Brochner v. Western Insurance Co.

724 P.2d 1293, 55 U.S.L.W. 2162, 1986 Colo. LEXIS 611
CourtSupreme Court of Colorado
DecidedSeptember 2, 1986
Docket84SC55
StatusPublished
Cited by38 cases

This text of 724 P.2d 1293 (Brochner v. Western Insurance Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brochner v. Western Insurance Co., 724 P.2d 1293, 55 U.S.L.W. 2162, 1986 Colo. LEXIS 611 (Colo. 1986).

Opinions

KIRSHBAUM, Justice.

We granted certiorari to review the opinion of the Colorado Court of Appeals in Western Insurance Co. v. Brochner, 682 P.2d 1213 (Colo.App.1983), in which the Court of Appeals concluded that a joint tortfeasor whose negligence was the primary cause of a plaintiff’s personal injuries was liable in indemnity to a second joint tortfeasor. The court also concluded that the primarily liable tortfeasor was obligated to pay the attorney fees and costs incurred by the secondarily liable tortfeasor in defending the original action. We reverse.

The Community Hospital Association (the hospital), which operates Boulder Community Hospital, granted staff privileges to Dr. Ruben Brochner in October 1964. Bro-chner performed numerous craniotomies1 at the hospital over the next few months. In 1965, after reviews of those cranioto-mies indicated that tissue samples from many of the patients appeared normal, the hospital’s executive committee orally required Brochner to obtain consultations before performing craniotomies if the relevant radiographic evidence did not clearly establish pathology. In 1966, the executive committee recommended to Brochner that he should obtain additional outside consultation on surgical pathological specimens.

In March 1968, the hospital’s tissue committee received a report that fourteen of twenty-eight tissue samples taken from Brochner's neurosurgery patients were completely normal and that nine of the remaining fourteen samples indicated only low grade disease. An expert testified at trial that one normal tissue of 100 tissue samples was an acceptable ratio and that two normal tissues out of twenty-eight samples would require investigation.

On November 9, 1968, Brochner performed a craniotomy on Esther Cortez which resulted in injury to Cortez. Cortez later filed a civil action against Brochner and the hospital. She alleged that Bro-[1295]*1295chner negligently diagnosed her need for a craniotomy, that the hospital negligently continued Brochner’s staff privileges when it knew or should have known that he was incompetent, and that the hospital negligently allowed Broehner to perform unnecessary surgery. The claim against Bro-chner was severed, and trial of the claims against the hospital commenced April 3, 1978. Prior to the conclusion of that trial, Cortez and the hospital agreed to a settlement of $150,000. Some time later, Cortez reached a settlement of her suit against Broehner, who was uninsured, for an undisclosed sum.

In 1979, the hospital and its subrogee, Western Insurance Company (Western), filed this indemnity action against Bro-chner, alleging that Brochner’s negligence was the active and primary cause of Cortez’ injuries while the hospital’s negligence was passive and secondary. On September 15, 1982, the trial court entered judgment for Western and the hospital against Bro-chner as follows: (1) $150,000 as the sum paid by Western on behalf of the hospital to Cortez in settlement of her claim against the hospital; and (2) $10,000 to the hospital for expenses incurred in connection with the Cortez lawsuit not reimbursed by insurance. The trial court found that Broehner had breached a pre-existing duty to the hospital to abide by its rules and regulations, that Brochner’s negligence was the primary cause of Cortez’ injuries, that the hospital was independently negligent toward the plaintiff, and that the hospital’s negligence was only a secondary cause of those injuries. The trial court also awarded Western its attorney fees and costs incurred in defending the original lawsuit. The Court of Appeals affirmed the trial court’s judgment.

I

Broehner first argues that the adoption of the Uniform Contribution Among Tort-feasors Act, §§ 13-50.5-101 to -106, 6 C.R.S. (1985 Supp.) (the Act) abrogated the Colorado common law rule of indemnity to the extent such rule is based upon distinctions between primary and secondary fault. We do not agree that the statute per se altered the common law doctrine of indemnity. However, we conclude that existence of the Act sufficiently undermines the historical basis for the rule to require its modification.

The common law of Colorado has consistently followed the majority common law rule prohibiting contribution among joint tortfeasors. Hamm v. Thompson, 143 Colo. 298, 353 P.2d 73 (1960); see Ringsby Truck Lines, Inc. v. Bradfield, 193 Colo. 151, 563 P.2d 939 (1977). Recognizing that strict application of this rule sometimes produces unjust results, a rule permitting indemnity between tortfeasors in certain limited circumstances was also incorporated into this jurisdiction’s panoply of common law principles. Parrish v. DeRemer, 117 Colo. 256, 187 P.2d 597 (1947); Otis Elevator Co. v. Maryland Casualty Co., 95 Colo. 99, 33 P.2d 974 (1934); Colorado & Southern Ry. v. Western Light & Power Co., 73 Colo. 107, 214 P. 30 (1923); see Laugesen, Colorado’s Contribution Among Tortfeasors Act, 6 Colo.Law. 1485 (1977).

Contribution and indemnity are analytically quite distinct concepts. The former is based on the equitable notion that one tortfeasor should not be required to pay sums to an injured party in excess of that tortfeasor’s proportionate share of the responsibility for the injuries. The latter is grounded in the legal principle that one joint tortfeasor, as indemnitor, may owe a duty of care to another joint tortfeasor, which duty is unrelated to any duty of care owed by the tortfeasors to the injured party.2 Ringsby, 193 Colo. 151, 563 P.2d 939. When such duty is established, the indem-nitor tortfeasor may be liable to the indem-nitee tortfeasor for the entire loss experienced by the latter as the result of pay[1296]*1296ments made to the injured party. See Public Service Co. v. District Court, 638 P.2d 772 (Colo.1981).

Although the concept of indemnity liability is grounded in the nature of the relationship between joint tortfeasors, it is further defined by analysis of the conduct of such tortfeasors in regard to the damages suffered by the injured party. As initially adopted, our rule required the indemnitor’s conduct to be the “sole, proximate and primary cause” of the damages suffered by the injured party. Parrish, 117 Colo. at 271, 187 P.2d at 605; see Otis Elevator Co., 95 Colo. 99, 33 P.2d 974; Colorado & Southern Ry., 73 Colo. 107, 214 P. 30. However, in Jacobson v. Dahlberg, 171 Colo. 42, 464 P.2d 298 (1970), this court modified the test for indemnity by eliminating the requirement that the indemnitor’s conduct be the sole cause of the injured party’s damages and adopting a broader standard requiring only that the indemnitor’s conduct be the primary cause of such damages. In Ringsby, we emphasized the point that this primary/secondary test of indemnity was not based on the principle of comparative fault:

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Cite This Page — Counsel Stack

Bluebook (online)
724 P.2d 1293, 55 U.S.L.W. 2162, 1986 Colo. LEXIS 611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brochner-v-western-insurance-co-colo-1986.