Justia Montana Supreme Court Opinion Summaries

Heath and Vail Freyer, the parents of Alicia Freyer, were all riding in their vehicle, which was insured by State Farm, when the vehicle rolled over, causing Health's death. In Freyer I, the Court held that the subject policy provided coverage for Alicia's claim for derivative damages stemming from Health's death. After remand, State Farm paid the disputed coverage amounts. The Freyers then brought claims against State Farm for the wrongful denial of coverage for Alicia's derivative claims. The district court granted summary judgment to State Farm. The Supreme Court reversed in part and affirmed in part, holding that the district court (1) erred in concluding that State Farm had not breached the insurance contract when it failed to indemnify Vail for Alicia's derivative claims based on State Farm's "reasonable basis in law" defense; (2) properly granted summary judgment to State Farm on the common-law bad faith and breach of the covenant of good faith and fair dealing claims; and (3) did not err in granting summary judgment to State Farm on the Unfair Trade Practices Act claims. View "State Farm Mut. Auto. Ins. Co. v. Freyer" on Justia Law

This interlocutory appeal arose from the district court's order certifying a class in Plaintiff's class action against Defendant, Allstate Insurance Company. Plaintiff's class action claim arose out of the Supreme Court's remand of his initial non-class third-party claim against Allstate in Jacobsen I. In Jacobsen I, Plaintiff filed a complaint against Allstate for, among other causes of action, violations of the Montana Unfair Trade Practices Act. Plaintiff sought both compensatory and punitive damages. The Supreme Court ultimately remanded the case for a new trial. On remand, Plaintiff filed a motion for class certification, proposing a class definition encompassing all unrepresented individuals who had either third- or first-party claims against Allstate and whose claims were adjusted by Allstate using its Claim Core Process Redesign program. The district court certified the class. The Supreme Court affirmed the class certification but modified the certified class on remand, holding that the district court did not abuse its discretion by certifying the Mont. R. Civ. P. 23(a)(2) class action but that the certification of class-wide punitive damages was inappropriate in the context of a Rule 23(b)(2) class. Remanded. View "Jacobsen v. Allstate Ins. Co." on Justia Law

Leonard Landa was the sole managing member of a Montana limited liability corporation. Landa carried commercial general liability insurance through Assurance. After a former employee of Landa's filed a complaint alleging that Landa had committed various torts by inducing him to work for Landa under allegedly false pretenses, Landa tendered defense of the former employee's claim to Assurance. Assurance refused to defend Landa, stating that the complaint's allegations were not covered under Landa's policy. Landa filed a complaint seeking declaratory relief establishing that Assurance had a duty to defend and indemnify Landa and alleging violations of Montana's Unfair Trade Practices Act (UTPA), negligence, and other causes of action. The district court granted summary judgment for Assurance, finding that the complaint's allegations were not covered under Landa's policy and that Assurance was not liable under the UTPA because the denial of coverage was grounded on a legal conclusion. The Supreme Court affirmed, holding that Assurance correctly declined to provide a defense where the former employee's complaint did not allege an "occurrence" and, as a result, did not trigger a duty to defend under the policy. View "Landa v. Assurance Co. of Am." on Justia Law

The Leonards entered into contracts with Centennial for the sale of a log home kit and construction of a custom log home. The Leonards later released Centennial from any claims for damages for defective construction or warranty arising out of the home's construction. Greg and Elvira Johnston held a thirty-six percent interest in the property at the time the release was signed. Eventually, all interest in the property was transferred to the Elvira Johnston Trust. A few years later, because of a number of construction defects affecting the structural integrity of the house, the Johnstons decided to demolish the house. The Johnstons sued Centennnial for negligent construction, breach of statutory and implied warranties, and other causes of action. The district court granted summary judgment for Centennial, finding that the Johnstons' claims were time-barred and were waived by the Leonards' release. The Supreme Court (1) reversed the court's ruling that the Johnstons' claims were time-barred and directed that the decision on remand apply only to the interest owned by the Johnstons at the time the release was executed; and (2) affirmed the district court's conclusion that the release was binding on the Leonards' sixty-four percent interest, later transferred to the Trust. View "Johnston v. Centennial Log Homes & Furnishings, Inc." on Justia Law

Meril Curtis's houseguest took his credit card and made over $7,000 in unauthorized charges. After acknowledging that the charges were unauthorized and that Curtis was not personally liable for the charges, Citibank referred the account to a collection agency called Professional Recovery Services (PRS). Curtis filed suit against Citibank, alleging libel and credit libel and violation of the Montana Consumer Protection Act (MCPA). The district court granted summary judgment to Citibank, finding that Curtis's claims were preempted by the federal Fair Credit Reporting Act (FCRA). The Supreme Court reversed, holding that the district court erred in finding that Curtis' state law claims were preempted by the FCRA because the FCRA does not regulate collection agencies such as PRS. Remanded.

Frederick and Mandelena Harmon bought a home pursuant to a buy-sell agreement that realtor Dianne Burright, a licensed real estate salesperson who worked for Fiscus Realty, prepared at the Fiscus Realty office. The home was built by Dianne's husband, Jerry. The Harmons subsequently discovered numerous construction problems. The Harmons sued Defendants Jerry and Dianne Burright and Fiscus Reality, raising several causing of action, including a claim under the Unfair Trade Practices and Consumer Protection Act (the Act). A jury returned a verdict against the Burrights on breach of warranty and negligent misrepresentation claims and held for Defendants on all other claims. After trial, Defendants filed motions for attorney fees as prevailing parties under the Act, which the district court denied. Fiscus Realty appealed. The Supreme Court affirmed, holding that the district court did not abuse its discretion in denying an award of attorney fees to Fiscus Realty as the Harmons' claims had a basis in fact and law and were not frivolous, unreasonable or unfounded.