Hodges v. United States Fidelity & Guaranty Co.

91 A.2d 473, 34 A.L.R. 2d 1101, 1952 D.C. App. LEXIS 211
CourtDistrict of Columbia Court of Appeals
DecidedOctober 8, 1952
Docket1240
StatusPublished
Cited by21 cases

This text of 91 A.2d 473 (Hodges v. United States Fidelity & Guaranty Co.) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hodges v. United States Fidelity & Guaranty Co., 91 A.2d 473, 34 A.L.R. 2d 1101, 1952 D.C. App. LEXIS 211 (D.C. 1952).

Opinion

CAYTON, Chief Judge.

There was a collision on a roadway in the State of Maryland between the automobile of Charles W. Hodges and a truck of Transport Corporation. This resulted in the striking of a third automobile owned by Carson C. Stout. Some eight months later United States Fidelity and Guaranty Company as insurer of Transport Corporation settled the claims of Stout and four passengers in his automobile for a total of $4100, and later as subrogee of that corporation sued Hodges as joint tort-feasor for one-half of that amount. 1 The suit was based on Article 50 of the Maryland Code which enacted The Uniform Contribution Among Tortfeasors Act into the laws of that State. 2 Trial was had without a jury and resulted in a finding that Transport Corporation and Hodges were joint tortfeasors within the meaning of the Act and judgment in favor of plaintiff for $2050. Hodges appeals.

He contends that he should be absolved of liability because the negotiations and settlement between the plaintiff and the injured persons were conducted without his knowledge. He asks us to rule that one joint tortfeasor has no right to demand contribution of another, to whom he has given no notice of the settlement negotiations.

The Maryland Act provides:

“Sec. 22(a) The right of contribution exists among joint tortfeasors.
“(b) A joint tortfeasor is not entitled to a money judgment for contribution until he has by payment discharged the common liability or has paid more than his pro rata share thereof.
“(c) A joint tortfeasor who enters into a settlement with the injured person is not entitled to recover contribution from another joint tortfeasor whose liability to the injured person is not extinguished by the settlement.”

It will be seen at a glance that these sections make no mention of notice. But appellant urges us to rule that notice is required by implication. The case is one of first impression. Neither counsel nor this court has discovered any decisions under the Uniform Act in which the question of notice was decided or apparently even discussed.

Appellant argues that such a requirement was implicit in two cases decided under the Uniform Act. One is Congressional Country Club v. Baltimore & O. R. Co., Md., 71 A.2d 696. There the railroad com *475 pany had been sued and notified the club of the pendency of suits and after requests for participation in the defense and in settlement of negotiations had been declined, settled the suits and obtained releases. The railroad then sued the club for contribution under the Act. That the railroad had notified the club of the suits and negotiations was merely mentioned by the court in stating the facts. The court gave no indication that such notice was required as a prerequisite to the right of contribution.

The second case relied on is Lacewell v. Griffin, 214 Ark. 909, 219 S.W.2d 227, 8 A.L.R.2d 189. There it was held that a settlement entered into by one tortfeasor which did not attempt to extinguish the liability of another tortfeasor did not give the former a right to contribution against the latter under the Act. Again the issue of notice did not enter into the decision.

It follows that these two cases are no •authority for holding that notice of a pending settlement by one tortfeasor to another is required under the Act. Reason and fair play may suggest it, but we have no right to lay it down as a firm legal requirement. 3 The statute names only two conditions which must be met before a joint tortfeasor is entitled to contribution from another following a settlement: (1) payment of the common liability or more than a pro rata share thereof; and (2) liability of the second tortfeasor to the injured person must be extinguished.

We know of no principle which would permit us to make notice a third requirement when the statute is silent on the subject. It must be remembered that though “all tortfeasors are not rascals” 4 nevertheless a joint tortfeasor is in the eyes of the law a wrongdoer. His basic obligation to make contribution springs from the tort he jointly committed. Ultimately he is called upon to contribute his share only after his joint tortfeasor has discharged the joint liability under a settlement as prescribed by the Act.

Appellant builds an argument from the fact that the Act permits one joint tortfeasor to file a third party complaint against another in a tort action against the former. 5 But this gives no support to his position that notice to him was impliedly required by the statute. The third party practice provision was included as an optional section in the Uniform Act to provide for special procedure in those states where third party practice was not permissible. 6 Moreover, it is clear under sections 21 and 27 that third party practice is merely permissive and that contribution proceedings may be instituted after judgment taken. 7 We realize of course that an action at law is subject to judicial safeguards which are not present in a private settlement. But there is no claim here that the settlements were unfair or collusive or that there was any attempt to defraud defendant. 8 We conclude that we would have no right to imply a condition in the statute, which the Maryland legislature has specifically omitted.

Did the releases executed by the injured persons extinguish Hodges’ liability to them? Section 22(c) of the Act provides that a joint tortfeasor who enters into a settlement with an injured person is not entitled to contribution from another joint tortfeasor unless the liability of the latter is extinguished by the settlement. Section 24 of the Act provides that a release by the injured person of one joint tortfeasor does not discharge the other tortfeasors unless the release so provides. 9

*476 The four releases totaling $1700 are identical except for names and amounts. They are on printed forms and recite in part that in consideration of the payment of a certain amount the signer does “release and forever discharge the said Payer [Transport Corporation] and all other persons, firms, and corporations, both known and unknown, of and from any and all claims, demands, damages [etc.] for or because of any matter or thing done by anyone * * * on account of all injuries both to person or property resulting, or to result [from the accident] * * * ” identifying the time and place thereof. Hodges argues that because he was not named in the releases, his liability to the injured parties has not been extinguished.

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91 A.2d 473, 34 A.L.R. 2d 1101, 1952 D.C. App. LEXIS 211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hodges-v-united-states-fidelity-guaranty-co-dc-1952.