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Hatch v. State Farm Fire & Casualty Co.
930 P.2d 382
Wyo.
1997
Check Treatment

*1 рarents, adoptive ruled both MH MDH, “easily over won” GWJ.

MWH and sufficiently that it

The court concerned of the Court is

also stated: “If decision

reversed, custody.” will be awarded [MH] per- of the examination record does

Our court was

mit us to conclude district against gender prejudiced

biased GWJ right equal ease.

grounds in this His violated, and

protection of the law was not argument fail.

his must adoption our

We reaffirm rule

statutes, §§ 1-22-101 to -116 are Wyo.Stat.

applicable adoption case in a contested with- regard Wyoming paternity

out statute. no

The district court committed abuse of three of the four

discretion when ruled § factors 1-22- articulated Wyo.Stat. 108(c) in and responsi- of “interest —evidence child,

bility validity putative for” the objections,

father’s best interests weigh against GWJ favor child— nothing justify MWH and MDH. There is

the claim of a violation of the constitutional

right protection. Final equal Decree Adoption is affirmed. Wendy HATCH, III; Hatch;

Frank J. Hatch, IV;

Frank Frank J. J. Wendy III and next

friend for their minor children Anna Hatch; Hatch;

Corinna Matthew Hatch, Appellants (Plaintiffs),

Michael

v. FIRE

STATE FARM AND CASUALTY Garry

COMPANY, corporation; Kitch (De

ens; Murphy, Appellees Dennis

fendants).

No. 95-78. Wyoming.

Supreme Court of

Jan.

Dominique Hathaway, D.Y. Cone of Speight Kunz, (Speight & Cheyenne partic- and Cone ipated only), appeal ap- representing pellant. Timothy Miller,

W.W. Reeves and W. Murdock, Casper, ap- Reeves & representing pellee. TAYLOR, C.J.,* THOMAS,
Before LEHMAN, JJ., O’BRIEN, MACY and Judge. District *4 THOMAS, Justice.

The theme of case is that Frank J. (Mr. Hatch, Hatch), (Mrs. III Wendy Hatch Hatch), Hatch, IV, Frank J. Anna Corinna (Corinna), Hatch Matthew Robert Hatch and (the Logan Michael Hatches or Hatch family) deprived their right collective to a fair trial on their claims for benefits policy; under a home duty fire insurance good dealing resolving faith and fair their policy claim; subjected and were to inten- tional infliction of emotional distress. After this court ap- remanded the Hatches’ first Co., pеal, Hatch v. Farm Fire State and Cas. (Hatch (Wyo.1992) I), they P.2d 1089 jury lost present trial. The Hatches now litany designed -of issues all to establish some deprived error that them of a fair trial. We hold that no there is merit in of their claims of error. The directed for verdicts (Kitchens) agents Garry Kitchens and Dennis Murphy (Murphy), for State Farm Fire (State Farm) Casualty Company on the punitive damages issue of are affirmed. The judgment Farm, of State favor entered verdict, upon jury is affirmed. The Hatches set out eleven issues in their Appellants’ Appeal Wyoming Brief on Su- preme Court as follows: I. it for proper Was the trial court jury instruct on defense was not contained or defined the insurance con- tract between the Plaintiffs and the Defen- dant State Farm? court properly

II. Did the trial instruct fact not to consider the that Mr. Smith, John E. acquitted Stanfield of Stanfield & criminal arson Scott, Laramie, Speight charges though John B. “Jack” even State Farm’s role in * July Chief ‍‌‌​​‌‌‌‌‌​​‌​​​‌‌​​‌‌‌​​​​​‌​‌​​​​‌‌‌‌‌‌​‌​‌​​‌‌‍Justice as of 1996. concerning counseling [sic] an event when part prosecution arson formed Hatch’s

Mr. prior years to the fire at claim, occurred three even Hatch’s bad of Mr. tri- issue in this case? regarding the criminal though evidence trial, throughout the had been admitted al for court X. it error the trial Was though the court referred and even reject attorney claim the Hatches’ for fees trial other instructions? criminal 26-15-124, §Ann. under Stat. it for the trial court to error III. Was protect from policyholders was enacted to to consider instruct compa- expensive litigation when insurance resulting damages from State Hatches’ engage nies conduct and unreasonable claims, coverage the Hatch- denial when Farm’s deny [sic] coverage? of action es asserted cause all the or unfair XI. In view of erroneous princi- it inconsistent with IV. Was case, rulings reasonable to in this is it I for established in Hatch ples rulings unfair conclude that those errors or jury that it must not to instruct the court the stand- are harmless when viewed from damages resulting from the denial award point cumulative of their effect? coverage? Appellees, Farm, the Brief presumed the evidence is to be V. When Garry Murphy Kitchens and Dennis reframe Hatches, true and construed in favor the issues as follows: princi- proper and consistent with the district court should be Whether *5 I in Hatch for the trial ples established objections on waived at reversed based in to direct a favor of Defen- court verdict trial. Murphy? Kitchens? Defendant De- dant Appellants 2. have failed to es- Whether punitive State Farm as dam- fendant prejudicial error. tablish ages? Appellants’ arguments re- 3. Whether proper it under Rule 32 edit and VI. Is light garding damages are in moot the deposition an re-arrange and revise the liability. jury’s findings against them as deponent was in “unavailable” done —as testimony case—and to eliminate even in- properly 4. the district court Whether though objections were-made at no valid the on State Farm’s arson structed objec- the and deposition the time of where defenses. if might have been obviated cured tions correctly the 5. Whether district court objection had been made appropriate an Appellants’ on intention- directed a verdict deposition taken? when the was al infliction of emotiоnal distress claims. involving In a ease bad faith and VII. abused 6. the district court its Whether dealing, for unfair it error the trial was making evidentiary in three discretion the deposition from a 1991 court to eliminate challenged on rulings appeal. “good questions all in which the term properly the district court de- Whether objections neighbor” was used where no attorneys’ Appellants’ request nied for and that ground that asserted where fees. was never raised at time the issue I, underlying depo- was and where Hatch we summarized the deposition taken way: facts in in this within Rule 32? the case nent “unavailable” it error for the court to VIII. Was A fire was discovered in the basement application to admit the Hatches’ refuse appellants’ house about 2:00 a.m. on Au- coverage though the insurance even for 4,1987. gust The fire started in the south- to issues of cover- application was relevant of the was west comer house. Gasoline faith, Farm’s conduct age, bad and State carpet samples in after fire. found the Hatches? vis-a-vis ignition source of was a wood- nearest ease, awаy burning fifteen feet which had In an insurance bad faith was stove IX. a off the floor. to admit hot fire box twelve inches for the trial court confiden- error in gasoline a container legally Firemen found protected tial and evidence of chair, lying edge on its under daughter’s juvenile garage, record and Hatches’ against garage (Cloyd), into pursuant the broad side evidence R. gasoline explanation Cloyd An for how was wall. P. 32 because had died before the Civ. was deposition, Cloyd in the basement that detected trial. At had been family dog gas qualified can over and expert industry knocked on insurance through crack in the contents ran good dealing standards faith and fair in floor, garage down outside base- investigation handling of insurance wall, ment under the then wall into the Cloyd claims. then had identified thirteen basement. which, opinion, in areas his State

Appellees’ special- industry failed to meet [State Farm’s] claims standards for ist, Gariy responded handling appellee investigation Kitchens of the Hatches’ fire; replaced testimony upon notice of the he wаs five claim. His was relied estimates, days investigation later. made no He did demonstrate that State Farm’s any produced by handling not review work of the Hatches’ claim not did investigation participate Farm’s nor comply industry standards. After a replacement, appellee consideration, decisions. Kitchen’s very deliberate the court sum- Murphy, investiga- Dennis continued then marized and excluded ten of the thir- appellants’ tion of claim. He stated that Cloyd’s testimony. teen court areas represented work his his “best and most Cloyd’s testimony beyond ruled that the his conscientious effort” recom- expertise area of because he had been not represented mendations his “honest belief qualified testify severity emo- on the Mr. Hatch started the fire his tional distress and no foundation been had Appellant house.” Frank III J. expert laid to demonstrate that he was an charged Albany with arson. An Coun- arson, nor had there been to him available ty guilty verdict. returned opinions experts of other area I, when he testified. 842 P.2d at 1091. We considered summary judgment the trial entered during trial, mаjor Prior to trial and I, *6 dispositive para- in and our court Hatch problem prepara- arose with to the graph reads: jury tion of In a sent instructions. letter in part, part, Affirmed in reversed and during pre-trial period, the court the district on remanded for trial the claim for ben- problems anticipated jury the with instruc- policy under the efits the and cause of acrimony tions because of be- the extreme duty good action for violation of a of tween counsel. The court directed counsel to dealing. faith and fair many particular meet on a date resolve as I, added). (emphasis Hatch 842 P.2d jury possible produce instructions as and joint of draft a verdict form. On the date of jury The case then tried to a on the meeting, the court directed counsel advised remaining by claims three asserted the by correspondence they the court could family. These a claim included Instead, agree respec- not anything. on the benefits, policy recover the a claim for bad pro- parties separately tive submitted their handling in practices faith thе claims of State instructions, posed the com- and court then Farm, and a claim intentional infliction of piled by of a set instructions be used court emotional distress. district direct- a starting point counsel as to end the im- Murphy, ed verdicts for Kitchens and efforts, passe. jury Even after these the had also directed a verdict for Farm on State the beginning to wait for instructions its before of claim intentional infliction of emotional deliberations because a final instruction con- punitive damages. issue of distress.and the to be ference had conducted. jury a verdict in favor of returned State remaining against on the claims it for composed ultimately The court a set of recovery policy and bad benefits faith thirty-one gave to the instructions and those handling in the of the claim. jury. a verdict in returned chief, of in In the course stated that State Farm did “establish the case the discovery deposition preponderance of cause Hatches offered the tes- the evidence the timony witness, August expert Cloyd of an M. of in the Hatch residence on Carrol the fire object any opportunity of obviat- 4,1987 setting of the fire eliminated intentional the Recovery ing removing problems III.” of or the at the time of the by Francis J. Furthermore, denied, addition, they in er- deposition. assert policy benefits was object with re- its against Hatches Farm to permitting found ror State action for bad all causes of in the spect questions of their and answers included own handling of claims. The Wyo. 32, R. deposition. Rule Civ. P. alludes on appeal from Order Directed Hatches are applicable to the of evidence which rules Judgment Jury on Ver- Motion and Verdict proceedings in courts of in all actions and dict. exceptions, of none state with limited Wyo. R. applicable in this case. which are of error relat- first claims We consider Evid. 1101. captured ing to the These evidence. VI, VII, VIII, and IX forth set Issues Wyo. relevancy, to the rules of addition part the trial court Error on the of Hatches. Wyo. R. Evid. 702 R. Evid. 402, 403, testimo- charged of certain is in the redaction added) (emphasis pertinent resolution deposition; in the ny Cloyd refusal from issue: the redaction application for admit into evidence the scientific, technical, special- If or other insurance that the Hatches submitted knowledge ized will assist the trier testimony Farm; admitting fact to understand the evidence or juvenile relating daughter’s to the evidence issue, quali- a fact in a witness détermine testing and counsel- psychological record skill, knowledge, expe- expert by fied as an ing. education, testify rience, training, or of discretion The Hatches assert abuse opinion in the form of an or other- thereto in the redaction part the trial court wise. They Cloyd deposition. portions of the purpose We held it is not have comply argue that the court refused to Wyo. provide Evid. 702 to blanket admissi- R. Wyo. 32,1 R. when it allowed State P. Civ. instead, bility testimony, expert to vest object to matter that was Farm to at trial discretion to deter- deposition. the trial court objected to at time of testimony mine to exclude deemed position is that the failure to whether The Hatches’ *7 part provisions under may who had reasonable notice the witness were pertinent heаring ness were require dance tions. or or purpose if the court finds: not a (d) (b) Objections (a) represented part (3) (A) (3) rule, be used or Effect of Use with R. the The As to [*] ! n That the sfc n party, may all the exclusion of the evidence thereof part: objection Civ. then of Rule rules receiving any of a deposition of depositions. Taking Deposition. against P. 32 $ [*] [*] n errors and present at of deposition, to witness is of evidence for the the 28(b) then admissibility. Subject be used (emphasis may ¾: [*] ; n [*] in evidence any following provisions: taking and and subdivision —At be present party irregularities : n n n reason which would [*] dead; testifying. by made so witness, of the trial applied as thereof, added) any party far as the who — ‡ [*] n n and any deposition at the trial or deposition whether or ‍‌‌​​‌‌‌‌‌​​‌​​​‌‌​​‌‌‌​​​​​‌​‌​​​​‌‌‌‌‌‌​‌​‌​​‌‌‍provides admissible n , if * * testifying, in in n n [*] (d)(3) the wit- present for deposi- though accor any or of failure to been taking ing tions or the any at the unless seasonable or cured if or in the conduct materiality ness (A) Objections (B) the Errors oral examination in the manner of kind time. or to obviated or removed taking of objection deposition, answers, the make promptly and of deposition, testimony the might them irregularities competency, is one in the oath objection thereto is made of deposition. in the form of the presented, parties, be competency before or which are not waived obviated, unless if or and errors of relevancy, occurring presented affirmation, might the during removed, ground waived a wit- ques- have tak- the at at unnecessary helpful handling not to the trier of surance and bad faith in or claims the Louisiana-Pacific, v. Anderson of Hatches’ claims. fact. This evidence made the Hunter, 85, (Wyo.1993). testimony Cloyd Reed v. deposition repetitious P.2d See and (Wyo.1983). 663 P.2d 513 cumulative. major Cloyd’s issue about testimo A by The other areas three excluded ny questions he was asked about concerned Cloyd’s deposition trial court from complying State Farm with the standard it beyond expertise; his not directed to the advertising. its had established Accord standard; industry cumulative; irrelevant; ing theory, the Hatches’ Farm had State or consisted of information that did not re campaign in engaged advertising an that fea quire opinion an expert. an He had testi good slogan, neighbor, tures “Like respect at deposition fied review State Farm is there.” ten Seven ing procedure operating carrier’s manual. areas, court, which were excluded the trial opinion warning He stated an about a from whether, testimony Cloyd from as to elicited agent regarding the State Farm sales opinion, complied in his State Farm’s actions difference between actual cash value cover expected good with the standard faith and age replacement coverage. and He cost also dealing good neighbor.” fair “a and The . process testified that the invoked to establish pointed

judge out: explanation by the Hatches howof * * * part using good neighbor I think as fire started was not correct. All of this changes I of the standard the standard and testimony properly was excluded the trial appropriate. legal think is don’t in court exercise its discretion. good dealing fair standard upon Relying language in found not same whatever the standard Wyo. 32(d)(3)(A) (B), R. Civ. P. being good neighbor. the Hatches be for argue right also that State Farm its waived questions Cloyd’s de- answers object objections might because the have position beyond industry went standard been obviated or if at removed made dealing in good faith and fair investi- deposition. Parties cannot be deemed gation handling of insurance claims. objection to have waived an relevance They purported provide opinion his deposition. time of the The district court did non-legal to an extraneous stan- abuse discretion it not its when refused provision dard. R. Evid. justification honor this for the utilization of concerning “spe- opinions experts offering Cloyd’s testimony. deposition knowledge” cialized that “will assist the trier fact,” justify testimony. such does- claim The Hatches also error be Cloyd’s opinion, as to whether the advertis- cause the trial court refused to admit into ing established a standard and on how a application for evidence their insurance from act, “good neighbor” required spe- would no They language Farm. contend knowledge, cialized nor could have assisted coverаge application is relevant to under the understanding evidence policy; expectations; relevant determining any of the facts issue. It that, if faith. rule is relevant bad Our *8 properly opinion His to excluded. as policy unambiguous, insurance is the court’s “good beyond neighbor” how a would act was the four of examination is confined to corners expertise. of the realm his contract, integrated evi the extrinsic ruling plain apt of the trial court was dence is not admitted to contradict the meaning. precise. appropriately Corp. court re- Co. v. Ins. Amer district Doctors’ of ica, by testimony Cloyd (Wyo.1993). in which was 864 1018 Further dacted he P.2d Furthermore, more, qualified expert. agreement the cannot be contradicted testimony contrary language the through the of Robert C. Haber- or construed clear Crowe, encompassed agreement simply ulti- in the on the korn and John W. the Hatches of mately get regarding did in evidence the basis of asserted extrinsic evidence the industry good subjective parties for fair of to the standard intent contract. Powеll, investigation dealing handling Hayes in- v. Nat. Bank 784 of American 390 unreasonably admitting (Wyo.1989). agree the court this acted

P.2d 599 We court that the evidence. holding of the South Dakota construing poli- insurance standard for fire relating to The court admitted the records in- cy put the entire an intent evidences evidence, pur- into but limited Corinna into the hands of the in- contract surance Wyo. pursuant R. 105 pose Evid. as fol- v. National sured in one instrument. Orr lows: Conn., 519, Hartford, 50 Fire Ins. Co. S.D. gentlemen THE Ladies and COURT: 513, 744, ajfd, 210 52 S.D. 219 N.W. N.W. being jury, Q exhibit] is ad- [defense the (1928). appeals Georgia A court of has 119 purpose showing mitted for the sole application for a fire specifically held that Murphy had to him what Mr. available part the policy is not contract. insurance during investigation and his what items Hadden, v. United Ins. Co. America part investiga- him that available (1972). 362,190 hold Ga.App. S.E.2d 638 We may in re- tion. You also consider them correctly ruled in that the trial court exclud- may gard any motive that Mr. Hatch policy for ing application the insurance starting the in as much as have had for fire part it from because was not evidence implication there has been an inference or contract. least, that what someone tries save that. from fire reflect The last claim of error with relates to the assertion that evidence any not to You’re consider docu- erroneously court admitted into evidence Q any ments in for other reason. You’re juvenile report of Corinna’s court record not to truth of consider them along report psychologist of a who matter asserted in of those documents. argue examined her. Hatches records were included within the Corinna’s records, prior years these three made purpose appropriately limited and were ad- fire, irrelevant, unfairly prejudicial, and mitted. subject confidentiality Wyoming’s statutes. argue probative that the The Hatches val- copies The trial court admitted into evidence outweighed ue of these records was of documents that were Mr. Hatch’s brief danger prejudice. They speculate of unfair fire, including case at the time of to consid- these records induced reports relating which com to Corinna about history as a reflection on the er Corinna’s made; records; military plaint is Mr. Hatch’s parents character of her and as a determin- report twenty-five-year-old psychiatric of a ing factor of the that Mr. likelihood Hatch Hatch; poem examination of a love writ Mr. They point nothing fire. started the twenty-five years ten wife to his justify speculation, record to this other than previously; rec miscellaneous old financial clearly beyond purpose the limited ords; coverage; an re insurance insurance for which the records were admitted. We notice; letters; newal a book Mr. Hatch was upon argument. no find error based authoring; and on the purchase information of the Hatch home. addition, profess In Hatches Co., Rural P.2d Furman v. Elec. Wyoming of these records violated admission (citations omitted), (Wyo.1994) we They rely upon provisions statutes. captured relating as to Act, the rule to decisions Wyoming’s Juvenile Court Wyo. Stat. way: admissibility (1994), of evidence this §§ 14-6-201 to -243 Stat. (1988) provides: § 6-3-110 A trial court’s decision on the admissibil-

ity agency be An or insurancе com- of evidence will affirmed authorized pursuant pany there which receives information court unless it is demonstrated that *9 through 6-3-110 shall has a clear abuse of discretion. This to W.S. 6-3-108 hold been applies except in standard to trial court the information confidence when decisions by concerning “adequacy release source of the the of foundation” is authorized the information, by through relevancy. appellant] 6-3-108 6-3- [the Furman W.S. jurisdiction. by competent or a court proving the of that the 110 of bears burden

391 charge concede the trial court the as a in The Hatches consider whole and the competent jurisdiction fight a court pleadings have of entire record from been statute, they argue through the argument jury. goal under latter the Our is to pertinent language identify any prejudice, court to account for failed the standard is Wyo. 14r-6-203, § in which charge comprehensive, reads: whether the is a bal- Stat. essentially anced and accurate statement of made, kept (g) All records received or likely the law that is not or confuse mis- cоunty

by any municipal, or state officer or jury. lead the evidencing legal employee process re- sulting allegations from of a minor’s mis- In objection, the absence of an we municipal conduct other than violation of a apply plain the doctrine of error set forth subject ordinance confidential and State, Hampton 504, (Wyo. v. 558 P.2d 507 provisions the of this act. The existence 1977) (citations omitted): or the records contents thereof shall not be by any person disclosed unless: Court be [T]his must able to discern from record, speculation the without resort to or n n n n n n inference, trial, equivocal what occurred (ii) person The the records concern is * * * * * Further, *. proponent (18) and, eighteen years age under must of a demonstrate existence clear (1) conjunction or parents with one of his unequivocal par- rule of law court, autho- with the ratification transgress facts ticular a clear and obvi- disclosure; or rizes * * * ous, merely arguable, way. not (iii) person the records concern is adversely error or [T]he defect must affect (18) eightеen years age older right some substantial the accused authorizes the disclosure. application order avoid the the harm- * * concept error *. less statute, This which is addressed to a state agency, application had no to the court’s Harwood, 1282, Goggins v. 704 P.2d 1291 ruling. State, (Wyo.1985), quoted we from v. Gore 1384, regarding (Wyo.1981),

We turn the claims error 627 P.2d 1388-89 the ulti- jury instructions. In State Mut. Farm mate consideration: Shrader, Auto. v. Ins. Co. 882 P.2d 831- Thus, unless instruction be an can said to (Wyo.1994), explained we that in review- plainly preju- have caused fundamental ing with respect error instruc- * * * [party’s] legal rights, dice to the we tions, we address the claimed error in both it appeal will overturn on unless procedural and substantive From context. objected during the trial and a procedural perspective, re- substantive proper place. its instruction offered depend upon appropriate objec- view will tion, required by which is P. R. Civ. first Hatches’ claim of error re purpose instructions, is to garding advise trial court attacks the precise judicial nature the claim so relating instructions to the arson defense appropriately by briefing discretion We exercised. asserted State Farm.2 In 2. Those instructions pany, tiffs are entitled to recover INSTRUCTION NO. 7 the defendant defendant State If State Farm defense claim for in other al You property. [******] n unless State are, Instructions, your policy therefore, n preponderance proves benefits for Farm Fire are: ; n against instructed n : has defense, all verdict damage $33,275.00 proven of the evidence. plaintiffs ‡ Casualty must as defined n its arson person- he for plain- Com- from thus not fire fense to the INSTRUCTION NO. fire was Hatch, INSTRUCTION NO. tled Farm Fire and In ‍‌‌​​‌‌‌‌‌​​‌​​​‌‌​​‌‌‌​​​​​‌​‌​​​​‌‌‌‌‌‌​‌​‌​​‌‌‍order to establish its defense of arson to Defendant, policy loss preponderance prevail III. under their incendiary. cause of intentionally benefits Plaintiffs' on the arson defense if Casualty claim, Farm, policy. of the evidence that the fire was accidental and action to started Company the defendant State raises an arson de- Plaintiffs are enti- recover must Frank J. you prove for a find *10 392 incorporated the instructions, eleven instructions the Hatches

objection these to “arson,” prohibited they are from from term policy the insurance State argue that at time. complaining about the term this They only provided two defenses. Farm a third Farm advanced contend that State of discloses an ob- Examination the record defense,” and the the “arson defense called the jection Instruction No. 8 at conference to the erroneously allowed district court says stating, the “it counsel for Hatches third, this nonexistent de- on be instructed [by intentionally J. started Frank here fense. Hatch, say deliberately, I It doesn’t III]. that it can policy discloses The insurance you dump can of suppose intentionally if following circumstances: be voided under you If intend to gasoline, it’s intentional. any you person If or Acts. it, you Intentional dump intend start whether policy pro- causes or terribly, terribly this insured under not I think its house or under this property covered cures loss prejudicial and clear We understand error.” obtaining purpose of insur- policy for the this to be a statement that one comment benefits, policy is void and then this gasoline ance intentionally dump of without a can you any pay other insured we will not or The did intending to start a fire. Hatches trial, for this loss. present theory at the not void you or has ted lating Concealment intentionally [*] toas to this any material [*] you other insurance, or Fraud. concealed insured under [*] fact any or n whether before other circumstance re- or This misrepresen- # insured, policy policy [*] or is if was that the The Hatches’ contention facts do not that Frank J. text of the issues tried. gasoline objection but dog tipped support was not Hatch, did not such III intended to pertinent intend to throughout the trial an gas interpretation. can start in the con- over, a fire. dump not after a loss. policy specifically not While does argue instructions are that the Hatches defense, it does an arson state allude to of the language insur- erroneous because provided only for coverage is “accidental actually impliedly nor policy ance neither (Emphasis physical property.” loss direct They contend provides an arson defense. accidental, instead, added). Arson is not are erroneous that the instructions arson conversely is an act or a nonacci- intentional district court a matter of law because the physical property. dental direct loss on the crime second faded instruct policy provides that is voided when also degree and eliminated the issues arson any person “you insured insured] or [the provisions contrary motive and intent policy procures a loss under this causes policy. The also assert that Hatches policy property covered under this extremely prejudicial the term “arson” purpose obtaining insurance benefits * * have been used without defini- should not *_» jn complaint the sued Hatches They instructing jury. also claim tion $93,- Farm for “the sum of least State * * erroneously implied in that the court these policy coverage 525.00 under the said had the instructions that the Hatches burden language policy, action was proving the fire was accidental order purpose obtaining “for the insur brought Farm. overcome the arson defense State accurately ance Instruction No. benefits.” required prove Farm response states that State

State Farm’s is that Hatches intentionally by Frank J. objections on started appeal not to raise fire was entitled its they III order to establish defense 7 and since did not to Instructions not act. That instruction does object intentional at the instruction conference. State require prove crime or that State Farm points Farm out that Instruction of arson. Neither elements of crime proffered Hatches’ Instruction version of the require any element of motive policy does the argues the Hatches did No. purpose obtaining insur object other than the to the use of the term “arson” Instruc- ance We are satisfied that during submitted some benefits. the trial even

393 erroneously tion No. 8 does not state the law no make inferences therefrom. A differ- in this ease. proof applies ent burden of in criminal cases than in civil cases. objection proper The Hatches raised no The Hatches assert this unfairly instruction 28, fact, Instructions 7 and and in an instruc- erroneously removed the truth from the tion similar to Instruction No. 28 was offered jury’s consideration of State Farm’s bad faith by instructions, the Hatсhes. As to these dealing county with the attorney, and elim- plain error must Giving be established. full acquittal inated Hatch’s as a factor scope arguments Hatches, they jury’s objection mind. lodged at trial fail to clearly demonstrate a record that was, “I think acquitted the fact that he was unequivocally complained reflects the facts damages minimizes point from that on. Are of, law, transgression a of a clear rule of prohibited we from mentioning that?” prejudice. acquittal Evidence of an of criminal Farm required State was not in this civil charges is not relevant in subsequent a civil trial to establish the elements of second de- relating to the same incident. Shatz v. gree arson. The court instructed that Surety York, American Company New Hatches could not recover if State Farm (Ky.1955); 295 S.W.2d 809 Desirey, State v. preponderance established a of the evi- (Tenn.Crim.App.1995). S.W.2d 20 See dence that intentionally the fire was started. Greenberg v. Aetna Company, Insurance only obligation on State Farm was to 494, (1967). Pa. 235 A.2d 582 This rule is establish that intentionally the fire was set applicable proof because the burden of is and not that it constituted arson under the case, different jury the criminal and a jury criminal code. The also was advised might conclude that innocence had been es recovery there could be no if State Farm preponderance tablished of the evi fact, alternative, established that and in the dence, though even proposition the correct State Farm policy would be liable under the guilt had not been beyond established if the cause of the fire was accidental. In- applicable reasonable doubt. The rule is 28, conjunction struction read with In- involving cases following a civil action 8, accurately structions 7 clearly acquittal on charge of arson. Bobereski v. jury instructed respect to the bur- Pennsylvania, Insurance Co. 105 Pa.Su den of Farm State establish “arson 585, (1932); per. 161 A. 412 Wheat v. Conti defense.” implicitly The “arson defense” was Co., (Tenn.1983); nental Cas. 652 S.W.2d 345 mutually agreed upon by parties Tennessee Dickey, Odin Inc. Co. v. 190 Tenn. disclosed the record and the proposed (1950). 228 S.W.2d 73 See Girard v. jury instructions. There is no reference to Cо., 330, 154 Vermont Mut. Fire Ins. 103 Vt. physical the “nonaeeidental direct loss to (1931) (record A. 666 of conviction is not property,” which the Hatches now claim admissible). should have been invoked. While the Hatch- prejudice es claim from the use of the term regarding instruction ac- Hatch’s arson, they have not been successful in dem- quittal in this case became essential because onstrating prejudice. actual There no incorporated theory in the Hatches’ of bad 7, 8, error with to Instructions No. improperly was a claim that State and 28. participated in prosecu- Mr. Hatch’s criminal tion. The task of the in the civil trial giv Hatches also assert error in the allegation was to address the ‍‌‌​​‌‌‌‌‌​​‌​​​‌‌​​‌‌‌​​​​​‌​‌​​​​‌‌‌‌‌‌​‌​‌​​‌‌‍of bad faith not ing of Instruction 22No. which reads: Drawing the result of the criminal trial. against party inferences favor of or either INSTRUCTION NO. 22 because of the result of the criminal ease During trial, you the course of this appropriate. perceive have would not be In- We Hatch, III, learned that Frank J. adeptly handling struction No. 22 as the deli- charged arson, acquitted and was af- cate circumstance of the criminal trial which may ter criminal trial. injected You not consider had been in the evidence without your these facts in tilting deliberations and the balance in favor of the Hatches or instruction, any claimed error is deemed upon the instruction A further Farm. been waived.” have proof in a civil of the burden difference *12 suggest have trial, would the Hatches ultimately which submitted for the Hatches Counsel un- have added simply proper, instructions, objec- would been unclear jury made 105 in- confusion to this necessary language antagonistic tions, toward generally correctly'stat- 22 Jury jury Instruction was wait- process. struction. While the entire case, this instructions, Hatches in the circumstances counsel for the ing ed the law for prej- no by submitting demonstrated 80 process Hatches have participated and the in the every imagin- to be found “covering There is no error issue udice. instructions able, any semblance of order.” instruction. and without giving of this prac- professional manifest the This does not respect error with The last asserted attorneys Wyoming. expect from we tice Instruction No. 30 attacks to instructions pro- of the record and examination Our which reads: jury instructions demonstrates posed beyond the the Hatches went counsel for detect a loss duty as advocates. We to serve 30 NO. INSTRUCTION upon objectivity and conduct that borders damages for may not recover Plaintiffs burdening jury instruc- unprofessional as a any injury they would have sustained give credence process. It is difficult tion prosecu- criminal fire or the result complaints error now asserted. Farm’s of State in the absence tion even the submis- that in the absence of holdWe handling. alleged bad faith claims instruction, ap- proper written sion of some Hatches, instruction According any claim of error. We pellants have waived with when combined erroneous because analysis, proper upon hold that further 22, jury it instructed whole, Instruction No. instructions, jury when taken as might damages the Hatches ignore all accurately law in this fairly state the in the absence of State have sustained even patient but judge was The district case. did not ob- faith. The Hatches jury Farm’s bad provide the in his effort to resolute trial, plain ject to this instruction district court instructions. The accurate invoked. Per- again must be instructing error doctrine no error in committed defense, could have been haps Instruction No. 30 Mr. respect to arson as a artfully, it is an accurate charge acquittal drawn more on the criminal Hatch’s I, held in Hatch arson, damages. of the law. We statement or the 1096, that Farm “demon- P.2d at 842 point of error in brings us to the This claim was appellants’ [Hatches’] strated that granting the Hatches attack which liability result- ‘fairly and that no debatable’ motion for directed verdict State Farm’s I claim.” Hatch of this ed from the denial infliction of emotion- of intentional the issues law, held, matter of that State also as a The motion was damages. its al distress and prosecu- for Hatch’s criminal was not liable 1993, since improperly styled because simply required a last instruction tion. This 50(a)(1) a directed identified R. P. has Civ. injuries and the connection between causal It a matter of law. judgment verdict as Farm, regard to without of State conduct determine provides that the court n as a injuries have been sustained that would legal- is no against party when “there issue prosecution criminal the fire or the result of evidentiary for a reason- ly basis sufficient part of bad faith on in the absence party with found for that able to have handling the claims. State Farm issue,” grant a motion and can on a claim judgment as a matter of law Inc., v. Mobil In Triton Coal Co. a favor- be maintained without that cannot Inc., 505, Producing, P.2d 511 800 Coal finding on that issue. able (Wyo.1990)we said: “ * * * judgment as of the Upon review only right but have not Parties law, reviewing did in as we In the a matter duty ab to offer instructions. verdicts, the evidence consider directed we proper written sence of submission

395 party against favorable to the whom the mo- first of those is found in “h” Comment Re directed, (1965) affording it all § tion was favorable (Second) statement Of Toets Cossairt, said, inferences. Coulthard v. See where it is is for “[i]t the court to (Wyo.1990). granting P.2d determine, instance, in the first whether the proper only motion is when one conclusion may reasonably defendant’s conduct be re jurors could be reached reasonablе with- garded as outrageous so extreme and as to weighing considering out the evidence or permit recovery, necessarily or whether it is Coulthard, credibility. 803 P.2d at 91. We safeguard so.” The next forth in set Com afford no deference to the decision of the “j” provides ment for “the court to *13 court, and such motions should be cau- determine whether on the evidence severe * * Coulthard, tiously sparingly granted. emotional distress can be found 803 P.2d at 91. Wyo. 50(a)(1) third is set forth in R. Crv. P. states, during by jury which “[i]f a trial a The Hatches invoke our decision in Hatch party fully respect has been heard with to an grant summary I in which we reversed the legally issue and there is no sufficient eviden- judgment by respect the district court with tiary jury basis for a reasonable to have to the claim for intentional infliction of emo- party found for that said, respect to that tional distress. We “material factual issue, may grant the court judg a motion for disputes improper [exist] and that was * * * * ment as a matter of grant summary pur law judgment Hatch I, pose of permit 842 the latter rule is to the trial P.2d at 1099. The conclusion drawn court to take from the the Hatсhes is that it consideration of the is the law of this jury, jury sufficiently cases in which the ease that the should determine whether facts are employees intentionally particular State Farm and its clear to lead to a result under the Jackson, Carey (Wyo. inflicted emotion distress on the law. v. 603 P.2d Hatches. 868 1979). They also contend that when the evidence is light viewed in the most favorable to the I, In Hatch the record in the district court Hatches, particularly relating the evidence and this court consisted of the materials agents conduct of the claims for State produced which had in been connection with Farm, apparent it is that Kitchens and Mur- summary judgment and was limited to phy committed the tort of intentional inflic- deposition testimony. stated, “appellants We tion of emotional distress. demonstrated that there were material factu- In Leithead v. American Colloid disputes improper grant al that it was Co., (Wyo.1986), 721 P.2d 1065-67 we summary judgment appellants’ cause

joined majority jurisdictions when we duty good action for violation of a adopted Restatement (Second) Of ToRts I, dealing.” аnd fair Hatch P.2d at 842 (1965) § defining 46 as the tort of intentional claims, In the trial of these the district court infliction of in Wyoming. emotional distress complete testimony had the benefit The comments to 46 Section advise that family, experts, the Hatch insurance and the whether the conduct is so extreme and outra in entire case chief. We hold that the dis- geous justify recovery as to is committed to only authority trict court not had the but the Further, the court the first instance. duty to make the threshold determination in whether ” ” severe emotional distress can be pursuant “j this case “h and Comments found from the evidence is committed to the § to Restatement (Second) Of ToRts court. Wyo. (1965) and R. Civ. P. 50. The court was required by our decision in Hatch I to principles These are the that we send the claim of intentional infliction of case, invoke this and we first address the jury. emotional distress to the argument required Hatches’ that Hatch I jury submission to the of the claim of inten

tional propriety infliction of emotional distress. The We next address the disregarded safeguards granting judg Hatches have three action of the district cоurt prevent being which According issues submitted to a ment as a matter of law. 50(a)(1), when the evidence is insufficient. The R. Civ. P. must that we determine evidentiary provided copies reports of some legally sufficient there was “no county at- investigation materials have found for basis for a reasonable * * torney prosecution respect to that *.” the arson Mr. party issue They Hatch. con- also stated State Farm consideration is whether the first outrageous. report from Northern Gas look withheld which duct extreme We was information. exculpatory § contained (Second) 46 cmt. of ToRts Restatement d, (1965), p. states: of emotional Additional evidence distress only Liability has been found where the to an claimed with interview outrageous so in charac- conduct has been attorney Murphy, who said of Mrs. ter, degree, go extreme as to and so interview, present intimidated her decency, beyond possible all bounds staring at her the entire time. She asserted atrocious, utterly regarded be Murphy up and down “stared her community. in a civilized intolerable Gen- [daughter’s] body” when Corinna’s stаtement one in erally, the case is which the recita- taken, causing daugh- her and her both average to an tion of the facts member terribly uncomfortable. ter feel Mrs. community would resent- arouse his way about her testified emo- *14 actor, against the and him to ment lead tional distress: exclaim, “Outrageous!” upset quite It a bit to think that a man me gone my I through that know had testified, didn’t respect to the The Hatches drawers, my my things, personal personal Farm, that Kitchens had conduct of State clothing, my daughter’s personal things, going get you “you’re not what stated clothing. I Mr. Reeves her know made you’re going get.” They think stated victim, light rape feeling like a but when required family the Hatch fill out Kitchens somebody power intimacy has forces who every inventory in detailed item their you you if would never allow had the on their claims forms because the val- house choice, I how else to don’t know describe personal property ue of their exceeded the just devastating to me it. It was and it coverage. The Hatches as- limits of their devastating my daughter to was think produced pages thаt this detail serted in our strange that man had sat rooms day required and time constraint them the 60 gone through things. they and our And leave, vacation, weekends, take sick agent had a woman the basement who complete They they it. evenings to testified just easily could have done it Mr. while using flashlights and dark worked the cold Murphy I they think did the downstairs. complete claims form. Mrs. any would realize that woman would feel people that were the house with- testified way having someone she about didn’t out permission and without notice on several go through know her underwear. It still The Hatches claim that State occasions. makes me feel terrible. in- Farm conducted an excessive number of family members. terviews of “rough time,” went on this was a She to state ordeal,” stress,” they “an were “still under addition, point In the Hatches out that other,” “snapping the fact at each that it although August occurred the fire years.” really had been “a difficult seven paid had not State Farm claim end 1987. Mrs. Mr. Hatch he did not recall of October Hatch testified testified they family counseling as a implied seeking result of State Farm would cancel Corrina, policy comply if she did not severe emotional distress. insurance Hatch, daughter “cooperation clause” of insurance of Mr. and Mrs. testified really upset crying her mother contract. also testified that “was She disgusted “crying again,” attorney again,” “[crying] under who interviewed her “sarcastic,” “aggressive,” quite frequently,” and was “under a oath was and “hos- lot of they tile.” also stress.” testified that The Hatches asserted that Corinna she repulsed “pretty [by Murphy going through complied requests, with State Farm’s Robert, a son give copies of her dresser of Mr. drawers].” State Farm failed them fact, years they requested, had and Mrs. who was ten old when reports some occurred, the fire testified that his mother grant- Hatches also assert error in the upset ing of and “a lot of she State Farm’s times cried.” He motion for a directed verdict with punitive talking damages. heard Corinna and his mother about argument Their is that if the evidence is upsetting the fire and knew that “was them.” light viewed in a them, most favorable to Michael, brother, Robert’s twin testified State Farm’s conduct wаs willful and wanton family members of having some subject punitive damages. They ar- tough stated, “my times after the fire. He gue that the district court in finding erred mom, emotional, every she was she cried no reasonable could find willful and dad, my once in a while. And he wouldn’t wanton misconduct in this instance. The express mom, feelings my his like he would Hatches assert that a number of other courts usually isolate himself.” Michael also testi- have considered similar pre- issues as are “family being fied to the stressed.” sented this case and have concluded that resolving entry In judgment issue of punitive damages issue of should be re- law, as a matter of principles by jury. we turn to the solved We are satisfied that each Big v. Svalina Horn Nat. articulated in one of those distinguishable cases is on its Life Co., Ins. 1018, 1020 instance, facts. each (Wyo.1970), 466 P.2d evidence was found to be support sufficient either to the claim plaintiff the evidence of the will be taken as bad faith or sufficient to submit the bad true with all reasonable inferences and in- question jury. Given our holding that tendments that can be drawn from it. If we reasonably the district court first, could find accept the evidence offered the Hatches that the conduct State Farm did not reach as true with all reasonable inferences and requisite heights to be described as out- drawn, intendments that can be there is in rageous, extreme, atrocious, utterly intoler- *15 requisite sufficient evidence of the miscon able, beyond nor possible all bounds of de- duct Certainly State Farm. State Farm’s second, cency, and did not Hatches suffer conduct be characterized as insensitive requisite emotional distress for a success- times, inappropriate or but the district ful claim of intentional infliction of severe reasonably court could find that conduct was distress, emotional damages issue of in- outrageous not so in character or extreme in cluding punitive damages becomes moot in degree to reach being beyond the level of all this case. possible decency. bounds of Neither was it they Hatches also contend that are entitled utterly atrocious and intolerable in a civilized attorneys pursuant to fees to Stat. community. outrageous Prоof of conduct es (1991), § they prevail 26-15-124 if on the separate sential for the tort of intentional They merits. prevail have failed to on the infliction of severe emotional distress is inad merits, consequently we will not consider equate in this record. These facts do not attorneys the entitlement fees further. lead a community reasonable member of the judgment We affirm the of the district court “outrageous!” to exclaim denying such fees. rely upon Hatches cumulative error as We conclude that crying, evidence of a final contention. In the absence of being upset and uncomfortable is insufficient error, prejudicial a claim of cumulative error to demonstrate severe emotional distress State, does not lie. Vit v. 909 P.2d 953 that attains a person level no reasonable (Wyo.1996). could expected be to endure. Restatement (1965). j § (Second) 46 cmt. While We find no error in this record. The of ToRts experienced the stress the Hatches is Order on not to Directed Verdict Motion and the minimized, Judgment typical Jury be it is on of the Verdict is stress all affirmed. people expected are to endure under the O’BRIEN, Judge, District concurs circumstances. properly The district court specially, LEHMAN, Justice, with whom granted State Farm’s motion for directed joins. judgment verdict or as a matter of law relat ing charges to the of intentional infliction of agree I majority with the and concur in the extreme emotional distress. opinion of the I specially only court. write majority jury. part opinion yond judge of the the ken of a or cases

underscore that Other dealing they margin with the behavior counsel. are on the because involve ce- lebrity participants, consequences, severe ex- story mind of the This calls to case circumstances, peculiar or treme inordinate attorney advising a new associate: senior highly attention media emotional issues. facts, you pound on compelling “When have magnifying glass As to the latter the of close agreeable is those facts. When law scrutiny hype simply and the attendant you your position, pound on the law. When society consequences inevitable of a free law, pound have neither favorable facts nor open change radical institutions. Without amusing the table.” It less than unset- process approach our to the trial have no we tling. accept imperfections, choice but to inconsis- difficulty judge had considerable tencies, injustice. occasional But even keeping the attor- this case track and problem emerges, an ominous one that is not neys judge, reputa- focused. The who has product necessary confounding facts or being patient accommodating, tion process. unveiled opinion revealed his frustration an letter exercise, A trial ‍‌‌​​‌‌‌‌‌​​‌​​​‌‌​​‌‌‌​​​​​‌​‌​​​​‌‌‌‌‌‌​‌​‌​​‌‌‍a rational should be where he observed: experience. emotional When counsel inten- It is true that the and conduct attitude tionally drive an otherwise routine case throughout proceed- the pretrial of counsel margins infecting per- the trial with ings job trial made of the and the by purposefully seeking sonal issues or extremely it is also Court difficult. And emotions, supercharge quick- alert observers chiefly true that the difficulties recognizе object ly justice, is not but fault of Plaintiffs’ All lead counsel. victory. obligation zealously The ethical attorneys participated degree or to one tempered by client strife, serve interests is unprofessional another in this opposing, imposing, obligation no less attempt by anyone calm there was little merely within the act limits of the law—not But it was Plaintiffs’ lead waters. letter, spirit, law. constantly every but also counsel who saturated motion, Any every argument every hearing appropriately consistently failure duty personal against duty on opposing attacks counsel. measure to clients perpetuates profession gun” image the “hired Accompanying personal an- extreme *16 lawyers some cultivate and we all must live imosity religious a near fervor Worse, popularly with. it sustains a held itself as a in the moral manifested belief conception professional accepts that our ethic cause, superiority of the Plaintiffs’ and the justifies, the notions that success and occa- depravity moral of the Defendants sionally necessitatеs, excessive zeal and attorneys. This blinded Plaintiffs’ victory Finally, the cost of is irrelevant. case, counsel to the realities of the stereotype such conduct reinforces the of the prevented appraisal realistic evi- of the plaintiff spurred avaricious even dence. attorneys. more venal When a is mea- case spite considerable rhetoric sured, cause, the merit of trials, trials, contrary, particularly evidence, quality of the the logic imperfect justice. engines of For routine invective, arguments, the level of well; reasonably process cases the trial works something is A trial then amiss. becomes yields justice rough practical within such dignified appro- ordeal is neither nor willing as financial constraints we are and, predictably, priate result reflects However, experience abide. that as teaches demeaned, process performance; approach margins cases trial machin- participants. are the ery frequently sputters and oftentimes fails. Marginal highly include cases those with

technical, A complex or facts. convoluted and, given

trial is not paradigm a didactic time,

limits of ex- procedure, resources and

tremely matters be- intricate are sometimes

Case Details

Case Name: Hatch v. State Farm Fire & Casualty Co.
Court Name: Wyoming Supreme Court
Date Published: Jan 13, 1997
Citation: 930 P.2d 382
Docket Number: 95-78
Court Abbreviation: Wyo.
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