318 Neb. 138
Neb.2024Background
- Shawn Kimbrough was killed in a car accident involving a Jennings Plant Services employee driving a company-owned Ford F-150.
- Kimbrough, as special administrator of the decedent's estate, obtained a judgment for $5.4 million against Jennings in federal court.
- Jennings Plant Services sued its insurance broker, Ellerbrock-Norris Agency, in state court alleging negligent failure to advise adequate insurance coverage for company-owned vehicles.
- Jennings had assigned Kimbrough a right to 85% of any proceeds from its state court claim against Ellerbrock-Norris as partial settlement of the federal judgment.
- Kimbrough filed a motion to intervene in the state lawsuit under Neb. Rev. Stat. § 25-328, arguing her assigned interest in the lawsuit proceeds entitled her to participate.
- The district court denied Kimbrough’s motion to intervene, finding her interest insufficiently direct; this decision was affirmed on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Kimbrough has a direct, legal interest sufficient to intervene under § 25-328 | Kimbrough argued that her assigned right to a portion of any proceeds is a sufficient legal interest in the underlying litigation to permit intervention | Ellerbrock-Norris argued Kimbrough’s interest is only in potential proceeds, not in the actual claim or subject matter of the litigation, making it too indirect | The court held Kimbrough’s interest was indirect—akin to a creditor’s—and thus insufficient for intervention |
Key Cases Cited
- Carroll v. Gould, 308 Neb. 12 (Neb. 2020) (distinguishing between direct and indirect interests required for intervention)
- Ruzicka v. Ruzicka, 262 Neb. 824 (Neb. 2001) (examining property interests sufficient for intervention)
- K. & C. P. R. Co. v. Fitzgerald, 33 Neb. 137 (Neb. 1891) (creditors’ indirect interests are insufficient to permit intervention)
- Drainage District v. Kirkpatrick-Pettis Co., 140 Neb. 530 (Neb. 1941) (economic interests do not justify intervention by nonparty)
