LARRY RICHARDSON, Plаintiff and Appellant, v. SAFECO INSURANCE COMPANY OF AMERICA, a Washington Corp., and ROBERT J. McCORKLE, Defendants and Respondents.
No. 83-108
Supreme Court of Montana
Submitted on Briefs May 26, 1983. Decided Sept. 29, 1983.
669 P.2d 1073
MR. JUSTICE SHEA delivered the opinion of the Court.
Keefer, Roybal, Hanson, Stacey & Jarussi, J. Dwaine Roybal, Billings, for defendants and respondents.
OPINION
MR. JUSTICE SHEA delivered the opinion of the Court.
Larry A. Richardson appeals an order of the Yellowstone County District Court granting summary judgment to defendants Safeco Insurance Company of America and Robert J. McCorkle. Richardson‘s claim was for actual and punitive damages. He claims he suffered economic loss, as well as mental and еmotional distress, due to the actions of Safeco Insurance Company of America (Safеco) and its agent, Robert J. McCorkle, during negotiation and settlement of an accident claim. His claim of economic loss is based on attorneys fees incurred as a result of filing suit against Safeсo to compel payment of car repairs. He also claims that he suffered mental and emotional distress by Safeco‘s fraudulent misrepresentation of intent to settle the claim, and Sаfeco‘s breach of good faith in the actual settlement of his claim. We affirm.
When Richardson accepted Safeco‘s settlement, he released the insurance company from all claims arising out of the accident. Richardson claims his economic loss (attor-
The trial court found the attornеys fees and the alleged mental and emotional distress arose out of the same transactiоn as the car accident, and granted summary judgment to Safeco. We agree.
We first hold that Richаrdson‘s duty to pay attorneys fees arose when he contracted with his attorney to file suit, rather thаn after Richardson signed the release. Second, we hold that Richardson‘s claim for bad faith was relinquished when he signed the release.
The case arose out of an automobile accidеnt between Richardson‘s son Jeff, driving Richardson‘s car, and a car insured by Safeco. Delays in proсessing the claim prompted Richardson to retain the Kelleher Law Firm on November 16, 1981. Richardson аlleges the Safeco agent, McCorkle, offered payment in return for Jeff‘s statement regarding thе accident. After receiving the statement, McCorkle offered an amount less than the original еstimate for repair. Richardson rejected this offer and filed an action to recover his full dаmages. In response, Safeco, through McCorkle, offered to settle for $950. When he accеpted the settlement, Richardson signed a release of all claims against Safeco. After receiving payment, Richardson brought suit against Safeco and its agent, McCorkle. The claim alleged bad faith by Safeco in its manner of settlement resulting in Richardson‘s mental and emotional distress. Richardsоn also alleged economic loss in the form of attorneys fees incurred when Richardson brought suit to obtain the full amount of repair costs.
Larry Richardson claims he was damaged in the amount of аttorneys fees, and this claim arose after he signed a release for Safeco. He also claims it was not his intent to release Safeco from liability for bad faith when he signed the release.
Whatever claims Richardson may have had against
Richardsоn concedes that his mental and emotional distress arose before the signing of the release, but he nonetheless argues that he had no intent to release Safeco from a claim of bad faith. Language on the back of the check to Richardson specifically released Safeco from all claims arising out of the occurrence upon endorsement. Finally, one party‘s intent, unknown to the other, cannot change the obvious intent of the agreement. Safeco and McCorkle had no reason to know Richardson was not releasing them from all claims arising out of the accident.
All possible claims Richardson might have had against Safeco matured before the release was signed. Summary judgment was properly granted. The District Court‘s order is affirmed.
MR. CHIEF JUSTICE HASWELL and JUSTICES WEBER, MORRISON and GULBRANDSON concur.