Romero v. West Valley School District

98 P.3d 96, 123 Wash. App. 385
CourtCourt of Appeals of Washington
DecidedSeptember 21, 2004
DocketNo. 22152-1-III
StatusPublished
Cited by4 cases

This text of 98 P.3d 96 (Romero v. West Valley School District) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Romero v. West Valley School District, 98 P.3d 96, 123 Wash. App. 385 (Wash. Ct. App. 2004).

Opinion

Sweeney, A.C.J.

This is a damage suit for wrongful death. The primary issue before us is whether the trial court erred by refusing to treat a “covenant not to execute” as a “release.” If the agreement effectively released one defendant from further liability, then the remaining defendant, West Valley School District (the District), the appellant here, is liable for only its proportionate share of the jury’s damage award (75 percent). If, on the other hand, that defendant was not released and remained a party to the suit, then liability is joint and several and the District is liable for 100 percent of the damage award. We agree with both the rationale of and the holding in a recent [387]*387decision1 from Division One of this court that the practical effect of these covenants not to execute is to release a defendant from any further liability. And we reverse the trial judge’s ruling to the contrary. We affirm the balance of the judgment in the unpublished portion of this opinion.

FACTS

The Accident

Aaron Romero was a kindergarten student at Sum-mitview Elementary School in Yakima, Washington. His mother, Carrie Romero, met him at his classroom door at the end of classes on November 2,1998. She had parked her car in an area in front of the school reserved for school buses to park and drive through. The area was, however, routinely used by everyone to load and unload children.

Ms. Romero took Aaron to the rear door of her car and opened the door for him. She did not wait for Aaron to get in. Instead she walked to the driver’s door. She had positioned the driver’s door against a curb. Her passenger door faced the drive through. Aaron did not get in the car. He instead turned and walked into the drive through. A pickup driving down the center of the drive through struck and killed him. The pickup driver did not and could not see Aaron.

There had been numerous, specific complaints of the chaotic intermingling of cars and people in this drive through. Clerk’s Papers (CP) at 1245.

The Suit

Aaron’s parents, Michael and Carrie Romero, and Aaron’s estate sued the West Valley School District. The District denied negligence and affirmatively alleged Ms. Romero’s negligence was a factor contributing to Aaron’s death. Mr. Romero and Aaron’s estate then cross-claimed against Ms. Romero. The District unsuccessfully objected to [388]*388the motion to add Ms. Romero as a cross-claim defendant arguing that she had parental immunity from suit by her son’s estate.

The Settlement Agreement

Mr. Romero and Aaron’s estate settled with Ms. Romero. Ms. Romero agreed to pay the limits of her automobile insurance and $5,000. Mr. Romero and the estate agreed that if they obtained a judgment of more than $30,000 against the District, they would reimburse Ms. Romero $1 for every $2 they collected from the District over the $30,000 amount, up to $5,000. They also agreed that Ms. Romero would remain in the suit as a defendant. But Mr. Romero and the estate would not execute on any judgment obtained against her. The agreement also provided that the attorney hired by Ms. Romero’s insurance company to represent her would withdraw. And plaintiffs’ attorney would represent her at trial. They called their agreement a “Settlement Agreement and Covenant Not to Execute.” CP at 1049. The trial judge ultimately concluded that the settlement agreement was reasonable.

The Trial

An accident reconstructionist and pedestrian safety expert testified for the plaintiffs. He reviewed police reports, videos of the scene, and photographs of Aaron and the pickup. He concluded that the drive through was dangerous for children. And its dangerous condition contributed to the accident.

A transportation engineer also testified for the plaintiffs. He reviewed the facts of the accident and specifically the design and operation of the bus lane and its use for loading and unloading children. He concluded that the Summitview drive through “was not reasonably safe under the design and operational conditions that existed.” Report of Proceedings (RP) at 611. And, it “certainly was a cause,” from an engineering standpoint, of the accident that killed Aaron. [389]*389RP at 611. The expert also suggested improvements to the design and operation of the drive through.

The jury found in favor of the plaintiffs and awarded damages totaling $1.8 million. By special verdict, it found the District 75 percent responsible for the losses and Ms. Romero 25 percent responsible.

The trial judge denied the District’s motion for judgment as a matter of law and/or new trial.

DISCUSSION

Covenant Not to Execute

The District argues that the practical effect of this settlement agreement was to relieve Ms. Romero of any meaningful exposure in this suit. And no matter what the Romeros and the estate chose to call their agreement, the suit against Ms. Romero was effectively at an end after the agreement.

The Romeros respond first that the covenant not to execute is contemplated by the tort reform act. Specifically, RCW 4.22.060(2)2 recognizes covenants not to execute. It provides that a covenant not to enforce a judgment discharges a party from all liability but does not discharge others on the same claim unless it so provides. The Romeros also point out that Ms. Romero still had an interest in defending the suit. She had something to lose by admitting fault — she received a jury award that was $250,000 smaller than Mr. Romero’s because the jury found her negligent.

The agreement here is a classic “Mary Carter”3 agreement. These agreements effectively limit the settling defendant’s liability by

plac[ing] a limit on the [settling defendant’s] maximum liability. . ., and further providing] that such sum will be [390]*390reduced or extinguished in the event of a recovery against the nonagreeing cotortfeasor, the amount of reduction depending on the amount recovered. Further, the plaintiff agrees to not execute on any judgment against the settling defendant, seeking recourse against only the nonagreeing defendants, and the defendant agrees to continue as a party defendant in the trial of the action.

Christopher Vaeth, Annotation, Validity and Effect of “Mary Carter” or Similar Agreement Setting Maximum Liability of One Cotortfeasor and Providing for Reduction or Extin-guishment Thereof Relative to Recovery Against Nonagreeing Cotortfeasor, 22 A.L.R.5th 483, at 497 (1994).

The question whether to construe such an agreement as a release of Ms. Romero has important ramifications for the plaintiffs and the remaining defendant, the District. If the effect of the agreement is to release Ms. Romero, then the District is liable for only its proportionate share of the jury award — 75 percent. RCW 4.22.070(1). But if Ms. Romero is not “released” by the agreement, and remains a defendant, then the District is jointly and severally liable for the total damage award. And Mr. Romero and the estate can collect 100 percent of their award from the District.

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Cite This Page — Counsel Stack

Bluebook (online)
98 P.3d 96, 123 Wash. App. 385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/romero-v-west-valley-school-district-washctapp-2004.