Home Ins. Co. v. Advance MacH. Co.

500 So. 2d 664, 12 Fla. L. Weekly 80
CourtDistrict Court of Appeal of Florida
DecidedDecember 31, 1986
DocketBK-294
StatusPublished
Cited by4 cases

This text of 500 So. 2d 664 (Home Ins. Co. v. Advance MacH. Co.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Ins. Co. v. Advance MacH. Co., 500 So. 2d 664, 12 Fla. L. Weekly 80 (Fla. Ct. App. 1986).

Opinion

500 So.2d 664 (1986)

HOME INSURANCE COMPANY and North River Insurance Company, As Subrogees for Athlone Industries, Inc., Appellants,
v.
ADVANCE MACHINE COMPANY, Appellee.

No. BK-294.

District Court of Appeal of Florida, First District.

December 31, 1986.

*665 Patrick J. Farrell, Jr., Patricia Guilday, and Lori S. Leifer of Fuller & Johnson, P.A., Tallahassee, for appellants.

Thomas J. Jones and Michael L. Rosen of Holland & Knight, Tallahassee, for appellee.

NIMMONS, Judge.

This is an appeal from a final summary judgment in favor of defendant/appellee ("Advance") in an action wherein plaintiffs/appellants ("Athlone")[1] sought contribution from Advance by reason of certain sums paid by Athlone to the plaintiff in the main action (sometimes referred to herein as the "tort action") in settlement of the latter's personal injury claim. The trial court awarded summary judgment in favor of Advance on the ground that no common liability existed between Athlone and Advance. We reverse.

Myron Johnson was seriously injured in an accident involving a baseball pitching machine manufactured by Advance[2] and filed suit against several defendants including Advance and Athlone, the alleged distributor. Athlone and Advance both filed motions for summary judgment based on the then existing statute of repose, Section 95.031(2), Florida Statutes (1979), which required actions for products liability to be brought within 12 years after the date of delivery of the completed product to its original purchaser. Athlone and Advance argued that Johnson's suit was barred by the statute since the suit was filed in 1979, some 15 years after the date of the product's delivery to the original purchaser.

After the hearing on those motions for summary judgment in October 1980, the trial court denied the motions, the trial court basing its determination upon the unconstitutionality of Section 95.031(2) as applied to plaintiff Johnson inasmuch as the subject accident did not occur until after the running of the twelve-year period and the statute's savings clause afforded no time to Johnson to file suit. Thus, it was thought, application of the statute to Johnson constituted a denial of his State constitutional right of access to the courts under Article I, Section 21, Constitution of Florida.

*666 At the time of the court's denial of the above motions in October 1980, the cases of Overland Construction Company, Inc. v. Sirmons, 369 So.2d 572 (Fla. 1979) and Purk v. Federal Press Company, 387 So.2d 354 (Fla. 1980) had been decided. Those decisions, the significance of which will be explicated more fully below, were supportive of the trial court's ruling denying Athlone's and Advance's motions for summary judgment based upon the unconstitutionality of Section 95.031(2) as applied.

Johnson's tort action proceeded to trial on November 19, 1980. After jury selection, Athlone and plaintiff Johnson announced a settlement in open court, wherein Athlone agreed to pay Johnson 1.1 million dollars in exchange for a discharge of all defendants, including Advance. Athlone announced its intention to seek contribution from Advance and Advance noted that it had some defenses. Several days later when the settlement was reduced to writing, Athlone filed its action for contribution against Advance. Within a few days thereafter, the Florida Supreme Court issued its opinion in Battilla v. Allis Chalmers Mfg. Co., 392 So.2d 874 (Fla. 1980). Consistent with its earlier holding in Overland Construction, and expressly relying thereon, the Supreme Court in Battilla held Section 95.031(2) unconstitutional in its application in barring Battilla's product liability action.

Five years later, while the contribution action was still pending in the lower court,[3] the Supreme Court receded from its earlier holding in Battilla. In Pullum v. Cincinnati, Inc., 476 So.2d 657 (Fla. 1985), the Court, notwithstanding its earlier holding to the contrary, held that Section 95.031(2)'s purported bar of suits filed more than twelve years after delivery of the product was permissible and constitutional even where the accident did not occur until after the expiration of the twelve-year period and the statute's saving clause afforded no time for the plaintiff to file suit.

Shortly after Pullum was decided, Advance moved for summary judgment in the contribution proceeding arguing that, in view of the Pullum holding, there was no longer a basis for common liability, one of the necessary elements of a contribution claim. The trial court granted the summary judgment ruling that the statute of repose would bar the underlying tort claim and that therefore no common liability existed. According to the trial court, Athlone settled with plaintiff Johnson at its own risk since, at the time of the settlement, there had been no clear holding by the Supreme Court that the statute of repose was unconstitutional. That final summary judgment is the subject of the instant appeal. During the pendency of this appeal, the statute of repose was amended by limiting the twelve-year bar provision to actions for fraud, thus eliminating products liability cases from the statute's sweep. Chapter 86-272, Laws of Florida.

Under the Uniform Contribution Among Tortfeasors Act,[4] where the party *667 seeking contribution has entered into a settlement with the plaintiff in the underlying tort case, the party seeking contribution has the burden of proving that a "common liability" exists between the parties and that the settlement was reasonable. Wallace v. Strassel, 479 So.2d 231 (Fla. 4th DCA 1985), citing Farmers Insurance Exchange v. Village of Hewitt, 274 Minn. 246, 143 N.W.2d 230 (1966); Home Insurance Co. v. Advance Machine Company, 443 So.2d 165, 169 (Fla. 1st DCA 1983). The present case involves the conceptually difficult issue of whether common liability exists when, during the pendency of an action for contribution based on a settlement of the underlying tort claim, a procedural bar to the tort claim comes into existence.

Had the tort claim not been settled, but instead litigated to conclusion (through trial and appeal) before the 1985 decision in Pullum and with the defendants being held jointly liable, then no doubt there would be common liability between the defendants. However, again assuming no settlement, had the tort claim not been fully litigated by the time Pullum was decided, then there would be no common liability, nor for that matter any liability. See Cassidy v. Firestone Tire and Rubber Co., 495 So.2d 801 (Fla. 1st DCA 1986) (holding that application of a procedural bar to a pending case does not violate due process since there is no vested right in the outcome of such pending case). Had the tort claim still been pending at the time the statute of repose was repealed, it could be argued that there would be common liability again.[5] However, in the present case, the tort claim was settled and, because we do not know when the contribution claim would have been litigated to conclusion, there is no way of knowing whether the statute of repose would have provided a dispositive legal defense to the tort claim.

The competing interests involved here are the right of a litigant to settle versus the right of other litigants to have their day in court and not be bound by a settlement between other parties. Several factors are important to note.

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Bluebook (online)
500 So. 2d 664, 12 Fla. L. Weekly 80, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-ins-co-v-advance-mach-co-fladistctapp-1986.