Ogle v. Craig Taylor Equipment Co.

761 P.2d 722, 1988 Alas. LEXIS 137, 1988 WL 100099
CourtAlaska Supreme Court
DecidedSeptember 30, 1988
DocketS-2261
StatusPublished
Cited by23 cases

This text of 761 P.2d 722 (Ogle v. Craig Taylor Equipment Co.) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ogle v. Craig Taylor Equipment Co., 761 P.2d 722, 1988 Alas. LEXIS 137, 1988 WL 100099 (Ala. 1988).

Opinion

OPINION

Before MATTHEWS, C.J., and RABINOWITZ, BURKE, COMPTON and MOORE, JJ.

BURKE, Justice.

This petition presents three issues. The first is whether the rule of modified joint and several liability included in the Tort Reform Act of 1986, AS 09.17.080(d), impliedly repeals the rule of pro rata contribution found in the Alaska Contribution Among Tortfeasors Act, AS 09.16.020(1). The second is whether the Tort Reform Act applies when the plaintiff was injured before its effective date, but the contribution claim was perfected thereafter. The final issue concerns the elements of a contribution claim.

We decline to address the first issue; we hold that the Tort Reform Act does not apply to the instant case, because the plaintiff was injured before its effective date.

I

The essential facts are not disputed. Gary Ogle was seriously injured when a hydraulic crane “two-blocked,” causing a ball weighing 175 pounds to fall on his *724 head. 1 Ogle’s employer purchased the crane from the Craig Taylor Equipment Company. It was manufactured by the FMC Corporation. Ogle sued FMC and Craig Taylor, alleging that they were strictly liable for manufacturing and distributing an unreasonably dangerous product. 2

FMC and Ogle settled. FMC paid Ogle one million dollars and assigned to Ogle its claim for contribution against Craig Taylor. In return, Ogle released FMC and Craig Taylor from all other liability claims.

Ogle then sued Craig Taylor for contribution under the assignment from FMC. He sought $500,000, Craig Taylor’s pro rata share of the million dollar settlement under AS 09.16.020(1). However, the superior court ruled that Craig Taylor was liable only for contribution according to its relative fault pursuant to the Tort Reform Act, AS 09.17.080(d). The court concluded that, to prevail on the merits of the contribution claim, Ogle must prove (1) FMC’s liability to Ogle, (2) Craig Taylor’s liability to Ogle, (3) the amount of damages suffered by Ogle, and (4) the reasonableness of the settlement.

Ogle petitioned for review of the superi- or court decision.

II

Assuming, arguendo, that AS 09.17.-080(d) requires contribution according to relative fault, 3 Ogle contends that the Tort Reform Act does not apply to a contribution claim arising from an injury which occurred before the effective date of the Act. Craig Taylor, on the other hand, argues that the provisions of the Tort Reform Act apply because FMC’s contribution claim accrued after the Act’s effective date, when FMC paid more than its pro rata share of the liability.

The Tort Reform Act, according to its express language, applies to “all causes of action accruing after [its] effective date,” June 11, 1986. Ch. 139, §§ 9, 11, SLA 1986. The question is whether the language in the Tort Reform Act refers to the underlying cause of action in tort, which accrued when Ogle was injured in 1983, or to the cause of action for contribution, which accrued when Ogle and FMC settled the case in 1987. See Lamoreux v. Langlotz, 757 P.2d 584, 585 (Alaska 1988) (cause of action accrues when all elements of claim have occurred); see also AS 09.16.-030(d)(1).

The decisions of other courts reflect a split of authority on the question whether a change in the law after the original injury applies to. a contribution claim perfected after the change. For example, in Layne v. United States, 460 F.2d 409, 411 (9th Cir.1972), the Ninth Circuit Court of Appeals ruled that AS 09.16.040 applied to a contribution claim arising from an accident which occurred before the effective date of the contribution statute:

Although the causes of action against Wickersham and the United States arose at the time of the accident in 1966, before *725 the effective date of the Alaska Uniform Contribution Among Tortfeasors Act, Section 09.16.040 is applicable here because the settlement was made after the statute became effective.

The Colorado Supreme Court relied in part on Layne when it ruled that a cause of action for contribution accrues at the time of settlement or judgment, thus subjecting the tortfeasors to the law in effect at that time. Coniaris v. Vail Assoc., 196 Colo. 392, 586 P.2d 224, 225 (1978).

Many courts approach this problem as one involving the retroactive application of a statute. Ordinarily, a new contribution statute is not applied retroactively unless (1) the legislature clearly so intended or (2) the statute is purely procedural. See, e.g., United States Fidelity & Guaranty Co. v. Park City Corp., 397 F.Supp. 411, 413-15 (D.Or.1973), aff'd, 526 F.2d 1120 (9th Cir.1975) (Oregon law); Coos-Curry Electric Coop. v. Curry County, 26 Or.App. 645, 554 P.2d 601, 603 (1976); Smith v. Fenner, 399 Pa. 633, 161 A.2d 150, 154 (1960); Carey v. Jones, 546 S.W.2d 814, 817 (Tenn.App.1976). In the only case that we have found involving the precise issue before us, the Third Circuit Court of Appeals held that the change from equal shares to contribution according to relative fault affected substantive rights because it changed the amount of the potential liability of the tortfeasors. Slaughter v. Pennsylvania X-Ray Corp., 638 F.2d 639, 644-45 (3d Cir.1981) (applying Pennsylvania law).

The Slaughter court reasoned that joint or several liability arises at the time of the underlying injury; it does not depend on subsequent events. Id. at 645. Although the right of contribution exists only after a common liability is extinguished, the common liability is created when the tort is committed. Id. Thus, the court concluded that the responsibilities of tortfeasors are established by the law in effect at the time of the injury. Id.

In the instant case, it is not clear from the statute or the legislative history whether the legislature intended the Tort Reform Act to apply to contribution claims arising from torts which occurred prior to June 11, 1986. If the Act applied, it might change the liability of the tortfeasors from that which existed when the accident occurred. A change in the amount of liability is clearly a substantive change.

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Bluebook (online)
761 P.2d 722, 1988 Alas. LEXIS 137, 1988 WL 100099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ogle-v-craig-taylor-equipment-co-alaska-1988.