Jamieson v. Harrison

532 N.W.2d 779, 1995 Iowa Sup. LEXIS 121, 1995 WL 327050
CourtSupreme Court of Iowa
DecidedMay 24, 1995
Docket94-466
StatusPublished
Cited by9 cases

This text of 532 N.W.2d 779 (Jamieson v. Harrison) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jamieson v. Harrison, 532 N.W.2d 779, 1995 Iowa Sup. LEXIS 121, 1995 WL 327050 (iowa 1995).

Opinions

TERNUS, Justice.

Appellee, Rick Jamieson, agreed to a partial settlement of his claim. We must decide whether the pro tanto credit rule applies to the later judgment obtained by Jamieson against appellant, Walter Harrison, d/b/a Ginger’s Tavern. We conclude it does. However, because there is no double recovery under the facts of this case, Harrison is not entitled to a credit for the monies paid pursuant to the settlement. Therefore, we affirm the district court’s order denying a credit.

I. Background Facts and Proceedings.

Jamieson was injured in a fight that occurred in Harrison’s bar. He sued Harrison, alleging claims under the dram shop act and under a premises liability theory. See Iowa Code § 123.92 (1993) (imposing civil liability on dram shops for injuries caused by an intoxicated person).

Jamieson and Harrison agreed to a settlement of Jamieson’s dram shop claim. Harrison paid Jamieson $9000. The settlement agreement specifically reserved Jamieson’s premises liability claim.

The premises liability claim was tried to a jury resulting in a finding that both parties were fifty percent at fault. The jury found that Jamieson had suffered damages in the amount of $20,000. Pursuant to the comparative fault statute, Iowa Code chapter 668, the trial court reduced Jamieson’s damages by his percentage of fault and entered judgment against Harrison for $10,000. See Iowa Code § 668.3(1) (1993) (claimant’s damages must be reduced by “the amount of fault attributable to the claimant”).

After judgment, Harrison filed a motion for a credit of the $9000 settlement proceeds against the $10,000 judgment. The trial court denied the credit. Harrison appealed.

On appeal, Harrison challenges the district court’s refusal to allow a credit. He claims that the pro tanto credit rule applies and under that rule, he is entitled to a $9000 credit against the $10,000 judgment. Jamie-son argues that the dram shop claim and the premises liability claim are separate and distinct and therefore, no set off should be allowed under any rule permitting credits for settlements.

Although we agree with Harrison that the pro tanto credit rule governs the handling of the settlement proceeds here, that fact does not entitle him to a credit. Therefore, the district court was correct in denying his request for a $9000 credit against the judgment.

II. Scope of Review.

Whether the pro tanto credit rule applies is a question of law. Glidden v. German, 360 N.W.2d 716, 718 (Iowa 1984). We review the trial court’s decision on that question to correct errors of law. Iowa R.App.P. [781]*7814; see Dennis v. Christianson, 482 N.W.2d 448, 450 (Iowa 1992).

Once it is decided that the pro tanto credit rule governs this case, we must determine whether Harrison carried his burden to prove his right to a credit. See Knauss v. City of Des Moines, 357 N.W.2d 573, 576 (Iowa 1984) (the burden is on the defendant to establish his right to a credit). The trial court did not reach this factual question because it did not think the pro tanto credit rule applied. Nevertheless, the facts that are material to an application of the rule are undisputed. If the only dispute concerns the legal consequences flowing from undisputed facts, the issue is one of law, not of fact. Ottumwa Hous. Auth. v. State Farm Fire & Casualty Co., 495 N.W.2d 723, 726 (Iowa 1993). Therefore, we will review the undisputed facts to decide if Harrison carried his burden to establish his right to a credit. See Citizens First Nat’l Bank v. Hoyt, 297 N.W.2d 329, 332 (Iowa 1980).

III. Does the Pro Tanto Credit Rule Apply?

The parties agree that Jamieson’s premises liability claim was governed by the comparative fault statute. Under that statute, a proportionate credit rule applies to partial settlements of comparative fault cases. See Iowa Code § 668.7 (1993) (“the claim of the releasing person against other persons is reduced by the amount of the released person’s equitable share of the obligation”). On the other hand, the dram shop claim settled by the parties is not subject to the comparative fault statute. Slager v. H.W.A. Corp., 435 N.W.2d 349, 355 (Iowa 1989).

In Freeman v. Ernst & Young, 516 N.W.2d 835, 838 (Iowa 1994), we held that it was error for the court to assign a tortfeasor a percentage of fault for conduct not classified as “fault” under chapter 668. Consequently, we reversed the trial court’s judgment which had reduced the plaintiffs recovery by the amount of fault assessed to a party under a theory not subject to the comparative fault statute. Freeman, 516 N.W.2d at 839.

We think the same reasoning applies here. Because the dram shop claim could not result in a finding of fault under chapter 668, a settlement of that claim cannot be used as the basis for a proportionate credit under section 668.7. Nevertheless, we disagree with Jamieson’s assertion that the settlement proceeds need not be considered at all.

Traditionally, a defendant has been entitled to a dollar-for-dollar credit for monies received by a plaintiff from settling parties in compensation for the plaintiffs damages. Greiner v. Hicks, 231 Iowa 141, 146-47, 300 N.W. 727, 731 (1941). This pro tanto credit rule continues to apply to eases not within the scope of the comparative fault statute. Tratchel v. Essex Group, Inc., 452 N.W.2d 171, 181 (Iowa 1990). We can think of no reason this rule would not apply here where the proportionate credit rule of chapter 668 is inapplicable.

Although Harrison has successfully established the trial court’s error in refusing to apply the pro tanto credit rule, that error alone does not require us to reverse the court’s judgment. Citizens First Nat’l Bank, 297 N.W.2d at 332. If the trial court nevertheless reached the correct result, we must affirm. Id. “We are obliged to affirm an appeal where any proper basis appears for a trial court’s ruling, even though it is not one upon which the court based its holding.” Id. Therefore, although the trial court was incorrect in holding that the pro tanto credit rule was inapplicable, unless Harrison is entitled to a credit under the rule, the trial court did not err in failing to grant a credit.1

[782]*782IV. Did Harrison Carry His Burden to Prove His Entitlement to a Pro Tan-to Credit?

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Jamieson v. Harrison
532 N.W.2d 779 (Supreme Court of Iowa, 1995)

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Bluebook (online)
532 N.W.2d 779, 1995 Iowa Sup. LEXIS 121, 1995 WL 327050, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jamieson-v-harrison-iowa-1995.