Duncan v. Cessna Aircraft Co.

632 S.W.2d 375, 1982 Tex. App. LEXIS 5091
CourtCourt of Appeals of Texas
DecidedApril 22, 1982
Docket13308, 13355
StatusPublished
Cited by9 cases

This text of 632 S.W.2d 375 (Duncan v. Cessna Aircraft Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Duncan v. Cessna Aircraft Co., 632 S.W.2d 375, 1982 Tex. App. LEXIS 5091 (Tex. Ct. App. 1982).

Opinion

ON MOTION FOR REHEARING

SHANNON, Justice.

The opinion of this Court handed down on March 17, 1982, is withdrawn, and the following opinion replaces it.

James Parker and Benjamin Smithson perished in the crash of a Cessna 150 airplane in New Mexico in 1976. The plane was piloted by Smithson and owned by Air Plains West, Inc.

Darla Smithson and Carolyn Parker Duncan, widows of Smithson and Parker, filed wrongful death suits in the district court of Travis County against Cessna Aircraft Company to recover individually, as admin-istratices of their husbands’ estates, and as next friends for their minor children. After trial to a jury, the district court rendered judgment that Mrs. Duncan and the children take nothing, and that Mrs. Smithson and the children recover $1,200,000. Mrs. Duncan and the children have perfected an appeal from the take nothing judgment and Cessna has appealed from the judgment rendered for Mrs. Smithson. The respective appeals, although separately treated in a great welter of briefs, were consolidated for purposes of oral argument and both will be considered in this opinion.

The plaintiffs alleged, and endeavored to prove, that the seats in the Cessna aircraft occupied by plaintiffs’ decedents were defectively designed or manufactured by Cessna, and failed in the crash of the plane causing the fatal injuries to the passengers. The plaintiffs attempted to show further that since the crash occurred at a speed of less than sixty miles per hour, Smithson and Parker would have survived had the seats remained secure during the crash.

In addition to denying that the airplane seats were defective in design or manufacture, Cessna alleged that Mrs. Duncan and the children were barred from asserting any claim against it by reason of a previously executed settlement agreement and release of all parties. By counterclaim, Cessna asserted, among other things, that Smithson’s negligence caused the crash and that it would be entitled to contribution from Smithson’s estate for any damages it might be required to pay Mrs. Duncan.

Upon motion by Cessna, the district court determined that New Mexico law governed the trial of the cause to the extent that it differed from Texas law.

The case was submitted to the jury by eight special issues. The jury answered that the seats of the airplane were defectively designed and manufactured and that such defects in design and manufacture proximately caused the fatal injuries to Parker and Smithson. The jury fixed damages of $1,000,000 for Mrs. Duncan and her children and $1,200,000 for Mrs. Smithson and her children.

Cessna moved for judgment non obstante veredicto on Mrs. Duncan’s cause of action, arguing her previously executed settlement agreement and release absolved Cessna from liability. The district court granted the motion and rendered judgment that Mrs. Duncan take nothing, and rendered judgment upon the jury’s verdict for Mrs. Smithson.

MRS. DUNCAN’S RELEASE

In 1976, prior to filing suit against Cessna in district court in Travis County, Mrs. Duncan and her minor children filed a wrongful death suit against Air Plains West, Inc., in the United States District Court for the Northern District of Texas, alleging that the negligence of Smithson and his employer, Air Plains West, Inc., proximately caused the death of Parker. Thereafter, Mrs. Duncan and the children settled this suit for $90,000. As a part of that agreement, she and the children released Air Plains West, Inc., Smithson’s estate, and purported to release as well:

any other corporations or persons whomsoever responsible therefor, whether named herein or not, from any and all claims of every kind and character what *379 soever, and from any cause of action, claims, demands, costs, loss of services, compensation, medical, hospital and doctor expenses, funeral and burial expenses, and damages, both actual and exemplary, on account of the fatal injuries sustained by the said James E. Parker, which resulted in his death, as the result of an airplane crash occurring on or about October 19,1976, wherein a Cessna 150 Aircraft, Serial Number 15075844, and Registration Number N-66113, owned by Air Plains West, Inc., and being piloted by Benjamin A. Smithson, Jr., crashed three miles southwest of Texico, New Mexico.

This settlement agreement, signed by Mrs. Duncan and the guardian ad litem for the children, formed the basis for entry of judgment non obstante veredicto in favor of Cessna in the present lawsuit.

Mrs. Duncan argues that the district court erroneously rendered judgment non obstante veredicto. She asserts the court mistakenly applied New Mexico law, rather than Texas law, in construing the release. Under Texas law, Mrs. Duncan argues, Cessna may not benefit from the release. The initial issue is whether Texas law or New Mexico law controls the construction of the release.

A. Application of Texas or New Mexico Law to the Release

A release of tort liability is a contract, and the effect of provisions in a release will be determined according to rules of contract construction. Berry v. Guyer, 482 S.W.2d 719 (Tex.Civ.App.1972, writ ref’d n. r. e.); Garcia v. Villarreal, 478 S.W.2d 830 (Tex.Civ.App.1971, no writ); Loy v. Kuykendall, 347 S.W.2d 726 (Tex.Civ.App.1961, writ ref’d n. r. e.); Mutual Fire & Auto Insurance Co. v. Green, 235 S.W.2d 739 (Tex.Civ.App.1950, no writ); see 15 S. Williston, A Treatise on the Law of Contracts § 1820, at 462-63 (3rd ed. 1972). Ordinarily, contractual provisions will be construed under the law of the state intended by the parties to control, and in the absence of any express manifestation by the parties, the presumption is that the parties contract with reference to the law of the state where the contract is made. Austin Building Co. v. National Union Fire Insurance Co., 432 S.W.2d 697, 701 (Tex.1968); Foundation Reserve Insurance Company v. Cody, 458 S.W.2d 214 (Tex.Civ.App.1970, no writ).

Mrs. Duncan signed the settlement agreement in Potter County, Texas. The agreement is silent as to which state’s law controls the construction of the agreement’s terms. Under the rule announced in Austin Building Co., this Court must presume that the parties contracted with reference to Texas law.

Both Mrs. Duncan and Cessna assume that rules announced in the Restatement (Second) of Conflict of Laws (1971) are applicable in selecting whether Texas or New Mexico law controls the effect of the release. Section 145(1) of the Restatement provides that the rights and liabilities of the parties with respect to an “issue in tort” are determined by the local law of the state which, with respect to that issue, has the most significant relationship to the occurrence and the parties.

In two recent opinions, the Supreme Court of Texas has applied § 145 of the Restatement. In Gutierrez v. Collins,

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632 S.W.2d 375, 1982 Tex. App. LEXIS 5091, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duncan-v-cessna-aircraft-co-texapp-1982.