sued Hingle, Marshall County, the fire department, and the Board of Supervisors in 1995 for about $4.15M.
- Guidant argued it was primary and could contribute from its umbrella after Guidant auto and INA policies exhausted.
- On remand (2007 judgment; 2011 final judgment), Guidant owed $500,000 ( Guidant auto) before INA contributes up to $300,000; total settlement was $750,000.
- Rule 56(f) continuance was denied; summary judgment on contribution was upheld; prejudgment interest was denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Rule 56(f) continuance was abused | INA needed discovery | Guidant lacked new material facts | No abuse; denial upheld |
| Whether Guidant is entitled to contribution from INA | Guidant must show legal liability to settle; damages matter | INA liable for contribution within policy limits | Guidant entitled to contribution up to INA’s limits after Guidant exhausts its own |
| Whether prejudgment interest should be awarded | Defense costs liquidated and prejudgment interest warranted | No bad-faith or liquidated prior amount; discretion applied | No prejudgment interest awarded |
Key Cases Cited
- Travelers Indem. Co. v. Chappell, 246 So.2d 498 (Miss. 1971) (primary-excess exhaustion principle)
- State Farm Mut. Auto. Ins. Co. v. Allstate Ins. Co., 255 So.2d 667 (Miss. 1971) (insurer duties; settlement authority for insureds)
- Hartford Accident & Indem. Co. v. Foster, 528 So.2d 255 (Miss. 1988) (insurer must evaluate claims in insured’s best interests)
- Upchurch Plumbing, Inc. v. Greenwood Utilities Commission, 964 So.2d 1100 (Miss. 2007) (criteria for prejudgment interest; liquidated vs bad-faith denial)
- Guidant Mut. Ins. Co. v. Indem. Ins. Co. of N. Am., 13 So.3d 1270 (Miss. 2009) ( Guidant I; control of defense/settlement; contribution framework)