Board of Trustees v. RTKL Associates, Inc.

559 A.2d 805, 80 Md. App. 45
CourtCourt of Special Appeals of Maryland
DecidedNovember 13, 1989
Docket1622, September Term, 1988
StatusPublished
Cited by23 cases

This text of 559 A.2d 805 (Board of Trustees v. RTKL Associates, Inc.) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Trustees v. RTKL Associates, Inc., 559 A.2d 805, 80 Md. App. 45 (Md. Ct. App. 1989).

Opinion

*48 ROSALYN B. BELL, Judge.

The Board of Trustees of the Baltimore County Community Colleges, Dundalk Community College contends in this appeal that the Circuit Court for Baltimore County erred in revising a jury verdict against RTKL Associates, Inc., an architectural firm, against which the College brought suit because of the partial collapse of the roof of the College’s new physical education complex. Also named as defendants in the College’s suit were Carl H. Gonnsen & Sons, Inc., the general contractor for the project, as well as James H. Carr, Inc., the subcontractor which obtained and inspected the specially designed roof trusses. The action included claims for negligence and breach of warranty. RTKL filed cross-claims against Gonnsen and Carr for both contribution and indemnity. Contribution claims were based on the Uniform Contribution Among Tort-Feasors Act, Md.Code Ann. Art. 50, § 16 et seq. (1957, 1986 Repl.Vol.). The indemnity claims were based upon the theory of active-passive negligence. The College dismissed against all defendants except RTKL prior to trial on the basis of a settlement with all but RTKL.

The settlement terms with Gonnsen and Carr were embodied in two separate agreements, both entitled "Joint Tort-Feasor Release and Indemnification Agreement.” The respective releases executed by the College stated in pertinent part:

“8. The [College] understands and agrees to hold harmless and indemnify [Carr and Gonnsen] from any further liability, damages or financial responsibility of any kind or nature allegedly resulting from or arising out of the project. The [College] further agrees to indemnify and hold [Carr and Gonnsen] harmless from any claim against them by any other party seeking indemnity or contribution with regard to any claim brought by [the College] against such party for injuries, losses or damages allegedly resulting from or arising out of the project.”

*49 The provisions which pertained to contribution and indemnification differed slightly in form but not substance. The release executed between the College and Carr provided:

“6. It is the intention of the [College] to relieve [Carr] from any liability to make contribution to or to indemnify RTKL in the event that RTKL or Gonnsen are held liable to the [College].”

A virtually identical provision appears in the release executed with Gonnsen. Both releases were filed in the record.

A jury trial proceeded with the College against RTKL, and RTKL as cross-plaintiff and Gonnsen and Carr as cross-defendants. The jury returned the following verdict:

“VERDICT SHEET
1. As to Count I, Negligence, do you find for the Plaintiff or the Defendant? Plaintiff
2. As to Count II, Breach of Contract, do you find for the Plaintiff or the Defendant? Plaintiff
3. If you find for the Plaintiff as to Count I or Count II, in what amount do you assess damages? $557,296.00
4. If you find for the Plaintiff, do you find that there was any negligence on the part of CARL GONNESEN [sic] and SON, INC. which caused or contributed to the failure? Yes: X No: _
5. If you find for the Plaintiff, do you find that there was any negligence on the part of JAMES H. CARR, INC. which caused or contributed to the failure? YES:
X NO: _
6. As to the cross claims of RTKL ASSOCIATES, INC. for indemnity:
a. If you answered ‘Yes’ to Question 4, do you find in favor of the Cross-Plaintiff, RTKL ASSOCIATES, INC. or the Cross-Defendant, CARL GONNESEN [sic] AND SON, INC.? Cross-Plaintiff
If you find for the Cross-Plaintiff, RTKL ASSOCIATES, INC., in what amount do you assess damages? $111,459.00
*50 b. If you answered ‘Yes’ to Question 5, do you find in favor of the Cross-Plaintiff, RTKL ASSOCIATES, INC., or the Cross-Defendant, JAMES H. CARR, INC.? Cross-Plaintiff
If you find for the Cross-Plaintiff, RTKL ASSOCIATES, INC., in what amount do you assess damages? $167,189.00” 1

The trial court subsequently modified the verdict, entering judgment in favor of the College against RTKL for $185,765.33, exactly one-third (or its pro rata share) of the total verdict. The trial court, however, also entered judgments in favor of RTKL on its cross-claim against Gonnsen and Carr for $185,765.33, each, in effect increasing the verdict amount against Gonnsen and Carr. The amounts the trial court assessed against Gonnsen and Carr would be borne by the College by operation of the settlement contracts containing the indemnity provision.

STANDING

Preliminarily, since neither Carr nor Gonnsen has proceeded with this appeal, RTKL has moved to dismiss. RTKL posits that the College (appellant) does not have standing to appeal as it is not directly aggrieved by the trial court’s reduction of the jury’s verdict. RTKL argues that the College received all the relief prayed for and its dissatisfaction stems from its release and indemnification agreements with Carr and Gonnsen.

The College, on the other hand, contends that the reduction of the jury’s verdict when combined with the increase of the judgments against Carr and Gonnsen gives it sufficient standing to appeal because the combined effect wipes out any recovery it might have received. We agree the *51 College has standing but view the issue from a different perspective.

As a general rule, a party may not appeal from a favorable judgment because that party is not considered to be aggrieved. 2 Administrator, Motor Vehicle Administration v. Vogt, 267 Md. 660, 664, 299 A.2d 1 (1973). A party may, however, appeal from a favorable judgment if the record shows that the party has a personal, pecuniary or property interest in the subject matter of the litigation and that interest will be directly and substantially injured by the trial court’s prejudicial error. Pattison v. Corby, 226 Md. 97, 101, 172 A.2d 490 (1961); Preston v. Poe, 116 Md. 1, 6, 81 A. 178 (1911); see Houchin Sales Co. v. Angert, 11 F.2d 115, 118-19 (8th Cir.1926); Tiger v. American Legion Post No. 43, 125 N.J.Super. 361, 311 A.2d 179, 183 (1973).

This exception has been applied where a defendant was allowed to appeal from a judgment in favor of a co-defendant where that judgment affected the defendant’s statutory right of contribution. E.H. Koester Bakery Co. v. Poller & Baltimore Transit Co., 187 Md. 324, 326-27, 50 A.2d 234 (1947). Similarly, in

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Bluebook (online)
559 A.2d 805, 80 Md. App. 45, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-trustees-v-rtkl-associates-inc-mdctspecapp-1989.