Powers v. Temple

156 S.E.2d 759, 250 S.C. 149, 1967 S.C. LEXIS 175
CourtSupreme Court of South Carolina
DecidedAugust 9, 1967
Docket18690
StatusPublished
Cited by61 cases

This text of 156 S.E.2d 759 (Powers v. Temple) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Powers v. Temple, 156 S.E.2d 759, 250 S.C. 149, 1967 S.C. LEXIS 175 (S.C. 1967).

Opinions

Bussey, Justice.

In this action plaintiff-appellant seeks to recover damages for serious personal injuries sustained by her on No[154]*154vember 29, 1961, while she was riding as a guest in an automobile owned and operated by the defendant, which collided with the rear end of a vehicle being driven by Mrs. Mazzie Nichols on U. S. 76 some twenty miles east of the City of Columbia. The appeal is from an order of the . trial judge denying a motion for a new trial, following a verdict for the defendant.

The answer of the defendant pled a general denial, sole-negligence and willfulness on the part of Mrs. Nichols, and' contributory negligence and willfulness on the part of the plaintiff. Subsequent to the defendant’s answer, plaintiff, in consideration of the payment of $6,500.00, executed a covenant not to sue in favor of Mrs. Nichols, and the defendant moved to amend his answer by alleging, inter alia, the execution of the aforesaid covenant, which motion was granted over the opposition of the plaintiff. In the course of the trial evidence was adduced as to the execution of the covenant and the amount thereof. The jury was instructed that in the event it found for the plaintiff, it should find the total amount of damages to which she was entitled and then deduct therefrom the amount of the covenant.

The exceptions of the appellant are fourteen in number, raising the issues asserted as grounds for a new trial. We shall first deal with those exceptions which impute error in connection with the aforesaid covenant. Plaintiff contends that the court should not have allowed the defendant to amend his answer and set up the covenant as a defense. Additionally, she contends that the covenant was a matter for the court alone and that such should not have been submitted to the jury. Plaintiff concedes that the defendant was entitled to have the proceeds of the covenant credited on any judgment against him, and the entire argument concerns the manner in which the court should have gone about according such credit to the defendant.

While this question has not yet received the attention of this court, there is a rather complete annotation in 94 A. L. R. (2d), commencing at page 348, [155]*155dealing with the subject. A review of this annotation and authorities therein cited shows that the rule is almost universally followed that one tort feasor is entitled to credit for the amount paid by another tqrt feasor for a covenant not to sue. There is considerable conflict, however, as to the proper manner of allowing such credit, that is, whether the credit should be allowed by the jury in assessing the injured party’s damages, or by the court. We are convinced from a study of these authorities that the sounder and preferable method, at least where there are no fact questions concerning the covenant for the determination of the jury, is for evidence thereabout to- be excluded from the consideration of the jury, and for credit to be given by the court.

It does not follow, however, that there was error on the part of the trial judge in the instant case. While plaintiff now concedes that the defendant was entitled to credit fo,r the amount paid for the covenant, the record does not disclose that she did so concede on the trial or at the time that defendant sought to amend his answer. If plaintiff wanted the matter handled by the court, rather than the jury, she should have offered to so, stipulate and disclosed to the court all circumstances appertaining thereto. Instead, plaintiff sought to avoid the credit being given. Under the circumstances, there was no error on the part of the trial judge in allowing the amendment and submitting the issue to; the jury. As pointed out by the trial judge, although styled an amended answer, the portion thereof setting up the covenant not to sue was actually a supplemental pleading and its allowance was governed by Sec. 10-610 of the Code which provides,

“The plaintiff and defendant, respectively, may be allowed on motion to- make a supplemental complaint, answer- or reply alleging facts material to the case occurring after the former complaint, answer or reply, or of which the party was ignorant when his former pleading was made * *

Plaintiff, as an employee of the American Red Cro,ss, was entitled to Workmen’s Compensation benefits. The order of [156]*156the trial judge reflects that on the back of the original complaint there appeared a statement, “that the action was brought by and with the consent o,f the Travelers Insurance Company to the extent of its interest as the Workmen’s Compensation insurer of the plaintiff’s employer pursuant to Code Sec. 72-124.” The complete trial record is not before us, but apparently Workmen’s Compensation was first brought to the attention of the jury when counsel for the defendant unsuccessfully sought to elicit evidence as to the amount of benefits drawn by the plaintiff. Thereafter, plaintiff sought to show that the proceeds of the covenant not to sue, in the amount of $6,500.00, were paid to the carrier and that plaintiff, of course, received no part thereof. This evidence was excluded on the basis of Code Sec. 72-127, which is applicable to a third party action such as this. Said section is as follows:

“The amount of compensation paid by the employer or the amount of compensation to which the injured employee or his dependents are entitled shall not be admissible as evidence in any action brought to recover damages.”

The judge reasoned that to- allow the excluded evidence would have sho.wn that at least $6,500.00 in compensation benefits was paid, and, accordingly, such would have been in violation of the aforesaid section. While the language of the Code section is perfectly plain, this court has had no prior occasio.n to consider the intent and purpose thereof. The section, however, has been considered by the Fourth Circuit Court of Appeals, in the case of Blue Ridge Rural Electric Cooperative v. Byrd, 264 F. (2d) 689 (1959). In that case it was held that in a third party action the district judge correctly withheld from the jury the fact that the plaintiff had received any benefits under the Workmen’s Compensation Law of South Carolina. We quote the following pertinent language from the opinion,

“We, too, think the record ought to show Bouligny to be a. use-plaintiff, but we still think this interest is not now relevant to the jury issue. Therefore, the evidence should be [157]*157admitted before the trial judge only, without disclosure to the jury, unless controverted or unless some other basis for its admission develops in the trial, such as its pertinency to credibility of witnesses, or otherwise, as in Sprinkle v. Davis, 4 Cir., 111 F. (2d) 925, 931, 128 A. L. R. 1101. In the last event, the amount of the compensation must be kept from the jury, irrelevance or limited relevance of the compensation award to a present recovery should be explained to them, and the purpose of the evidence strictly confined in argument as well as sharply circumscribed in the charge. Cf. 1952 Code, § 72-127.”

The Supreme Court of North Carolina has on more than one occasion had opportunity to, consider the purpose ánd intent of the section of its Workmen’s Compensation Law which is quite similar to our Code Section 72-127. In Lovette v. Floyd, 236 N. C. 663, 73 S. E.

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Cite This Page — Counsel Stack

Bluebook (online)
156 S.E.2d 759, 250 S.C. 149, 1967 S.C. LEXIS 175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powers-v-temple-sc-1967.