Ehredt v. Dehavilland Aircraft Co. of Canada, Ltd.

705 P.2d 913, 1985 Alas. LEXIS 302
CourtAlaska Supreme Court
DecidedAugust 30, 1985
DocketS-255/288
StatusPublished
Cited by5 cases

This text of 705 P.2d 913 (Ehredt v. Dehavilland Aircraft Co. of Canada, Ltd.) 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
Ehredt v. Dehavilland Aircraft Co. of Canada, Ltd., 705 P.2d 913, 1985 Alas. LEXIS 302 (Ala. 1985).

Opinion

COMPTON, Justice.

This appeal arises from a contribution award in favor of an aircraft manufacturer against the employer of a pilot killed in a plane crash. The employer appeals, arguing that (1) the employer and manufacturer are not jointly and severally liable within the meaning of the Uniform Contribution Among Tortfeasors Act, (2) the award is barred by the exclusivity provision of the Workers’ Compensation Act and (3) the manufacturer may not claim contribution because the settlement did not completely extinguish the employer’s liability. Both parties argue that the trial court awarded an incorrect amount. The manufacturer contends that denial of Civil Rule 82(a) attorney’s fees was an abuse of discretion. We affirm.

I. FACTUAL AND PROCEDURAL BACKGROUND

On October 13, 1978, a Twin Otter aircraft crashed in Barrow. M.O. Ehredt d/b/a Arctic Guide Air Taxi (Ehredt) owned the aircraft, which was piloted by Ehredt’s employee, Patrick Charles Walters (Walters). Walters died in the crash. The plane was manufactured by DeHavil-land Aircraft Co. of Canada, Ltd. (DeHavil-land).

Walters sued Ehredt and DeHavilland in superior court, alleging negligence claims against both and a strict products liability claim against DeHavilland. 1 Ehredt and DeHavilland cross-claimed for contribution and indemnity.

The jury returned a verdict against De-Havilland and Ehredt fixing Walters’ damages at $1.85 million. The court entered judgment against DeHavilland and Ehredt, jointly and severally, for 90% of the judgment or $2,628,770.92, and judgment against Ehredt alone for 10% of the judgment or $290,991.22. 2

DeHavilland then paid Walters $2.3 million for release of the joint and several liability judgment and assignment to DeHa-villand of the judgment entered solely against Ehredt. DeHavilland moved for entry of judgment on its cross-claim against Ehredt for one-half of the $2.3 million settlement. The trial court awarded DeHavilland $1,001,323.42, representing one-half of the amount paid for release of the joint and several liability, excluding the amount DeHavilland paid for assignment of the separate judgment against Ehredt. 3 *916 The trial court determined that DeHavil-land was entitled to reasonable attorney’s fees, rather than the Civil Rule 82(a) scheduled amount, and awarded DeHavilland $4,000. Both Ehredt and DeHavilland appeal.

II. JOINT AND SEVERAL LIABILITY

DeHavilland argues that it is entitled to contribution from Ehredt under the Uniform Contribution Among Tortfeasors Act, because they were adjudged jointly and severally liable for Walters’ damages. 4 Ehredt contends that he and DeHavilland are not jointly and severally liable within the meaning of AS 09.16.010(a) because they were subject to different burdens of proof in the underlying action. 5 When an employer fails to secure payment of compensation, thereby entitling an employee to pursue a civil action, courts treat the civil action as any other common law claim, even though the Workers’ Compensation Act affects the allocation of the burden of proof and abrogates certain defenses. See, e.g., Gould v. Bird & Sons, 5 Wash.App. 59, 485 P.2d 458 (1971). Since the jury found both Ehredt and DeHavilland negligent, we conclude they are jointly and severally liable in tort for the same wrongful death within the meaning of AS 09.16.-010(a); therefore DeHavilland is entitled to contribution.

III. EXCLUSIVE LIABILITY PROVISION

Ehredt next argues that, even if he and DeHavilland are jointly and severally liable, the exclusive liability provision of the Workers’ Compensation Act bars DeHavil-land’s contribution claim. We must therefore examine the interplay between AS 23.-30.055 and AS 09.16.010. 6

When an employer secures compensation, a third party’s cross-claim for contribution is barred by the exclusivity provision. State v. Wien Air Alaska, 619 P.2d 719 (Alaska 1980). The question before us is whether Wien controls when the employer has not complied with the act.

The plain language of AS 23.30.055 arguably indicates that Wien applies and contribution is prohibited. The first sentence creates a blanket prohibition against actions “at law” by anyone entitled to recover damages from the employer. The second sentence creates a specific exception: if the employer fails to secure compensation the employee may maintain an *917 action “at law.” Since the express ban on suits by all other people is not lifted, Eh-redt reasons that DeHavilland’s claim for contribution is barred even though Ehredt did not secure compensation.

DeHavilland responds with a policy argument, contending that the legislature did not intend to grant statutory protection to a noncomplying employer. The exclusivity provision is án incentive for compliance, not a reward for noncompliance.

We agree with DeHavilland that the employer should not receive the protection of the exclusivity provision when it has failed to secure payment. We therefore conclude that a noncomplying employer is not relieved from its duty to contribute under AS 09.16.010 by the exclusivity provision of AS 23.30.055.

IV.EHREDT’S REMAINING LIABILITY TO WALTERS

Ehredt also argues that DeHavilland may not maintain the contribution action because the settlement did not completely extinguish Ehredt’s liability to Walters. AS 09.16.010(d). 7 DeHavilland argues that it was enough to extinguish the joint and several liability; Ehredt’s separate liability is irrelevant.

The purpose of the act is to ensure that all tortfeasors pay their fair share of damages. “The main requirement for a post-judgment agreement to be considered a satisfaction is that it terminate the litigation.” Criterion Insurance v. Latiala, 658 P.2d 112, 116 (Alaska 1983).

Had DeHavilland obtained releases for both the joint liability and Ehredt’s separate liability, it is clear that DeHavil-land could claim contribution because Eh-redt’s liability would be extinguished. We conclude that satisfaction of the common liability entitles DeHavilland to contribution, since each tortfeasor is thereby required to pay his fair share and there is no danger of double recovery against Ehredt.

V.AMOUNT OP THE CONTRIBUTION AWARD

DeHavilland argues that the trial court erred when it decreased the contribution award by the face value of the separate liability judgment against Ehredt. 8

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Bluebook (online)
705 P.2d 913, 1985 Alas. LEXIS 302, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ehredt-v-dehavilland-aircraft-co-of-canada-ltd-alaska-1985.