Gouty v. Schnepel

26 Fla. L. Weekly Fed. S 586, 795 So. 2d 959
CourtSupreme Court of Florida
DecidedSeptember 13, 2001
DocketSC00-1853
StatusPublished
Cited by24 cases

This text of 26 Fla. L. Weekly Fed. S 586 (Gouty v. Schnepel) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gouty v. Schnepel, 26 Fla. L. Weekly Fed. S 586, 795 So. 2d 959 (Fla. 2001).

Opinion

795 So.2d 959 (2001)

John GOUTY, Petitioner,
v.
J. Alan SCHNEPEL, Respondent.

No. SC00-1853.

Supreme Court of Florida.

September 13, 2001.

*960 Edward McCarthy, III of Rogers, Towers, Bailey, Jones & Gay, P.A., Jacksonville, FL, for Petitioner.

Harris Brown of Brown, Obringer, Beardsley & Decandio, P.A., Jacksonville, FL, for Respondent.

PARIENTE, J.

We have for review a decision of the First District Court of Appeal on the following question, which the court certified to be of great public importance:

WHERE THE PLAINTIFF HAS DELIVERED A WRITTEN RELEASE OR COVENANT NOT TO SUE TO A SETTLING DEFENDANT ALLEGEDLY JOINTLY AND SEVERALLY LIABLE FOR ECONOMIC DAMAGES, SHOULD THE SETTLEMENT PROCEEDS APPORTIONABLE TO ECONOMIC DAMAGES BE SET OFF AGAINST ANY AWARD FOR ECONOMIC DAMAGES EVEN IF THE SETTLING DEFENDANT IS NOT FOUND LIABLE?

Schnepel v. Gouty, 766 So.2d 418, 419 (Fla. 1st DCA 2000). We have jurisdiction. See art. V, § 3(b)(4), Fla. Const. For the following reasons, we answer the certified question in the negative and quash the First District's decision.

BACKGROUND

After being injured by a bullet from Respondent J. Alan Schnepel's gun, Petitioner John M. Gouty sued both Schnepel and Glock, Inc., the gun manufacturer. See Schnepel, 766 So.2d at 419. Before the trial began, Gouty received $137,500 in exchange for a release and dismissal of his claim against Glock. See id. However, Glock was listed on the verdict form for the purposes of apportioning fault.

The jury found Schnepel 100% liable and exonerated Glock altogether. See id. The jury assessed total damages in the amount of $250,000, designating $125,000 of the total amount of damages as economic damages. See id. Because Gouty had received a settlement from Glock, Schnepel filed a motion to reduce the verdict by the settlement amount received by Glock. The trial court denied the motion. See id.

The First District reversed. The court concluded that although the setoff provisions did not apply to the portion of the award attributable to noneconomic damages, Schnepel was entitled to the benefit of a setoff for the economic damages the jury awarded. See id. at 420. Relying in part on our decision in Wells v. Tallahassee Memorial Regional Medical Center, 659 So.2d 249 (Fla.1995), the First District focused upon whether a release had been *961 given in partial satisfaction of the damages Gouty sued for. See Schnepel, 766 So.2d at 423.

In a concurring in part and dissenting in part opinion, Judge Van Nortwick disagreed with the majority's conclusion that the setoff statutes permit a setoff for economic damages from a settling defendant that the jury found not to be liable. See id. at 424 (Van Nortwick, J., concurring in part, and dissenting in part). Judge Van Nortwick also relied on our decision in Wells, but concluded that it was the actual "existence," and not the mere allegation, of joint and several liability that was the foundation for the application of the setoff statutes. See id. at 425. Judge Van Nortwick reasoned that because the jury found Schnepel 100% at fault, there could not be joint and several liability between Schnepel and Glock. See id.

ANALYSIS

The core issue in this case is whether the setoff statutes may be used in circumstances where the jury finds a nonsettling defendant liable for economic damages, but finds that the settling defendant is not liable. Gouty contends that absent a finding of joint and several liability, the setoff statutes may not be applied to reduce a nonsettling defendant's payment for liability. For the reasons that follow, we agree with Gouty and hold that the setoff statutes are inapplicable to a settling defendant who is found to have no liability.

As in Wells, the setoff issue in this case requires us to reconcile the setoff statutes in light of changes in the doctrine of joint and several liability. At common law, under the doctrine of joint and several liability, all negligent defendants were held responsible for the total of the plaintiff's damages regardless of the extent of each defendant's fault in causing the accident. See Fabre v. Marin, 623 So.2d 1182, 1184 (Fla.1993) (citing Louisville & N. R.R. v. Allen, 67 Fla. 257, 65 So. 8 (1914)).

The enactment of section 768.81, Florida Statutes, represented a policy shift in the State of Florida from joint and several liability that resulted in a single recovery for the plaintiff to the apportionment of fault. Therefore, instead of each defendant being severally responsible for all of the plaintiffs damages, with limited statutory exceptions, the defendant is responsible only for the percentage of fault determined by the jury. See § 768.81, Fla. Stat. (2000). The version of section 768.81 in effect both at the time of the Wells decision and the First District's opinion in this case, provided in pertinent part:[1]

(3) Apportionment of damages.-In cases to which this section applies, the court shall enter judgment against each party liable on the basis of such party's percentage of fault and not on the basis of the doctrine of joint and several liability; provided that with respect to any party whose percentage of fault equals or exceeds that of a particular claimant, the court shall enter judgment with respect to economic damages against that party on the basis of the doctrine of joint and several liability.
. . . .
(5) Applicability of joint and several liability.—Notwithstanding the provisions of this section, the doctrine of joint and several liability applies to all actions *962 in which the total amount of damages does not exceed $25,000.

§ 768.81, Fla. Stat. (1997).

As this Court explained in Conley v. Boyle Drug Co., 570 So.2d 275, 285 (Fla. 1990):

[J]oint and several liability is only favored within this state in those limited circumstances set forth in sections 768.81(3), (4) and (5), Florida Statutes (1989). Under sections 768.81(3), (4) and (5), joint and several liability is abrogated except: 1) in cases of economic damages "with respect to any party whose percentage of fault equals or exceeds that of a particular claimant;" 2) in "any action brought by any person to recover actual economic damages resulting from pollution, to any action based upon an intentional tort, or to any cause of action as to which the doctrine of joint and several liability is specifically provided...;" and 3) as "to all actions in which the total amount of damages does not exceed $25,000."

In Wells, this Court analyzed the applicability of the setoff statutes in light of the abrogation of joint and several liability. 659 So.2d at 251. There, the plaintiff argued that where each party is only responsible for his or her share of the damages, payment by one tortfeasor should extinguish only that tortfeasor's liability and should have no effect on another tortfeasor's liability. See id. Thus, the plaintiff argued that the setoff statutes should be applicable only where there is a common liability. See id. Thus, the plaintiff contended that where a tortfeasor's liability is determined and assessed by the jury as a percentage of fault, the comparative fault statute would apply and the tortfeasor would not be entitled to a setoff. See id.

The defendant's position in Wells

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Bluebook (online)
26 Fla. L. Weekly Fed. S 586, 795 So. 2d 959, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gouty-v-schnepel-fla-2001.