Gramex Corp. v. Green Supply, Inc.

89 S.W.3d 432, 2002 Mo. LEXIS 101, 2002 WL 31501160
CourtSupreme Court of Missouri
DecidedNovember 12, 2002
DocketSC 84146
StatusPublished
Cited by43 cases

This text of 89 S.W.3d 432 (Gramex Corp. v. Green Supply, Inc.) 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
Gramex Corp. v. Green Supply, Inc., 89 S.W.3d 432, 2002 Mo. LEXIS 101, 2002 WL 31501160 (Mo. 2002).

Opinion

*435 I.

WILLIAM RAY PRICE, JR., Judge

Green Supply, Ine., a wholesaler of hunting supplies, appeals a contribution judgment in the amount of $625,000 rendered against it in favor of Gramex Corporation. Gramex is a retailer who purchased a defective tree seat from Green Supply and resold it to William Dunn, a consumer severely injured when the tree seat collapsed during use. Gramex paid a settlement in the amount of $1.25 million to Mr. and Mrs. Dunn in exchange for a complete release of itself and Green Supply. The judgment is affirmed.

II.

A. The Initial Settlement

On October 12, 1996, William Dunn fell eighteen feet from a tree platform, upon which he had been using a tree seat for deer hunting, and was paralyzed from the waist down. The tree platform was a deer stand Mr. Dunn constructed himself earlier that spring and was approximately two and one-half feet wide and between two to three feet in depth. The stand was nearly eighteen feet off the ground, attached to the tree. Mr. Dunn accessed the tree platform by a metal ladder affixed to the tree. Mr. Dunn fell from this platform when the stitching of the strap that secures the tree seat to the tree tore loose, and the seat collapsed.

Mr. Dunn had purchased the tree seat approximately ten days earlier from a Gra-mex retail store, which had, in turn, purchased the tree seat from Green Supply. The tree seat was manufactured by Big Game Products Company, Inc., S.I.R. Webbing, Inc., and Jackster, Inc. Big Game produced the seat, S.I.R. Webbing provided Big Game with nylon straps used in the manufacture of the tree seat, and Jackster sewed the nylon straps provided

to Big Game by S.I.R. Webbing. The stitching of these nylon straps failed and caused Mr. Dunn to fall from the deer stand. Mr. Dunn and his wife, Tomi Lyn Dunn, sued Big Game, S.I.R. Webbing, Jackster, Green Supply and Gramex on theories of negligence and strict liability.

John Cook, attorney for Mr. Dunn and Mrs. Dunn (“the Dunns”), testified at trial as to the underlying product liability action brought by the Dunns against Gramex, Green Supply, Big Game, S.I.R. Webbing, and Jackster, and the resulting settlements between the parties. In the original action, Mr. Cook determined that he “would never have asked a jury ... for less than six million dollars. And depending on what happened at trial, it could easily have ranged up to ten million dollars.” Mr. Cook testified as to the effect of the doctrine of joint and several liability on such a verdict:

Joint and several liability means that, under the law, each defendant is jointly liable for the whole verdict. That is, even though they have various degrees of responsibility which a jury would have decided, any one defendant might have to pay it all and then be responsible for going to get the shares of the other defendants.
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Gramex may have had to have paid much more than [$1.25 million] had it not settled the case[.]

The parties stipulated to the amount of insurance ■ coverage each manufacturer, and Gramex, carried. Big Game had $1 million in insurance coverage, S.I.R. Webbing had $2 million insurance coverage, Jackster had $1 million insurance coverage, and Gramex had $11 million insurance coverage — each stipulated amount was applicable to the claim by Mr. and Mrs. *436 Dunn. No evidence was presented as to the manufacturers’ assets above their insurance coverage that might have been available to satisfy a judgment in excess of $4 million.

Less than three weeks before the trial date, the parties (excepting Jackster) participated in court ordered mediation. Mr. Cook testified at trial as to the details of the mediation. During mediation, Mr. Cook was adamant that the parties “were going to reach an agreement that date or they were going to go to trial to conclusion.” Mr. Cook grouped the defendants into two groups for purposes of the mediation: “the manufacturing Defendants— Jackster, S.I.R. [Webbing] and Big Game — on the one hand and the seller Defendants — Green Supply and Gramex— on the other hand.” Mr. Cook offered to settle with both Gramex and Green Supply for $1.25 million, but Green Supply refused the offer. Gramex agreed to settle the Dunns’ claims against both Gramex and Green Supply for the $1.25 million offered, but, in exchange, required the Dunns “to dismiss not only Gramex but ... to dismiss [the Dunns’] claims with prejudice against Green Supply as well.” As Mr. Cook testified at trial, “[The Dunns] had to dismiss against Green Supply in order to allow Gramex to bring a contribution action against Green Supply.” The Dunns agreed to Gramex’s request, and executed a release. The release stated that “the sum of $1,250,000 is being paid to discharge and extinguish the liability of both Defendants, Gramex Corporation and Green Supply, Inc.” The Dunns filed a memorandum with the trial court to dismiss -with prejudice all claims against Green Supply, and Gramex paid the entire $1.25 million. Mr. Cook testified that in settling “[Gramex] got a bargain. It was reasonable.”

Mr. Cook testified that after Gramex agreed to settle, but still during the course of the meeting, Big Game and S.I.R. Webbing also settled with the Dunns; Big Game agreed to pay the Dunns $900,000, and S.I.R. Webbing agreed to pay $1 million. Jackster settled with the Dunns six days later for $900,000. The Dunns’ recovery 'from these settlements totaled $4,050,000.

B. The Contribution Action:

Pleadings and Evidence

After settling with the Dunns, Gramex filed a cross-claim against Green Supply in the original lawsuit filed by Mr. Dunn and Mrs. Dunn. In its cross-claim, Gramex alleged:

Because the Defendant Green Supply, Inc. sold a defective product to Gramex Corporation, and thereby subjected Gra-mex Corporation to the [sic] liability to Plaintiffs, Gramex Corporation is entitled to be indemnified for all losses suffered by Gramex Corporation as a result of purchasing the defective product from the Defendant Green Supply, Inc.

To establish the liability of both Gramex and Green Supply to the Dunns, Gramex pleaded “that the tree seat was defective and unreasonably dangerous when put to an intended use.” Gramex stated that the tree seat was “sold by Big Game Products Company, Inc. to the Defendant Green Supply, Inc., and that the Defendant Green Supply, Inc. sold the defective tree seat to Gramex Corporation, who in turn sold the defective tree seat to the Plaintiffs William Kent Dunn and Tomi Lyn Dunn.” Gramex further alleged:

As a direct and proximate result of the manufacture and sale of the defective tree seat, the Plaintiff William Kent Dunn has suffered painful and permanent personal injuries as alleged in this ■ lawsuit. Because the Defendant Gra- *437 mex Corporation sold a defective and unreasonably dangerous product, it is liable to William Kent Dunn for the injuries suffered by William Kent Dunn.

Almost nine months later, Gramex amended its cross-claim by interlineation to include a claim for contribution, as well as indemnity, against Green Supply.

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89 S.W.3d 432, 2002 Mo. LEXIS 101, 2002 WL 31501160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gramex-corp-v-green-supply-inc-mo-2002.