City of Muscatine v. U.S. Enviro-Con., Inc.

374 N.W.2d 405, 1985 Iowa Sup. LEXIS 1140
CourtSupreme Court of Iowa
DecidedSeptember 18, 1985
DocketNo. 84-1903
StatusPublished
Cited by2 cases

This text of 374 N.W.2d 405 (City of Muscatine v. U.S. Enviro-Con., Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Muscatine v. U.S. Enviro-Con., Inc., 374 N.W.2d 405, 1985 Iowa Sup. LEXIS 1140 (iowa 1985).

Opinion

CARTER, Justice.

Defendant, Stanley Consultants, Inc., which had cross-petitioned against third parties for indemnity or contribution in the event that it was held liable on plaintiff’s claims, appeals from the district court’s determination, following settlement of plaintiff’s claims, that defendant’s cross-petition claims have been automatically dismissed by operation of law under Iowa Rule of Civil Procedure 215.1. We affirm the district court.

The dispute which gave rise to this litigation involved a wastewater treatment facility owned and operated by the City of Mus-catine. In November, 1978, that city commenced an action against Stanley Consultants, Inc. and others seeking to recover damages for the alleged malfunction of the facility. In its claims against Stanley Consultants, Inc., the city alleged that Stanley had been deficient and negligent with respect to services performed for the city in connection with the operation of the waste-water treatment plant.

Also named as defendants were U.S. En-viro-Con, Inc., Aetna Casualty & Surety Company, and Envirotech Corporation. Shortly after the action was commenced, Grain Processing Corporation of Musca-tine, an industry dependent upon the operation of the wastewater treatment facility, intervened and aligned itself with the interests of the city. For convenience of reference throughout the balance of this opinion, the city will be referred to as plaintiff, Grain Processing Corporation will be identified as intervenor, Stanley Consultants, Inc. will be designated as SCI, and the other parties will be referred to by their actual names.

After the action had been pending for three years and had already twice been the subject of continuance orders under rule 215.1, SCI asked for leave to file a cross-petition against nonparties seeking indemnity or contribution in the event that plaintiff recovered against it. This motion was granted on February 18, 1982, and the cross-petition defendants, Union Carbide Corporation, Associated Water and Air Resource Engineers, Inc., and Air . Products and Chemicals, Inc., became parties to the action shortly thereafter.

On June 1, 1982, the district court ordered that the third-party claims be severed and separately tried following the disposition of plaintiff’s and intervenor’s claims against the primary defendants. On July 1, 1982, a third try-or-dismiss notice under Iowa Rule of Civil Procedure 215.1 was mailed by the clerk to counsel for all parties including SCI and the cross-petition defendants. This notice provided that the case would be dismissed if not tried prior to January 1, 1983, or further continued by the court for good cause shown.

On September 24, 1982, the plaintiff and intervenor settled their claims against SCI and the other defendants. The settlement agreement provided that a portion of any indemnity or contribution which SCI might recover from Union Carbide Corporation, Associated Water and Air Resource Engineers, Inc., or Air Products and Chemicals, Inc. on its cross-petition claims was to be shared with the plaintiff as an additional payment under the settlement agreement. The agreement further provided that plaintiff would take over the responsibility for prosecuting said claims.

Apparently acting in reference to the third-party claims, which were all that remained in the action, counsel for the plaintiff sought and obtained, on December 28, 1982, the third rule 215.1 continuance order in the history of the litigation. That order continued the remainder of the case for trial in the 1983 calendar year. No try-or-dismiss order under rule 215.1 was sent by [408]*408the clerk to any party in July or August of 1983.

In the spring of 1984, the plaintiff determined it no longer wished to pursue its interest in the third-party claims which it shared with SCI and advised the latter that it would thereafter have to pursue such claims alone. At or about this time, plaintiff’s counsel withdrew from the case. In August of 1984, the clerk mailed another try-or-dismiss notice to counsel for SCI and the other remaining parties to the litigation. When SCI sought, to have the case assigned for trial, the defendants to the third-party petition sought dismissal of the action on the ground that all remaining incidents of the pending action had been automatically dismissed as a matter of law on January 1, 1984 for failure to try the remaining portions of the litigation within the period specified in the December 28, 1982 continuance order. This motion was granted by the district court and this appeal followed.

The central and controlling issue presented by the appeal is whether under rule 215.1 the sanction of automatic dismissal on January 1,1984 was available only as to plaintiffs and intervenor’s claims against U.S. Enviro-Con, Inc., Aetna Casualty & Surety Company, Envirotech Corporation, and SCI, or, whether that sanction also extended to SCI’s third-party claims against Union Carbide Corporation, Associated Water and Air Resource Engineers, Inc., and Air Products and Chemicals, Inc. SCI argues that, on the facts of the present case, rule 215.1 had no applicability to the third-party claims as of January 1, 1984.

Its first argument in support of this contention relates to the timing of the notices from the clerk of the district court concerning the operation of rule 215.1. SCI asserts that because its third-party claims against Union Carbide Corporation, Associated Water and Air Resource Engineers, Inc., and Air Products and Chemicals, Inc. had not been on file more than one year prior to July 15, 1982, the clerk’s try or dismiss notice to counsel in August of 1982 did not mandate the assignment and trial of the third-party claims within the prescribed period. As authority for this contention, SCI relies, in part, on the following language in Kutrules v. Suchomel, 258 Iowa 1206, 1211, 141 N.W.2d 593, 597 (1966):

The operation of the rule is set in motion by the clerk’s notice relative to cases more than one year old on July 15.
A notice as to cases less than one year old is ultra vires. It does not deprive the court of any discretion nor make mandatory the assignment and trial of the case.

This language from Kutrules refers to a factual situation in which the plaintiff’s original petition had claimed against only one defendant and later, by amendment, a second claim was added to the petition against an additional defendant. The first claim had been on file more than one year when the clerk’s notices under rule 215.1 were mailed to counsel for the plaintiff and both defendants. The second claim, however, had been on file less than one year at this time. We affirmed a ruling by the district court that the notice did not require a trial of the second claim within the prescribed period.

SCI contends that Kutrules supports its claim that the August 1982 notice was ultra vires with respect to its third-party claims. It further urges that, because no notice under rule 215.1 was mailed to counsel for any party in July or August of 1983, the August, 1984 try-or-dismiss notice was the first act which triggered the operation of rule 215.1 with respect to the third-party claims.

In addition to its argument based on the timing of the clerk’s notices under rule 215.1, SCI urges that, within the context of the pretrial proceedings, it is unreasonable to interpret the August 1982 try-or-dismiss notice as applying to the third-party claims.

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Bluebook (online)
374 N.W.2d 405, 1985 Iowa Sup. LEXIS 1140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-muscatine-v-us-enviro-con-inc-iowa-1985.