Richard D. Dunbar, Esquire
David A. Sims, Esquire
Myers, Powell & Dunbar
Gregory R. Tingler, Esquire
Parkerburg, West Virginia
Elkins, West Virginia
Attorney for Appellant
Attorneys for Appellee
The Opinion of the Court was delivered PER CURIAM.
CHIEF JUSTICE MAYNARD dissents and reserves the right to file a dissenting Opinion.
1.
A circuit court's entry of summary judgment is reviewed de novo. Syl. Pt.
1, Painter v. Peavy, 192 W.Va. 189, 451 S.E.2d 755 (1994)
.
2.
'A motion for summary judgment should be granted only when it is
clear that there is no genuine issue of fact to be tried and inquiry concerning the facts is not
desirable to clarify the application of the law. Syllabus Point 3, Aetna Casualty & Surety
Co. v. Federal Insurance Co. of New York, 148 W.Va. 160, 133 S.E.2d 770 (1963).'
Syllabus Point 1, Andrick v. Town of Buckhannon, 187 W.Va. 706, 421 S.E.2d 247 (1992).
Syl. Pt. 2, Painter v. Peavy, 192 W.Va. 189, 451 S.E.2d 755 (1994)
.
3. The parol evidence rule may not be invoked by a stranger to a release.
Syllabus,
Haymaker v. General Tire Inc., 187 W.Va. 532, 420 S.E.2d 292 (1992).
4. The execution of a general release in favor of the original tort-feasor
or dismissal with prejudice of a civil action against such tort-feasor is prima facie evidence
of the intention of the injured party to accept the same as full satisfaction of all damages
which naturally flow from the original injury, in the absence of language or circumstances
in the release or dismissal indicating a contrary intention of the parties; but whether such
release or dismissal is a bar to further action for malpractice against the treating physician
or hospital providing care is a question of fact to be answered from the intention of the
parties. Syl. Pt. 5, Thornton v. Charleston Area Med. Ctr., 158 W.Va. 504, 213 S.E.2d 102
(1975
).
5. To determine the intention of the parties with reference to release of
successive tort-feasors, the injured party is entitled to introduce parol evidence to explain the
terms of a contract of release in favor of, or the circumstances attendant to a dismissal with
prejudice of a civil action against, the original tort-feasor. Syl. Pt. 6, Thornton v. Charleston
Area Med. Ctr., 158 W.Va. 504, 213 S.E.2d 102 (1975).
6.
'[A] valid written instrument which expresses the intent of the party
in plain and unambiguous language is not subject to judicial construction or interpretation
but will be applied and enforced according to such intent.' Syllabus point 1, Cotiga
Development Co. v. United Fuel Gas Co., 147 W.Va. 484, 128 S.E.2d 626 (1962). Syl. Pt.
1, Melbourne Bros. Constr. Co. v. Pioneer Co.,
181 W.Va. 816,
384 S.E.2d
857 (1989).
7. To enable the court to construe a deed or other writing, ambiguous on
its face, it is always permissible to prove the situation of the parties, the circumstances
surrounding them when the contract was entered into and their subsequent conduct giving
it a practical construction, but not their verbal declarations. But, if a latent ambiguity is
disclosed by such evidence, such for instance as that the terms of the writing are equally
applicable to two or more objects, when only a certain one of them was meant, then prior and
contemporaneous transactions and collocutions [sic] of the parties are admissible, for the
purpose of identifying the particular object intended. Syl. Pt. 2, Snider v. Robinett, 78 W.
Va. 88, 88 S.E. 599 (1916).
Per Curiam:
This case is before the Court upon the final order of the Circuit Court of
Ritchie County, granting summary judgment in favor of the Appellee, Scott Lacey. The
circuit court found that a Release of All Claims agreement (release) executed between the
Appellant, Louis J. Kopf, Jr.
, and Barbara Lacey, Patrick Lacey, as well as their insurer, West
Virginia Fire and Casualty Insurance Company, acted as a bar to the suit brought by the
Appellant against the Appellee. Based upon a review of the parties' briefs and arguments
and all other matters of record, we reverse and remand the lower court's decision for further
proceedings consistent with this opinion.
Subsequent to the incident, the Appellant made a claim for his injuries against
Barbara and Patrick Lacey through their insurer, West Virginia Fire and Casualty Company.
The Appellant also made a claim for his injuries against the Appellee, through his insurer,
West Virginia Insurance Company. Both of these claims were made prior to the Appellant
instituting civil action against the Appellee.
The Appellant reached a settlement with Patrick and Barbara Lacey and their
insurer for the amount of $18,000.
The Appellant then filed a civil action against the
Appellee on May 17, 1999.
The Appellee had no knowledge of the settlement between the
Appellant and Barbara and Patrick Lacey until after the civil suit against him was filed.
Subsequent to the institution of the lawsuit against the Appellee, the Appellant, on June 2,
1999, executed a release reflecting that the Appellant
does hereby forever release, acquit, and discharge Patrick Lacey,
Barbara Lacey and West Virginia Fire & Casualty Company
their subsidiaries, directors, officers, and all persons acting on
behalf of the aforementioned entities, individually, and in their
capacity as directors, officers, representatives, or otherwise, as
to all claims asserted with respect to an incident occurring on
May 19, 1997.
The Appellee filed a motion for summary judgment seeking dismissal of the
action based upon the release executed as a result of the settlement the Appellant received
from Patrick and Barbara Lacey and their insurer. The lower court refused to give any
consideration to the affidavit of Gregory Schillace, the attorney who drafted the release,
which was submitted by the Appellant in opposition to the summary judgment motion. In
the affidavit, Mr. Schillace specifically states that [t]he Release was never intended to
release claims which Louis Kopf had against Scott Lacey from the May 19, 1997 accident
which resulted in injuries to Louis Kopf.
The circuit court considered the affidavit parol
evidence and refused to admit it, stating that [t]he Release of All Claims is not ambiguous
and is not subject to judicial interpretation. The circuit court then granted the Appellee's
motion for summary judgment and dismissed the action against the Appellee, ruling that
[t]he Release of All Claims agreement releases all claims that were asserted as a result of
the incident occurring on the 19th day of May, 1997, including the claims asserted against
Scott Lacey. It is this ruling that forms the basis for the present appeal.
The Appellant first argues that the Appellee was not permitted to assert the
parol evidence doctrine with regard to the affidavit at issue because the Appellee was a
stranger to the release. The Appellant relies heavily upon this Court's decision in Haymaker
v. General Tire Inc., 187 W.Va. 532, 420 S.E.2d 292 (1992), to support his position. In
Haymaker, the lower court had granted summary judgment in favor of the appellees, General
Tire, Inc., and Turnpike Ford, Inc., based upon a determination that a general release signed
by the appellant, David Michael Matheny, settling his claim against the estate of Kevin D.
Haymaker and Deanna L. Haymaker also released the appellees. The appellant was a
passenger in a vehicle driven by Kevin D. Haymaker when a single vehicle accident
occurred. Kevin D. Haymaker was killed as a result of injuries sustained in the accident.
The appellant entered into a settlement agreement with the estate of Mr. Haymaker and Mrs.
Haymaker and specifically released those two parties for $12,000 in consideration. Id. at
532, 420 S.E.2d at 292. The appellant later brought action against Turnpike Ford, Inc., the
dealer who sold the vehicle to Mr. Haymaker's wife, as well as General Tire, Inc., the
manufacturer of the tires on the vehicle. The appellant alleged that the accident was caused
by a faulty left rear tire which exploded, causing Mr. Haymaker to lose control of the car.
Id.
The appellees argued that the language of the release which provided that 'all
other persons, firms or corporations liable or who might be claimed to be liable . . . [are
released] from any and all claims, demands, damages, actions[,] causes of actions or suits of
any kind or nature whatsoever' released them as well and precluded the appellant's claim
against the respective entities. Id. at 533, 420 S.E.2d at 293. The appellant sought to
introduce the affidavit of a claims superintendent with Mr. Haymaker's insurer to show that
the release was only intended to release Mr. Haymaker, and was not intended to release any
other person. Id. The trial court refused to consider the parol evidence.
In reversing the trial court's decision to preclude the admission of parol
evidence, we held in the syllabus of Haymaker, that [t]he parol evidence rule may not be
invoked by a stranger to a release. Id. at 532, 420 S.E.2d at 292, Syllabus. We premised
this holding, however, upon the lack of any type of relationship between the parties involved:
Permitting the use of parol evidence to interpret a release
in actions between a party to a release and a stranger thereto is
also consistent with the rule in this jurisdiction that permits the
use of parol evidence by an injured party to determine the intent
of the parties to release successive tortfeasors in an agreement
to release the original tortfeasor. See Thornton v. Charleston
Area Medical Center, 158 W.Va. 504, 213 S.E.2d 102 (1975).
187 W. Va. at 534, 420 S.E.2d at 294.
We also found that the adoption of such a rule
precluding a stranger to a release to invoke the parol evidence rule was consistent with West
Virginia Code § 55-7-12 (1931), which provided:
'A release to, or an accord and satisfaction with, one or
more joint trespassers, or tort-feasors, shall not inure to the
benefit of another such trespasser, or tort-feasor, and shall be no
bar to an action or suit against such other joint trespasser, or
tort-feasor, for the same cause of action to which the release or
accord and satisfaction relates.'
187 W. Va. at 534, 420 S.E.2d at 294 (quoting W. Va. Code § 55-7-12).
Even though we referred to the appellees in Haymaker as strangers to the release, the reason that they were strangers was because they were in a successive tortfeasor relationship to the original tortfeasor. This is quite easily established by application of the test previously used by this Court in Sansom v. Physicians Associates, Inc., 182 W. Va. 113, 386 S.E.2d 480 (1989), to determine whether the tortfeasors were concurrent or successive.
The test is simply whether [t]he negligent acts of each of the defendants 'in point of time
and place concur.' Id. at 115, 386 S.E.2d at 482 (quoting Syl. Pt. 2, Lewis v. Mosorjak, 143
W. Va. 648, 104 S.E.2d 294 (1958)).
The claim against the appellees in Haymaker sounded
in product's liability. It was based upon the allegation that the appellees manufactured a
defective product which was introduced into the market and
which may have caused or
contributed to the accident that occurred
.
The negligent acts of the appellees in Haymaker,
therefore, clearly occurred prior to the negligent act of the driver of the vehicle involved in
the accident.
Moreover, unlike the present case, it was evident in Haymaker, that the
appellees were not engaged in any business or activity on behalf of the other tortfeasor,
decedent, Mr. Haymaker, when the accident occurred.
Similarly, in Thornton, we upheld the introduction of parol evidence in
determining the intention of the parties in executing a general release as to whether that
release governed successive tortfeasors or, in essence, strangers to the original release. We
held in syllabus points five and six of Thornton that:
The execution of a general release in favor of the original
tort-feasor or dismissal with prejudice of a civil action against
such tort-feasor is prima facie evidence of the intention of the
injured party to accept the same as full satisfaction of all
damages which naturally flow from the original injury, in the
absence of language or circumstances in the release or dismissal
indicating a contrary intention of the parties; but whether such
release or dismissal is a bar to further action for malpractice
against the treating physician or hospital providing care is a
question of fact to be answered from the intention of the parties.
To determine the intention of the parties with reference
to release of successive tort-feasors, the injured party is entitled
to introduce parol evidence to explain the terms of a contract of
release in favor of, or the circumstances attendant to a dismissal
with prejudice of a civil action against, the original tort-feasor.
158 W. Va. at 505, 213 S.E.2d at 103, Syl. Pts. 5 and 6; see Sansom, 182 W. Va. at 115-16,
386 S.E.2d at 482-83
(recognizing that once a successive tortfeasor relationship is found to
exist, the injured party is entitled to introduce parol evidence with regard to the release to
explain what was intended. This rule does not require, as does some ordinary parol evidence
rule, that there be some ambiguity in the release.).
Given that our prior decisions in Haymaker, Thornton and Sansom all involve
the issue of whether a release governs successive tortfeasors, those decisions are
distinguishable and not dispositive of the instant appeal. Both parties agree that the property
owners, Barbara and Patrick Lacey, and the Appellee were concurrent tortfeasors. The
Appellee was acting on behalf of Barbara Lacey and Patrick Lacey in cutting down the tree.
In other words, but for the Appellee's alleged negligence, the Appellant would not have had
any claim against Barbara and Patrick Lacey.
Because of this fact, the rule relating to
successive tortfeasors as expressed in Haymaker, Thornton and Sansom is unavailable to the
Appellant.
Therefore, in order to resolve this issue,
we must turn to the general rules
governing interpretation of written contracts in order to assess whether parol evidence may
have been admissible due to an ambiguity in the release. This Court has repeatedly held that
'[a] valid written instrument which expresses the intent of the party in plain and
unambiguous language is not subject to judicial construction or interpretation but will be
applied and enforced according to such intent.' Syllabus point 1, Cotiga Development Co.
v. United Fuel Gas Co., 147 W.Va. 484, 128 S.E.2d 626 (1962). Syl. Pt. 1, Melbourne Bros.
Constr. Co. v. Pioneer Co.,
181 W.Va. 816,
384 S.E.2d
857 (1989).
A latent ambiguity,
which does not appear upon the face of the document, however, may be created by intrinsic
facts or extraneous evidence. To resolve a latent ambiguity, parol evidence may be admitted.
See Black's Law Dictionary 794 (5th ed 1979). As this Court previously held in syllabus
point two of Snider v. Robinett, 78 W. Va. 88, 88 S.E. 599 (1916):
To enable the court to construe a deed or other writing,
ambiguous on its face, it is always permissible to prove the
situation of the parties, the circumstances surrounding them
when the contract was entered into and their subsequent conduct
giving it a practical construction, but not their verbal
declarations. But, if a latent ambiguity is disclosed by such
evidence, such for instance as that the terms of the writing are
equally applicable to two or more objects, when only a certain
one of them was meant, then prior and contemporaneous
transactions and collocutions of the parties are admissible, for
the purpose of identifying the particular object intended.
Id., Syl. Pt. 2; see Farmers and Merchants Bank v. Farmers and Merchants Bank,
158 W.Va.
1012,
1017, 216 S.E.2d 769, 772
(1975)('A latent ambiguity is one that is not apparent upon
the face of the instrument alone and that is discovered when it is sought to identify the
property, the beneficiaries, etc.')
; Collins v. Treat, 108 W. Va. 443, 446, 152 S.E. 205, 206
(1930) (A 'latent ambiguity arises when the instrument upon its face appears to be clear and
unambiguous, but there is some collateral matter which makes the meaning uncertain. . . .'
The most common example of a latent ambiguity is where there are more than one person or
thing of the same name or description employed in the instrument.)
(citation omitted).
This Court has most frequently encountered latent ambiguities in the will
context. For instance, in Transamerica Occidental Life Ins. Co. v. Burke,
179 W.Va. 331,
368 S.E.2d 301 (1988
), we held that [a
] class description such as 'children' ordinarily raises
a latent ambiguity if there are, for example, stepchildren, so that evidence of the testator's or
insured's relations with and attitude toward them is admissible to determine whether it was
the testator's or insured's intent to include them in the gift. Id. at 336, 368 S.E.2d at 306.
In Belcher v. Big Four Coal & Coke Co.,
68 W.Va. 716,
70 S.E. 712 (1911),
however, this Court was presented with a latent ambiguity in a coal contract.
In Belcher,
an issue arose regarding whether the parties to a contract providing for an agreed-upon
royalty of $1.50 per 'railroad car, or its equal[]' intended that only so much royalty was to
be paid per railroad car, regardless of the quantity of coal that might be shipped in a car. Id.
at 719, 70 S.E. at 713. We construed the agreement to mean that the parties to it had some
definite size or capacity of coal car in mind by referring to a coal car or its equal. At the
time of the agreement, the parties to the agreement knew the railroad company shipped coal
using cars of 30,000, 40,000, 50,000, and 60,000 pounds capacity. Because of this extrinsic
fact, we found that the contract had a latent ambiguity regarding the unit of measurement
which the parties intended. Id. at 719-20, 70 S.E. at 714.
In the instant case, the circuit court, in concluding that the language of the
release was unambiguous, focused upon the language that provided that all claims asserted
with respect to an incident occurring on May, 19, 1997[,] were released. The circuit court
determined that this language included the claim asserted against the Appellee. We agree that
there is no ambiguity apparent on the face of the release. When trying to identify what
claims were actually released and as against whom, however, facts extraneous to this
language in the release create a latent ambiguity. Barbara and Patrick Lacey, as well as the
Appellant, certainly knew of the existence of the Appellant's claim against the Appellee and
his insurer at the time the release was executed. It is also notable that there had been at least
one settlement discussion between the Appellant and the Appellee's insurer, in addition to
the discussions that occurred between the Appellant and Barbara and Patrick Lacey's insurer.
In other words, all the tortfeasors knew that the Appellant had asserted claims against their
respective insurers prior to the settlement that resulted in the release at issue.
Yet, the release
expressly failed to include or exclude the claim that the Appellant had against the Appellee.
The circumstance that all of the parties involved, tortfeasors and claimant, knew that the
Appellant had asserted a claim against the Appellee and had commenced a civil action
against the Appellee before the release was signed is significant in light of the fact that West
Virginia Code § 55-7-12 clearly indicates that the release of one joint tortfeasor shall not
inure to the benefit of another or otherwise be a bar to a recovery against another unreleased
joint tortfeasor. See id. This statute, which expresses the clear public policy in this state,
should not be disregarded so lightly. Clarity, even specificity, as to claims and persons
released, should be required to circumvent the rule expressed therein.
We also find that a latent ambiguity exists in the language of the release which
discharges Patrick Lacey, Barbara Lacey and West Virginia Fire & Casualty Company their
subsidiaries, directors, officers, and all persons acting on behalf of the aforementioned
entities, individually, and in their capacity as directors, officers, representatives, or otherwise.
. . . Again, at the time this release was executed, it was known to both Patrick and Barbara
Lacey, as well as the Appellant, that the Appellee not only was acting on behalf of Patrick
and Barbara Lacey in cutting down the tree, but also that the Appellant had, indeed, sued the
Appellee based on that fact. That the Appellee was not expressly named either by including
or excluding him as a beneficiary in the release creates a latent ambiguity regarding whether
the Appellee's negligence was truly intended to be encompassed by the terms of the release.
Accordingly, the lower court erred in its determination that the language of the
release was so clear and unambiguous that the words used necessarily included a release of
the claim against the Appellee. Pursuant to our case law, to resolve the latent ambiguity
created by the circumstances existing at and before the time the release was signed,
the lower
court should have allowed the admission of parol evidence regarding the parties' intentions
as to which individuals were to benefit from the release at issue. Further, as we have
previously indicated in syllabus point five of Thornton, whether the release should be a bar
to further action by the Appellant against the Appellee is a question of fact to be answered
from the intention of the parties. 158 W. Va. at 505, 213 S.E.2d at 103, Syl. Pt. 5, in part.
Thus, on remand, the lower court should allow further development of the record regarding
the parties' intentions as to which individuals were to benefit from the release at issue. Upon
completion of this factual development, if no genuine issue of fact to be tried exits, then the
case may be in a posture once again for summary judgment consideration. See Syl. Pt. 2,
Painter,
192 W.Va. at 190,
451 S.E.2d at 756
.
If, however, genuine issues of facts to be tried
are present, then a trial to determine the parties' intention regarding the release at issue may
be necessary.
Based on the foregoing, the decision of the lower court is hereby reversed and
remanded for further proceedings consistent with this opinion.