Justia Oklahoma Supreme Court Opinion Summaries

The Tenth Circuit Court of Appeals certified two questions of law to the Oklahoma Supreme Court. Billy Hamilton, a small-business owner in Council Hill, Oklahoma, filed a claim in December 2015 with his insurer, Northfield Insurance Company, seeking coverage for his building's leaking roof. Northfield twice denied his claim: once in February 2016, and again in April 2016. Hamilton filed suit against Northfield in November of that year, alleging bad-faith denial of his insurance claim and breach by Northfield of the insurance contract. Hamilton rejected a proposed settlement, and the matter went to trial. A jury awarded him $10,652, the maximum amount of damages the judge instructed the jury it could award. Hamilton then sought attorney fees and statutory interest under 36 O.S. section 3629(B). Northfield responded that Hamilton was not the prevailing party under the statute, given that he had recovered less than its settlement offer to him. The federal district court agreed with Northfield, and Hamilton appealed to the Tenth Circuit Court of Appeals. Initially, a panel of that court affirmed the district court's determination that Hamilton was not the prevailing party for purposes of awarding attorney fees under section 3629(B). Following a petition for en banc rehearing by Hamilton and additional briefing by amicus curiae, the Tenth Circuit Court of Appeals granted panel rehearing sua sponte, vacated its opinion as to the issues raised in Hamilton's appeal, and certified the two questions to the Oklahoma Court. The questions were: (1) in determining which is the prevailing party under 36 O.S. 3629(B), should a court consider settlement offers made by the insurer outside the sixty- (formerly, ninety-) day window for making such offers pursuant to the statute?; and (2) should a court add to the verdict costs and attorney fees incurred up until the offer of settlement for comparison with a settlement offer that contemplated costs and fees? The Oklahoma Court answered both questions "no:" (1) a court may consider only those timely offers of settlement of the underlying insurance claim--and not offers to resolve an ensuing lawsuit that results from the insurer's denial of the same; and (2) this is strictly limited to the specific context of determining prevailing-party status under section 3629(B) alone. The Oklahoma Court expressed no opinion on a trial court's evaluation of the form of settlement offer described in the certifying court's second question when made outside the section 3629(B) setting. View "Hamilton v. Northfield Ins. Co." on Justia Law

The Oklahoma Supreme Court granted certiorari in this case to address a question of first impression: whether the presumption that the intent of an interspousal transfer of real property constitutes a gift may be rebutted when the admitted purpose of the transfer was to illegally allude any creditor's attempts to collect on a judgment. After petitioner-appellee, Lewis Metcalf transferred some of his separate, real property into the name of his wife, respondent-appellant Bonnie Watson Metcalf, he filed for divorce. When it came time to divide their property, the husband claimed this particular real property as his separate property, even though it was now held only in his wife's name. His explanation for placing the property into his wife's name was that he was trying to avoid creditors potentially collecting on a judgment in a lawsuit to which he was a party. The trial court determined that the property in question was his separate property, and divided the couple's remaining marital property, and denied support alimony. The wife appealed, and the Court of Civil Appeals affirmed. The Supreme Court held: (1) the presumption of an interspousal gift may not be overcome with evidence that the sole purpose for the transfer was to defraud creditors; (2) the trial court did not err in denying the wife support alimony; and (3) each party was responsible for their own appeal related attorney fees and costs. View "Metcalf v. Metcalf" on Justia Law

Respondents-Proponents Andrew Moore, Janet Ann Largent, and Lynda Johnson filed Initiative Petition No. 420, State Question No. 804 (IP 420), with the Secretary of State of Oklahoma. The initiative measure proposed to submit to the voters the creation of a new constitutional article, Article V-A, which would create the Citizens' Independent Redistricting Commission (Commission). IP 420 would vest the power to redistrict the State's House of Representatives and Senatorial districts, as well as Federal Congressional Districts, in this newly created Commission. IP 420 would also repeal current constitutional provisions concerning state legislative apportionment. Notice of the filing was published on October 31, 2019; within 10 business days, Petitioners Rogers Gaddis and Eldon Merklin petitioned the Oklahoma Supreme Court in its original jurisdiction to challenge the legal sufficiency of IP 420. They alleged the proposed amendment by article suffered from two fatal constitutional defects: (1) the single subject rule, and (2) the First Amendment of the U.S. Constitution. In case number 118405, the Supreme Court determined IP was legally sufficient for submission to the people of Oklahoma. In case number 118406, however, the Court determined the gist statement of IP 420 did not fairly describe the proposed amendment, and ordered it struck from the ballot. View "In re: Initiative Petition 420, State Question No. 804" on Justia Law

The Oklahoma Supreme Court granted certiorari in this case to address whether two children who were named beneficiaries in a will were pretermitted heirs. After Fred Franklin James, Sr.'s will was admitted for probate, two of this three children objected to it. One of the children (the daughter) asserted that some of the father's real property, a mechanic's/body shop, should belong to her because she had purchased it from her father pursuant to an oral contract. The other child (a son) asserted that he was a pretermitted heir because the proceeds of the insurance policy his father left to him in the will had beneficiaries inconsistent with the will. In a second, separate case, the daughter also filed a breach of contract/creditor/equitable action against the estate also, again asserting that she purchased the body shop from her father pursuant to an oral agreement. The trial court consolidated the cases and determined that both children were pretermitted. The Oklahoma Supreme Court determined neither child was pretermitted because their beneficiary status on a non-probate asset differed from a bequest in a will. The Court reversed part of the trial court's order which found both children were pretermitted. "While the daughter may be entitled to a refund for money she paid to the decedent or improvements she made to the shop property, because she was not pretermitted, she is not entitled to an intestate share of the shop property." Consequently, the consolidated case was remanded for further proceedings. View "In re The Estate of James" on Justia Law

A husband and wife each requested sole custody of their minor child during divorce proceedings. Trial was held and following a hearing, sole custody of the parties' minor child was awarded to the father. Mother appealed. After review, the Oklahoma Supreme Court found the parties had an opportunity at trial to present their evidence and make a complete trial court record and a complete appellate record. But Mother failed to preserve her challenge to the trial court's conclusion it was in the child's best interests for custody to be awarded to Father. Therefore, the district court's judgment was affirmed. View "Duke v. Duke" on Justia Law

Oklahoma Senate Bill 608 mandated that manufacturers of the top 25 brands of liquor and wine sell their product to all licensed wholesalers. Appellees, a group of liquor and wine wholesalers, manufacturers, retail liquor stores, and consumers, challenged Senate Bill 608 as unconstitutional, contending it was in conflict with Okla. Const. art. 28A, section 2(A)(2)'s discretion given to a liquor or wine manufacturer to determine what wholesaler sells its product. The district court agreed and ruled Senate Bill 608 unconstitutional. The Oklahoma Supreme Court held SB 608 was "clearly, palpably, and plainly inconsistent" with Article 28A, section 2(A)(2)'s discretion given to a liquor or wine manufacturer to determine what wholesaler sells its product. Furthermore, the Court ruled that SB 608 was not a proper use of legislative authority as Article 28A, section 2(A)(2) was not in conflict with the Oklahoma Constitution's anticompetitive provisions. The district court, therefore, did not err by granting Distributors' Motion for Summary Judgment and ruling SB 608 unconstitutional. View "Institute For Responsible Alcohol Policy v. Oklahoma ex rel. Alcohol Beverage Laws Enforcement Comm." on Justia Law

Video Gaming Technologies, Inc. (VGT), appeals from the district court's grant of Tulsa County Assessor's motion to dismiss for lack of subject matter jurisdiction. VGT brought a claim for relief from assessment of ad valorem taxes. The Tulsa County Assessor moved to dismiss for lack of subject matter jurisdiction as VGT had not paid the past-due taxes pursuant to 68 O.S.2011 section 2884. The district court granted the motion to dismiss. The Oklahoma Supreme Court determined the underlying question to this case was whether title 68, section 2884 applied to appeals from the Board of Tax Roll Corrections pursuant to title 68, section 2871. The Court concluded title 68, section 2884 did not apply to appeals pursuant to title 68, section 2871: "Timely payment of taxes is not a jurisdictional prerequisite for appeals from orders of the Board of Tax Roll Corrections. The district court erred in finding it did not have jurisdiction." Therefore, the Court reversed the order of dismissal and remanded for further proceedings. View "Video Gaming Technologies v. Tulsa County Bd. of Tax Roll Corrections" on Justia Law

Video Gaming Technologies, Inc. ("VGT") contended the district court improperly granted summary judgment to the Rogers County Board of Tax Roll Collections ("Board"), the Rogers County Treasurer, and the Rogers County Assessor. VGT is a non-Indian Tennessee corporation authorized to do business in Oklahoma. VGT owns and leases electronic gaming equipment to Cherokee Nation Entertainment, LLC (CNE), a business entity of Nation. Nation was a federally-recognized Indian tribe headquartered in Tahlequah, Oklahoma. CNE owned and operated ten gaming facilities on behalf of Nation. The questions presented to the Oklahoma Supreme Court was whether the district court properly denied VGT's motion for summary judgment and properly granted County's counter-motion for summary judgment. VGT argued that taxation of its gaming equipment was preempted by the Indian Gaming Regulatory Act (IGRA) because the property was located on tribal trust land under a lease to Nation for use in its gaming operations. The County argued that ad valorem taxation was justified to ensure integrity and uniform application of tax law. Due to the comprehensive nature of IGRA's regulations on gaming, the federal policies which would be threatened, and County's failure to justify the tax other than as a generalized interest in raising revenue, the Oklahoma Supreme Court found that ad valorem taxation of gaming equipment here was preempted, and reversed the order of summary judgment, and remanded for the district court to enter an appropriate order of summary judgment for VGT. View "Video Gaming Technologies v. Rogers County Bd. of Tax Roll Corrections" on Justia Law

The estate of an individual that died as a result of an injury incurred while being a patient of a nursing home sued the nursing home facility in a wrongful death action. The district court entered default judgment for Plaintiff after Defendant failed to file a response or appear in court multiple times. Over 200 days later, Defendant filed a petition to vacate default judgment and the petition was granted. Plaintiff appealed the ruling, and the Court of Civil Appeals (COCA), affirmed the trial court's decision. The Oklahoma Supreme Court concluded it was "patently clear" Defendant's arguments for the Petition to Vacate Judgment as to liability was without merit. "[The Nursing Home] Meeker was given a multitude of opportunities to respond to the litigation, but failed to respond to a single instance for 280 days after the initial service of process. Meeker failed to respond to any service of process or appear at any hearing, and did not have an argument with merit to support the inability to respond to the litigation." Accordingly the Supreme Court vacated the opinion of the Court of Civil Appeals, reversed the trial court's judgment granting the Petition To Vacate Judgment as to liability, and remanded this matter for a trial on damages. View "Williams v. Meeker North Dawson Nursing, LLC" on Justia Law

Plaintiffs-appellees, Cloudi Mornings and Austin Miller (collectively Cloudi Mornings) filed a Petition for Declaratory Judgment and Injunctive Relief with the District Court of Tulsa County. In the petition, Cloudi Mornings stated that it was an L.L.C. with its primary business activities located within the City of Broken Arrow and that Austin Miller was a resident of Broken Arrow, and that as a "business within city limits," they had a vested interest in City enacted medical marijuana rules related to the voter approved June 26, 2018, Initiative Petition 788 which legalized medical marijuana in the State of Oklahoma. The Oklahoma Supreme Court retained this case to address the authority of a city, such as the City of Broken Arrow, to zone/regulate a medical marijuana establishment within city limits. However, because this case lacked any case or controversy as to these plaintiffs, and was merely a request for an advisory opinion, the Court dismissed the appeal. View "Cloudi Mornings, LLC v. City of Broken Arrow" on Justia Law