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Fleeman v. Canal Ins. Co.

The trial court lacked jurisdiction to consider summary judgment motions once the trial was held and completed, because the parties presented contradictory testimony on key points.

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In this declaratory judgment action to determine insurance coverage, Lily and Richard Fleeman, Heritage Motor Company, and Christopher Smith appeal the trial court’s grant of summary judgment to Canal Insurance Company “Canal” and National Indemnity Company “National”, arguing that the trial court lacked jurisdiction to consider the pending summary judgment motions once the trial was held and completed. We agree and therefore reverse. The undisputed facts show that while on an errand for a used-car dealership Heritage on March 4, 2008, Smith was driving a tow truck owned by the dealership when he failed to stop at a red light and collided with a vehicle occupied by two victims the Fleemans. The victims suffered injuries and filed claims with the dealership’s vehicle insurance company Canal, which were contested. The victims as well as their own auto insurance company as subrogee subsequently filed suits against the driver and the dealership to recover for their injuries.

In August 2008, Canal filed a declaratory judgment action against the victims, the dealership, the driver, the victims’ insurance company, and National a second vehicle insurance company that had issued a policy to the dealership,1 seeking a determination that Canal’s policy did not cover the dealership’s tow truck. National responded by filing a cross-claim and counterclaim that its policy also did not cover the truck.

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