Pedersen v. Bring

117 N.W.2d 509, 254 Iowa 288, 1962 Iowa Sup. LEXIS 697
CourtSupreme Court of Iowa
DecidedOctober 16, 1962
Docket50658
StatusPublished
Cited by22 cases

This text of 117 N.W.2d 509 (Pedersen v. Bring) 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
Pedersen v. Bring, 117 N.W.2d 509, 254 Iowa 288, 1962 Iowa Sup. LEXIS 697 (iowa 1962).

Opinion

Thompson, J.

— This appeal presents but one question, the construction of an instrument denominated “Covenant Not To Sue” which the plaintiff executed and delivered to cross-defendants Mavis I. Nelson and Lyle V. Nelson. The trial court, upon an application for determination of law points, held that the covenant is in fact a full release, and so prevents the plaintiff from proceeding against the original defendant Jeanette H. Bring, and the additional cross-defendant George D. Freeman. We granted leave to appeal. Another question was also decided by the court, but it is not argued here and the validity of the ruling was in fact admitted by counsel for plaintiff on oral argument. Accordingly we give it no attention.

We have before us only the pleadings in the ease. Although the plaintiff in argument contends that certain depositions should have been considered by the trial court, the record shows that *290 these were not called to the attention of the court. Whether in any event the court must consider depositions in ruling on an application for law points under rule 105 we do not determine. The depositions were not in fact brought to the attention of the court; and in view of our holding on the proper interpretation of the instrument in question we do not find it necessary to- decide the question. If material, they may be considered upon further proceedings in the case.

The record shows that plaintiff’s action is one for damages claimed to have been sustained in an automobile collision on September 27,1957. It appears from the pleadings that plaintiff was on that date traveling east on highway No. 9. The defendant Bring was proceeding west on the same road. She attempted to pass the cross-defendant Freeman when, the petition alleges, she was in a no-passing zone. The petition further alleges that because of this plaintiff was compelled to apply her brakes suddenly and with great force in order to avoid a collision with defendant’s oncoming vehicle; as a result of which her car was struck from the rear by an automobile owned by the cross-defendant Lyle Nelson and driven at the time by the cross-defendant Mavis I. Nelson.

After the Nelsons and Freeman had been brought into the case as cross-defendants, the defendant Bring and the cross-defendants Nelson pleaded the execution of an instrument, known in the record as Exhibit A, executed in favor of the Nelsons, called a “Covenant Not To Sue” but which the defendant Bring contends is a complete release and so releases all other parties against whom claim might be made; and which the Nelsons claim prevents any action against them by the plaintiff and that plaintiff, by its terms, is bound to hold them harmless from any recovery by the defendant Bring on her cross-petition. These contentions of the Nelsons were upheld by the court in its ruling, but as we have pointed out above the question is not argued here and we give it no further attention. The plaintiff, in a reply, alleged mutual mistake in the execution of the instrument and asked it be set aside. This question was not decided by the trial court but was specifically reserved for the trial.

*291 I. So we have but the one question of the real meaning of the covenant, Exhibit A. We set it out herewith:

“Exhibit ‘A’
“Covenant Not To Sue
“Arlene Pedersen of Armstrong in the County of Emmet and State of Iowa for my heirs, executors and administrators, in consideration of the sum of Seventy-nine and 12/100 — Dollars to be paid by Lyle V. Nelson the receipt of which is hereby acknowledged, do by this instrument covenant with said Lyle & Mavis Nelson to forever refrain from instituting, pressing or in any way aiding any claim, demand, action or causes of action, for damages, cost, loss of service, expenses or compensation for, on account of, or in any way growing out of, or hereafter to grow out of an accident which happened to Mavis Nelson on or about the 27th day of Sept., 1957, at or near 2 Mi. East of Gruver, Iowa on highway #9 whereby............and for the above consideration I hereby agree to hold the said Lyle & Mavis Nelson harmless from any damages to myself resulting or to result from said accident.
“Witness -.....- hand and seal this 2nd day of Oct. at
Armstrong, Iowa A.D. 1957.
“/s/ Mrs. Arlene Pedersen”

We need consider only plaintiff’s contention that the instrument in question is ambiguous and so the question of the intent of the parties in executing it — whether it was meant to be a full release or is only what it is labeled, a covenant not to sue— should be determined by evidence. While a covenant not to sue is an artificial means of evading the general rule that a full release of one against whom a claim is made also releases others against whom the same claim might be lodged, it is established in Iowa that it is valid. In Dungy v. Benda, 251 Iowa 627, 638, 102 N.W.2d 170, 177, we said: “The distinction between a full release and a covenant not to sue is well established in Iowa. While it may appear technical, it is firmly settled in our law, is well understood by the legal profession and we are not disposed to change the prevailing rule.” The rule applied in Dungy v. Benda, supra, is in its application often harsh, and the device of *292 the covenant not to sue, as well as that of the modern “loan receipt” have been adopted as a means of permitting settlement with one alleged wrongdoer without releasing others. Bolton v. Ziegler, U. S. D. C., N. D. of Iowa, 111 F. Supp. 516, 527. Our problem here is to determine whether the instrument before us is so clearly a full release of the Nelsons that it will admit of no other interpretation. If so, the ruling of the trial court was correct. If not, the intent may be determined, as the plaintiff contends, by evidence as to the real intent of the parties; that is to say, whether plaintiff meant to give the Nelsons a full release or merely to agree not to sue them or assert any claim against them.

It must be admitted the instrument before us is troublesome. A plain and simple covenant not to sue, such as was used in Renner v. Model Laundry, C. & D. Co., 191 Iowa 1288, 1304, 1305, 184 N.W. 611, 612, would have prevented the difficulties which have arisen. But we must take the instrument as it was executed.

II. The intent of the parties must be determined from what they did; and if the instrument is clearly one thing or the other, a covenant not to sue, or a full release of the Nelsons, there is no room for construction. It is true the parolevidence rule does not apply in favor of one who is not a party to the instrument from which he seeks to claim an advantage. Dungy v. Benda, supra, loc. eit. 251 Iowa 633, 102 N.W.2d 174, Middaugh v. Des Moines Ice & Cold Storage Co., 184 Iowa 969, 984, 169 N.W. 395, 400. But the intent may be so clearly shown by the instrument that there is no room for construction. Dungy v. Benda, supra.

The question must be determined by a study of the instrument Exhibit A. The defendant Bring relies greatly upon Atlantic Coast Line Railroad Co. v. Boone, Fla., 85 So.2d 834, 57 A. L. R.2d 1186.

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Bluebook (online)
117 N.W.2d 509, 254 Iowa 288, 1962 Iowa Sup. LEXIS 697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pedersen-v-bring-iowa-1962.