Court: Supreme Court of Arkansas; July 17, 1995; Arkansas; State Supreme Court
Cora Martin, a passenger in a taxicab owned by Black. White Cab Co. Inc., filed a petition for declaratory judgment after being involved in a collision with another vehicle driven by Carolyn Washington. Martin claimed Washington was uninsured, which would leave her claims uncovered unless Black. White Cab had the required uninsured motorist coverage. Martin alleged that the cab company had instead posted a $50,000 certificate of deposit as collateral with the state, in accordance with Ark. Code Ann. 27-14-1501(c), allowing them to forgo liability insurance. She argued that, as a common carrier, Black. White Cab was obligated to provide coverage for passengers against accidents involving uninsured motorists.
Black. White Cab denied any fault and asserted Washington had proof of insurance at the time of the accident. The cab company contended that Martin needed to prove Washington was uninsured for her request for declaratory relief to proceed, claiming any court declaration without such proof would be merely advisory. During a hearing on November 18, 1993, Martin's attorney sought a stipulation from Black. White Cab's counsel that Washington was uninsured, which was not fully agreed upon. The trial court leaned towards Black. White Cab's interpretation that it was not liable for uninsured claims under its certificate of deposit. The discussions indicated that both parties recognized the need for a final judgment to facilitate an appeal, with an acknowledgment that any stipulation about Washington's uninsured status was limited to the hearing context.
The court included a stipulation in its order regarding the appealability of the case, acknowledging that the appeal was interlocutory. The parties recognized that if the trial court's decision was reversed, Black. White Cab Company could still litigate the question of whether the third party, Washington, had insurance at the time of the collision. Washington was not a party to the litigation, and her testimony regarding insurance coverage remains unknown, meaning the stipulations made by the parties cannot bind her. The court emphasized it would not support "conditional" stipulations aimed at facilitating interlocutory appeals on non-final issues. The trial court's order indicated that the parties agreed Washington's vehicle was uninsured during the accident, but there is no evidence that this was meant to prevent Black. White from addressing the uninsured coverage issue later. This unresolved factual matter contributes to the interlocutory and advisory nature of the appeal, leading to its dismissal. The dissenting opinion noted the relevant statute, Ark. Code Ann. 23-16-302, mandates common carriers to maintain uninsured motorist liability insurance for the protection of passengers and operators.
