McKenna v. Austin

134 F.2d 659, 148 A.L.R. 1253, 77 U.S. App. D.C. 228, 1943 U.S. App. LEXIS 3664
CourtCourt of Appeals for the D.C. Circuit
DecidedFebruary 11, 1943
Docket7979
StatusPublished
Cited by149 cases

This text of 134 F.2d 659 (McKenna v. Austin) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKenna v. Austin, 134 F.2d 659, 148 A.L.R. 1253, 77 U.S. App. D.C. 228, 1943 U.S. App. LEXIS 3664 (D.C. Cir. 1943).

Opinions

RUTLEDGE, Associate Justice.

Plaintiffs’ suit was for damages for personal injuries incurred by Helen H. Mc-Kenna in a collision of a taxicab in which she was a passenger with an automobile operated by defendant’s employee. The taxicab was owned by Independent Taxi Owners Association and William L. Driscoll (herein designated together as Independent), and was operated by their employee. The husband’s claim is on account of medical and hospital expenses and loss of consortium and services. Defendant denied his employee was negligent. He alleged that the taxicab was driven carelessly, at excessive speed, and this was the sole cause of the injuries. A further defense was that plaintiffs had made full accord and satisfaction with Independent by a release which is claimed to bar this action. The sum paid in compromise was $3,000.

In this state of the pleadings defendant moved for summary judgment, which the court granted, relying upon Kaplowitz v. Kay, 1934, 63 App.D.C. 178, 70 F.2d 782. The plaintiffs appeal.

The release is set forth in the margin.1 The plaintiffs first covenant not to sue Independent on account of injuries or losses resulting from the collision. The instrument then purports to reserve any cause of action against defendant and his employee and recites that it “is intended to be and is a complete discharge of any and all liability” of Independent.

The sole question is whether this agreement operated to discharge the defendant. He stands on the more generally prevailing rule,2 adopted in Kaplowitz v. Kay, that [661]*661release of one joint tortfeasor discharges the others and insists it is applicable in the present facts.

Plaintiffs say the rule is not applicable. They urge that the instrument is not a release from substantive liability but is merely a covenant not to sue. They rely upon authorities which hold that such a covenant does not effect discharge of the co-tortfeasors,3 and that an agreement which reserves rights against them is such a covenant.4 Plaintiffs also insist that defendant and Independent were not joint tortfeasors, but acted independently. They say the court should have taken evidence and decided this question as a matter of fact before it construed the agreement. In their view the only effect proper to be given the settlement is to apply the amount received to reduce pro tanto the total damages.

The facts in this case and in Kaplowitz v. Kay are similar in that the plaintiff in both was a passenger in an automobile which collided with another, settled with one of the wrongdoers, and then sued the remaining one. On this showing the court held the latter was discharged.

The basis and scope of the decision are ambiguous. It does not appear whether joint or independent tortfeasors were involved. The opinion does not set forth the terms of the agreement. It makes no point of any distinction between a release and a covenant not to sue or between joint and independent tortfeasors. There is language which may indicate the plaintiff accepted the amount paid as full satisfaction for the total injury.5 This could be construed as pivoting the discharge upon the parties’ intention. Other statements, however, and authorities quoted appear to put the matter more broadly, so that whenever the negligence of two or more persons combines to produce a single injury, the release of one “ipso facto” discharges the others. If this is the effect of the decision, the amount received, its relation to the total damage done, and the parties’ intention to retain rights against the other wrongdoers would be immaterial, as would any difference between joint and independent tortfeasors. Because of its ambiguity the plaintiffs say the Kaplowitz case is not controlling in this one.

We agree with defendant that distinction between a “release” and a “covenant not to sue” is entirely artificial. When one surrenders all means of enforcing his claim against another and does this in settlement of a dispute and threatened litigation, he effectually extinguishes the underlying right. Thereafter, if it is right at all, it is right without remedy. We know that courts of highest authority have recognized the existence of such “rights” in exceptional situations involving particularly matters of international adjustment and of governmental credit.6 Absence of means of compulsion against the sovereign may make judicial assertion that rights exist against it, without other remedy, an appropriate sanction in such cases and possibly in others. But for the ordinary run of private rights and private litigation, the idea of right without remedy is hardly a working hypothesis. Everyday law is predicated upon the courts’ capacity to do something about disputes. When one wholly surrenders his recourse to the courts in such matters, he insulates his adversary against his claim as effectually as when in so many words he releases him.

[662]*662The distinction gains no strength from the conflict which exists concerning what is a release and what is a covenant not to sue. Some courts regard the matter as one of intention to be gathered from the whole instrument.7 Giving lip service to the rule, they avoid its effects when the purpose to reserve rights against the wrongdoers not released can be found, as generally it may be. Specific terms of release give way before a clause expressly reserving such rights or other indication of like intent.8 In this view the present instrument would be merely a covenant not to sue.

Other courts adhering to the distinction refuse to permit such a clause to overcome express words of release and allow escape only when the formula is limited to covenanting not to sue.9 To the extent that they decline to give effect to the clause they disregard the parties’ intention, as would a court refusing entirely to recognize the distinction. In this view the agreement now in question would be a release and would discharge defendant by operation of law.

In determining the character as well as the effect of such an agreement, we are unwilling to concede so much potency to mere verbalism. The matter does not require the formalism of conveyancing. Whether words of “release” or of “covenant” are used, the effect should be the same. Wide acceptance of the distinction, notwithstanding its want of substance, and the decisions that in applying it intention should control, point the way to reexamination of the rule and its foundations.

The rule’s results are incongruous. More often than otherwise they are unjust and unintended. Wrongdoers who do not make or share in making reparation are discharged, while one willing to right the wrong and no more guilty bears the whole loss.10 Compromise is stifled, first, by inviting all to wait for the others to settle and, second, because claimants cannot accept less than full indemnity from one when doing that discharges all. Many, not knowing this, accept less only to find later they have walked into a trap. The rule shortchanges the claimant or overcharges the person who settles, as the recurring volume and pattern of litigation show. Finally, it is anomalous in legal theory, giving tortfeasors an advantage wholly inconsistent with the nature of their liability.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

BHM Healthcare Solutions, Inc. v. URAC, Inc.
320 F. Supp. 3d 1 (D.C. Circuit, 2018)
Goldman v. Fiat Chrysler Automobiles US, LLC
211 F. Supp. 3d 322 (District of Columbia, 2016)
Hageman/Fritz, Byrne, Head & Harrison, L.L.P. v. Luth
150 S.W.3d 617 (Court of Appeals of Texas, 2004)
United States v. Philip Morris USA Inc.
316 F. Supp. 2d 19 (District of Columbia, 2004)
Madeksho v. Abraham, Watkins, Nichols & Friend
112 S.W.3d 679 (Court of Appeals of Texas, 2003)
Paul v. Bier
758 A.2d 40 (District of Columbia Court of Appeals, 2000)
District of Columbia v. Washington Hospital Center
722 A.2d 332 (District of Columbia Court of Appeals, 1998)
Noonan v. Williams
686 A.2d 237 (District of Columbia Court of Appeals, 1996)
Berg v. Footer
673 A.2d 1244 (District of Columbia Court of Appeals, 1996)
Washington Bancorporation v. Said
812 F. Supp. 1256 (District of Columbia, 1993)
Lamphier v. Washington Hospital Center
524 A.2d 729 (District of Columbia Court of Appeals, 1987)
Young v. Hoke
493 N.E.2d 1279 (Indiana Court of Appeals, 1986)
Pyne v. Jamaica Nutrition Holdings Ltd.
497 A.2d 118 (District of Columbia Court of Appeals, 1985)
Western Steel Co. v. Travel Batcher Corp.
663 P.2d 82 (Utah Supreme Court, 1983)
Leiken v. Wilson
445 A.2d 993 (District of Columbia Court of Appeals, 1982)
Hill Ex Rel. Greer v. McDonald
442 A.2d 133 (District of Columbia Court of Appeals, 1982)
Hurt v. Leatherby Ins. Co.
354 So. 2d 918 (District Court of Appeal of Florida, 1978)
Porter v. United Steel & Wire Co.
436 F. Supp. 1376 (N.D. Iowa, 1977)

Cite This Page — Counsel Stack

Bluebook (online)
134 F.2d 659, 148 A.L.R. 1253, 77 U.S. App. D.C. 228, 1943 U.S. App. LEXIS 3664, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckenna-v-austin-cadc-1943.