Reilly v. Anderson

727 N.W.2d 102, 2006 Iowa Sup. LEXIS 163, 2006 WL 3525116
CourtSupreme Court of Iowa
DecidedDecember 8, 2006
Docket04-1825
StatusPublished
Cited by22 cases

This text of 727 N.W.2d 102 (Reilly v. Anderson) 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
Reilly v. Anderson, 727 N.W.2d 102, 2006 Iowa Sup. LEXIS 163, 2006 WL 3525116 (iowa 2006).

Opinion

CADY, Justice.

In this case, we must primarily decide whether the theory of concerted action is compatible with our statutory comparative fault principles. We hold the theory of concerted action, despite requiring joint and several liability among concerted actors, is compatible with Iowa’s Comparative Fault Act (CFA). We reverse the district court’s decision holding otherwise, and remand for a new trial.

I. Background Facts and Proceedings.

On August 11, 2000, Christopher Anderson (Anderson), Alan Naughton (Naughton), and Nicholas Reilly (Reilly) set out in a Jeep owned by Anderson’s father to go fishing at a pond outside Marshalltown. Anderson drove, Naughton rode as the front seat passenger, and Reilly sat in the back. On the way to the pond, Anderson produced a marijuana water bong. He asked Naughton to hold the steering wheel for him so he could take a hit off the bong. Naughton grabbed the steering wheel of the vehicle with his hand from his passenger seat position while the car was traveling at 50-55 miles an hour. During this time, control of the vehicle was lost and the vehicle crashed into the ditch. Reilly was severely injured.

Reilly and his parents (the Reillys) sued Anderson and his father (the Andersons); Naughton and his father, Richard Naugh-ton, who owned some equipment that was unsecured in the cargo area of the Jeep when it crashed; and IMT Insurance *104 Company (IMT), the Reillys’ underinsured motorist insurance carrier. Richard Naughton obtained summary judgment as to his nonliability, and the case proceeded to trial against the remaining parties.

The jury returned a verdict finding Anderson sixty percent at fault, and Naughton and Reilly both twenty percent at fault. The jury found Reilly sustained $345,000 in damages, and his parents incurred $202,030.09 in damages.

All parties filed post-trial motions regarding the district court’s entry of judgment. IMT, the Andersons, and the Reil-lys moved to enter judgment against Naughton and Anderson jointly and severally for the damages (reduced, of course, by Reilly’s twenty percent fault). Naugh-ton, on the other hand, moved for judgment notwithstanding the verdict or, in the alternative, a new trial. Naughton argued in his motion for JNOV there was no evidence he knew Anderson’s conduct was negligent. In his alternative argument, Naughton made three claims for a new trial. First, there was no evidence he knew Anderson’s conduct was negligent. Second, IMT was severed from trial and then rejoined as an interested party. Third, the court would violate Iowa Code section 668.3(5) (2005) by entering judgment against him and Anderson jointly. 1 The Andersons also filed a motion for a new trial. They argued the court erred in failing to instruct the jury on a joint-enterprise theory, and on Reilly’s failure to mitigate damages. Finally, IMT filed a conditional motion for new trial, arguing the court erred in failing to submit its requested instructions to the jury.

The district court denied all the motions. The court refused to enter a judgment holding Naughton and the Andersons jointly and severally liable, citing Iowa Code section 668.4. 2 It reduced Reilly’s and his parents’ damages by twenty percent, entitling Reilly to $276,000 and his parents to $161,624.07. The court entered a judgment for Reilly against Naughton for twenty percent of Reilly’s damages— $69,000 (plus $4,909.06 in prejudgment interest). The court entered a judgment for Reilly against the Andersons for sixty percent of Reilly’s damages — $207,000 (plus $14,729 in prejudgment interest). Because Anderson was more than fifty percent at fault, the Andersons were jointly and severally liable for Reilly’s judgment against Naughton. Additionally, the court entered a judgment for Reilly’s parents against Naughton for twenty percent of the parents’ damages — $40,406.02 (plus $3,606.91 in prejudgment interest). The court also entered a judgment for Reilly’s parents against the Andersons for sixty percent of their damages — $121,218.05 (plus $10,820.72 in prejudgment interest). Moreover, the Andersons were jointly and severally liable on the Reillys’ judgment against Naughton. Thus, the judgment for the Reillys against Naughton totaled *105 $117,921.99, and the judgment for the Reil-lys against the Andersons totaled $353,767.77. The Andersons only had $250,000 in insurance coverage, so they were underinsured by $103,767.77. However, the Reillys had $100,000 in UIM coverage from IMT, so the court entered a judgment against IMT to pay the Reillys $100,000.

The Andersons and IMT appealed, and Naughton and the Reillys cross-appealed. The Andersons and IMT argue the case should be remanded with instructions to enter judgment jointly and severally against the Andersons and Naughton. In the alternative, they argue for a new trial, claiming the court failed to properly instruct the jury on an acting-in-concert or joint enterprise theory. In his cross-appeal, Naughton claims the court should have directed a verdict for him because there was no evidence to suggest Naugh-ton was guilty of aiding and abetting. In addition, Naughton argues jury instruction No. 20 did not accurately state the law, and if it did, there was insufficient evidence to find him negligent under the court’s instructions. The Reillys join the appellants Anderson and IMT in their arguments, and add in their cross-appeal that we should further modify the district court’s order by eliminating Reilly’s twenty-percent assignment of fault because it was not supported by substantial evidence.

II. The Andersons’ and IMT’s Appeal (the Reillys Join): Whether Naughton is Jointly and Severally Liable.

A. Standard of Review.

Because the court’s decision was based on the interpretation of a statute, we review the court’s refusal to enter judgment against the Andersons and Naughton jointly and severally for correction of errors at law. See In re Detention of Cubbage, 671 N.W.2d 442, 444 (Iowa 2003) (“Our review of the district court’s construction and interpretation of the statute is for correction of errors at law.” (citing In re Detention of Swanson, 668 N.W.2d 570, 575 (Iowa 2003))). Similarly, “[o]ur scope of review on objections to [jury] instructions is on assigned error.” State v. Maghee, 573 N.W.2d 1, 8 (Iowa 1997).

B. Preservation of Error.

Naughton first argues error was not preserved on this issue because IMT and Anderson failed to object to jury instruction No. 24. That instruction read, “If you assign to a Defendant less than fifty percent of the total fault, that Defendant will only be liable to the extent of the percentage of fault assigned by you.” Naughton claims the appellants’ argument in favor of joint and several liability is essentially an argument against instruction No. 24 because Naughton was not found fifty percent or more at fault. Therefore, Naugh-ton claims this objection was not preserved for appeal because neither IMT nor Anderson objected to instruction No. 24.

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Bluebook (online)
727 N.W.2d 102, 2006 Iowa Sup. LEXIS 163, 2006 WL 3525116, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reilly-v-anderson-iowa-2006.