A. O. Smith-Inland, Inc. v. Union Carbide Corp.

547 F. Supp. 344, 1982 U.S. Dist. LEXIS 14867
CourtDistrict Court, M.D. Louisiana
DecidedJune 24, 1982
DocketCiv. A. No. 82-142-A
StatusPublished
Cited by2 cases

This text of 547 F. Supp. 344 (A. O. Smith-Inland, Inc. v. Union Carbide Corp.) is published on Counsel Stack Legal Research, covering District Court, M.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A. O. Smith-Inland, Inc. v. Union Carbide Corp., 547 F. Supp. 344, 1982 U.S. Dist. LEXIS 14867 (M.D. La. 1982).

Opinion

JOHN V. PARKER, Chief Judge.

This matter is before the court on motions to dismiss or alternatively for summary judgment, filed on behalf of defendants, Union Carbide Corporation and EPSCO, Inc. Both motions are opposed by plaintiffs and they have been submitted upon briefs, after oral argument.

This action is a sequel to the consolidated actions entitled “Robert Carter v. EPSCO, Inc., et al.” and “William C. Woodward v. EPSCO, Inc., et al.”, Numbers 78-389 and 78-462, respectively of the docket of this court. In those actions, plaintiffs, Carter and Woodward, sued A. O. Smith-Inland, Inc. (and its insurer, CNA Insurance Company), Union Carbide and EPSCO for personal injuries,, alleging that they were joint tortfeasors and thus liable to the plaintiffs in solido under Louisiana law. Union Carbide and EPSCO each filed a cross claim against A. O. Smith for indemnity or, alternatively, for contribution. Shortly before trial, plaintiffs Carter and Woodward entered compromise settlement agreements with Union Carbide and EPSCO, reserving all rights against A. O. Smith and agreeing to hold Union Carbide and EPSCO harmless from any claims against them by A. O. Smith.

The case went to trial against the sole remaining defendant, A. O. Smith, and the jury returned verdicts in favor of Carter and Woodward against A. O. Smith. The issue of the negligence of Union Carbide and of EPSCO was submitted to the jury which decided that neither was guilty of negligence which contributed to the accident.

The cross claims by Union Carbide and EPSCO against A. O. Smith were submitted to the court on the basis of the evidence presented to the jury together with that presented at a hearing outside the presence of the jury. Judgment was rendered in favor of A. O. Smith on the cross claims, the court holding that Union Carbide and EP-SCO could not recover because neither was a joint tortfeasor with A. O. Smith. 511 F.Supp. 99.

A. O. Smith eventually settled the judgments rendered against it and it now seeks indemnity or, alternatively, contribution from Union Carbide and EPSCO, alleging that their negligence was the sole cause of the accident and resulting injuries to Carter and Woodward and, alternatively, that their negligence contributed to the accident, making them joint tortfeasors with A. O. Smith.

The court here acts upon the alternative motions for summary judgment, since the Carter-Woodward records and settlement agreements, as well as other exhibits outside this record, were offered by Union Carbide and EPSCO and were considered by the court.

Union Carbide and EPSCO have pleaded the res judicata effect of the jury findings of no negligence on the main de[346]*346mand and the court’s findings of no negligence on the trial of the cross claims. Plaintiffs seek to avoid the application of that doctrine by various theories, including an assertion that plaintiff First State Insurance Company, was not a party to the original proceedings. That argument is patently without merit since First State appears solely in its capacity as the liability insurer of A. O. Smith and it stands in A. O. Smith’s shoes and has no greater rights than the insured. Thus, if the judgment is res judicata as to A. O. Smith, it is also res judicata as to CNA and First State, whether they were parties to the original proceedings or not.

It is, in any event, unnecessary to consider the res judicata effect of either the jury verdict or the court’s findings because A. O. Smith has no right of action against Union Carbide or EPSCO under any theory. A. O. Smith’s complaint is predicated upon a misapprehension of Louisiana law.

Although the complaint claims indemnity, there is no assertion of contractual indemnity. Consequently, the sole basis for A. O. Smith’s claim of indemnity or contribution is the claim that the negligence of Union Carbide and EPSCO caused or contributed to the occurrence of the accident in which Carter and Woodward were injured.

Under Louisiana law, codebtors in solido are liable to their creditor, each for the full amount, but as between the solidary obligors, each is liable only for his virile share. Louisiana Civil Code, Articles 2091, 2103. Co-tortfeasors are debtors in solido. La.C. C.Art. 2324.

A co-tortfeasor in Louisiana has no cause of action against another tortfeasor except by way of his right of subrogation from the injured plaintiff. Article 2161 of the Civil Code provides, in part:

“Subrogation takes place of right:
* * * * * *
3. For the benefit of him who, being bound with others, or for others, for the payment of the debt, had an interest in discharging it.”

Article 2104 of the Code provides, in part:

“If one of the codebtors in solido pays the whole debt, he can claim from the others no more than the part and portion of each...”

Thus, if one of several co-tortfeasors pays the plaintiff in full, he may recover, under his legal subrogation, the virile share owed by each of the other co-tortfeasors. Article 2104, supra.

Prior to the 1960 amendment to Article 2103, the theoretical right of contribution among co-tortfeasors was recognized, but was of little practical value because, under the jurisprudence, contribution could be enforced only where one tortfeasor was compelled to pay damages which had been awarded by judicial decree against all cotortfeasors, in solido. Winford v. Bullock, 210 La. 301, 26 So.2d 822 (1946). One cotortfeasor against whom judgment was rendered, could not enforce contribution from his co-tortfeasors who were not sued, even if he had paid the entire judgment. Sincer v. Bell, 47 La.Ann. 1548, 18 So. 755 (1895).

In Harvey v. Travelers Insurance Company, 163 So.2d 915 (La.App. 3rd Cir. 1964), the court held that the 1960 amendment to Article 2103 placed co-tortfeasors upon the same contribution footing as conventional debtors in solido and further construed the effect of Article 2203 regarding settlement. The latter article provides:

“The remission or conventional discharge in favor of one of the codebtors in solido, discharges all the others, unless the creditor has expressly reserved his right against the latter.
In the latter case, he can not claim the debt without making a deduction of the part of him to whom he has made the remission.”

The court in Harvey v. Travelers Insurance Company held:

“Our conception of the existing jurisprudence is that a solidary debtor under a conventional obligation, who pays the entire debt to the creditor, becomes legally subrogated to the rights of the creditor against the other solidary obligors for their proportionate part of the debt. * * [347]*347(citations omitted) * * * If the creditor, however, settles with and releases one solidary debtor, he thereafter has no further rights or claims against that debtor to which another party can be subrogated. And, in the event the creditor by his act deprives one solidary obligor of this right of legal subrogation against another solidary obligor, then the creditor is not entitled to recover from the first debtor the share of the debt owed by the other against whom no right of subrogation remains. * * * (citations omitted) * * ” 163 So.2d at 920, 921.

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Related

Butler v. Intersouth Pipeline
655 F. Supp. 587 (M.D. Louisiana, 1986)
D Smith-Inland v. Union Carbide Corp
703 F.2d 555 (Fifth Circuit, 1983)

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547 F. Supp. 344, 1982 U.S. Dist. LEXIS 14867, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-o-smith-inland-inc-v-union-carbide-corp-lamd-1982.