Price v. Southwestern Bell Telephone Co.

1991 OK 50, 812 P.2d 1355, 62 O.B.A.J. 1785, 1991 Okla. LEXIS 58
CourtSupreme Court of Oklahoma
DecidedJune 4, 1991
Docket69881
StatusPublished
Cited by38 cases

This text of 1991 OK 50 (Price v. Southwestern Bell Telephone Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Price v. Southwestern Bell Telephone Co., 1991 OK 50, 812 P.2d 1355, 62 O.B.A.J. 1785, 1991 Okla. LEXIS 58 (Okla. 1991).

Opinion

DOOLIN, Justice.

We granted certiorari to consider whether a joint tortfeasor is entitled to have deducted from its liabilities the amount paid in settlement to the injured party by another joint tortfeasor concurrently responsible for the same injury. The district court, relying upon 12 Okla.Stat. § 832(H) (1981), reduced the jury’s verdict by the settlement amount. The Court of Appeals reversed and remanded the cause with instructions to enter a sixty percent judgment of the jury verdict for passenger, the injured party. We disagree and vacate the summary opinion of the appellate court.

I.

Appellee Donna Price, (Passenger), sustained personal injuries in an automobile accident resulting from the combined negligence of Bobby Carmon (Carmon), the driver with whom passenger was riding, and Gary Webb, appellant Southwestern Bell Telephone Company’s, (Southwestern), employee driver. Another passenger in the Carmon vehicle, a minor, sued Carmon and Southwestern. As a result of that action, Southwestern was found 60% negligent, and Carmon was found 40% negligent for the collision.

Passenger commenced this action against Southwestern, alleging the injuries she suffered were caused by the negligence of Southwestern’s employee, and that Southwestern was liable for the 60% negligence imputed to its employee driver while in the course of his employment. Southwestern conceded that its driver was found 60% negligent, and then filed a third party action against Carmon, seeking contribution since Carmon was determined to be 40% negligent. Subsequently, passenger filed a supplemental petition against Carmon seeking full recovery from both Southwestern and Carmon.

During pretrial, Southwestern and Car-mon conceded liability. Both defendants also stipulated they were jointly and severally liable to passenger, who was without fault, and that their respective percentages of concurrent negligence, (60% & 40%), as previously established in a prior case, was binding in the instant cause of action. Thus, the only issue submitted to the jury was the amount of passenger’s damages.

However, prior to trial, Passenger and Carmon negotiated a release and settlement agreement for $8,000.00. Passenger agreed “to hold harmless and indemnify (Carmon) ONLY from any further claim *1357 from Southwestern Bell Telephone Company.” Southwestern was not a party in the settlement. The jury returned a verdict of $5,000.00 in favor of Passenger, and against Southwestern and Carmon.

Passenger moved for judgment on the verdict for $3,000.00, (60% of $5,000.00), plus interest and cost. Southwestern contended that Passenger was entitled to no recovery, because Passenger’s settlement with Carmon (1) made the defendants’ stipulated percentages of concurrent negligence irrelevant, (2) effectively extinguished Southwestern’s right of contribution from Carmon, and most importantly, (3) the settlement amount once deducted from the jury’s verdict left Passenger with a null recovery. 12 Okla.Stat. § 832(H) (1981). Section 832, the contribution statute, provides in pertinent part:

A. When two or more persons become jointly or severally liable in tort for the same injury to person or property or for the same wrongful death, there is a right of contribution among them even though judgment has not been recovered against all or any of them except as provided in this section.
B. The right of contribution exists only in favor of a tort-feasor who has paid more than his pro rata share of the common liability, and his total recovery is limited to the amount paid by him in excess of his pro rata share. No tort-feasor is compelled to make contribution beyond his own pro rata share of the entire liability.
* * * * * *
D. A tort-feasor who enters into a settlement with a claimant is not entitled to recover contribution from another tort-feasor whose liability for the injury or wrongful death is not extinguished by the settlement nor in respect to any amount paid in a settlement which is in excess of what was reasonable.
* * * * * *
H. When a release, covenant not to sue or a similar agreement is given in good faith to one of two or more persons liable in tort for the same injurg or the same wrongful death:
1. It does not discharge ang of the other tort-feasors from liability for the injury or wrongful death unless its terms so provide; but it reduces the claim against others to the extent of any amount stipulated by the release or the covenant, or in the amount of consideration paid for it, whichever is greater; and
2. It discharges the tort-feasor to whom it is given from all liability for contribution to any other tort-feasor. [Emphasis added].

The district court, applying § 832(H), ordered “that the amount of the verdict be reduced by the amount stipulated in the settlement agreement,” and rendered judgment that Passenger was entitled to recover “the sum of No Dollars and No/00 ($0).” Passenger appealed asserting that the trial court improperly construed § 832, because (1) Southwestern, having not paid or even held liable for more than its proportionate share of liability, was not entitled to a right of contribution, (2) Southwestern had no standing to receive any benefit from the settlement with Carmon, because § 832(H) was not applicable; See e.g., Kussman v. City and County of Denver, 706 P.2d 776, 782 (Colo.1985), and (3) Southwestern, the 60% tortfeasor, escapes its joint liability, and is in effect granted a windfall.

II.

The Court of Appeals, Division IV, with its vice-chief judge specially concurring, reversed the district court, and remanded the cause with instructions to enter judgment for passenger for sixty percent of $5,000.00, or $3,000.00. In supporting its decision, the appellate court opined:

Title 12 O.S.1981 § 832, was intended to govern contribution between tortfeasors exposed to liability for allots, plaintiff’s damages_ The stipulation and settlement worked a waiver of Plaintiff's right *1358 to recover all of her damages from either of these tortfeasors, and limited her recovery from the individual tortfeasors on a pro rata basis. When Plaintiff accepted the $8,000 settlement ..., this discharged that tortfeasor’s pro rata share on Plaintiffs claim.... Any relief in the amount Southwestern Bell would ultimately pay was dependent upon the jury’s verdict alone and not upon the prior settlement of a tortfeasor with a fixed, pro rata share of common liability.

The special concurrence observed that the appellate court’s interpretation of § 832, similar to the reasoning of the Supreme Court of Colorado in construing a like statute: (1) championed the “broad public policy purposes” underlying § 832 in accord with 12 Okla.Stat. § 2 (1981) (force of common law) and 25 Okla.Stat.

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Bluebook (online)
1991 OK 50, 812 P.2d 1355, 62 O.B.A.J. 1785, 1991 Okla. LEXIS 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/price-v-southwestern-bell-telephone-co-okla-1991.