Chilcote v. Von Der Ahe Van Lines

476 A.2d 204, 300 Md. 106, 1984 Md. LEXIS 300
CourtCourt of Appeals of Maryland
DecidedJune 12, 1984
Docket78, September Term, 1983
StatusPublished
Cited by24 cases

This text of 476 A.2d 204 (Chilcote v. Von Der Ahe Van Lines) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chilcote v. Von Der Ahe Van Lines, 476 A.2d 204, 300 Md. 106, 1984 Md. LEXIS 300 (Md. 1984).

Opinion

RODOWSKY, Judge.

On this appeal we address a fundamental question under the Maryland version of the Uniform Contribution Among Tort-Feasors Act (the Md. Act). 1 Three tortfeasors are *109 involved, M, a master, M’s servant, S, and a third defendant, T. The plaintiffs and T settled before trial under a pro rata release. M and S went to trial and a jury has valued the plaintiffs’ claims. Under the Md. Act and the terms of T’s release the total verdict is to be reduced by T’s pro rata share. Is that share one-half or one-third? Our answer is one-half, as explained below.

The case arises out of a three-vehicle collision. One vehicle was owned and operated by the plaintiff, Carmen F. Chilcote (Carmen), husband of the plaintiff, Gloria May Chilcote (collectively, the Plaintiffs). Defendant, Von Der Ahe Van Lines (Van Lines), owned the second vehicle, which was being operated by Van Lines’ servant, the defendant Eiber Vincent, Jr. (Vincent). The remaining defendant is Amos E. Webb, Jr. (Webb), owner and operator of the third vehicle involved. Webb settled before trial for $18,500 and received a release in which the Plaintiffs agreed that their right to recover damages from Vincent and Van Lines was thereby “reduced to the extent of the pro rata share of [Webb] of the damages of the [Plaintiffs] recoverable against [Vincent and Van Lines] should [Webb] be found jointly liable with them.” The release further stated the intention of the Plaintiffs “to relieve [Webb] from any liability to make contribution to” Vincent and Van Lines. In response to special interrogatories the jury found that negligence of both Vincent and Webb proximately caused the accident, that Carmen’s damages were $85,000 and that damages to the Plaintiffs’ marital relationship were $25,000. The trial court reduced the verdicts by 50%, representing the pro rata share of Webb, and entered judgments against Van Lines and Vincent for $42,500 in favor of Carmen and *110 for $12,500 in favor of the Plaintiffs. The Court of Special Appeals affirmed. Chilcote v. Von Der Ahe Van Lines, 55 Md.App. 291, 462 A.2d 536 (1983).

On the joint petition of the Plaintiffs, Van Lines and Vincent, we granted certiorari to review two issues:

“[WJhether a subsequent verdict against non-released defendants is reduced by the amount of the consideration for the joint tortfeasor release or reduced by a percentage share[; and,]
[I]f the reduction is a percentage reduction, the manner in which the percentage is calculated when one of the non-released defendants is vicariously liable only.” [ 2 ]

(I)

Plaintiffs’ first contention is that the total of the verdicts, $110,000, should have been reduced only by the $18,500 actually paid by Webb as consideration for the pro rata release furnished to him. Martinez v. Lopez, 300 Md. 91, 476 A.2d 197 (1984) controls and refutes Plaintiffs’ position. We there held that the effect of a release, including a pro rata release, on the injured person’s claim is governed by § 19 of the Md. Act. It says that a release “reduces the claim against the other tort-feasors in the amount of the consideration paid for the release, or in any amount or proportion by which the release provides that the total claim shall be reduced, if greater than the consideration paid.” No “amount” of reduction is provided in the release to Webb. A “proportion,” which in this release is a pro rata share, is provided. Whether Webb’s pro rata share is a half or a third, it is greater than the consideration paid for the *111 release. 3 Under those circumstances, § 19 directs using the pro rata share and not the consideration paid to determine the amount of the reduction. See Martinez, supra and Swigert v. Welk, 213 Md. 613, 619, 133 A.2d 428, 431 (1957) (illustrating in two tortfeasors-two shares context a claim of $8,000, release consideration of $3,500 and a pro rata reduction of $4,000).

The two points with which Plaintiffs support their position are not well taken. One rests on dicta in Brooks v. Daley, 242 Md. 185, 193, 218 A.2d 184, 188 (1966). There we commented that, if the jury had found a defendant and a third-party defendant jointly liable, the defendant "would have been entitled to a reduction in the amount of the judgment owed [the plaintiff] equal to the amount of the consideration paid by [the third-party defendant] to purchase her release.” In Brooks the amount of consideration paid for the release was not in the record so that no comparisons of pro rata share and consideration were made. In the context of the Brooks ’ opinion the statement was not intended to be a definitive construction of § 19 of the Md. Act applicable to any combination of relevant facts.

Dicta in Lahocki v. Contee Sand & Gravel Co., 41 Md.App. 579, 398 A.2d 490 (1979), rev’d on other grounds, *112 286 Md. 714, 410 A.2d 1039 (1980) is the source of Plaintiffs’ second point. The Court of Special Appeals’ Lahocki, in which there was no agency relationship between any of the tortfeasors, held that the “pro rata share” referred to in the release meant, as a matter of that contract’s interpretation, a numerical share based upon the number of tortfeasors. The opinion recognized that Maryland lawyers generally accepted and used that construction but suggested that the correct statutory interpretation of “pro rata share” might be “proportionate to the consideration paid by the released tortfeasor.” Id. at 618, 398 A.2d at 512. In our view such a “proportionate” reduction becomes simply the subtraction from the claim of the amount of consideration. If a pro rata share always equals the amount of consideration paid, the second clause of § 19 of the Md. Act becomes redundant in the overwhelming majority of cases because releases in joint tortfeasor cases ordinarily credit the releasee’s pro rata share. Thus § 19 in such cases would in effect look to the greater of (1) the consideration paid, or (2) the amount provided, or (3) the consideration paid. For reasons similar to those on which we relied in deciding Martinez, we reject the notion that pro rata share always equals the consideration paid by the releasee. Consequently, the $18,500 paid by Webb in the instant matter is not the limit of the reduction of the Plaintiffs’ verdict. 4

*113 (II)

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Bluebook (online)
476 A.2d 204, 300 Md. 106, 1984 Md. LEXIS 300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chilcote-v-von-der-ahe-van-lines-md-1984.