On May 14, 2003, the Decedent’s widow, Lori Williams, filed
a wrongful death action as a surviving spouse and on behalf of their minor
children, Jeremy and Shane Williams against Defendant ACE American Insurance
Company. Mrs. Williams and ACE reached a settlement agreement that would resolve
the claims of Mrs. Williams and her two children.
The settlement agreement did not contemplate potential
claims brought by Decedent’s children from a prior marriage, Michael
Williams and Steven Williams. Md. Rule 15-1001 requires that all persons who
are or may be entitled to damages for a wrongful death claim shall be named
as plaintiffs whether or not they join in the action. Any person named but
not joining shall be indicated as such with the words “to the use of.”
Furthermore, pursuant to that Rule, a party bringing the action will mail a
copy of the Complaint by certified mail to the Use-Plaintiff. Proof of the
mailing is required to be filed with the Clerk of the Circuit Court.
In recognition of these requirements, Plaintiffs filed
a Second Amended Complaint and Demand for a Jury Trial that named Michael
Williams and Steven Williams as “use plaintiffs.” The Second Amended
Complaint acknowledged that these were children of a prior marriage but did
not seek compensation for those children.
The Use-Plaintiffs were served with a copy of the
Second Amended Complaint by private process. Affidavits of private process
service were filed with the Clerk’s office. However, an original of the
Second Amended Complaint was never filed with the Circuit Court. When more
than thirty (30) days had elapsed from the service of the Second Amended
Complaint to the Use-Plaintiffs, the parties filed a Joint Motion for
Approval of the Settlement and Entry of Judgment. However, since the Second
Amended Complaint was never filed with the Court, the Use-Plaintiffs were
never notified of the Motion.
On May 17, 2005, the Circuit Court for Baltimore County
granted the Joint Motion to Approve Settlement and Entry of Judgment. The
Order stated that:
[U]pon payment of open costs by the defendant, ACE
American Insurance Company, that any and all claims and potential claims
stemming from the death of Michael Williams, as a result of a motor tort
occurring on September 12, 2002, shall be and hereby will be deemed
SATISFIED IN FULL.
This Order effectively foreclosed any claims by the
Use-Plaintiffs. In June 2005, plaintiffs’ counsel filed a Line of
Satisfaction of Judgment.
In an unusual twist of events, counsel formerly
representing Mrs. Williams and her children, opened a
new case with the Circuit Court of Baltimore
County, now representing Michael Williams and Steven Williams, the
Use-Plaintiffs in the previous action. The Use-Plaintiffs, through
Plaintiffs’ counsel, filed a Motion to Reopen and Consolidate both of the
Williams’ actions. Defendant Ace opposed the motion.
The Court of Appeals explained that the Joint Motion
for Approval of Settlement and Entry of Judgment that was presented on May
17, 2005 should not have been accepted because the Use-Plaintiffs were never
served with copies of the motion. Moreover, the Second Amended Complaint
that identified the Use-Plaintiffs was not effective as it was never filed
with the Clerk’s Office. Accordingly, the proceedings on the Joint Motion
for Approval of Settlement were ex parte which violated Md. Rule 1-351.
Since the Second Amended Complaint was not filed with the Court, the
Use-Plaintiffs were not identified in the record as Plaintiffs or parties of
any kind, service of the Order that foreclosed their claim was not sent to
them by the Clerk’s office. They were effectively deprived of their
opportunity to file a Motion to Vacate the Judgment under Rule 2-535(a).
The Court of Appeals held that the parties must show a
good faith effort to gain fully informed and knowing consent to the
Settlement Agreement. The case was remanded to the Circuit Court to vacate
the settlement approved in the first action and grant the Motion to
Consolidate the Actions. This will give the opportunity for all the
statutory beneficiaries to be named as Plaintiffs or Use-Plaintiffs.
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