Williamson-Green v. Interstate Fire and Casualty Company (Lawyers Weekly No. 12-062-17)
COMMONWEALTH OF MASSACHUSETTS SUFFOLK, ss. SUPERIOR COURT. 1684CV03141-BLS2 ____________________ MICHELLE WILLIAMSON-GREEN, as Administratrix of the Estate of James W. Williamson IV v. INTERSTATE FIRE AND CASUALTY COMPANY ____________________ MEMORANDUM AND ORDER DENYING DEFENDANT’S MOTION FOR PARTIAL JUDGMENT ON THE PLEADINGS James W. Williamson IV died from injuries sustained while he was inspecting a roof from a bucket lift that tipped over. His estate brought a wrongful death action against both the lift manufacturer and the company that had had rented out the lift, Equipment 4 Rent, Inc. (“E4R”). The jury found that the manufacturer and E4R were both negligent and awarded compensatory damages of $ 4.3 million. It also found that “E4R’s conduct was grossly negligent, willful, wanton, or reckless” and awarded additional punitive damages of $ 5.9 million, as allowed under G.L. c. 229, § 2. Interstate Fire and Casualty Company had insured E4R. It paid E4R’s share of the compensatory damages but refused to pay any part of the punitive damage award. In this action Plaintiff claims that Interstate failed to settle the claims against E4R after its liability had become reasonably clear. She asserts one claim on behalf of Mr. Williamson’s estate and four claims as E4R’s assignee. The assigned claims allege that E4R’s damages include “being exposed to an uncovered punitive damages award that would have been avoided had Interstate settled the Underlying Action.” Interstate has moved for judgment on the pleadings on the assigned claims. It argues that requiring an insurer to pay any part of a punitive damages award, even as consequential damages arising from the insurer’s failure to settle a meritorious claim, would be against public policy. The Court must DENY Interstate’s motion because Massachusetts law does not insulate an insurer from liability for damages incurred because its insured caused bodily injury, engaged in reckless or grossly negligent misconduct, or did both. The limitation on insurers’ liability sought by Interstate would be inconsistent with G.L. c. 175, § 47, cl. Sixth (b), which “codifies the entire public policy” of Massachusetts regarding the insurability of losses – 2 – resulting from reckless misconduct. Andover Newton Theological Sch., Inc. v. Cont’l Cas. Co., 409 Mass. 350, 353 n.2 (1991).1 1. Insurers’ Liability for Failing to Settle Claims. Once an insured’s liability for a particular claim has become reasonably clear, the insurer has a duty under Massachusetts law to make a fair offer to settle the claim and to do so promptly. This duty is imposed on all insurers by statute. See G.L. c. 176D, § 3(9)(f); Hopkins v. Liberty Mut. Ins. Co., 434 Mass. 556, 566-567 (2001). In many cases it is also an implicit part of the insurer’s contractual obligations. When an insurance policy […]
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Williamson-Green v. Equipment 4 Rent, Inc. (Lawyers Weekly No. 11-023-16)
NOTICE: All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports. If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA, 02108-1750; (617) 557-1030; SJCReporter@sjc.state.ma.us 15-P-114 Appeals Court MICHELLE WILLIAMSON-GREEN, administratrix,[1] vs. EQUIPMENT 4 RENT, INC. No. 15-P-114. Suffolk. November 3, 2015. – March 3, 2016. Present: Kafker, C.J., Vuono, & Hanlon, JJ. Negligence, Gross negligence. Damages, Punitive. Practice, Civil, Directed verdict, Judgment notwithstanding verdict. Civil action commenced in the Superior Court Department on April 24, 2009. The case was tried before Janet L. Sanders, J., and a motion for a new trial or for remittitur was heard by her. Thomas F. Maffei (Margaret C. Kelty with him) for the defendant. Joan A. Lukey for the plaintiff. KAFKER, C.J. James Williamson was perched more than one hundred feet high on a boom lift, inspecting the roof of a university building in Boston, when the machine tipped over and crashed into a neighboring building, killing him. The boom lift had been manufactured by Grove U.S., LLC (Grove), and rented from the defendant Equipment 4 Rent, Inc. (E4R). Williamson’s wife, Michelle Williamson-Green, as administratrix of Williamson’s estate, successfully sued Grove and E4R for damages associated with her husband’s wrongful death. The jury found that negligence of Grove and of E4R each was “a direct and substantial factor in causing the death of Mr. Williamson.” The jury also found that “E4R’s conduct [was] grossly negligent, wilful, wanton, or reckless.” The jury awarded $ 3,692,657.40 in compensatory damages against E4R and Grove, together with $ 5,900,000 in punitive damages solely against E4R. The trial judge denied E4R’s motions for a directed verdict and judgment notwithstanding the verdict,[2] judgment entered, and E4R appeals, claiming only that there was insufficient evidence to support the jury’s award of punitive damages.[3] We affirm. Background. In considering an appeal of “[t]he denial of a motion for directed verdict or a motion for judgment notwithstanding the verdict[, we must review the record] under the same standard used by the trial judge[,] . . . constru[ing] the evidence in the light most favorable to the nonmoving party and disregard[ing] that favorable to the moving party.” O’Brien v. Pearson, 449 Mass. 377, 383 (2007). See Christopher v. Father’s Huddle Café, Inc., 57 Mass. App. Ct. 217, 219 (2003). “Our duty in this regard is to evaluate whether ‘anywhere in the evidence, from whatever source derived, any combination of circumstances could be found from which a reasonable inference could be […]