Criterion Insurance Co. v. Laitala

658 P.2d 112, 1983 Alas. LEXIS 358
CourtAlaska Supreme Court
DecidedJanuary 14, 1983
Docket6014
StatusPublished
Cited by12 cases

This text of 658 P.2d 112 (Criterion Insurance Co. v. Laitala) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Criterion Insurance Co. v. Laitala, 658 P.2d 112, 1983 Alas. LEXIS 358 (Ala. 1983).

Opinions

COMPTON, Justice.

OPINION

Criterion Insurance Company appeals from a decision of the superior court granting Eugene Laitala summary judgment in a dispute involving the proper application of the Alaska Uniform Contribution Among Tortfeasors Act, AS 09.16.010- 060.

[113]*113I. FACTUAL AND PROCEDURAL BACKGROUND

Winston Quildón, Eugene Laitala, John Grogan and Raymond Stith were drivers of automobiles involved in a multi-auto accident occurring on January 3, 1975. Albert Shoats, a passenger in the Quildón automobile, was injured. Criterion Insurance Company insured Quildón at the time of the accident.

In March 1975, Albert and Holly Shoats sued Quildón for personal injuries and related damages. In July 1975, the complaint was amended to include Grogan and Laitala as defendants. Eventually Grogan settled with the Shoatses for $21,775.00. Laitala was never served, and was dismissed from the case without prejudice on June 28, 1976.1 The Shoatses never proceeded against Laitala again, and the statute of limitations ran on their claim against him on June 28, 1977.2

A trial in August 1977 resulted in a jury verdict finding the Shoatses’ damages to be $450,000.00. The jury allocated sixty percent of the fault to Quildón and forty percent to Shoats. After computing pre-judgment interest, costs and attorney’s fees, and deducting the $21,775.00 Grogan settlement, judgment was entered against Quildón for $339,677.22.

Quildón appealed, but during the penden-cy of the appeal the case was settled. Quil-dón paid the Shoatses $250,000.00, and dismissed the appeal. In return, the Shoatses signed a written agreement on September 21, 1978, entitled “Release of All Claims.” It released Quildón and his insurance carrier, Criterion, from all claims, but did not specifically name Laitala. The document provides in part:

That we, ALBERT SHOATS and HOLLY SHOATS, for the sole consideration of TWO HUNDRED FIFTY THOUSAND DOLLARS ($250,000.00) to us in hand paid, have released and discharged, and by these presents, do for ourselves, our heirs, executors, administrators, and assigns, release and forever discharge WINSTON QUILDON and his insurance carrier, THE CRITERION INSURANCE COMPANY, from any and all claims, demands, damages, costs, expenses, loss of services, actions, and causes of action arising from any act or occurrence up to the present time, and particularly on account of all personal injury, disability, loss, or damages of any kind already sustained, or that may hereafter be sustained, in consequence of an accident occurring on January 3, 1975 ....
It is further understood and agreed that this is a full, entire, and final release of all claims of every nature and kind against all parties hereinabove named, including any survival causes of action, and releases all claims against the released parties for injuries that are known and unknown, suspected and unsuspected, whether or not disclosed in any medical reports ....
It is further understood that the parties hereby released admit no liability whatever of any sort by reason of said loss, but on the contrary, expressly deny any negligence or liability for the incident; and that this payment as settlement is in compromise only, and is made to terminate further controversy respecting all claims for damages that we have heretofore asserted, or that our personal representatives might hereafter assert because of said incident.
It is further understood, by virtue of this release, in addition to unequivocally releasing WINSTON QUILDON and his insurance carrier, THE CRITERION INSURANCE COMPANY, under any applicable policy of insurance, from all claims, covenants and agree [sic] that we will [114]*114not, either by ourselves or in concert with others, or by virtue of judicial proceedings of any kind whatsoever, make or cause to be made, acquiesce in, or assist in the bringing of any further action for damages arising out of the incident here-inabove described.
We hereby declare that the terms of this settlement have been completely read and are fully understood and are voluntarily accepted for the purpose of making a full and final compromise, adjustment, and settlement of any and all claims, disputed or otherwise, against WINSTON QUILDON and his insurance carrier, THE CRITERION INSURANCE COMPANY, on account of the damages above-mentioned.

On June 19, 1979, Criterion filed a legal malpractice suit against the attorneys it had employed to represent Quildón in the above action. That suit is pending in the Federal District Court in Fairbanks. The complaint alleges that the attorneys were negligent in handling Quildon’s case. Among other allegations, Criterion charges that the defendant attorneys failed to communicate to Criterion an offer by the Shoatses to settle with Quildón for $21,-725.00.

On August 1,1979,3 Criterion filed a complaint for contribution against Laitala whereby it sought to recover a pro rata share of the money it had paid the Shoats-es.4

On March 12, 1981, the parties stipulated that for purposes of the instant case only:

Eugene Laitala was negligent and .., his negligence was a proximate cause of the injuries received by Albert Shoats in the automobile accident of January 3, 1975, which accident is the subject matter of the instant contribution claim. Further, we agree that Eugene Laitala is a joint tort-feasor with Winston Quildón in that accident.
Eugene Laitala will also agree, for purposes of this contribution action only, that the amount paid by Criterion, i.e., $250,000 was not in excess of what was reasonable given the judgment obtained by Albert Shoats as a result of the trial.

Also on March 12,1981, Laitala’s attorney contacted the Shoatses’ attorney and offered to settle on behalf of Laitala for $1,500.00. The Shoatses declined the offer to settle because they believed it might violate their September 1978 agreement with Criterion. Instead they made another agreement with Criterion whereby Criterion paid them an additional $2,000.00 and they executed a document expressly releasing Laitala. On March 26, 1981, they filed a document in the superior court in which they acknowledged full satisfaction of the judgment against Quildón.

Both Laitala and Criterion moved for summary judgment. Criterion argued that the September 1978 agreement constituted a satisfaction of judgment for purposes of Alaska’s Uniform Contribution Among Tortfeasors Act, and that Laitala should thus have to contribute his pro rata share of the $252,000.00 Criterion had paid the [115]*115Shoatses. Laitala contended that he did not have to contribute because the September 1978 post-judgment agreement did not constitute a satisfaction of judgment. Assuming arguendo that the post-judgment agreement constituted a satisfaction, and he did have to contribute, Laitala claimed he should have to pay only his pro rata share of $21,725.00, the amount the Shoats-es demanded from Quildón in order to settle before trial.

The superior court granted summary judgment for Laitala, holding that he did not have to contribute. Alternatively, the superior court held that if the supreme court reversed the summary judgment on appeal, Criterion could recover no more than a pro rata share of $21,725.00.

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Criterion Insurance Co. v. Laitala
658 P.2d 112 (Alaska Supreme Court, 1983)

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Bluebook (online)
658 P.2d 112, 1983 Alas. LEXIS 358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/criterion-insurance-co-v-laitala-alaska-1983.