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Sullivan v. Allstate Insurance
792 P.2d 905
Idaho
1990
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*1 еrs, riders, hikers, horseback bird watch- eating for a decision it as quasi-ju- made ers, floaters, fishing buffs, river picnick- body. dicial ers and other citizens who enjoy the area for the presently outdoor values it offers JOHNSON, Justice, dissenting. general public the equal basis. am unable to concur II A development condominium opinion. majority portion opin- This magnitude certainly will detract from the ion concerns whether the ordinance in ef- area and further threaten wildlife that application fect when the initial was filed depend present on their environment to or the amended ordinance effect when reproduce. survive and application approval of the final Our does Association not advocate non- plans apply proposal Hаys should to the development, long as as its occurrence is In my opinion, for a PUD. the amended in areas more suitable sustain applicable. ordinance is

impacts, possible. whenever On River, South Fork of the Snake this isn’t

the case. purchasers

To save condominium

users a 25 minute to 30 drive can certain-

ly development go justify the

ahead this area. kindly urge We would the Bonneville SULLIVAN, William Cleon County disapprove Planners to Sullivan, and Julie Hays Development proceed, Ranch Plaintiffs-Respondents, preserve present order to environ- ment of the to honor area and the wishes v. recreating public desires of the COMPANY, ALLSTATE INSURANCE require- very important the sensitive and Corporation, an Illinois ments the wildlife be sustained Defendant-Appellant. canyon River of which Snake No. 17029. flows. pe- Lastly, should there be the inevitable Supreme Idaho. Court of

tition(s) rehearing quite often which Feb. 1990. opinions,14 on the heels of our issued follow involved, i.e., parties the adverse South Rehearing On June Denial 1990. Hays, greatly Fork Coalition v. would oblige if this one member of the we explanation to be furnished with some

were question. Why in

concerning ap- Fork I did the Board make no

South it, proper

pearance (seemingly because fact, conceivably trier of could stake), yet in anything at

Hays appearance, leaving to has made no counsel to Board and its defend Hays decision of was the

Board Presumably Hays’ able

beneficiary? very de- could have defended the Board Hays’ to do so has left

cision. failure position advo- in the unenviable

Board rehearing, ap- petitions Stiffler, S.Ct. No. simultaneous In State v. both readily granted. respondent pellant and favored us with almost

$2,000.00 entitlement to unin- and claimed policy. under the sured motorist benefits for medical paid policy limits Allstate bills, responsibility under Sulli- but denied coverage, motorist assert- van's uninsured proximate cause ing that Julie was the injuries. her own defining ‍‌‌​​‌‌​​‌​​​‌‌​​‌​​​​​‌​​​​​​​‌​​‌​‌‌​‌​​‌​​‌‌‌‌‍policy, The Allstate insurance rights responsibilities, con- parties’ mandatory clause a arbitration tained provided that submission to arbitra- mandatory parties whenever tion was amicably a Sullivan could not settle claim. Troxell, Boise, Hawley, Hawley, Ennis & 1984, for until did file arbitration defendant-appellant. for Kenneth C. How- months lapse eighteen time of more than ell, argued. the accident. While the after Rice, P.A., Lewiston, plain- & for Aherin and notwithstand- proceeding pending, Aherin, tiffs-respondents. Darrel ar- W. ing requiring manda- policy provisions gued. arbitration, civil tory filed their Sullivans appealed in action which was 1989 64 FILED MAY OPINION NO. investigation, tort asserting negligent 1989, IS HEREBY WITHDRAWN contract, outrage, willful breaсh of AND THIS OPINION SUBSTITUTED refusing to settle the claim. bad faith THEREFOR summary judgment, Allstate moved for alternative, stay pending for ON REHEARING outcome of arbitration. district BOYLE, Justice. granted mo- (Judge Magnuson) Allstate’s for and dismissed tion denying This is an from an order prejudice. with Sulli- Sullivans’ Company’s defendant Allstate Insurance objected prejudice van the dismissal with summary judgment. Appellant, motion for and the case was before the court Insurance, Allstate asserted below and hearing on motion for for reconsideration. here our v. decision All hearing, At the the arbitration award Co., 111 state Ins. Idaho presented to the the district court and I) (Sullivan (1986) judicata is res all his dismiss the court reaffirmed intent to arising September claims out of the the ac- prejudice. action with Thereafter 1982 accident which Julie Sullivan was dismissed written order whiсh injured. summary Allstate’s motion complaint, clearly provides that judgment in this action was denied on pled, with thus all actions was dismissed grounds the question of Allstate’s al concluding prejudice. paragraph leged practice had not bad faith settlement ap- of the trial court which was previously litigated, ripe and was not pealed provides: in Sullivan proceedings. in the earlier consideration De- IT HEREBY IS ORDERED We reverse. Summary Judgment fendant’s Motion Claimant, Sullivan, pedestri- Julie was a granted hereby is and Plaintiffs’ Com- the time she was struck a unin- plaint hereby dismissed motorcyclist September sured attorneys’ fees without costs dice and minor, par- As was covered her Julie added.) party. (Emphasis to either policy with All- ent’s automobile insurance 111 Idaho provided medical uninsured state which accident, (1986), Court, coverage. After the P.2d a unani- motorist Judge Magnuson’s opinion, filed a claim with Allstate for mous affirmed Sullivans stating: prejudice, expenses amount of dismissal with medical Under the today’s arbitrators, circumstances of cluding the award legal we need not relationship decide the were then before the district court. which exists between an insured and an Magnuson denied the motion for reconsid- injured insurance carrier when the makes granting eration of his order dismissal with a claim under an uninsured motorist prejudice granting and affirmed his motion i.e., clause of an policy, insurance wheth- summary judgment to Allstate. relationship er that is adversarial or fidu- *3 clearly The record establishes that before ciary____ In the instant case we deem it Judge Magnuson opinion issued his final clear liability that Allstate’s denial of granting summary judgment and dismiss- upon grounds that Julie Sullivan’s ing plaintiffs’ complaint with negligence own proximate was the dice, the final award of the arbitrators was damages, of her was not taken in bad presented argued to him. The record finding faith. The uncontested Judge Magnuson is uncontroverted that re- thirty-five percent negli- arbitrators of viewed and considered the award of the gence part on the of Julie Sullivan arbitrators he entered his final order before speaks loudly position in defense of the summary judgment, only on then did of Allstate. he order dismissal prejudice. with 306, 111 Idaho at 723 P.2d at 850. n Res judicata, preclusion or claim as it is Following I, appeal in Sullivan Sulli- called, sometimes “denotes that a fi- valid (Sullivan II), vans filed the instant action judgment by prior nal between thе asserting arising claims from the identical parties privies, same or their concludes the alleged events in Sullivan I. Each of litigation as to all matters that were or those claims for relief in II Sullivan litigated should have been in the first ac- predicate their Allstate’s denial of the Emmett, City tion.” Puckett v. 113 initial claim for uninsured motorist bene- 48, (1987). Idaho 747 P.2d 50 See alleged fits. The additional matter in 554, Ramseyer Ramseyer, also v. Idaho Sullivan II is the existence of the award of (1977). Sullivans’ claims arbitrators, above-noted, which as presented complaint Allstate in the prior before the district court its filed in II are identical to those Sullivan of dismissal in Sullivan I. Allstate moved presented complaint filed in Sullivan summary judgment in II on Sullivan I. The dismissal of the the basis that our in decision Sullivan I prejudice in Sullivan which was af- judicata. was res That motion was heard appeal, firmed on results in these claims Judge Cogswell before and denied. This parties being between the identical barred appeal followed. judicata. res However, certain uncontroverted facts For the above reasons we reverse the require and events in the record reversal. denying order of the district court summa- question in Sep- The accident occurred on ry judgment and remand with instructions tember 1982. In Julie Sulli- judgment appellant to enter in favor of van, having majority, sought her obtained Allstate. from and obtained arbitration award

Allstate. A was held before three damages, BAKES, C.J., arbitrators who found total and JOHNSON and thirty-five percent McDEVITT, JJ., to be com- found Julie concur. paratively negligent, and found Allstate BISTLINE, Justice, dissenting. pay policy should Julie its limit. The com- analysis On further review and detailed plaint September I was filed of this Court’s decision pending while case, record seen process complet-

before the arbitration holding that this Court’s there is found 1985 the award of the arbitra- ed. “In the instant case we one sentence: moved tors was rendered. The Sullivans of liabil- deem it clear that Allstate’s denial of the court’s order of for reconsideration matters, grounds that Julie Sullivan’s ity and all in- Judge deci- Cogswell, whose negligence proximate cause of own was the us, we in this now before review damages, taken in bad faith.” her was not I and this con- came to Co., examined Sullivan v. Ins. 111 Idaho Allstate clusion: (1986) 304/306, 723 P.2d only interpret the deci- can The reason for deemed hold Judge Magnuson to hold that the sion of

ing is found the sentence which follows prema- Complaint No. 23040was above, in Case quoted one “The uncontested turely that a cause of action filed and finding of 35 percent arbitrators of the arbi- arisen because not then on negligence Julie Sullivan proceedings. tration position loudly in defense of speaks However, and Allstate.” Id. unfortunate Judge Cogswell eminently correct supposed our ly, these issues which Magnuson did his evaluation. issues, on from the issue passed different alleged were of Allstate’s feel that appeal.1 ap issue raised on raised him; hence liability properly before peal was whether the court was *4 .district is also of the dismissal. It considerable rulings in two which were the basis correct did moment his memorandum decision comрlaint. of the Those two dismissal say would with that dismissal be of I rulings surfaced in this Court’s Sullivan of judgment dice. Rather the final formal opinion, and one them was the basis for presented by of All- dismissal drawn and was summary judg counsel, court’s order of the district there for the first time state’s plaintiffs’ prejudice.” ment of dismissal of the com appeared the words “with plaint. Judge Magnuson may may or adding presumptiveness in noted counsel’s Mentioning reviewing I am again that Because the two which were added. words in the exact record nothing other than that adjudicated he had upon language of district court’s order brought, prematurely was action predicated, dismissal was this: was with or whether the action was dismissal 1. A cause of action based an thought prejudice undoubtedly without was pay insurer’s to an uninsured mo- rеfusal consequence. to be no claim cannot exist until the liabili- torist’s A similar to would be circumstance this ty of the uninsured motorist admitted case filing malpractice a medical adjudicated the insurer re- or then complying provisions absent with the pay fuses the claim. 6, Code, which Chapter Title Idaho 10 of requires screening panel to a submission required 3. The insured should be hospital its the medical or review of go unin- through

first an in a tort challenged care be which would claim, required by as sured motorist action, be infor- proceedings shall “which policy, prior bringing an automobile nonbinding, mal and but com- nonetheless against for a faith action the insurer bad precedent to liti- pulsory as a condition claim. 1976, in ch. gation.” 6-1001 enacted I.C. § Mag- 278, Judge added.) p. (Emphasis Our Sullivan undoubtedly aware of this stat- though as we nuson ‍‌‌​​‌‌​​‌​​​‌‌​​‌​​​​​‌​​​​​​​‌​​‌​‌‌​‌​​‌​​‌‌‌‌‍was erroneously written was utory and it is affirming requirement, reasonable district court determina- in merits, i.e., salutary purposes believe that he had its made on the tion that plain- mind he ruled that Judge found Allstate when Magnuson had plaintiffs’ premature the various claims alleged in the tiffs were liability of the free by their which were laid out complaint. day very inadvertently prematurely Shepard indulging filed. On the last

1. Justice retrospect, tangentially it is of the in obiter dictum. In review in front peruse that he see and the arbitra- produc- obvious did district the arbitration award hereinafter, which, as illustrated 888, tion award played Infra, hour. 792 P.2d at the eleventh ed court’s determina- no in the district at 913. dismissed because it tion that the case should be (and complaint, duly acknowledged) Sullivan I filed before there van an (and agent duly had been determination of Allstate’s for Allstate acknowl- alleged liability, by adjudication edged), respectively either 16 and beginning 1984. R. at 65. Mr. Eis- arbitration. This Court noted in James v. Buck, (1986), mann’s affidavit with attachment was filed Idaho support conjunction and in purpose legislature that the of the enact- judgment, Code, summary Allstate motion for ing Chapter 10 of Title Idaho was: proceedings stay for a encourage nonlitigation To of claims hospitals by physicians pro- record,2 neverthe- Out but viding prelitigation screening of such Mr. Eismann’s less contained therein is by hearing panel provided as claims page supporting R. 173-83. At brief. this act. convincingly argued the brief Magnuson that: 111 Idaho at 727 P.2d at For malpractice Had there been an issue as to whether cеrtain a for medical the arbitration clause was induced complying which is filed without with I.C. valid, fraud or otherwise not it would be subject 6-1001 would be to dismissal. § duty plaintiff of the to raise certain, equally that dismissal Just before a court. A recent case issue subject judicata would be to a in res bar if Washington system that if the concluded filed without a second such action was there had been ment on a missal ter 10 of Title action complying would not bar a with I.C. litigate promissory 6, to obtain full Idaho Code. claims of compliance § note would be 6-1001. subsequent a monetary judg liability Similarly, an Such Chap after dis dis plaintiff must submit all for the issue of [597] cab, International, agree to arbitration. Allison v. Medi- of arbitration is to be contemplation *5 fraudulent inducement to (1979). 92 Wn.2d meaningful, the contract, except disputes 199, 203, within yet if due. Absent missed the note was due, being

the condition of the note bar, reading of the In the case at a nothing adjudicative would be dismissal conclu- contract and case law leads to the prematurely had but that the action presented the cause of action sion that brought. contempla- plaintiff is within provision. Since tion of the arbitration goes astray in its The far Court’s out of the this cause of action arose I was conclusion because “Sullivan contract, language of the the inclusive II prejudice” the dismissed with require that all issues be contract would containing allegations” “identical (Citations omit- presented to arbitration. parties” is “identical made as between ted.) judicata. barred the doctrine res wrong arrives at such destina- The Court R. 181-82. reading comprehen- by very poor and a granting summary judgment, The order which, although it is sion of the record court’s di- by Mr. Eismann at the drawn of chron- parts of it are out voluminous rection, naturally reflected that which quite order, ological is not difficult. the court urged and with which he had i.e., pre- agreed, agreement to arbitrate September injured on

Julie Sullivan was the issues which Julie Sep- cluded a trial of 24, 1982, was filed on and the action against All- complaint raised 1984, shortly 29, was after Sullivan’s tember dis- arbitration, 142-43. The action was state. R. appears she demanded costs or prejudice but without Mr. Eis- missed with R. 63. of Mr. Eismann. affidavit 29, party April on fees to either attorneys’ the arbitration attached mann’s affidavit Notwithstanding that dis- 143. 1985. R. signed by Julie Sulli- agreement which was 26, 1985, being brief, filed after June both though filed dated December 2. The June appeal the record until taken. filed as was not Similarly, plaintiffs brief was also on next matter missal, and turns to the been filed of record had on dedicated counsel docket. filed and served an affidavit

Julie Sullivan report- R. 153-54 order, opposition of his own in to the informa- transcript is somewhat more er's May restyled as motion for on a justify any tive, sufficiently to con- but not of the memorandum deci- reconsideration Judge Magnuson other than that clusion dismissal, ensuing sub- prema- convinced that the action thorough well forti- mitted a memorandum did turely way filed. In no whatever with citation. fied intimate, that the say, or even Magnuson reconsideration was The motion to him the presentation much belated d’Alene, 23, 1985, at Coeur heard on him to reassume caused arbitration award Idaho, p.m. p.m. to 2:55 lasting from 2:20 he had jurisdiction an action which over tell what court minutes best took premature- it had been dismissed because place: he not in- put, ly Otherwise filed. any would judge do more than clined to TO MOTION RECONSIDER it out of do late time—examine at the dismissal which curiosity IT that the stand BE KNOWN —but had, proceedings long ago pointed to-wit: As out been entered. herein, judica- the dismissal was res earlier 2:20 P.M. Court session. Call visibly plainly and nothing, ta of but was argue present to 23040. Counsel are Mr. Eis- predicated upon the motion which County motion in this Bonner case. of Allstate. To mann had made behalf to the Motion Reconsider refers intimate, does, that majority as the Court’s Order of 4/16/85. an presentation of belated #A. Mr. Mr. Manko offers Exhibit an which had been award reinstated he received Mr. Eismann states that great prematurely filed does dismissed as 11:30 A.M. this date. Manko’s brief at experienced trial and able disservice to # A objection has to Exhibit He no tran- record and judge who had EXHIB- therefor the COURTADMITS hand, and ruled otherwise. script at hearing. # A purposes IT he Mr. McClenan advises that received court convened 2:30 Only after the *6 copy at 10:30 a certified of Order p.m. to hear the motion for reconsideration date. A.M. this made that the arbitra- was the court aware argues pursuant Mr. 2:32 P.M. Manko had been made. This tion award in present to the arbitration decision now favor by the counsel being advised one of Questions day Plaintiff. rather of in just received that that it no of Court held action bad morning asked to mail. The action maintained faith or no сause of it, it, at it be look at did look and allowed in all. Carter case as set out at Cites exhibit, quickly put all as an marked brief. appears It that aside: “THE COURT: that provides copies of deci- Mr. Eismann today, so we no had notice it before one holding under no cause sions going argue the operate on who is will faith re: 41-1320. bad The most Motion for Reconsideration." deci- P.M. The Court reviews those award was 2:45 made of the arbitration use plaintiffs’ sions. counsel: responds. Mr. Eismann further prevailed plaintiffs The fact have arbitration, my judicial and it removes will not take The Court having 193. It is not a a liti- problem notice of House bill today. made in a determination at time of the gated liability factor situation original- Complaint this matter was when DENIES THE P.M. The COURT 2:55 argued. ly FOR MOTION RECONSIDERATION provi- agreement the debate to arbitrators. to submit 3. to be confused with the arbitration Not contract, or with the of the insurance So, reason, for that I am somewhat he did not use the words “with confused as to the Court’s order. drawing dice.” In dismissal, the order of facially appears that Tr., chief counsel for Vol. 5. The trial court at that late Allstate inserted those two words. stage could Noth- hardly expected wipe be ing in the record shows that counsel slate clean ad- holding and make a that this vised development late that counsel had taken the invalidated its order that liberty inserting action had been those two words. If prematurely filed be- true, compliance cause of the lack of that be extremely with was either precedent Moreover, condition bringing presumptuous suit. or careless. where the dismissal was based on failure to By courteous, nature kind and he heard arbitration, completed effect satisfaction, counsel out to their prejudice” “with would be to bar a sub- which the court stated it had reviewed its sequent action attempting get into the decision, memorandum plain- reviewed the good faith passing through issue without tiffs’ supporting brief the motion for recon- arbitration. sideration, “and reflecting, go- I am ing to by my original Tr., stand decision.” The audaciously Court has withdrawn I,Vol. 13. He added that he found Mr. Huntley’s opinion. Justice Three votes can decisions, Eismann’s into court thing, do such a and there are four votes. day interesting, but that in all candor majority my Those view are all determination to stand his decision willing accept gospel too two state- had been made he before had been made ments totally unacceptable, which are both aware of them: I meant to do “[w]hat page 2 of the majority slip opinion. Tr., the decision is to dismiss the action.” First, there is the statement that: “The

I,Vol. granted district court Allstate’s motion for summary judgment and dismissed Sulli- ON DENIAL OF RESPONDENTS’ prejudice.” glar- vans’ PETITION FOR REHEARING ing fault that statement is in leaving the BISTLINE, Justice, On Denial of impression reader with the clear that All- Respondents’ Rehearing.1 Petition For prejudice.” state “moved to dismiss with Putting Nothing aside what I in February wrote could be further from the truth. year, us, of this I have started anew with record ‍‌‌​​‌‌​​‌​​​‌‌​​‌​​​​​‌​​​​​​​‌​​‌​‌‌​‌​​‌​​‌‌‌‌‍is before and I have read Shepard’s opinion Second, Justice in Sullivan the Allstate motion. there is the through and tracked the case down to and statement that at the reconsideration hear- including Judge Magnuson’s ing dismissal or- “the district court reaffirmed his intent der, beyond into our prejudice.” to dismiss the action with If 1989, following the first Boyle anyone at which Justice can show me some- membership comprised thing veracity to sustain the of that state- *7 Bakes, Johnson, ment, Shepard, Huntley, Justices abjectly I shall consider and humbly Towles, Judge sitting and Pro Tem. withdrawing participation On from further rereading Huntley’s opinion, particular Judge Justice it is Magnuson’s case. soundly present- seen that his views were comprehensive well-thought and out memo- ed, Judge any with Justice Johnson and Towles randum decision did not contain “in- accordingly concurring. language, Both Justices tent” nor did he at the reconsid- dissented, Shepard and seizing anything Bakes onto eration state whatever prejudice” they-do reaffirming the words “with which relative an intent to dismiss any regard highly singular reviewing prejudice. Additionally, without for the with decision, writing Judge respon- fact that in his own extremely Allstate’s well-written Magnuson carefully grounds page stated HIS dent’s brief dis- dismissing, which “Ultimately, had to do with closes this statement: the being brought prematurely, granted the action and court Allstate’s motion for summa- my repetition may bridge 1. In a final effort to dissuade on brothers concluded that sheer the ways, gap. the Court from the error of their it is communication III, prejudice, dismissal with judgment, R. mention of a ry Vol. and entered III, objected by plaintiff. that it was Vol. 142.” accordingly, an order R. competent read the or Obviously, counsel Making majority’s lack of conversan- namely Judge Magnuson, at a der as did remarkable, cy the more the record all with taking for trial glance, granted and days apparently it a full eleven later indeed drawn an order would have on placed the desk Allstate’s counsel Judge Magnuson’s according to which was which coun- Judge Magnuson the order of direction, eyes of and in the both behold accord- but which was not sel had drafted judge ers—the brief writer —“with direction, puts me ing to court’s prejudice” went unnoticed. This is poles apart justices. from the other but serious business. nitpicking, not mere judge, whose trial court de- district some, and that we win Any attorney knows termination four members of this Court game. in the name of the lose some—all we reversed, precipitately may be cha- suffered, it with when a loss is comes But (and I) grined learn how he from them poor grace be confronted with such Queen’s English. Speaking misread of glaring- of is so misportrayal the record as summary judgment, motion for Allstate’s ly judge, whose visible here. The district the Court’s would have its readers being carelessly over- correct decision is believe that there was intervention turned, overly learn- pleased cannot be on of defense counsel’s inadvertent or diaboli- facts circumstances as set ing that the of cal hand involved the manner be, judicial in the record can divine forth district termination “[t]he right, so that an will read distorted (Judge Magnuson) granted Allstate’s smoothly very indeed. motion for and dis- opinion in The Court’s first this case preju- missed Sullivan’s with 2,May pointed out issued on 1989. As out, dice.” taken pains point As have Huntley opinion, in that the case Justice beginning ago (February some time prior us one time. See had been beforе 1990), way happened.” it “that ain’t Ins., 111 v. Allstate Idaho court, Judge Cogswell, The district had be- (1986). opin Court’s fore him the clerk’s record and the same Sulli ion reflects the facts: Julie transcripts as five are available being unin injuries on struck an van’s us, undoubtedly it finds remarkable by three arbi sured motorist were found that, says happened, as the Court it “Sulli- $292,851.13; neg ters to total her share objected van to the dismissal with ligence percent; set at 35 and the dice____” Judge Cogs- I feel certain that negli uninsured motorist’s share join noting would me in that there well percent. gence Allstate’s then would be unitary dismissing prej- no such act with coverage maxi uninsured motorist was a udice, objected and that “Sullivan sim- ...” $20,000, exposure paid mum ply happen. did not arbiters, it receiving also the award Magnuson’s memorandum deci- $2,000 paid payments under the medical days was dated 1985. Three coverage policy (purchased by of the same Sullivan’s counsel filed mo- pro parents). While the arbitration Julie’s thereafter tion, objection, on, parents going the Sullivan cess (in Allstate, that motion was to reconsider that one Julie an action commendably respect majority reads handling alleging negligence in and in accurately) claim, its memorandum de- plus the record vestigation bad Sullivans’ *8 cision, entry delay to the Order responsibilities, “and as its with result faith to Summary Judgment, for the reasons on visited Sul ant emotional distress requested this mat- district that the Allstate moved the livans. defendant pending summary judgment which stayed Judge Magnuson, ter be an arbitration for dismissal, entry yet completed, alternatively the matter or of a has not process was (emphasis stay 138 the arbitration premature.” herein is R. until added). made That one and motion no concluded. ruling Judge Magnuson report- as stated. Idaho at 723 P.2d at 850.

ed Shepard Justice was: Counsel for the Sullivans did not on their initially granted appeal any way challenge in The district contest or that court summary judgment, observation; motion for con- they inept. were not that cluding policy that where an insurance Having challenged finding that of the requires arbitration in the event of dis- proceedings, arbitrators district agreement involving an uninsured mo- counsel knew that it could not raised for be claim, required torist an insured is appellate the first time at the level. Case pursue prior bringing arbitration proposition. law is abundant that against the insurer. We do not Moreovеr, damages stagger the total were disagree. and, ing, had Allstate sold uninsured mo Sullivan, 111 Idaho at 723 P.2d at 849 $100,000, coverage up torist it would added). (emphasis any reading On of the picking up have found itself the tab foregoing, beyond it is clear cavil that this $90,000. almost upheld Judge Magnuson’s Court dismissal damages The arbiters arrived at total action, of the and that this then $292,851.00, compara- and Julie’s share of there further understood that the dismissal negligence percent, tive was set at 35 so predicated upon premature filing was percent chargeable that left 65 to the unin- of the Sullivans’ action before the arbitra- motorist, recovery sured with a net to Julie process was concluded. total, percent computes of 65 reasons, Shepard For unknown Justice $190,353.15. out to Allstate’s limitation of mood, being expansive in an he wrote on $20,000, coverage making it all the general and on with a discussion of the law why more understandable the Sullivans and regarding coverage uninsured motorist delay their counsel believed that Allstate’s party policies, first insurance contacts or paying nothing event, its limits was based on finally concluding any that: “In refusing investigate Sullivans do not here contest the arbitra- but and arrive at a finding percent negligence tor’s of 35 on total, damage coupled delay with its of Julie Sullivan ... we deem it company good example was a of insurance liability upon clear that Allstate’s denial of faith. bad grounds negli- that Julie Sullivan’s own Moreover, opportunity there was no gence proximate was the her dam- challenge finding, challenge that and no agеs, was not taken in bad faith.” Sulli- only pause to exam- was made. One need I, van 111 Idaho at 723 P.2d at 850. Allstate ine the brief which counsel for retrospect, justices In I deem that four who provided Judge Magnuson to understand joined opinion guilty of indiffer- that there was no reason whatever for Jus- suggesting ence in requiring Shepard’s tice insertion in his terminate with this con- Court’s no con- on the the Sullivans’ made summary judgment clusion that percent negligence which test to the 35 correctly particular, entered. Justice “In the arbitrators assessed Julie: stating holding Shepard was correct alternative, that until we submit issuing “that the trial court was correct complete pending is the absence of fact____” admitted, liability adjudicated 111 and genuine issue of material duty at 852. The to the Idaho at P.2d balance insurer has no defеndant holding: of that sentence was not and that plaintiffs as the insureds gratuity, required and not to reach the premature.” is therefore cause of action holding reached. which was R., 125-26 30, 1985, Allstate’s brief January Dated Shepard’s As to Justice observation that counsel, signed by three of its Samuel contest the arbi- “the Sullivans do not here Johnson, Eismann, A. H. and Teresa Frank negligence finding percent of 35 trator’s R., Sullivan,” correctly part of Julie it is Sherman. *9 Farm, (Ore- vs. State Mendelson claim. immediately followed That brief 1979) 590 Pac.2d decision, Or. gon salient Judge Magnuson’s 269] written [285 reasoning appears be This portions of [1979]. are: Supreme Court’s of our logical extension shows, in this case without The record case, supra. reasoning in the Carter unin- contrary, the the any dispute to exists a con- there provisions concludes sured motorist insurance This Court in- relationship the calling for arbitration. between a clause tained different uninsured provides in an of the Idaho Code the insurer Section 7-901 sured and valid, In provision is enforceable situation. such a motorist insurance context, irrevocable, grounds as the unin- save such uninsured motorist effect, becomes, equity or in for the revoca- exist at law carrier motorist sured uninsured; noted thereby It should be contract. the insurer alleged or con- relationship have not be- plaintiffs creating an adversarial any such existence of tended and the insurer the insured tween grounds. policy. insurance uninsured motorist 726) (590 on the re-

There is no contention P.2d The Mendelson clause was plaintiffs arbitration almost identi- of facts that аre cites a set Idaho, strongly arbitration is It this Court. waived. those before cal - also that the It should be noted as favored. in the same fashion presents claims the first to invoke lit- plaintiffs Oregon court had The those herein. policy, the insurance determining clause of the insurer difficulty arbitration tle signed agreement required in a culminated as go through must to arbitrate. policy. by the pleadings The Court has reviewed original R., (emphasis in 134-35 and finds on file herein and affidavits any genuine issue there does not exist the de- Therefore, concludes this Court fact. material entitled to fendant is R., I, 131. cause of action dismissing plaintiffs’ defendant, a matter of as against case is whether

The real issue in this law. bring can an the insured pay for refusal to against the insurer R., of Dismis- Order lia- motorist claim

uninsured Eismann, provided: sal, by Mr. as drawn before motorist is de- bility the uninsured matter December On parties by agreement termined hearing on Motion regularly for came on Appellate The Idaho by arbitration. Defendant Judgment by Summary dealt this issue Courts have not plain- Company. Allstate Insurance holding in the beyond their Carter [v. Man- by David A. represented tiffs were case, 92 Id. Ins. Cascade [438 Co.] Kaiser; defendant A. ko and Bruce (1968)]. P.2d 566 Eismann, represented ‍‌‌​​‌‌​​‌​​​‌‌​​‌​​​​​‌​​​​​​​‌​​‌​‌‌​‌​​‌​​‌‌‌‌‍Samuel of action concludes a cause This Court Teresa A. Sher- H. Frank Johnson pay an refusal to an insurer’s based on argument of heard the man. The Court exist un- claim cannot motorist uninsured noted, and previously the date counsel on motorist liability of the uninsured til the herein, file the Motion on has considered the insur- adjudicated and is admitted consisting thereto including attachments pay the claim. refuses to er then Eismann, the Arbi- of Mr. of the affidavit into between Agreement entered

tration respective their parties and concludes the insured This Court Arbi- the American the rules of through go required to be should first Association, Demand and the motorist tration an uninsured arbitration of 1984; September dated Arbitration claim, by the automobile required and con- having reviewed also the Court an action bringing policy, prior files herein on the records sidered a bad the insurer faith *10 having file in the certainly above-entitled case and would indicate that those should altered____” issued and filed herein its Memorandum any way be in Tr. Decision, good appearing time, cause Judge Magnuson, at that Vol. 13.. therefor; him, copy asked counsel if he had a he, Judgе, obliged

IT IS HEREBY ORDERED that De- did not. Counsel Summary Judgment fendant’s Motion for judge judge copy, with a and the read it. hereby granted is and Plaintiffs’ Com- place brought then took plaint hereby prejudice dismissed with hearing to a close: attorneys’ and without costs or fees to record, THE For the I am not COURT: party. either taking judicial notice of the House of this_ DONE IN OPEN COURT Representatives Bill or whatever it of_, day play role in was. Its existence will not

my determination of this case. Okay, opportu- the Court had an [has] Judge District nity to review its Memorandum Deci- by: Presented opportunity and an before this hear- /s/ Samuel Eismann ing plaintiffs’ support to review brief Eismann Samuel Motion For Reconsideration. And of this Attorney for Defendant by upon reflecting, going I am to stand my original decision. R., I, 142-43. I interesting This is an field. wasn’t previously

As has been noted some time that Mr. Eis- aware of these decisions Bistline, February ago, J.’s today.2 They mann into court 1990, the arbitration award itself did not got interesting to read. But I’ve proceed- are surface in the courtroom or court candor, say my in all determination was ings until the court with counsel convened So, p.m. deny plaintiffs’ I aware of them. at 2:15 to hear made before was of the dismissal they play motion for reconsideration do not a role in the decision. Magnu- by Judge virtue of I occurred I Order that And have reviewed the memorandum decision and the order son’s prepared, and that’s what meant signed prepared by counsel and Allstate’s dismiss the to do the decision is to Judge Magnuson. action. by Judge Mag- award was not considered prepare such an order? you Would agreement to nuson. He did consider the you. Thank arbitrate, however. Is all causes of MR. MANKO: minutes of the In addition to the action? is now found that we Dismiss the action. THE COURT: reporter’s transcript of that short have a to a (Thereupon proceedings came transcript illuminat- hearing. The is more close.) which were ing than the minutes 13-14. Neither Tr. Vol. hearing was transcript. As the the clerk’s give any transcript minutes nor the and Allstate’s drawing to a conclusion Judge Magnuson was suggestion that presentation by his terminated he order to which aware that the drawn very carefully commenting: “I reviewed signature his differed had affixed Your Honor handed from giv- reasoned; his memorandum decision directive of very I think it’s well down ... eleven-page in his for Allstate en to counsel up [today] that would nothing that comеs Court, by the decision: points raised address the ruling U.S. Dis- case made in an unnamed question, which counsel for All- cases in

2. The Judge Ryan, Judge of a Haman’s to the consisted Harold state furnished trict District, Tiki, Inc., al., County, decision of Ada First Fourth Judicial Kon et decision in Nichols v. Savings Federal Court, in United First County. Newhouse Kootenai District Co., and a Transamerica Ins. Loan Ass’n. v. & . Therefore, Although the first sentence of Justice this Court concludes the de- ap- Boyle’s opinion acknowledges fendant is entitled to summary dismissing plaintiffs’ peal denying is from an order *11 against defendant, judgment, again mentions in later the as a matter of which he never, never, never pages, law. the pertinent concern for the rules shows attorney for the defendant is here- namely summary judgment proceedings, to by preparе requested to a suitable Order liberally are construed that the facts to be Summary granting Judgment the de- is party at whom the motion favor fendant, provided herein. nonmoving given party is directed and party This directs each shall be Court inferences of all favorable benefit responsible attorneys’ their fees for own might reasonably be from the which drawn this has herein. The Court finds matter hap- has and circumstances. What facts defended, by or not been either majority pened jumped is has here party, frivolously unreasonably or rule, gun, wholly and unmindful of without foundation. unmentioned, goes has redecided which BE IT SO ORDERED. judgment, motion for summary defendant's Wallace, Idaho, day this Dated 16th grants it. Not one word in the clerk’s April, 1985. record, reporter’s transcript can standing seriously be contended as R., рroposition that the award was arbitration obediently put Allstate in his Counsel for by Judge Magnuson as a indeed considered dismissal, provision drafted order a him, he the record when before fees, provision attorneys’ a for no costs or 1985. wrote his own decision secretary, perhaps, but must have inad- As well illustrated his remarks: vertently sandwiched in the two words reflecting, going I stand “[u]pon am being such prejudice,” “with almost a mat- my original decision ... and that’s what ter of rote more than most where often do decision dismiss meant to is to although with prejudice, dismissals are period, and un- the action.” Period means are specifically prejudice, some without der rules it ill-behooves course, simply some are Of it dismissals. Court construe four members of this well-recognized that a dismissal which is rеsisting mo- language party alleged not based on the merits of the which, all judgment summary controversy operate does not aas dismissal things, was for a dismissal. prejudice. In this case the court sim- dismiss, ply that the concluded decision made in the memorandum deci-

which was prior appear- to the arbitration award courtroom, ing in his would nevertheless stand. Idaho, Plaintiff-Respondent, STATE of conclusion, day, Justice Hunt- v. ley’s is better reasoned than what SMITH, Edward Neil offered, portions has the Court Defendant-Appellant. my been the nucleus views Particularly ‍‌‌​​‌‌​​‌​​​‌‌​​‌​​​​​‌​​​​​​​‌​​‌​‌‌​‌​​‌​​‌‌‌‌‍his. we No. 17550. concur with are both Judge Cogswell aware that first Supreme Idaho. Judge Magnu- conclude that the decision of Complaint in son was “to hold that March 1990. prema- No. 23040 Case [Sullivan /] Rehearing Denied June turely in that a of action had filed not then arisen because of proceeded

proceedings [which had not been waived].”

Case Details

Case Name: Sullivan v. Allstate Insurance
Court Name: Idaho Supreme Court
Date Published: Jun 20, 1990
Citation: 792 P.2d 905
Docket Number: 17029
Court Abbreviation: Idaho
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