General Motors Corp. v. Lahocki

410 A.2d 1039, 286 Md. 714
CourtCourt of Appeals of Maryland
DecidedFebruary 29, 1980
Docket[No. 38, September Term, 1979.]
StatusPublished
Cited by102 cases

This text of 410 A.2d 1039 (General Motors Corp. v. Lahocki) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Motors Corp. v. Lahocki, 410 A.2d 1039, 286 Md. 714 (Md. 1980).

Opinion

Smith, J.,

delivered the opinion of the Court.

In this case we shall hold that a trial court erred in its handling of an agreement between certain of the parties to litigation before it and also erred in not permitting one aspect of the case to go to the jury. Hence, we shall reverse the judgment of the Court of Special Appeals in Lahocki v. Contee Sand & Gravel Co., 41 Md. App. 579, 398 A.2d 490 (1979).

This litigation is the result of an accident on University Boulevard in the College Park area of Prince George’s County. Appellant George E. Lahocki sustained a paralyzing back injury when the vehicle in which he was riding, a van manufactured by General Motors Corporation (GM), collided *717 with heavy timber barricades placed by a contractor, Contee Sand & Gravel Co., Inc., in connection with work it was then doing on the highway.

Lahocki and his wife initially sued the driver of the van, the owner of the van (who was Lahoekfs employer), and Contee. Contee filed a third party claim against GM, alleging that the van was uncrashworthy. Ultimately, the Lahockis made GM a defendant on the basis of an alleged defect in the van said to have enhanced Lahocki*s injuries.

Summary judgment on the basis of the Workmen’s Compensation Act was entered in favor of Lahocki’s employer. An agreement was reached between the Lahockis and the driver of the van as a result of which they received $300,000 and executed a release pursuant to the Uniform Contribution Among Tort-Feasors Act, Maryland Code (1957) Art. 50, §§ 16-28.

At trial the parties stipulated that the driver was negligent and that his negligence caused the accident. He was then dismissed from the action. A mistrial ultimately ensued.

A pretrial conference was held in advance of the first trial. There the trial judge directed that any settlements effected between any of the parties were to be disclosed promptly to all counsel. GM made a motion at the outset of the second trial “to compel the disclosure and/or production of any agreement or settlement between the [Lahockis] and the defendant Contee,” stating its counsel had “information that such an agreement either ha[d] been reached or [was] imminent ....” We shall have more to say about those proceedings and the agreement later.

The trial judge granted Contee’s motion for a directed verdict in its favor made at the conclusion of all the evidence. The jury rendered a verdict against GM in favor of Lahocki in the amount of $1,200,000 and against GM in favor of him and his wife in the amount of $800,000. Upon motion of GM, the ultimate judgment was reduced by one-half based upon the existence and terms of the release between the Lahockis and the driver of the vehicle. GM and the Lahockis appealed to the Court of Special Appeals. It affirmed.

*718 We granted GM’s petition for a writ of certiorari to address the question, “Is GM entitled to a new trial because a pretrial settlement agreement between the plaintiffs and the codefendant was not disclosed to GM promptly and because it was not admitted in evidence at the trial?” The Lahockis also sought a writ of certiorari, which we granted. One of the questions contained in their petition has been settled. The two remaining questions are: (1) “Whether the Court of Special Appeals’ rationale in affirming Contee’s motion for directed verdict is in direct conflict with the principle that a wrongdoer is liable for all the foreseeable consequences of his act,” and (2) “Whether the trial court erred in granting Contee’s motion for directed verdict by misconstruing and misapplying the holding in Stitzel v. Kurz, 18 Md. App. 525 [, 308 A.2d 430] (1973).”

I

The Lahocki-Contee Agreement

As we have indicated, when the case was called for trial GM sought to compel disclosure of any agreement between the Lahockis and Contee. GM’s attorneys suggested that they had information that such an agreement had been reached. The trial judge indicated he presumed that any pro rata type settlement agreement should be made known before trial, but said he was “not sure about any other type of settlement, a high-low settlement agreement, whether or not [GM was] entitled to this.” He asked counsel specifically, “Are there any other settlements that should be disclosed, or settlement agreements?” To this the reply was made, “In the context of Your Honor’s last statement, there isn’t.” Further discussion ensued and he was told, “There are no settlements, Your Honor. You made a statement that distinguished between settlements and high-low agreements.” The judge responded, “Isn’t a settlement a high-low agreement?” Ultimately counsel for GM were excused from the courtroom at their suggestion. It then was disclosed that an agreement had been reached between the Lahockis and Contee.

The agreement provided that after trial Contee would pay *719 the Lahockis $150,000 except in three circumstances: (1) If Contee’s pro rate share of a judgment against it was in excess of $150,000, then Contee would pay this pro rate share to the Lahockis up to $250,000. (2) If final judgment was entered against GM alone, then Contee would pay nothing to the Lahockis, even if the Lahockis and GM thereafter settled the case. (3) If the Lahockis settled with GM, then the sum to be paid by Contee to the Lahockis was to be but $100,000. It will be perceived upon analysis that the effect of this agreement was that if Contee were to succeed in obtaining a defendant’s verdict at the trial of the Lahockis’ claim against Contee and GM, then Contee would still be obligated to pay the Lahockis $150,000 if the jury also returned a verdict for GM. 1

*720 GM sought an order declaring the agreement void. This was denied. It then moved the court to permit disclosure of the agreement to the jury. That likewise was denied.

GM argues that this is a “Mary Carter Agreement,” a term used by the court in Maule Industries, Inc. v. Rountree, 264 So. 2d 445 (Fla. Dist. App. 1972), rev’d 284 So. 2d 389 (Fla. 1973), referring to the agreement in Booth v. Mary Carter Paint Company, 202 So. 2d 8 (Fla. Dist. App. 1967). That court said:

The term arises from the agreement popularized by the case of Booth v. Mary Carter Paint Co., Fla. App. 1967, 202 So.2d 8, and now appears to be used rather generally to apply to any agreement between the plaintiff and some (but less than all) defendants whereby the parties place limitations on the financial responsibility of the agreeing defendants, the amount of which is variable and usually in some inverse ratio to the amount of recovery which the plaintiff is able to make against the nonagreeing defendant or defendants. [Id. at 446, n. 1.]

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Bluebook (online)
410 A.2d 1039, 286 Md. 714, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-motors-corp-v-lahocki-md-1980.