Cordier v. Stetson-Ross, Inc.

604 P.2d 86, 184 Mont. 502, 1979 Mont. LEXIS 933
CourtMontana Supreme Court
DecidedNovember 28, 1979
Docket14659
StatusPublished
Cited by26 cases

This text of 604 P.2d 86 (Cordier v. Stetson-Ross, Inc.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cordier v. Stetson-Ross, Inc., 604 P.2d 86, 184 Mont. 502, 1979 Mont. LEXIS 933 (Mo. 1979).

Opinions

MR. JUSTICE SHEEHY

delivered the opinion of the Court.

The Hon. Russell E. Smith, United States District Judge for the District of Montana, has certified to us for decision three questions, the adjudication of which by the Montana Supreme Court would materially advance ultimate termination of federal litigation:

[504]*504“1. Does a third party, sued by an injured employee, have any right to indemnity or contribution from a negligent employer if the employer and the employee are covered by the Montana workers’ Compensation Act?
“2. If the third party has a right in indemnity or contribution against the employer, may the employer insist that the total verdict, of which he must pay all or part, be reduced by the compensation payments?
.“3. If the employer is not liable by way of indemnity or contribution to a third party, may he, even though himself negligent, recover from the third person through the employee under the subrogation rights created by law? In short, is there a conflict between R.C.M.1947, § 92-204.2, and R.C.M.1947, § 58-607.2?”

The plaintiff in the federal court action, Joseph Cordier, was an employee of Champion International Corporation (hereafter Champion.) He was injured in an industrial accident which was covered under the Montana Workers’ Compensation law and received compensation. Cordier has now brought against Stetson-Ross, Inc. an action under section 92-204.1, R.C.M.1947, now section 39-71-412, MCA. In his complaint in the federal court, Cordier claimed that he was injured as the result of the negligence of Stetson-Ross, Inc. in connection with machinery sold by Stetson-Ross, Inc. to Champion. Joesph Cordier is joined in his suit against Stetson-Ross, Inc., by his wife, who as a co-plaintiff seeks damages for loss of consortium.

Stetson-Ross, Inc. answered the complaint of Joseph Cordier and Jo Cordier by way of general denial, by alleging affirmative defenses of contributory negligence and assumption of risk, and by alleging that the negligence of Champion in failing to properly instruct Cordier in the operation of the gang saw, in failing to maintain the saw and equipment properly, and in failing to provide adequate safety procedures, proximately caused the plaintiff’s accident.

Stetson-Ross, Inc. in the same federal action also filed a third-party complaint against Champion alleging again in essence that [505]*505Champion failed properly to supervise, instruct, and warn its employees as to the operation of the gang saw, failed to set up and install the saw properly and to maintain it, and failed to carry out and enforce safety prodecures with respect to the operation of the gang saw. In its third-party complaint Stetson-Ross, Inc. prays for judgment against Champion either for the full amount of plaintiff’s damages by way of indemnity or for a proportional amount, based on the percentages of negligence attributable to Champion and to Stetson-Ross, Inc.

Stetson-Ross, Inc.’s claim is therefore based on (1) indemnity, or (2) contribution under our comparative negligence statute.

We look first at the contribution issue. In Consolidated Freightways Corporation of Delaware v. June Osier and Margaret Collins (1979), 185 Mont. 439,_P.2d_, 36 St.Rep. 1810, we held that except in those cases covered by our comparative negligence statute, there is no substantive right to contribution between joint tortfeasors under Montana law.

In its answer in the federal court to the complaint of co-plaintiffs Joseph Cordier and Jo Cordier, Stetson-Ross, Inc. alleges that the contributory negligence of Joseph Cordier was the proximate cause of the injuries for which he claims damages. This allegation brings into play the provisions of section 27-1-702, MCA, our comparative negligence statute. Under that statute, if the plaintiff were negligent but in an amount not greater than the negligence of Stetson-Ross, Inc., any damages allowed are required to be diminished in the proportion that the amount of negligence is attributable to the person recovering. However, we further held in Consolidated Freightways, supra, that the right of contribution granted in section 27-1-703, MCA, applicable to comparative negligence cases, does not apply or give a right to one tortfeasor to bring into the action another alleged tortfeasor by means of third-party practice. We said:

“We further hold that even in comparable negligence cases, the right of contribution granted in section 27-1-703, MCA, applies only to defendants against whom judgment has been recovered by [506]*506the plaintiff. The terms of the statute itself appear to command that result. It speaks of contribution in paragraph (1) where
“ ‘recovery is allowed against more than one party’, and in paragraph (2)
“provides what occurs if contribution cannot be obtained ‘from a party liable for contribution.’

“That language is not an invitation to engage in third party practice under Rule 14, Mont.R.Civ.P. One reason is that Rule 14 is a procedural rule, and is not intended to alter, expand or abridge substantive rights. Moore’s Federal Practice Sec. 14.03[1]. There was no substantive right to contribution in 1975 or 1977, when the comparative negligence statutes were adopted in Montana. Another reason is that there is no indication of legislative intent, unless legislative intent can be found by implication, to change the substantive rule against contribution among joint tortfeasors.” Consolidated Freightways (1979), 185 Mont. 444,_P.2d_, 36 St.Rep. 1810, 1813.

Consolidated Freightways teaches that contribution in Montana between joint tortfeasors is allowed only in comparative negligence cases, and then only as to tortfeasors actually sued by the plaintiff. The reasons are fully set forth in that opinion.

The question certified to us by Judge Smith however in effect asks us to assume that there are no other roadblocks to Stetson-Ross, Inc.’s claim to contribution but the provisions of the Montana Workers’ Compensation Act. In that light, we are brought immediately to consider the effect of section 92-204.1, R.C.M. 1947, now section 39-71-411, -412, MCA. The pertinent language of the past and present sections are:

“For all employments covered under the Workers’ Compensation Act.. . the provisions of the act are exclusive... [a]n employer is not subject to any liability whatever for the death or personal injury to any employees covered by the . . . Act. The Workers’ Compensation Act binds the employee himself, and in case of death binds his personal representative and all persons having any right or claim to compensation for his injury or death, as well as the [507]*507employer and the servants and employees of such employer, . . . The right to compensation, and medical benefits as provided by this act is not affected by the fact that the injury, ... or death is caused by the negligence of a third party other than the employer, or the servants or employees of the employer. Whenever such event ... is caused by the act or omission of some persons or corporations other than his employer . . . the employee . . . shall, in addition to the right to receive compensation under this act, have a right to prosecute any cause of action he may have for damages against such persons or corporations. ...”

The following section 92-204.2, R.C.M.

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Cordier v. Stetson-Ross, Inc.
604 P.2d 86 (Montana Supreme Court, 1979)

Cite This Page — Counsel Stack

Bluebook (online)
604 P.2d 86, 184 Mont. 502, 1979 Mont. LEXIS 933, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cordier-v-stetson-ross-inc-mont-1979.