Gilcrease v. Garlock, Inc.

211 S.W.3d 448, 2006 Tex. App. LEXIS 10950, 2006 WL 3742979
CourtCourt of Appeals of Texas
DecidedDecember 21, 2006
Docket08-04-00367-CV
StatusPublished
Cited by30 cases

This text of 211 S.W.3d 448 (Gilcrease v. Garlock, Inc.) 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
Gilcrease v. Garlock, Inc., 211 S.W.3d 448, 2006 Tex. App. LEXIS 10950, 2006 WL 3742979 (Tex. Ct. App. 2006).

Opinion

OPINION

ANN CRAWFORD McCLURE, Justice.

Dorothy Gilcrease, individually and as representative of the estate of Fred Gil-crease, Jason Gilcrease, and Missy (Twyla) Hyman (Appellants), appeal from a take-nothing judgment entered in favor of Gar-lock, Inc. following a jury trial. The take-nothing judgment followed the trial court’s determination that Garlock was entitled to receive settlement credits of $4,572,354 against the actual and exemplary damages of $3,547,798.26 awarded by the jury. We reverse and remand.

FACTUAL SUMMARY

Sixty-two-year-old Fred Gilcrease had worked as a union pipefitter and plumber since 1957, or “all of [his] working life.” During this time, he was exposed to many asbestos products. As a pipefitter, he worked mainly with gaskets, including Garlock gaskets which contained asbestos. In the course of his work, Mr. Gilcrease removed and replaced Garlock gaskets, many times using a wire brush, scraper, sander, or grinder to do so. This process created a dusty environment to which Mr. Gilcrease was exposed on a regular basis. In March 1999, Mr. Gilcrease was diagnosed with mesothelioma as a result of his exposure to asbestos.

In 1999, Mr. and Mrs. Gilcrease filed a suit in Bexar County against multiple defendants for damages arising from Mr. Gilcrease’s exposure to asbestos and resulting mesothelioma. While the suit was pending in Bexar County, a majority of the defendants settled. After Mr. Gilcrease died on November 21, 2000, the pleadings were amended to add the Gilcreases’ adult children — Jason Gilcrease and Twyla Hy-man — as plaintiffs. Jason and Twyla signed heirship agreements which entitled *452 each to 10 percent of the proceeds of the wrongful death lawsuit.

On September 25, 2001, Appellants non-suited their claim against Garlock in Bexar County. The following day, Appellants filed an original petition asserting identical claims against Garlock, A.P. Green Industries, Inc., Dresser Industries, Inc., Federal-Mogul Corporation, Guard-Line, Inc., Harbison-Walker Refractories Company, and T & N, Ltd. Garlock sought to have venue returned to Bexar County, but the trial court denied the motion. Appellants’ first amended petition named only Dresser Industries, Garlock, and Guard-Line as defendants. The trial court directed a verdict in favor of Guard-Line. Appellants settled with Dresser Industries for $350,000. 1

Apportioning Garlock’s responsibility for the decedent’s injury at 25 percent, the jury awarded the following damages:

(1) for Mr. Gilcrease: $1.5 million for physical pain and mental anguish, $50,000 for disfigurement, and $50,798.26 for medical care expense;
(2) for Mrs. Gilcrease: $10,000 for past pecuniary loss, $20,000 for future pecuniary loss, $20,000 for loss of companionship and society in the past, $50,000 for loss of companionship and society in the future, $15,000 for mental anguish in the past and $5,000 for mental anguish in the future;
(3) for Twyla Hyman: $10,000 for pecuniary loss in the past, $12,000 for pecuniary loss in the future, $10,000 for loss of companionship and society in the past, $10,000 for loss of companionship and society in the future, and $10,000 for mental anguish in the past; and
(4)for Jason Gilcrease: $100,000 for pecuniary loss sustained in the past, $150,000 for pecuniary loss sustained in the future, $100,000 for loss of companionship and society in the past, $150,000 for loss of companionship and society in the future, $150,000 for mental anguish in the past, and $125,000 for mental anguish in the future.

The jury awarded $2,547,798.26 for compensatory damages and $1,000,000 in exemplary damages. The total damages were apportioned between Appellants as follows: 50 percent to Mrs. Gilcrease, 30 percent to Jason, and 20 percent to Twyla.

Appellants’ motion for entry of judgment included a list of settlements in the total amount of $2,407,179. This included a $200,000 settlement from the Manville Trust of which only $20,000 had been paid. The Manville Trust had executed a note for the remaining $180,000, but Appellants contended this was a contingent payment which more than likely would never be paid. The list also contained settlements with three defendants that had declared bankruptcy: A.P. Green Industries ($750,-000); Owens-Corning Fiberglas ($300,-000); and Fibreboard ($900,000). 2 Appellants argued that these settlements were void and should not count as credits because they had not been paid. Following a hearing, the trial court entered the following findings:

*453 (1) Garlock is entitled to a settlement credit in the amount of $4,572,354;
(2) Mr. Gilerease and his family are one claimant as the term is used in applying credit against judgment for settlement amounts previously paid; and
(3) settlement credits are not limited to actual or compensatory damages and Garlock is entitled to an offset for punitive damages.

The trial court entered a take-nothing judgment because the settlement credits exceeded the damages awarded by the jury. Appellants timely filed their notice of appeal and Garlock filed a notice of conditional cross-appeal.

SETTLEMENT CREDIT

Appellants raise three issues challenging the settlement credits. In Issue One, they ai'gue that the trial court erred in crediting settlement amounts from bankrupt settling parties because the agreements are contingent. In Issue Two, Jason and Twy-la complain that settlement agreements entered into before they joined the suit should not be credited against their recoveries. And in Issue Three, Appellants contend that the settlement credits should not have been applied to exemplary damages.

Application of the settlement credit is governed by Chapter 33 of the Civil Practice and Remedies Code. See Tex.Civ.Prac. & Rem.Code Ann. § 33.002(a) (Vernon Supp.2006); Drilex Systems, Inc. v. Flores, 1 S.W.3d 112, 121 (Tex.1999). The relevant version of Section 33.012 required the trial court to reduce the judgment according to one of two methods elected by the defendant: a dollar-for-dollar credit or a sliding scale. Acts 1995, 74th Leg., R.S., ch. 136, § 1, 1995 Tex.Gen.Laws 971, 974 [current version found at Tex.Civ.PRAC. & Rem.Code Ann. § 33.012 (Vernon Supp. 2006)]. 3 Garlock elected the dollar-for-dollar credit in Section 33.012(b)(1):

If the claimant has settled with one or more persons, the court shall further reduce the amount of damages to be recovered by the claimant with respect to a cause of action by a credit equal to
(1) the sum of the dollar amounts of all settlements....

Section 33.011(1) defines “claimant” as a person seeking recovery of damages pursuant to the provisions of Section 33.001. Acts 1995, 74th Leg., R.S., ch.

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Cite This Page — Counsel Stack

Bluebook (online)
211 S.W.3d 448, 2006 Tex. App. LEXIS 10950, 2006 WL 3742979, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilcrease-v-garlock-inc-texapp-2006.