Fetick v. American Cyanamid Co.

38 S.W.3d 415, 2001 Mo. LEXIS 20, 2001 WL 220199
CourtSupreme Court of Missouri
DecidedMarch 6, 2001
DocketSC 82337
StatusPublished
Cited by20 cases

This text of 38 S.W.3d 415 (Fetick v. American Cyanamid Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fetick v. American Cyanamid Co., 38 S.W.3d 415, 2001 Mo. LEXIS 20, 2001 WL 220199 (Mo. 2001).

Opinion

BENTON, Judge.

Dr. Paul G. Fetick, M.D., sued American Cyanamid Company and Hesselberg Drug Company for contribution. The circuit court granted summary judgment to both defendants, while dismissing a separate fraud count against American Cyanamid. After opinion by the Court of Appeals, this Court granted transfer. Mo. Const. art. V, sec. 10. Affirmed.

I.

American Cyanamid manufactured Ori-mune, an oral poliomyelitis vaccine, which Hesselberg Drug distributed. On November 4, 1978, Dr. Fetick administered Ori-mune to three-month-old Danny Callahan. Danny appeared in good health until December 2, when diagnosed with an unrelated perirectal abscess. Following negligent treatment by Cardinal Glennon Hospital and St. Louis University (SLU), Danny contracted polio, which permanently paralyzed his legs and left arm. See Callahan v. Cardinal Glennon Hosp., 863 S.W.2d 852, 856-58 (Mo. banc 1998).

Danny originally sued Dr. Fetick, the Hospital, SLU, and American Cyanamid. At trial, only SLU and the Hospital remained as defendants. Before trial, Danny settled with Dr. Fetick for $290,000. Later, but also before trial, Danny dismissed American Cyanamid without prejudice. St. Louis University v. Hesselberg Drug Company, 35 S.W.3d 451 (Mo.App.2000). The jury found SLU and the Hos-. pital jointly and severally liable, assessing $16 million in damages. After offsetting the $290,000 pretrial settlement, the judgment was reduced to $15,710,000. See section 537.060 RSMo 2000; Callahan v. Cardinal Glennon Children’s Hosp., 901 S.W.2d 270, 271 (Mo.App.1995).

In this case, Dr. Fetick sued American Cyanamid and Hesselberg Drug, seeking contribution for the $290,000 settlement, and alleging fraud by Cyanamid. The trial court entered summary judgment for both defendants. Dr. Fetick appealed.

II.

By settling, Fetick extinguished Danny’s claim only against himself, while insulating himself from the contribution claims of other defendants. Lowe v. Norfolk and Western Ry. Co., 753 S.W.2d 891, 894 (Mo. banc 1988). But in procuring this protection, Fetick also triggered the “set-tlor-barred” doctrine, which precludes him from pursuing his own contribution claims. Cardinal Glennon Hospital v. American Cyanamid Company, 997 S.W.2d 42, 45 (Mo.App.1999). A settling defendant is barred from seeking contribution against another defendant unless the settling defendant has discharged the liability of that defendant. Id. at 44.

Fetick argues that once a judgment is fully satisfied, the settlor-barred doctrine should not apply. Because any claim by Danny against American Cyanamid and Hesselberg is effectively ended, Fetick now asserts a right to contribution against Cyanamid and Hesselberg.

A. Post-satisfaction “settlement”

In support of a “satisfaction of judgment” exception, Fetick cites a decision of the United States Court of Appeals for the Eighth Circuit, American Cyanamid Company v. St. Louis University, 205 F.3d 1344 (8th Cir.2000). In that federal case, American Cyanamid sought declaratory judgment to bar SLU from seeking contribution from it. Id. American Cyan-amid — after the state trial but before the federal case — settled with Danny for $300,000.

The District Court allowed SLU to seek contribution from American Cyanamid. American Cyanamid Company v. St. Louis University, Case No. 4:94CV2483-SNL (E.D. Mo, April 15, 1999). The *418 Eighth Circuit affirmed, without opinion. 205 F.3d at 1344. The federal courts held that Danny’s claim was fully extinguished by the $16 million satisfaction of judgment he received before receiving the $300,000 from American Cyanamid. The federal courts held that the $300,000 was not a true settlement: “at the time American Cyanamid entered its ‘settlement’ ... Callahan no longer had a claim to settle.” Id. Cyanamid, therefore, could not claim protection against contribution-seeking tort-feasors. Id.

The federal courts did not discuss the settlor-barred doctrine, let alone establish any exception to it. Moreover, the federal case is irrelevant to the settlor-barred doctrine, because neither Cyanamid nor SLU were “settlors” within the meaning of the settlor-barred doctrine.

B. Pending-appeal settlement

After the original malpractice trial, the Hospital separately settled with Danny for $4 million, and thus did not appeal the $15,710,000 verdict. The appeal did continue; the Hospital did not discharge the liability of SLU, American Cyanamid or Hesselberg.

In another state case, the Hospital sued Hesselberg for contribution, and American Cyanamid for contribution, fraud and indemnification. Cardinal Glennon, 997 S.W.2d at 43-44. The Court of Appeals held that by the settlor-barred doctrine, the Hospital could not seek contribution from American Cyanamid or Hesselberg because the Hospital did not discharge their liability. Cardinal Glennon, 997 S.W.2d at 45. The Court of Appeals expressly rejected exceptions to the settlor-barred doctrine. Id.

This state case controls here. By settling with Danny, Fetick discharged only his liability to Danny, and protected himself from contribution claims of other defendants. Equally, he is barred from seeking contribution from American Cyan-amid or Hesselberg in the present case.

C. Pre-trial settlement

Fetick "argues, in the alternative, that the settlor-barred doctrine violates equal protection in this case, alleging that a pretrial settlor (Fetick) is treated differently from a pending-appeal settlor (Hospital). To the contrary, the Hospital was denied contribution, just as Fetick now cannot seek contribution. See Cardinal Glennon, 997 S.W.2d at 43-14.

III.

Moving for summary judgment, American Cyanamid claimed that Fetick was not entitled to recover for fraud as a matter of law because he did not suffer damages. Summary judgment is appropriate “where the moving party has demonstrated, on the basis of facts as to which there is no genuine dispute, a right to judgment as a matter of law.” ITT Commercial Fin. Corp. v. Mid-America Marine Supply Corp., 854 S.W.2d 371, 376 (Mo. banc 1993).

American Cyanamid, as a defending party moving for summary judgment, may “establish a right to judgment by showing ... facts that negate any one of the claimant’s elements.... ” Id. at 381.

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Bluebook (online)
38 S.W.3d 415, 2001 Mo. LEXIS 20, 2001 WL 220199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fetick-v-american-cyanamid-co-mo-2001.