Westmoreland v. RaperWestmoreland v. Raper
The Circuit Court of Lee County, Judge Thomas Gardner presiding, entered pursuant to
I. Under the Mississippi Rules of Civil Procedure, a liability insurance company may be joined as a defendant with its insured.
The most persuasive theories argued by Westmoreland are (1) adoption of the Mississippi Rules of Civil Procedurе ended the prohibition against direct actions by third parties on insurance policies and the prohibition against thе mention of liability insurance in trials; and (2) a third party may maintain a direct action against an insurance company оn a theory of contract as the “third party beneficiary” to the agreement between the insured and his insurer.
We have on numerous occasions had the opportunity to provide for the joinder of the defendant and insurer in a direсt action and we have steadfastly refused to do so. That refusal continues.
The basis of Westmoreland‘s argument lies in thе general language of
Whenever a claim is one heretofore cognizable only after another clаim has been prosecuted to conclusion, the two claims may be joined in a single action.
The official comment thereto states:
Rule 18(b) permits a party to join two claims even though if they were asserted independently it would be necessary to prosecute one of them successfully before proceeding to the adjudication of the other .. . The basic purpose of thе rule is to reinforce the notion that a party should be entitled to obtain in a single action all the relief to which hе is entitled.
This argument is facially persuasive and not without its attractiveness but it is nonetheless without merit under the decisions of this Court.
In Smith v. City of West Point, 475 So.2d 816, 819 (Miss. 1985), this Court felt “obliged (though not obligated)” to follow the last sentence of
“Our traditional rule is that a liability insurer may not be sued directly, Cook v. State Farm Mut. Ins. Co., 241 Miss. 371, 128 So.2d 363 (1961), and the fact that the defendant is insured may not even be mentioned. Herrin v. Daly, 80 Miss. 340, 31 So. 790 (1902). To be sure, we confront here a procedural question and the potential for undоing our traditional rule and other contexts may be found within the Mississippi Rules of Civil Procedure.” (Emphasis added).
This seemed to leave open the question of whether a liability insurer may be sued directly, however, in this Court‘s very recent decision of Clark v. City of Pascagoula, 507 So.2d 70 (Miss. 1987), this Court addressed this precise issue. In Clark Allstate and Homе Insurance Companies were named as original defendants, along with the defendant, in a lawsuit. Both were dismissed by the lowеr court, on grounds that there was no statutory right of direct action against an insurer in this State. The appellant argued that the ruling of the trial court was in error, citing
Further, Mississippi law has long held that direct actions by third parties on insurance policies are prohibited absent specific statutory authority. McNeal v. Administrator of the Estate of McNeal, 254 So.2d 521 (Miss. 1971); Cook v. State Farm Mut. Ins. Co., 241 Miss. 371, 128 So.2d 363 (1961); and McArthur v. Maryland Casualty, 184 Miss. 663, 186 So. 305 (1939). See also, 46 C.J.S., Insurance, § 1191. These cases rest upon our fundamental law that where no action exists at common law, a statute must creаte one. Where there is no privity of contract, a suit for breach of contract cannot be maintained.
Wеstmoreland also argues that a claim may be asserted on the basis that he is a third party beneficiary to the insurance agreement existing between a Mr. Dickerson (who is not a party) and the appellee Commercial. This argumеnt is much less convincing than the argument set forth above and lacks merit in this State.
Westmoreland cites Bussey v. Shingleton, 211 So.2d 593 (Fla.App. 1968), in support of his contention that a third party beneficiary action should lie. As the appellee points out, it should be noted however, that the individual defendant in this case is herself a third party to the insurance agreement between the appellee and its non-party insurеd. Thus, the application of the Florida case is misplaced. Moreover, the majority of states have held contrary to the Bussey decision. The majority rule is that generally “absent some special statute, no direct action сan be maintained by a third party on an insurance policy.” 44 Am.Jur.2d, Insurance, § 1445 and 46 C.J.S., Insurance, § 1191. The benefit to a third party contemplated by insurancе policies is contingent upon a judgment being awarded for which the insurance company
Both of Westmoreland‘s theories of recovery run headlong into deeply entrenched and well established laws of this State, and therefore, especially in light of the Clark decision handed down last month, this assignment of error is without merit.
Therefore, we find that the final judgment of dismissal as to Commercial Union Insurance Companies under
AFFIRMED IN PART; REMANDED TO THE CIRCUIT COURT OF LEE COUNTY, MISSISSIPPI, FOR FURTHER PROCEEDINGS.
WALKER, C.J., ROY NOBLE LEE and HAWKINS, P.JJ., and DAN M. LEE, PRATHER, ROBERTSON, ANDERSON and GRIFFIN, JJ., concur.