Nationwide Agribusiness Insurance Company, as Subrogee of Farmers Cooperative Company v. Pgi International, Squibb-Taylor, Inc., Cox Manufacturing Company D/B/A Dalton Ag Products, Inc., and Cnh Corp. A/K/A Cnh American, LLC A/S/O Dmi, Inc.

882 N.W.2d 512, 2016 WL 1680978, 2016 Iowa App. LEXIS 397
CourtCourt of Appeals of Iowa
DecidedApril 27, 2016
Docket15-0364
StatusPublished
Cited by14 cases

This text of 882 N.W.2d 512 (Nationwide Agribusiness Insurance Company, as Subrogee of Farmers Cooperative Company v. Pgi International, Squibb-Taylor, Inc., Cox Manufacturing Company D/B/A Dalton Ag Products, Inc., and Cnh Corp. A/K/A Cnh American, LLC A/S/O Dmi, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Nationwide Agribusiness Insurance Company, as Subrogee of Farmers Cooperative Company v. Pgi International, Squibb-Taylor, Inc., Cox Manufacturing Company D/B/A Dalton Ag Products, Inc., and Cnh Corp. A/K/A Cnh American, LLC A/S/O Dmi, Inc., 882 N.W.2d 512, 2016 WL 1680978, 2016 Iowa App. LEXIS 397 (iowactapp 2016).

Opinion

MULLINS, Judge.

Nationwide 'Agribusiness Insurance Company (Nationwide) appeals following the district court’s grant of the Appellees’ 1 respective summary judgment motions on Nationwide contribution claim.-

I, Background Facts and Proceedings

In October 2011, Richard Shaw died as a result of a tragic farming accident. Richard’s son, Michael, was also injured in his attempt to rescue his father. In November 2012, Farmers Cooperative Company (FCC) and its insurer, Nationwide, paid approximately $4 million to the Shaw family to settle the resulting claims. As part of that settlement, the Shaw, family executed releases. In June 2013, Nationwide, as subrogee of FCC, filed suit against the Appellees, seeking contribution for the amounts paid to the Shaw family, In August 2014, the Appellees filed their respective motions for summary judgment, arguing 'collectively that Nationwidé could not seek contribution because the releases signed by the Shaw family failed to discharge the liability of the Appellees. By order dated .January 28, 2015, the district court granted the Appellees’ respective motions for summary judgment. Nationwide appeals.

I. Scope and Standard of Review

Óur review of the district court’s grant of summary judgment is for correction of errors of law. See Jones v. Univ. of Iowa, 836 N.W.2d 127, 139 (Iowa 2013).

A court should grant summary judgment if the.pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as ;to any material fact and that the moving party is entitled to a judgment as a matter of law. In other words, *515 summary judgment is appropriate- if the record reveals a conflict only concerns the legal consequences of undisputed facts. When reviewing a court’s decision to grant summary judgment, we examine the record in the light most favorable to the nonmoving party and we draw all legitimate inferences the evidence bears in order to establish the existence of questions of fact.

Id. at 139-40 (quoting Pitts v. Farm, Bureau Life Ins. Co., 818 N.W.2d 91, 96-97 (Iowa 2012)). “[A] ‘factual issue is'“material” only if “the dispute is over facts that might affect the outcome of the suit.’”” Peak v. Adams, 799 N.W.2d 535, 542 (Iowa 2011) (quoting Phillips v. Covenant Clinic, 625 N.W.2d 714, 717 (Iowa 2001)). The burden rests with the movant to show the nonexistence of a material fact. Pillsbury Co. v. Wells Dairy, Inc., 752 N.W.2d 430, 434 (Iowa 2008). However, “[t]he resisting party must set forth specific facts showing that a genuine factual issue exists.” Peak, 799 N.W.2d at 542 (quoting Huber v. Hovey, 501 N.W.2d 53, 55 (Iowa 1993)). “[A] fact question is generated if reasonable minds can differ on how the issue should be resolved.” ■ Pillsbury, 752 N.W.2d at 434; see also Bank of the W. v. Kline, 782 N.W.2d 453, 456-57 (Iowa 2010).

III. Analysis

In its appeal, Nationwide contends the district court erred in granting summary judgment, arguing (1) the release unambiguously discharges the Shaws’ claims against the Appellee's; (2) extrinsic evidence establishes the release unambiguously discharges the Shaws’ claims against the Appellees; (3) conversely, if the release does not unambiguously discharge claims against the Appellees, there is an ambiguity in the release and thus extrinsic evidence should be considered; and (4) if the release does not discharge claims against the Appellees, the contract should be -reformed to.’ reflect the true intent of the parties.

A. The Release

Enforcement of, the releases at issue is governed by contract law principles. See Peak, 799 N.W.2d at 543. Contract “[flnterpretation is the process for determining the meaning of the words used by the parties in a contract.” . Pillsbury, 752 N.W.2d at 435. Absent consideration of extrinsic evidence, the interpretation of a contract is; a legal issue. Id. “[C]onstruetion of a contract is the process a court uses to determine the legal effect of the words used” and is always reviewed as a legal issue. Id. at 436-37.

■ [4_6] ‘ “The cardinal rule of contract interpretation is to determine what the intent of the parties was'at the time they entered into the contract.” Id. at 437; see also Peak, 799 N.W.2d at 543 (“In the construction of written contracts, the cardinal principle is that the intent of the parties must control....” (quoting Iowa R.App. P. 6.904(3)(n))). Though • “[tjhe most important evidence of the parties’ intentions at the time of contracting is the words of the contract,” the court “may look to extrinsic evidence, including ‘the situation and relations of the parties, the subject matter of the transaction, preliminary negotiations and statements made therein, usages of trade, and the course of dealing between the parties.’” Peak, 799 N.W.2d at 544 (citation omitted); see also Pillsbury, 752 N.W.2d at 436 (“[Although we allow extrinsic evidence to aid in the process' of interpretation, the words of the agreement are- still thé most important evidence of the party’s intentions at the time they entered into the contract.”). Further, we interpret a contract as a whole, see Iowa Fuel & Minerals, Inc. v. Iowa State Bd. of Regents, 471 N.W.2d 859, 863 (Iowa 1991), so as to give effect to *516 all provisions, see Carter v. Bair, 201 Iowa 788, 208 N.W. 283, 283 (1926).

Nationwide contends the releases clearly and unambiguously establish the parties’ intent to release all claims against the Appellees. This contention requires consideration of contribution claims under Iowa law.

Iowa Code section 668.5(1) (2013) provides “[a] right of contribution exists between or among two or more persons who are liable upon the same indivisible claim for the same injury, death, or harm, whether or not judgment has been recovered against all or any of them.” Where, as here, the party seeking contribution has settled with the claimant, contribution is available “only if the liability of the person against whom contribution is sought has been extinguished.” Iowa Code § 668.5(2); see also Haut v. Frazer, No. 14-0537, 2014 WL 6721258, at *1-2 (Iowa Ct.App. Nov. 26, 2014) (affirming the grant of summary judgment where the party seeking contribution failed to establish the injured party had discharged the third party’s liability).

In the case of a release, Iowa Code section 668.7 governs: “A release ...

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882 N.W.2d 512, 2016 WL 1680978, 2016 Iowa App. LEXIS 397, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nationwide-agribusiness-insurance-company-as-subrogee-of-farmers-iowactapp-2016.