Nationwide Mutual Insurance v. Hylton

Present:   All the Justices

NATIONWIDE MUTUAL INSURANCE COMPANY

v.   Record No. 992091

CLARENCE E. HYLTON, ET AL.

                     OPINION BY JUSTICE LEROY R. HASSELL, SR.
                                   June 9, 2000
CLARENCE E. HYLTON

v.   Record No. 992106

MARK DANIEL DEHART

            FROM THE CIRCUIT COURT OF HENRY COUNTY
                   David V. Williams, Judge

                              I.

     In these appeals, we consider whether a judgment in a

tort action may be entered against an insurance company that

issued an automobile liability insurance policy even though

the insurance company was not a defendant in the circuit court

proceedings; and whether a plaintiff's tort claims against a

defendant, who was a state trooper, are barred by the doctrine

of sovereign immunity.

                              II.

     Plaintiff, Clarence E. Hylton, filed his motion for

judgment against Mark Daniel DeHart.   A copy of the motion for

judgment was served upon Robert C. Wetzel, registered agent

for Nationwide Mutual Insurance Company (Nationwide).   Hylton

alleged in his motion for judgment that he was injured as a
result of DeHart's negligent operation of a motor vehicle.

DeHart, a Virginia State Trooper, filed a grounds of defense

and a plea of sovereign immunity.    DeHart asserted that while

he was operating his police cruiser, he observed an

unidentified driver of a truck commit a traffic violation,

that he made a decision to apprehend the violator, and that he

was in the process of determining the manner in which to

proceed when he was involved in the accident with Hylton.    The

circuit court considered evidence relating to the plea of

sovereign immunity on the morning of the scheduled trial and

sustained the plea.

     After sustaining the plea of sovereign immunity, the

circuit court permitted Hylton to proceed with his lawsuit

against Nationwide, which had issued an automobile liability

policy of insurance to Hylton that was in effect when the

accident that was the subject of Hylton's motion for judgment

occurred.    Hylton did not name Nationwide as a party in his

motion for judgment, and Nationwide did not file any

pleadings.   DeHart's counsel informed the circuit court that

he did not represent Nationwide, but was counsel of record

only for DeHart.

     Hylton argued that Nationwide was in default, and since

DeHart's plea of sovereign immunity had been sustained,

neither DeHart nor his counsel had the right to participate in


                                 2
the trial of the case.   The circuit court rejected Hylton's

arguments.   Hylton presented evidence, the jury was

instructed, and counsel for Hylton and DeHart made closing

arguments.   The jury returned a verdict in favor of Hylton in

the amount of $100,000, and the circuit court entered a

judgment confirming the verdict.

     Once Nationwide learned that a judgment had been entered

against it, Nationwide filed a motion requesting that the

circuit court set aside that judgment because, among other

reasons, Nationwide was not a named defendant or party to the

tort action.   Hylton opposed Nationwide's motion, and the

circuit court apparently took no action on the motion.

Nationwide appeals the circuit court's judgment confirming the

jury's verdict.   Hylton appeals that portion of the judgment

sustaining the plea of sovereign immunity.

                              III.

     Code § 38.2-2206(F) states:

          "If any action is instituted against the owner
     or operator of an uninsured or underinsured motor
     vehicle by any insured intending to rely on the
     uninsured or underinsured coverage provision or
     endorsement of this policy under which the insured
     is making a claim, then the insured shall serve a
     copy of the process upon this insurer in the manner
     prescribed by law, as though the insurer were a
     party defendant. The provisions of § 8.01-288 shall
     not be applicable to the service of process required
     in this subsection. The insurer shall then have the
     right to file pleadings and take other action
     allowable by law in the name of the owner or


                                3
     operator of the uninsured or underinsured motor
     vehicle or in its own name. Notwithstanding the
     provisions of subsection A, the immunity from
     liability for negligence of the owner or operator of
     a motor vehicle shall not be a bar to the insured
     obtaining a judgment enforceable against the insurer
     for the negligence of the immune owner or operator,
     and shall not be a defense available to the insurer
     to the action brought by the insured, which shall
     proceed against the named defendant although any
     judgment obtained would be enforceable against the
     insurer and any other nonimmune defendant. Nothing
     in this subsection shall prevent the owner or
     operator of the uninsured motor vehicle from
     employing counsel of his own choice and taking any
     action in his own interest in connection with the
     proceeding."

     Nationwide argues that a plaintiff who has filed an

action against a tortfeasor may not recover a judgment against

an automobile liability insurance carrier in that tort action.

Continuing, Nationwide asserts that even though Code § 38.2-

2206(F) gives it a right to file pleadings in an action

against an uninsured or underinsured tortfeasor, this statute

does not authorize the entry of a judgment against an

insurance company that issued a policy of insurance that may

satisfy a judgment that may be entered against the owner or

operator of the uninsured or underinsured motor vehicle.

Responding, Hylton asserts that Nationwide voluntarily failed

to take advantage of its right and opportunity to appear

conferred upon it by Code § 38.2-2206(F) and, therefore,

Nationwide has no right to complain of the judgment entered

against it.   We disagree with Hylton.


                                4
      We have held that a plaintiff who files a tort action for

injuries caused by an owner or operator of an uninsured motor

vehicle cannot recover a judgment in that action against the

liability insurance company that may have a duty to pay the

judgment.   We stated in Doe v. Brown, 203 Va. 508, 515, 125

S.E.2d 159, 164 (1962):

      "This is not an action arising ex contractu to
      recover against the insurance company on its
      endorsement. The insurance company is not a named
      party defendant and judgment cannot be entered
      against it in this action. This is an action ex
      delicto, since the cause of action arises out of a
      tort, and the only issues presented are the
      establishment of legal liability on the unknown
      uninsured motorist, John Doe, and the fixing of
      damages, if any."

See also Rodgers v. Danko, 204 Va. 140, 143, 129 S.E.2d 828,

830 (1963).   Rather, the question whether an automobile

insurance company has a legal obligation to a plaintiff "may

be decided in an action ex contractu brought on the policy by

the interested judgment plaintiff, or in a declaratory

judgment proceeding to determine the rights of the parties."

Id.

      Even though Code § 38.2-2206(F) gave Nationwide the right

to file pleadings and take any other action allowable by law

in the name of the owner or operator of the uninsured or

underinsured motor vehicle or in its own name, this statute

does not permit Hylton to obtain a judgment in this tort



                                5
proceeding against Nationwide.    And, the fact that

Nationwide's registered agent received a copy of the motion

for judgment does not permit the circuit court to enter a

judgment against Nationwide.   Accordingly, we hold that the

circuit court erred by entering a judgment against Nationwide

in this proceeding.

                                 IV.

                                 A.

     DeHart adduced the following evidence at the pretrial

hearing on his plea of sovereign immunity.   DeHart was

employed as a Virginia State Trooper on August 2, 1996.    In

that capacity, he was required to patrol Henry County in his

police cruiser, enforce criminal laws, respond to requests for

assistance, issue citations for traffic violations, obtain and

execute search warrants, and perform special assignments.

     DeHart was operating his police cruiser on August 2,

1996, while on duty.   He was traveling south on Route 220 near

the intersection of Route 220 and Commonwealth Boulevard in

Henry County.   The intersection is controlled by a traffic

light.   When the traffic light was red, DeHart stopped his

vehicle behind a truck, which was operated by Hylton.     When

the traffic light turned green, Hylton drove his truck through

the intersection, three or four car lengths in front of

DeHart's cruiser.


                                  6
     As DeHart slowly proceeded through the intersection, he

saw an unidentified individual operating a pickup truck.    The

unidentified driver of the pickup truck proceeded through a

red light and made a "wide right turn" onto Route 220.    DeHart

testified that he observed the unidentified operator of the

pickup truck drive onto Route 220

     "and that lane would have had a red light. [The
     unidentified driver] came out and did not slow down
     very much, came into the right lane and made a wide
     turn.
           "At that point I was looking in my rear view
     mirror to get over in the right lane. I was going
     to stop that vehicle, and at that point I heard
     tires squeal in front of me. I saw the vehicle stop
     abruptly in the left lane and I proceeded to try to
     stop, but did not have enough distance and impacted
     with Mr. Hylton."

     Sergeant C. William Murphy, DeHart's supervisor,

testified that DeHart's duties were to enforce traffic and

criminal laws in Henry County as well as elsewhere in the

Commonwealth of Virginia.   DeHart testified that he exercises

discretion and judgment when deciding whether to pursue

traffic violators.

                               B.

     Hylton argues that the circuit court erred by sustaining

DeHart's plea of sovereign immunity because he was merely

operating his motor vehicle and that such act does not "clothe

[him] with the defense of sovereign immunity."   We disagree.




                                7
     In Colby v. Boyden, 241 Va. 125, 128-29, 400 S.E.2d 184,

186-87 (1991), we discussed the test that we apply when

determining whether a governmental employee is entitled to the

protection of sovereign immunity.   We held that we must

consider "(1) the nature of the function the employee

performs; (2) the extent of the government's interest and

involvement in the function; (3) the degree of control and

direction exercised over the employee by the government; and

(4) whether the act in question involved the exercise of

discretion and judgment."   Id. at 129, 400 S.E.2d at 186-87.

See also Gargiulo v. Ohar, 239 Va. 209, 212, 387 S.E.2d 787,

789 (1990); Lentz v. Morris, 236 Va. 78, 82, 372 S.E.2d 608,

610 (1988); Messina v. Burden, 228 Va. 301, 313, 321 S.E.2d

657, 663 (1984); James v. Jane, 221 Va. 43, 53, 282 S.E.2d

864, 869 (1980).

     In Colby, we applied this test to determine whether a

police officer, who was involved in an accident while in

pursuit of a traffic violator, was entitled to the bar of

sovereign immunity to defeat the tort claims asserted by a

plaintiff who was injured in the accident.   We stated:

     "Enforcement of traffic laws is not only a primary
     governmental function of a municipality, but one in
     which the municipality is inextricably involved
     through financial, personnel, and policy
     initiatives. A municipality enjoys sovereign
     immunity for acts undertaken in furtherance of this
     function. [The police officer] was involved in the


                                8
     performance of this function for the City of
     Virginia Beach at the time of the accident, thereby
     satisfying the first two elements of the test.

                             . . . .

          "Unlike the driver in routine traffic, the
     [police] officer must make difficult judgments about
     the best means of effectuating the governmental
     purpose by embracing special risks in an emergency
     situation. Such situations involve necessarily
     discretionary, split-second decisions balancing
     grave personal risks, public safety concerns, and
     the need to achieve the governmental objective. The
     exercise of discretion is involved even in the
     initial decision to undertake the pursuit . . . ."

Colby, 241 Va. at 129-30, 400 S.E.2d at 187.   We concluded

that the circuit court properly ruled that the police officer

in Colby was entitled to the bar of sovereign immunity.

     We hold that DeHart is entitled to the bar of sovereign

immunity.   DeHart was involved in the enforcement of traffic

laws, which is a governmental function.   And, the circuit

court implicitly made a finding of fact that when DeHart's

police cruiser collided with Hylton's vehicle, DeHart had made

a decision to pursue the unidentified motor vehicle operator

who had committed a traffic infraction, and DeHart had begun

to undertake the pursuit.

     Contrary to Hylton's assertions, DeHart was not involved

merely in the simple operation of an automobile when DeHart's

vehicle collided with the rear of Hylton's vehicle.   In Heider

v. Clemons, 241 Va. 143, 145, 400 S.E.2d 190, 191 (1991), we



                                9
held that a deputy sheriff, who was involved in an accident

while driving his car, was not entitled to the bar of

sovereign immunity.   The deputy sheriff had served process at

a residence in Fairfax, returned to his automobile, drove onto

a street, and collided with a motorcycle.    The driver of the

motorcycle filed a negligence action against the deputy

sheriff, who pled the affirmative defense of sovereign

immunity.   Id. at 144, 400 S.E.2d at 190.

     Rejecting the deputy sheriff's assertion of the defense

of sovereign immunity in Heider, we stated:

     "While every person driving a car must make myriad
     decisions, in ordinary driving situations the duty
     of due care is a ministerial obligation. The
     defense of sovereign immunity applies only to acts
     of judgment and discretion which are necessary to
     the performance of the governmental function itself.
     In some instances, the operation of an automobile
     may fall into this category, such as the
     discretionary judgment involved in vehicular pursuit
     by a law enforcement officer. See, e.g., Colby v.
     Boyden, 241 Va. 125, 400 S.E.2d 184 (1991) . . . .
     However, under the circumstances of this case, the
     simple operation of an automobile did not involve
     special risks arising from the governmental
     activity, or the exercise of judgment or discretion
     about the proper means of effectuating the
     governmental purpose of the driver's employer."

Id. at 145, 400 S.E.2d at 191.    See also Wynn v. Gandy, 170

Va. 590, 197 S.E. 527 (1938) (defense of sovereign immunity

not available to school bus driver whose duty of driving a bus

to transport children did not involve judgmental discretion,

but was purely ministerial).   In contrast to the deputy


                                 10
sheriff in Heider, DeHart was not merely engaged in routine

driving activities.    Rather, at the time of the accident that

is the subject of this litigation, DeHart had made a decision

to apprehend a traffic violator, and DeHart was required to

exercise discretion and judgment in executing that action.

                                 V.

     Finding no merit in Hylton's remaining arguments, we will

affirm the judgment of the circuit court in Hylton's action

against DeHart.    Also, we will reverse the circuit court's

judgment in Hylton's action against Nationwide and enter final

judgment here in favor of Nationwide.

                  Record No. 992091 — Reversed and final judgment.
                  Record No. 992106 — Affirmed.




                                 11