Case Title: Union Mutual Fire Insurance Co. v. Joerg

Citation: 175 Vt. 196, 2003 VT 27, 824 A.2d 586

Docket Number: 

State: vermont

Court: Vermont Supreme Court

Date: 2003-03-28T00:00:00Z

Document:
Union Mutual Fire Insurance Co. v. Joerg (2001-336); 175 Vt. 196; 824 A.2d 586

2003 VT 27

[Filed 28-Mar-2003]

       NOTICE:  This opinion is subject to motions for reargument under
  V.R.A.P. 40 as well as formal revision before publication in the Vermont
  Reports.  Readers are requested to notify the Reporter of Decisions,
  Vermont Supreme Court, 109 State Street, Montpelier, Vermont 05609-0801 of
  any errors in order that corrections may be made before this opinion goes
  to press.

                                 2003 VT 27

                                No. 2001-336

  Union Mutual Fire Insurance Company	         Supreme Court

                                                 On Appeal from
       v.	                                 Orleans Superior Court

  Elmer J. and Jacqueline Joerg	                 March Term, 2002

  Howard E. VanBenthuysen, J.

  Paul R. Bowles, Montpelier, for Plaintiff-Appellant.

  Stephen J. Soule of Paul, Frank & Collins, Inc., Burlington, for
    Defendants-Appellees.

  PRESENT:  Amestoy, C.J., Dooley, Morse (FN1), Johnson and Skoglund, JJ.

        
       ¶  1.  DOOLEY, J.   Plaintiff, Union Mutual Fire Insurance Company,
  appeals from the decision of the superior court granting defendants' motion
  to dismiss in its subrogation action against tenants of its insured and
  their guest.  On appeal, plaintiff argues that the court erred by: (1)
  determining that defendants, Elmer and Jacqueline Joerg (tenants), were
  implied coinsureds under their landlord's fire insurance policy, thereby
  precluding a subrogation claim against them by plaintiff; (2) holding that
  the tenants had no duty to supervise Francis Roy, Jacqueline Joerg's
  father, who was living with them and who caused the fire underlying this
  case; and (3) concluding that no direct cause of action existed against Mr.
  Roy.  We affirm.

       ¶  2.  This litigation arises from a fire that occurred on June 5,
  1999 at a house owned by Mark Johnson (landlord) and rented to tenants
  pursuant to a lease-purchase contract.  At the time of the fire, the
  tenants lived in the house with their two minor children and Francis Roy,
  Mrs. Joerg's seventy-three-year-old father.  The fire was allegedly caused
  when Mr. Roy fell asleep or passed out while smoking.  As a result of the
  fire, the house was severely damaged, and Mr. Roy was killed.

       ¶  3.  In accordance with the Union Mutual fire insurance policy that
  landlord maintained on the house, plaintiff paid approximately $97,000 to
  landlord.  Plaintiff then instituted a subrogation claim against the
  defendants - the tenants individually and Mrs. Joerg as administratrix of
  her father's estate - alleging that Mr. Roy negligently caused the fire and
  that tenants were negligent in their supervision of Mr. Roy.  Defendants
  filed a motion to dismiss pursuant to V.R.C.P. 12(b)(6), arguing that (1)
  plaintiff had no right of subrogation against tenants because they were
  implied coinsureds under the landlord's policy, (2) tenants were not
  negligent because they had no duty of care to supervise Mr. Roy, and (3)
  plaintiff had no right of subrogation against Mr. Roy as an invitee.  The
  trial court granted the motion, and plaintiff subsequently brought this
  appeal.
   
       ¶  4.  A motion to dismiss a cause of action for failure to state a
  claim upon which relief may be granted should be denied "unless it appears
  beyond doubt that there exist no facts or circumstances that would entitle
  the plaintiff to relief."  Amiot v. Ames, 166 Vt. 288, 291,