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Knittle v. Progressive Casualty Ins. Co.

Supreme Court of Nevada
Jan 4, 1996
112 Nev. 8 (Nev. 1996)

Summary

holding that a claim for declaratory relief against the insurer of a party alleged to have caused injury to the plaintiff is contingent on the plaintiff's first obtaining a judgment against the insured party

Summary of this case from McVay v. Allied World Assurance Co.

Opinion

No. 26160

January 4, 1996

Appeal from Eighth Judicial District Court, Clark County; Sally L. Loehrer, Judge.

Victim of automobile accident while pedestrian in crosswalk sought declaratory judgment that motorcycle insurance policy covered insured tort-feasor while driving car. The district court dismissed action. Victim appealed. The supreme court held as matter of first impression that action for declaratory relief presented no justiciable controversy ripe for judicial determination while tort action was pending.

Affirmed.

Edward M. Bernstein Associates and John R. Provost, Las Vegas, for Appellant.

Burton, Bartlett Glogovac, Reno, for Respondents.


OPINION


This case presents the question of whether a plaintiff pursuing a tort action against a defendant may, before obtaining a judgment against the defendant, bring an action for declaratory judgment against the defendants insurer to determine insurance coverage. We hold that such an action for declaratory relief presents no justiciable controversy ripe for judicial determination and affirm the district court's order dismissing the cause of action in this case.

FACTS

On April 4, 1994, appellant Lillian Knittle filed a complaint for injuries against Douglas Cunningham. The year before, Cunningham was driving a car and negligently struck Knittle as she stood in a crosswalk in Las Vegas. She sought damages in excess of $10,000.

In reviewing a dismissal under NRCP 12 (b)(5) for failure to state a claim upon which relief can be granted, this court must accept all factual allegations of the complaint as true. Breliant v. Preferred Equities Corp., 109 Nev. 842, 845, 858 P.2d 1258, 1260 (1993).

On April 20, 1994, Knittle filed an amended complaint, adding a second cause of action against respondent Progressive Casualty Insurance Company (Progressive). In addition to the facts in her first complaint, she provided the following facts. The car driven by Cunningham belonged to another person, who carried insurance on the car. That persons insurer had paid Knittle the full policy limits of $15,000. Cunningham carried a motorcycle insurance policy with Progressive. Knittle submitted a claim to Progressive, but Progressive denied it stating that the motorcycle policy excluded coverage for Cunningham's use of a vehicle. This exclusion was ambiguous.

Progressive moved to dismiss pursuant to NRCP 12 (b)(5), arguing that Knittle's claim was not ripe for adjudication and was an impermissible direct action against an insurer. On July 13, 1994, the district court held a hearing on the matter. On July 22, 1994, the court filed an order dismissing Knittle's cause of action against Progressive for failure to state a claim upon which relief can be granted.

DISCUSSION AND CONCLUSION

In reviewing a dismissal under NRCP 12 (b)(5) for failure to state a claim upon which relief can be granted, this court must accept all factual allegations of the complaint as true, construe the pleading liberally, and draw every fair intendment in favor of the non-moving party. Breliant v. Preferred Equities Corp., 109 Nev. 842, 845, 858 P.2d 1258, 1260 (1993). Such a dismissal is valid only if it appears beyond a doubt that the plaintiff could prove no set of facts entitling him or her to relief. Id.

The issue presented in this appeal is whether a plaintiff suing a defendant for an alleged tort may bring an action for declaratory judgment against the defendants insurance company regarding insurance coverage before obtaining a judgment against the defendant. This is a matter of first impression in Nevada.

In Rivera v. Nevada Medical Liab. Ins. Co., 107 Nev. 450, 814 P.2d 71 (1991), a patient sexually assaulted by her doctor filed a declaratory relief action against the doctor's insurer, asking the district court to find that the insurer had to provide coverage for the assault. Apparently, the patient sought this declaratory relief without suing or obtaining any judgment from the doctor. The ripeness of the claim for declaratory relief was not challenged below or on appeal, and this court did not consider that issue.

NRS 30.030 provides that court's "shall have power to declare rights, status and other legal relations whether or not further relief is or could be claimed." This court has held that declaratory relief is available only when the following conditions exist:

"(1) there must exist a justiciable controversy; that is to say, a controversy in which a claim of right is asserted against one who has an interest in contesting it; (2) the controversy must be between persons whose interests are adverse; (3) the party seeking declaratory relief must have a legal interest in the controversy, that is to say, a legally protectible interest; and (4) the issue involved in the controversy must be ripe for judicial determination."

Doe v. Bryan, 102 Nev. 523, 525, 728 P.2d 443, 444 (1986) (quoting Kress v. Corey, 65 Nev. 1, 26, 189 P.2d 352, 364 (1948)).

The Colorado Supreme Court held that a plaintiff does not have standing to sue for declaratory relief against a defendants insurer before obtaining a judgment against the defendant. Farmers Ins. Exchange v. District Court, 862 P.2d 944 (Colo. 1993). The court concluded that the plaintiff had

no legally protected right or cognizable interest at stake unless and until she has established [the defendant's] liability. Her rights are contingent on her successful litigation of the personal injury suit. When the rights of the plaintiff are contingent on the happening of some event which cannot be forecast and which may never take place, a court cannot provide declaratory relief.

Id. at 948. The court distinguished cases in which insurers or insureds were allowed to seek declaratory relief, stating that "these cases arose only after the insured has made a demand on the insurance company to defend a lawsuit or to pay a claim or judgment." Id. at 949.

The Utah Court of Appeals ruled similarly in Boyle v. National Union Fire Ins. Co., 866 P.2d 595 (Utah Ct. App. 1993), where plaintiffs filed a tort action against the officers, directors, and partners of a company in regard to money which the plaintiffs had invested in the company. The court concluded that a declaratory relief action brought by plaintiffs against the defendants insurer was not ripe for adjudication because it

would have placed the trial court in the position of trying to guess what facts might be determined in a trial on the tort claim, and then to apply those hypothetical facts to the insurance policies.

Id. at 598.

We find the concerns and reasoning expressed in these cases persuasive. We therefore conclude that since Knittle's rights against Progressive are contingent on her successful litigation of a pending tort suit, Knittle can assert no legally protectible interest creating a justiciable controversy ripe for declaratory relief. Accordingly, we affirm the district court's order dismissing the claim for declaratory relief against Progressive.


Summaries of

Knittle v. Progressive Casualty Ins. Co.

Supreme Court of Nevada
Jan 4, 1996
112 Nev. 8 (Nev. 1996)

holding that a claim for declaratory relief against the insurer of a party alleged to have caused injury to the plaintiff is contingent on the plaintiff's first obtaining a judgment against the insured party

Summary of this case from McVay v. Allied World Assurance Co.

holding that a party may seek declaratory relief only if there is a justiciable controversy, a legally protectable interest, and an issue ripe for determination

Summary of this case from Laborers' Int'l Union of N. Am. v. Douglas Cnty.

determining that a personal injury plaintiff's action seeking a declaration concerning insurance coverage against the alleged tortfeasor's insurer is not ripe before plaintiff has obtained a judgment against the alleged tortfeasor

Summary of this case from Herbst Gaming, Inc. v. Heller

listing the requisite conditions for declaratory relief to be appropriate

Summary of this case from Lee v. Diet Ctr.

In Knittle v. Progressive Casualty Insurance Co., 908 P.2d 724 (Nev. 1996), Nevada's Supreme Court addressed whether there is a "justiciable controversy" between an insurer and a third-party claimant when the claimant had not yet secured a judgment from the insured.

Summary of this case from Probuilders Specialty Ins. Co. v. Thompson

noting that declaratory relief is available only when, among other things, there exists a justiciable controversy and the party seeking relief has a legally protectable interest in that controversy

Summary of this case from Dombroski v. NV Energy, Inc.

requiring a plaintiff to establish standing to assert a claim for declaratory relief by establishing the existence of, among other things, a justiciable controversy, a legally protectable interest, and an issue ripe for determination

Summary of this case from Rosky v. State

providing that declaratory relief is only available when there is a justiciable controversy between the parties

Summary of this case from Arcenas v. MortgageIT, Inc.
Case details for

Knittle v. Progressive Casualty Ins. Co.

Case Details

Full title:LILLIAN A. KNITTLE, APPELLANT, v. PROGRESSIVE CASUALTY INSURANCE COMPANY…

Court:Supreme Court of Nevada

Date published: Jan 4, 1996

Citations

112 Nev. 8 (Nev. 1996)
908 P.2d 724

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