BETTY T. O'HERN, PETITIONER,
v.
GUY H. DONALD, D/B/A DONALD'S FRUIT & PRODUCE, ET AL., RESPONDENTS

Fla. | 1973-02-07
No. 42049
CARLTON, C. J., and ROBERTS, ERVIN and DEKLE, JJ., concur., DREW, J. (Retired), dissents.
278 So. 2d 257 Florida Supreme Court (1973) Positive Treatment
Cited by 2 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

The Florida Supreme Court held that an injured party in a tort case is the third-party beneficiary and real party in interest to her tortfeasor's liability insurance contract, and therefore has superior rights to insurance proceeds recovered in an excess coverage suit compared to the tortfeasor's other creditors seeking garnishment.


Holding

The injured party is a third-party beneficiary to the liability insurance contract and the real party in interest in suits against the insurer for excess coverage. The insurance proceeds obtained in the excess coverage suit are the property of the injured party, not the tortfeasor, and are not available to the tortfeasor's creditors for garnishment.


Headnotes

[1] An injured party is a third-party beneficiary to the contract between a tortfeasor and the tortfeasor's liability insurer.

[2] An injured party is the real party in interest in a suit against an automobile liability insurer for excess coverage.

Previewing 2 of 4 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.

Join FLexlaw to unlock all legal intelligence

Key Quotes

“the injured party in an automobile accident is third party beneficiary to the contract between the tortfeasor and the tortfeasor's liability insurer, as well as the real party in interest in the suit against the automobile liability insurer”

Establishes the core legal principle that injured parties have direct rights in insurance contracts

Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.

Join FLexlaw to unlock all legal intelligence

Facts & Procedural History

In July 1965, Betty O'Hern obtained a $110,000 judgment against Guy Donald in a wrongful death action. Donald's insurer paid $100,000 (policy limits),…

The full statement of facts, procedural history, and disposition for this case are member content.

Join FLexlaw to unlock all legal intelligence

© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.


Opinion of the Court
BOYD, Justice.

BOYD, Justice.

This cause is before us on petition for writ of certiorari to review the decision of the District Court of Appeal, Fourth District, reported at 256 So.2d 13. Jurisdiction is based on conflict between the decision sought to be reviewed and Shingleton *258v. Bussey,1 and Thompson v. Commercial Union Insurance Co.2

In July 1965 plaintiff O’Hern, petitioner herein, obtained a judgment of $110,000 against defendant Guy H. Donald in a wrongful death action. Subsequently, Donald’s insurer, defendant National Indemnity Company, paid plaintiff $100,000, the limits of its liability under the policy issued to Donald. On January 19, 1966, plaintiff filed a writ of execution in Duval County against Donald for the $10,000 balance of the judgment remaining unpaid.

On March 1, 1966, Donald brought an action in the Circuit Court for Palm Beach County against National Indemnity, his insurer, for the $10,000 excess of the judgment over the policy limits, alleging bad faith refusal to settle on the part of National Indemnity. On April 21, 1967, Atlantic National Bank of Jacksonville recovered a judgment against Donald of some $17,000, in an unrelated action.

On August 29, 1967, Donald recovered a judgment of $10,000 in his action against his insurer, National Indemnity. Superse-deas bond was posted and the judgment appealed to the District Court of Appeal, Fourth District, which affirmed per curiam.3

In January 1970 Atlantic filed an action in the Circuit Court for Duval County seeking to garnish the judgment recovered by Donald against National Indemnity as partial satisfaction of the judgment recovered by Atlantic against Donald. Plaintiff O’Hern was allowed to intervene in the garnishment proceedings, but apparently took no active part in that case. On May 8, 1970, a final judgment of garnishment was entered by the Duval Circuit Court in favor of Atlantic. Execution was stayed, however, pending the outcome of the instant case.

Meanwhile, after the affirmance and denial of certiorari in National Indemnity Company v. Donald, supra, plaintiff intervened in supplementary proceedings in the Circuit Court for Palm Beach County, seeking to enforce her claim against the supersedeas bond which had been posted by National Indemnity. Aware of the pen-dency of the garnishment proceeding in Duval County, the trial court entered an order requiring National Indemnity to pay into the registry of the Court the amount due on the judgment in National Indemnity Company v. Donald, supra, so that National Indemnity would not be forced to pay twice.

Subsequently, plaintiff O’Hern filed the present action for declaratory relief, seeking to determine the rights of all the parties to the money which had been paid by National Indemnity into the Court. Final judgment was entered, in which the trial court determined that Atlantic was entitled to the money on account of its judgment in the garnishment proceeding.

The District Court affirmed, holding in pertinent part as follows: 4

“Plaintiff’s second point, that Atlantic had nothing to garnish because the $10,000 judgment against National Indemnity was rendered for plaintiff’s benefit and not in favor of Donald, may quickly be disposed of. This contention is simply not supported by the record. Nowhere in the scanty record on appeal, aside from plaintiff’s bare assertions in her brief, is there any suggestion that Donald’s action against National Indemnity was brought for the benefit of plaintiff. Plaintiff was not a party of *259record, on appeal or at trial. See National Indemnity Company v. Donald, [Fla.App.], 229 So.2d 900, 901. Had Donald desired to assign the cause of action to plaintiff, he could have easily done so, and she would have then appeared as the real party in interest.”

The foregoing statement creates conflict with this Court’s decisions in the Shingle-ton and Thompson cases, supra, wherein we held that the injured party in an automobile accident is third party beneficiary to the contract between the tortfeasor and the tortfeasor’s liability insurer, as well as the real party in interest in the suit against the automobile liability insurer.5

The insurance proceeds available for compensation of Mrs. O’Hern for the death of her husband in the instant case are not, and at no time became, the property of defendant Donald. Regardless of in whose name the suit for excess coverage was brought, the funds obtained were those of Mrs. O’Hern and at no time were available to Donald or his creditors. Mrs. O’Hern in the instant case was not in the position of a creditor on a par with other creditors of Donald seeking to obtain execution against, or to garnish, funds of Donald. The funds in question were hers at the time judgmént was entered against the liability insurer in the excess coverage suit.

Accordingly, certiorari is granted, the decision of the District Court is quashed and the cause remanded for further proceedings consistent herewith.

It is so ordered.

CARLTON, C. J., and ROBERTS, ERVIN and DEKLE, JJ., concur.

DREW, J. (Retired), dissents.

DREW, Justice (Retired),

dissenting:

I agree with the decision of the District Court.

ON REHEARING GRANTED

BOYD, Justice.

Respondents filed a petition for rehearing, objecting to this Court’s order heretofore entered in this cause, which directed them to pay attorney’s fees of two thousand dollars to petitioner’s attorney for his services before this Court in this cause.

We have further considered the record and Section 627.428(1), Florida Statutes, 1971, F.S.A.,1 requiring an insur-*260anee company to pay attorney’s fees for the insured person when the failure of the company to pay, as provided in the policy, requires litigation.

The respondent insurance company paid the fees to petitioner’s attorney in the trial court. All further litigation resulted from a claim asserted against the insurance funds by the respondent Bank. Since the litigation subsequent to the controversy in the original proceedings, contesting the obligation of the company to pay, were not within the purview of the above statute, the respondent insurance company has no statutory obligation to pay the fees, and the Bank is not legally obligated to pay.

Rehearing is granted only on question of attorney’s fees, and the order on same is vacated.

CARLTON, C. J., and ROBERTS, ERVIN, DEKLE and DREW (Retired), JJ., concur.

Dissent
DREW, Justice (Retired),

DREW, Justice (Retired),

dissenting:

I agree with the decision of the District Court.
Other
BOYD, Justice.

BOYD, Justice.

Respondents filed a petition for rehearing, objecting to this Court’s order heretofore entered in this cause, which directed them to pay attorney’s fees of two thousand dollars to petitioner’s attorney for his services before this Court in this cause.

We have further considered the record and Section 627.428(1), Florida Statutes, 1971, F.S.A.,1 requiring an insur- anee company to pay attorney’s fees for the insured person when the failure of the company to pay, as provided in the policy, requires litigation.

The respondent insurance company paid the fees to petitioner’s attorney in the trial court. All further litigation resulted from a claim asserted against the insurance funds by the respondent Bank. Since the litigation subsequent to the controversy in the original proceedings, contesting the obligation of the company to pay, were not within the purview of the above statute, the respondent insurance company has no statutory obligation to pay the fees, and the Bank is not legally obligated to pay.

Rehearing is granted only on question of attorney’s fees, and the order on same is vacated.

CARLTON, C. J., and ROBERTS, ERVIN, DEKLE and DREW (Retired), JJ., concur. . “Upon the rendition of a judgment or decree by any of the courts of this state against an insurer and in favor of an insured or the named beneficiary under a policy or contract executed by the insurer, the trial court, or, in the event of an appeal in which the insured or bene ficiary prevails, the appellate court, shall adjudge or decree against the insurer and in favor of the insured or beneficiary a reasonable sum as fees or compensation for the insured’s or beneficiary’s attorney prosecuting the suit in which the recovery is had.”


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • Travelers Ins. Co. v. Minerva A. Perez, 384 So. 2d 971 (Fla. 3d DCA 1980)
    …he insured. Shingleton v. Bussey, 223 So. 2d 713 (Fla.1969). Once Ms. Perez obtained the right to proceed against the insurer she could not be divested of that right by the actions of the insured or the insurer without her consent. O’Hern v. Donald, 278 So. 2d 257 (Fla.1973). Public policy considerations militate against interpreting the release to have so drastic an effect. To allow an insured to release an insurer from a third party beneficiary’s claim would invite collusive or coerced contracts and afford…

Authorities Cited

Full citator, related cases, and AI research tools

Open in FLexlaw