Federated Mutual Implement & Hardware Insurance Co. v. Dunkelberger

172 N.W.2d 137, 1969 Iowa Sup. LEXIS 919
CourtSupreme Court of Iowa
DecidedNovember 12, 1969
Docket53501
StatusPublished
Cited by53 cases

This text of 172 N.W.2d 137 (Federated Mutual Implement & Hardware Insurance Co. v. Dunkelberger) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federated Mutual Implement & Hardware Insurance Co. v. Dunkelberger, 172 N.W.2d 137, 1969 Iowa Sup. LEXIS 919 (iowa 1969).

Opinion

GARFIELD, Chief Justice.

Plaintiffs appeal from dismissal of their petition at law in seven divisions seeking money damages from defendant-liquor licensee under the Iowa dram shop statutes, sections 129.2 and 123.95 Code 1966, and common law.

The ruling was based on defendant’s motion to dismiss the petition on the ground each division failed to state a cause of action. The motion admitted the truth of all well pleaded, issuable and relevant facts in the petition and such facts are taken as true upon this appeal. Hagenson v. United Telephone Co., Iowa, 164 N.W.2d 853, 855-856 and citations.

The case arose out of a motor vehicle collision between an automobile owned by Boyd’s Inc., driven by Philip Beckerdite and one owned and driven by Dale Mc-Dermott in which Marjorie Kroll was a passenger. Both drivers were killed and Marjorie Kroll was severely injured.

The first six divisions of the petition all allege Beckerdite was on the wrong side of *139 the highway when the vehicles collided, was negligent and also intoxicated from liquor defendant sold him in his taproom when he was intoxicated or to a point where he became intoxicated about a half hour before the collision.

Plaintiff, Federated, etc. Insurance Co., was the insurance carrier for the owner of the car Beckerdite was driving. Plaintiff, Western Mutual Insurance Co., was the insurer of Beckerdite. (We refer to plaintiffs as Federated and Western respectively.) The petition further alleges plaintiffs investigated the accident and as a result thereof paid $40,000 to Marjorie Kroll for a release of the damages suffered by her in the accident and $27,730 to the administrator of the estate of Dale McDermott for a release of the damages suffered by the estate therein; that Western paid one third and Federated two thirds of the total amount of $67,730.

Both plaintiffs seek contribution and/or indemnity, both jointly and severally, from defendant for the amount so paid under the Iowa dram shop statutes.

Both plaintiffs also seek money damages, both jointly and severally, from defendant under the dram shop statutes as other persons injured in their property resulting from the intoxication of Beckerdite.

In the seventh division of their petition plaintiffs jointly seek indemnity and/or contribution from defendant under common law negligence.

' The trial court first overruled the motion as to all divisions of the petition except the last one based upon common law negligence. Later, however, on defendant’s motion to reconsider the previous ruling, the petition was dismissed in its entirety.

I. At common law it was generally held there was no cause of action against one who furnished liquor to an intoxicated person in favor of such a person or those injured by him-. Cowman v. Hansen, 250 Iowa 358, 368, 92 N.W.2d 682, 688; Wendelin v. Russell, 259 Iowa 1152, 1154—1155, 147 N.W.2d 188, 190; 45 Am.Jur.2d, Intoxicating Liquors, section 553.

To supply this defect in the common law many states, including Iowa, have enacted statutes giving a right of action to persons injured in person, property or means of support by an intoxicated person, or resulting from the intoxication of any such person, against the person selling or furnishing the liquor which caused the intoxication in whole or in part. These statutes, commonly known as “civil damage acts” or “dram shop acts” afford remedies unknown to the common law. Wendelin v. Russell, supra; 45 Am.Jur.2d, Intoxicating Liquors, section 561.

We have two such statutes in this state. The older one is. section 129.2 Codes 1962, 1966 which reads:

“Every wife, child, parent, guardian, employer, or other person who shall be injured in person or property or means of support by any intoxicated person, or in consequence of the intoxication, habitual or otherwise, of any person, shall have a right of action in his or her own name against any person who shall, by selling or giving to another contrary to the provisions of this title any intoxicating liquors, cause the intoxication of such person, for all damages actually sustained, as well as exemplary damages.”

The later statute, section 123.95, which does not repeal the former one, provides:

“Every husband, wife, child, parent, guardian, employer or other person who shall be injured in person or property or means of support by any intoxicated person or resulting from the intoxication of any such person, shall have a right of action, severally or jointly against any licensee or permittee who shall sell or give any beer or intoxicating liquor to any such person while he is intoxicated, or serve any such person to a point where such person is intoxicated for all damages actually sustained.

*140 “Every liquor control licensee shall furnish proof of financial responsibility either by the existence of a liability insurance policy or by posting bond in such amount as determined by the commission.”

For a discussion of the self-evident points of difference between the old and the new statutes, see Wendelin v. Russell, supra, at pages 1161-1162 of 259 Iowa, page 194 of 147 N.W.2d. And for a somewhat longer discussion see 13 Drake Law Review 168.

The authorities in other states are not agreed as to whether dram shop acts are to be strictly or liberally construed. 45 Am.Jur.2d, Intoxicating Liquors, section 562, page 860. It must be deemed settled in Iowa, however, that section 123.95 is to be liberally construed, as similar statutes are in many other states.

Section 4.2 Code 1966 provides “The rule of the common law, that statutes in derogation thereof are to be strictly construed, has no application to this Code. Its provisions and all proceedings under it shall be liberally construed with a view to promote its objects and assist the parties in obtaining justice. * * To like effect and even more important here is Code section 123.1.

After quoting section 4.2 supra, Wendelin v. Russell, supra, referring to section 123.95, continues at pages 1157-1158 of 259 Iowa, page 192 of 147 N.W.2d :

“In addition it is evident the subject act should be construed liberally to aid in suppressing the mischief and advance the remedial objective which prompted its enactment. To uphold defendants’ position would require the application of strict rules of construction which would, in effect, serve to advance the mischief and impair the remedy.

“Section 123.95, as finally adopted, was designed to place a hand of restraint upon those licensed or permitted by law to sell- or supply intoxicants to others and protect the public, but above all to provide an avenue of relief to those offended who had no recourse or right of action under the common law. (citations)

“It is primarily a remedial or compensatory law, imposing liability without regard to all the elements of injury actionable at common law. (citations)”

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172 N.W.2d 137, 1969 Iowa Sup. LEXIS 919, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federated-mutual-implement-hardware-insurance-co-v-dunkelberger-iowa-1969.