Linday v. American President Lines, Ltd.

214 Cal. App. 2d 146, 29 Cal. Rptr. 465, 5 A.L.R. 3d 866, 1963 Cal. App. LEXIS 2584
California Court of Appeal·Decided March 18, 1963·No. Civ. 20714·Published·Cited by 2 cases

Opinion

SHOEMAKER, J.

Plaintiff, a seaman, brought this action against his employer, American President Lines, Ltd., to recover for injuries sustained when he was assaulted by a fellow crewmember, one Herbert Suvaco. The complaint set forth two alternate theories of liability: (1) that defendant was negligent in signing and retaining the assailant with knowledge of his dangerous disposition; and (2) that the ves *147 sel on which plaintiff was employed was rendered unseaworthy by defendant shipowner’s failure to furnish crew-members equal in disposition to ordinary men of their calling.

Defendant answered, and, on the same day, filed a cross-complaint against cross-defendant Herbert Suvaco. The essential allegations of the cross-complaint were that cross-defendant had obtained employment by holding himself out as a capable and satisfactory employee, but had thereafter been guilty of misconduct and breached his contract by committing assault and battery upon plaintiff. Cross-complainant sought indemnity over against cross-defendant for any damages which it might ultimately sustain as a result of plaintiff’s injury.

Plaintiff then moved to strike the cross-complaint on the grounds: (1) that it was not asserted in good faith; and (2) that it was asserted for the purpose of prejudicing plaintiff’s action. The trial court, after hearing the matter, granted the motion and ordered the cross-complaint stricken. Prom this order, defendant and cross-complainant appeals.

Code of Civil Procedure, section 442, provides in part as follows: “Whenever the defendant seeks affirmative relief against any person, whether or not a party to the original action, relating to or depending upon the contract, transaction, matter, happening or accident upon which the action is brought . . . , he may, in addition to his answer, file at the same time, or by permission of the court subsequently, a cross-complaint. ...”

Respondent’s sole argument in support of the order appealed from is that a cross-complaint, even though fulfilling the requirements of Code of Civil Procedure, section 442, may be disallowed if the trial court, in the exercise of its discretion, concludes that prejudice will otherwise result to the plaintiff. Respondent contends, more specifically, that appellant was fully aware, when it filed its cross-complaint, that cross-defendant was an uninsured seaman whose future earnings were at best speculative. Under such circumstances, respondent asserts that appellant had no genuine hope of indemnity, but sought only to prejudice respondent by creating upon the jury the false impression that any verdict in respondent’s favor would ultimately be borne by an individual seaman rather than by appellant, a corporation possessing substantial assets. Respondent relies upon two federal district court decisions, Buchholz v. Michigan Motor Freight Lines, Inc. (E.D. S.D. Mich. 1956) 19 F.R.D. 407; and Goodhart v. United States Lines Co. (S.D.N.Y. 1960) 26 F.R.D. 163.

*148 . An analysis of these decisions is of little real assistance in the present case, since both decisions turned upon the federal impleader statute (Fed. Rules Civ. Proc., rule 14, 28 U.S.C.A.), rather than the applicable California statute (Code Civ. Proc., § 442). In the Buchholz ease, the trial court refused, to allow a defendant freight company to implead its own driver, but based its decision on the ground that rule 14 did not permit joinder of persons who might also be liable directly to the plaintiff. In addition, the court pointed out that defendant freight company was fully insured, and impleader of a servant was permissible only if there was a possibility that the defendant would suffer actual financial loss as a result of the servant’s wrongful act. In the present case, it does not appear of record whether or not appellant was insured. Furthermore, Code of Civil Procedure, section 442, is not so limited as to prohibit joinder óf a party who might be directly liable to the plaintiff.

In the Goodhart case, the court arrived at its decision to disallow impleader by taking judicial notice of the fact that the employee sought to be impleaded would be financially unable to indemnify the defendant. The California statute governing judicial notice would appear more limited in application (Code. Civ. Proc., § 1875; Berry v. Chaplin (1946) 74 Cal.App.2d 669, 675-676 [169 P.2d 453]), and the record contains no evidence (other than the statement to that effect in respondent’s points and authorities) that cross-defendant Suvaco was lacking in the financial ability to indemnify appellant.

In any event, there is a lack of uniformity in the federal decisions which have dealt with the impleader problem. While impleader was disallowed in the Buchholz and Good-hart cases, it was permitted in Codrington v. United States Lines Co. (S.D.N.Y. 1958) 168 F.Supp. 261, and Rodriguez v. United States Lines Co. (S.D.N.Y. 1960) 181 F.Supp. 95. In the latter two cases, the plaintiffs, as in the present case, were seamen seeking to recover for unprovoked assaults by fellow crewmembers. Defendant shipowners were allowed to implead the attacking crewmembers for the purpose of establishing their right to indemnity.

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Linday v. American President Lines, Ltd., 214 Cal. App. 2d 146, 29 Cal. Rptr. 465, 5 A.L.R. 3d 866, 1963 Cal. App. LEXIS 2584 (Cal. Ct. App. 1963).

214 Cal. App. 2d 146 (Linday v. American President Lines, Ltd.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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