KENNETH L. BRUNE, P.C. v. CRAWFORD AND COMPANY
2017 OK CIV APP 34
Okla. Civ. App.2017Background
- Brune, a Tulsa attorney, was retained to defend Tulsa Airport Taxi in a personal-injury suit; American Transport Insurance Company (American) insured the taxi and failed to pay Brune's fees after he obtained summary judgment for the insured.
- Brune sued American for breach of contract and obtained default judgment when American did not appear; he later amended to add Crawford (third-party administrator for American) and individual Crawford employees.
- Before trial, the district court granted Brune partial summary judgment finding Crawford was a party to the contract and thus liable for American’s breach; the jury was instructed Crawford was liable as a matter of law.
- Jury awarded Brune contract and tort damages and punitive damages against Crawford; judgments for two individual Crawford employees were in favor of those employees.
- On appeal Crawford challenged the partial summary judgment and other issues; the Court of Civil Appeals found the summary-judgment ruling dispositive and reversed as to Crawford.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Crawford was a party to the contract creating liability for American’s unpaid attorney fees | Brune argued Crawford, as agent/TPA who knew principal lacked authority, became party to the contract and thus liable | Crawford contended American was a valid foreign insurer (American Samoa certificate) and Brune failed to prove Crawford became party or transacted insurance in Oklahoma | Reversed: summary judgment against Crawford was erroneous; record did not establish as matter of law that Crawford was party to the contract |
| Whether American lacked capacity to contract in Oklahoma such that agent would be liable | Brune emphasized American’s regulatory orders in TX/LA and alleged no Oklahoma authority | Crawford pointed to American’s American Samoa certificate and that regulatory actions elsewhere did not show lack of capacity to contract here | Held: American’s American Samoa certificate permitted inference it had capacity; Brune failed to establish lack of capacity as a material fact |
| Whether investigation/adjustment by Crawford constituted transacting insurance in Oklahoma making Crawford liable | Brune argued Crawford’s handling made it responsible for defense payment | Crawford argued 36 O.S. §1101(D) excludes claim investigation/adjustment from transacting insurance in Oklahoma | Held: Brune did not show Crawford transacted insurance in Oklahoma; statutory exclusion supported Crawford’s position |
| Whether instructing the jury that Crawford was liable as a matter of law was reversible error | Brune relied on the summary-adjudication ruling | Crawford argued the summary ruling was wrong and prejudicial | Held: Instruction was fundamental error; judgment against Crawford vacated and remanded for further proceedings |
Key Cases Cited
- Spirgis v. Circle K Stores, Inc., 743 P.2d 682 (Okla. Civ. App. 1987) (summary judgment requires supporting evidentiary material for each material fact)
- AT&T Advertising, L.P. v. Winningham, 280 P.3d 360 (Okla. Civ. App. 2012) (liability when corporate status canceled—relied on by trial court but distinguished)
- Hargrave v. Canadian Valley Elec. Coop., Inc., 792 P.2d 50 (Okla. 1990) (view evidence and inferences in favor of nonmovant on summary judgment)
- Hadnot v. Shaw, 826 P.2d 978 (Okla. 1992) (defining materiality for summary judgment)
- Carmichael v. Beller, 914 P.2d 1051 (Okla. 1996) (de novo review standard for summary judgment)
- Taliaferro v. Shahsavari, 154 P.3d 1240 (Okla. 2006) (fundamental error requiring reversal when jury improperly instructed)
- In re Estate of Bell-Levine, 293 P.3d 964 (Okla. 2012) (de novo review described as plenary, independent examination)