Court Opinion

ID: 9769452
Source: CourtListenerOpinion
Date Created: 2023-08-29 14:51:09.119186+00
Date Added: 2024-06-11T07:31:03.800010
License: Public Domain

FINCH, Senior Judge,
dissenting.
I respectfully dissent.
The principal opinion recognizes that the automobile insurance policy issued by Farmers Insurance Company to defendant Jones contained a typical cooperation clause which required, among other things, that Jones should cooperate with Farmers and at its request attend hearings and trials in connection with claims as to which there was coverage. The opinion concedes that Farmers exercised diligence in notifying Jones of the trial setting and in requesting him to be present for the trial; also that the failure of Jones to attend was unexcused and constituted a material breach of the cooperation clause of the policy. It next recognizes that under Missouri cases which it cites “it is clear that such a policy provisions are valid and enforceable in Missouri” and that after a material breach by the insured the insurer may deny liability coverage to insured unless it has waived that right or for some reason is estopped from asserting denial of coverage.
Having so stated, the principal opinion then proceeds to reverse the judgment of the trial court and to direct entry of judgment against Farmers as garnishee. It does so on the basis that under the facts of this case there was no prejudice to Farmers as a result of Jones’ failure to attend the trial. It holds that even though a material breach of the cooperation clause occurs, the insurer is not relieved from liability in a garnishment proceeding unless the insurer affirmatively establishes prejudice.1
I cannot join in the decision made by the principal opinion. In the first place, I do not agree that insurer must affirmatively show that prejudice to it resulted from a material breach of the cooperation clause by the insured.
Certainly it would not be obligated to so show if Jones as the insured were seeking to enforce coverage after he had committed what is conceded to have been a material breach of the policy. This is basic contract law. When one party to a contract materially breaches it the other may sue for the breach or may be excused from performance. Consistent with the rule, under various Missouri cases including Bauman v. Western & Southern Indemnity Co., 230 Mo.App. 835, 77 S.W.2d 496 (1934) and Taff v. Hardwick, 419 S.W.2d 482 (Mo.App.1964), the breach by Jones in failing to attend the trial excused Farmers from its obligation *746under the policy to provide coverage to Jones. If that premise is accepted, as I submit it must be, it follows that Farmers would not be obligated to provide such coverage for the benefit of plaintiffs because they stand in the shoes of the insured when it comes to collecting a judgment against his insurer. Meyers v. Smith, 375 S.W.2d 9, 15 (Mo.1964).
The principal opinion says that plaintiffs had no responsibility for the failure of Jones to attend the trial and that innocent persons are deprived of the benefit of a valid judgment if the insurer is excused by reason of Jones’ breach of the contract with Farmers. This discussion overlooks the nature of the relationship between the parties. It does not state a valid basis for reaching a different result than we would if Jones were seeking to enforce coverage. We do not have compulsory insurance in Missouri. Hence, there is no statute to create rights in judgment holders such as plaintiffs. Plaintiffs are not parties to the contract of insurance between Jones and Farmers and are not third party beneficiaries of such contract. Under Meyers v. Smith, supra, as the principal opinion recognizes, plaintiffs stand in the shoes of Jones as the insured and are subrogated to his rights. If Farmers is excused from liability to Jones for coverage as a result of his material breach of the contract, then plaintiffs have no greater rights and Farmers is not liable to them as garnishee. This necessarily means that Farmers does not have to establish that prejudice resulted before it can rely upon the material breach of the policy provisions by Jones.
Secondly, even if a rule requiring proof of prejudice by the insurer is established, the record in this case does not justify the conclusion in the principal opinion that Farmers was not prejudiced by the failure of Jones to attend trial. Instead, it shows that Farmers was prejudiced. When this case was called for trial, the attorney hired by Farmers to defend the case against Jones asked the court to continue the case because of the failure of Jones to attend. In arguing for a continuance, counsel stated:
“In the first place, it has been my experience that if the jury sees that the defendant isn’t interested enough in his own lawsuit to even come to the court and hear the case that they are not going to pay much attention to the defendants side of the case, and they are not going to have any feeling that he is entitled even to a fair trial when he doesn’t appear.”
That request was denied and the trial was held. As a result the attorney tried the case with a vacant chair behind him instead of a live defendant. When this case was argued to the jury the attorney for plaintiffs took advantage of Jones’ absence by saying to the jury:
“This is a case where the defendant, Mr. Jones, of Sedalia, who wasn’t even interested enough to show up for the case, ran into the rear end of the plaintiff * * * (emphasis supplied).
Later, plaintiff’s counsel argued:
“Now, this business about, ‘You can’t believe all the rest of her testimony because of Mrs. Hilbum’, that’s another smoke signal, that’s another attempt to get around the fact that his driver, who didn’t even have the decency to show up in this case * * *” (emphasis supplied).
Still later, plaintiff’s counsel argued:
“The judgment, if any, is not directed toward Mr. Heilbron, its directed toward Mr. Jones, of Sedalia, who really isn’t concerned about this case. It’s obvious, so don’t worry about that.” (emphasis supplied).
Finally, counsel argued:
“I want you to use your common sense, and I want you to realize Mr. Jones is not here and doesn’t care about this. He is not concerned about it. It’s no problem to him.” (emphasis supplied).
Obviously, counsel for plaintiffs considered that the absence of Jones and his apparent insensitivity and lack of concern— his lack of “decency” as counsel characterized it — was significant and something that would make an impression on the jury and affect their verdict. Otherwise, he would *747not have kept repeating this theme. To say that such argument, made possible only by the failure of Jones to attend the trial, was not prejudicial in the defense of the case is not realistic, in my judgment. I believe that anyone who has tried jury cases knows the impact of use and repetition of a theme such as that employed by counsel in this case. It is devastating. Without question, it was prejudicial. It was injected by the very parties who now seek to enforce against Farmers the judgment entered following such telling argument. If Jones had been present, the attorney for plaintiffs could not have argued that defendant wasn’t interested or concerned, or that he didn’t even have the decency to show up at the trial.
In addition, the absence of defendant Jones deprived counsel of the opportunity to confer with him in the process of selecting jurors as well as questions of trial strategy during the trial. The fact that Jones likely would not have testified and that if he had testified, his testimony might have been detrimental, as the principal opinion concludes, does not in any way eliminate the prejudice in other respects resulting from defendant’s absence.
For all of these reasons, I dissent.

. Plaintiffs also asserted waiver and estoppel as grounds for reversal but, in view of the conclusion reached, the principal opinion does not reach the issues of waiver or estoppel and does not base its conclusions thereon. Hence I do not consider those issues in this dissent.