Department of Transportation v. Thrasher

521 N.W.2d 214, 446 Mich. 61
Michigan Supreme Court·Decided August 2, 1994·No. 95199, (Calendar No. 8)·Published·Cited by 11 cases

Opinions

Boyle, J.

i

FACTS

This action for a declaratory judgment was com[63] menced by the mdot against the owners1 and driver2 of, and parents3 of two children who were passengers in, a pickup truck that collided with a truck driven by an mdot employee. The parents had filed an action in the Court of Claims against the mdot in January, 1989, which was consolidated with this action for a declaratory judgment some time after this action was commenced in October, 1989. The owners and driver settled with the parents without suit by paying insurance limits of $50,000 to one child and $4,000 to the other child.

The mdot seeks a declaration in this action determining the percentages of fault of the owners and driver "in causing the accident and any damages which may be awarded in the Court of Claims, and limiting the liability” of the mdot for damages to the parents in the Court of Claims action to that percentage authorized by § 6304.

The circuit court granted summary disposition, dismissing this action, and the Court of Appeals affirmed. The mdot argued that it, the nonsettling tortfeasor, is entitled under § 6304 to have the percentages of fault of the owners and driver, the settling tortfeasors, determined by the trier of fact, with the nonsettling tortfeasors’ liability limited to its "calculated percentage of fault.” The Court of Appeals ruled against the mdot, stating that § 6304 "does not require the trier of fact to ascertain the percentages of fault of joint tortfeasors who have settled with the injured party and are not parties to a lawsuit between the injured party and the remaining tortfeasor.”4

[64] The Court of Appeals focused on the language of § 6304, which it said "provides that in a personal injury action 'involving fault of more than 1 party to the action,’ the trier of fact shall determine the 'percentage of the total fault of all the parties regarding each claim as to each plaintiff, defendant, and third-party defendant.’ ”5

The Court of Appeals reasoned that the "plain language” of § 6304 "refers to 'parties’ to the action,”6 that the owners and driver were not parties to this action, and concluded that the circuit court was not required to determine their percentages of fault. The Court of Appeals observed that an earlier version of the 1986 tort reform act provided that "a percentage of the total fault would be made not only among parties to the action, but also among persons who had been released from liability,” but that language was deleted from the final version of the act. The Court of Appeals said that this change in the bill was "persuasive evidence that the Legislature did not intend the result argued by the mdot.”7

ii

THE UNIFORM COMPARATIVE FAULT ACT

On August 5, 1977, the National Conference on Uniform State Laws adopted the Uniform Comparative Fault Act (ucfa). The ucfa attempted to comprehensively resolve a number of major issues relating to comparative fault, including how it is defined, its use in apportioning damages, the role of contribution, and how a prior release affects all of the above. Because our Legislature’s effort at [65] tort reform, § 6304, is loosely based on a blend of § 2 and § 5 of the ucfa, with a dash of governmental immunity thrown in for good measure, a discussion of the uniform statute’s workings provides insight into the workings of the Michigan statute.

Section 1 of the ucfa "states the general principle, that a plaintiff’s contributory fault does not bar his recovery, but instead apportions damages according to the proportionate fault of the parties.” (Section 1, comment.) In a nutshell, § 1 establishes a pure comparative fault system, eliminating the older concept of contributory negligence as a bar to recovery.

Section 2 is the most important portion of the ucfa for our purposes, because it served as a template for the Michigan statute. Section 2 (apportionment of damages) provides:

(a) In all actions involving fault of more than one party to the action, including third-party defendants and persons who have been released under Section 6, the court, unless otherwise agreed by all parties, shall instruct the jury to answer special interrogatories or, if there is no jury, shall make findings, indicating:
(1) the amount of damages each claimant would be entitled to recover if contributory fault is disregarded; and
(2) the percentage of the total fault of all of the parties to each claim that is allocated to each claimant, defendant, third-party defendant, and person who has been released from liability under Section 6. For this purpose the court may determine that two or more persons are to be treated as a single party.
(b) In determining the percentages of fault, the trier of fact shall consider both the nature of the conduct of each party at fault and the extent of the causal relation between the conduct and the damages claimed.
[66] (c) The court shall determine the award of damages to each claimant in accordance with the findings, subject to any reduction under Section 6, and enter judgment against each party liable on the basis of rules of joint-and-several liability. For purposes of contribution under Sections 4 and 5, the court also shall determine and state in the judgment each party’s equitable share of the obligation to each claimant in accordance with the respective percentages of fault.
(d) Upon motion made not later than [one year] after judgment is entered, the court shall determine whether all or part of a party’s equitable share of the obligation is uncollectible from that party, and shall reallocate any uncollectible amount among the other parties, including a claimant at fault, according to their respective percentages of fault. The party whose liability is reallocated is nonetheless subject to contribution and to any continuing liability to the claimant on the judgment.

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Department of Transportation v. Thrasher, 521 N.W.2d 214, 446 Mich. 61 (Mich. 1994).

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Department of Transportation v. Thrasher
521 N.W.2d 214 (Michigan Supreme Court, 1994)