Slager v. HWA Corp.

435 N.W.2d 349, 1989 Iowa Sup. LEXIS 10, 1989 WL 4872
CourtSupreme Court of Iowa
DecidedJanuary 25, 1989
Docket87-1696
StatusPublished
Cited by68 cases

This text of 435 N.W.2d 349 (Slager v. HWA Corp.) 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
Slager v. HWA Corp., 435 N.W.2d 349, 1989 Iowa Sup. LEXIS 10, 1989 WL 4872 (iowa 1989).

Opinions

LAVORATO, Justice.

The sole issue here is whether comparative fault under Iowa Code chapter 668 (1987) has any application as a defense to a dram shop action under Iowa Code section 123.92. The district court ruled it did not. We agree and affirm.

I. Background Facts and Proceedings.

The following facts, which gave rise to these proceedings, are gleaned from the petition. On August 3, 1986, the defendant, HWA Corporation, owned and operated the College St. Club, a liquor establishment in Iowa City. On that date Ramon Jose DeSantiago, a minor, was sold and served intoxicating beverages at the College St. Club while he was intoxicated or until he became intoxicated. DeSantiago left the club in an intoxicated condition and began tampering with a motorcycle belonging to John E. Slager. Slager confronted DeSantiago as DeSantiago was tampering with the motorcycle. At that point DeSan-tiago shot and seriously injured Slager.

Thereafter, Gary T. Slager and Marcia L. Slager, as co-conservators and co-guardians of John E. Slager, filed a dram shop action against HWA. In its answer, HWA denied the general allegations of the petition and alleged as an affirmative defense that the comparative fault of persons other than HWA had contributed to John’s injuries.

The plaintiffs moved to strike the affirmative defense. They contended that, as a matter of law, the comparative fault defense is not available to a defendant in a dram shop action. Initially, the district court sustained the motion. Because HWA had filed a resistance to the plaintiffs’ motion to strike and had requested a hearing, the court vacated its ruling. After the hearing, the court again sustained the motion to strike, holding that “[cjomparative fault does not apply in dram shop cases.”

HWA filed an application for interlocutory appeal from this ruling, which we granted. It contends that dram shop liability falls within the definition of “fault” in Iowa Code section 668.1 and is therefore subject to the comparative fault provisions of Iowa Code chapter 668. The plaintiffs disagree, arguing that the legislature never intended such a result.

II. Comparative Negligence and Comparative Fault.

In 1983 we abandoned the doctrine that contributory negligence completely bars recovery. In its place, we adopted the doctrine of comparative negligence. Under our holding in Goetzman v. Wichern, 327 N.W.2d 742, 744 (Iowa 1982), an injured party’s recovery was diminished in proportion to that party’s negligence, and recovery was not barred unless the injured party’s negligence was the sole proximate cause of the damages.

In response to Goetzman, our legislature in 1984 enacted Iowa Code chapter 668, entitled “Liability in Tort — Comparative Fault.” The statute establishes a modified form of comparative negligence patterned largely after the Uniform Comparative Fault Act (Uniform Act). See Speck v. Unit Handling Div., 366 N.W.2d 543, 545-46 (Iowa 1985). Rather than being limited to comparative negligence, however, “fault” under both includes

one or more acts or omissions that are in any measure negligent or reckless toward the person or property of the actor or others, or that subject a person to strict tort liability. The term also includes breach of warranty, unreasonable assumption of risk not constituting an enforceable express consent, misuse of a product for which the defendant otherwise would be liable, and unreasonable failure to avoid an injury or to mitigate damages.

[351]*351Iowa Code § 668.1(1); accord Unif. Comparative Fault Act § 1(b), 12 U.L.A. 39 (Supp.1988). In addition, under both chapter 668 and the Uniform Act, the legal requirements of causation in fact and proximate cause apply both to fault as the basis for liability and to contributory fault. See Iowa Code § 668.1(2); Unif. Comparative Fault Act § 1(b), 12 U.L.A. 39 (Supp.1988).

In two respects, chapter 668 and the Uniform Act differ substantially. The first difference relates to the effect of contributory fault on recovery. Under Iowa Code section 668.3(1), recovery is diminished in proportion to the amount of fault attributable to the claimant. Recovery, however, is barred if the claimant bears a greater percentage of fault than that attributed to defendants, third-party defendants, and released persons. In contrast, under the Uniform Act any contributory fault attributable to the claimant simply diminishes, but does not bar, recovery. See Unif. Comparative Fault Act § 1(a), 12 U.L.A. 38-39 (Supp.1988).

The second difference relates to the common-law rule of joint and several liability. Under the Uniform Act the common-law rule continues, meaning that regardless of contributory fault, the claimant may recover the total judgment against any defendant who is liable. See Unif. Comparative Fault Act § 2 comment, 12 U.L.A. 44 (Supp.1988). Under Iowa Code section 668.4, however, the rule is substantially modified. According to this provision, the rule does not apply to defendants who are found to bear less than fifty percent of the total fault assigned to all parties.

III. Dram Shop Liability.

At common law, courts refused to recognize a cause of action arising out of the sale or furnishing of intoxicating beverages. The rationale underlying this refusal was that, as a matter of law, the proximate cause of the injury is the act of the purchaser who drinks the intoxicating beverages and not the act of the vendor who sells them. 48A C.J.S. Intoxicating Liquors § 428, at 133-34 (1981). But see Rinden, Judicial Prohibition? Erosion of the Common Law Rule of Non-Liability for Those Who Dispense Alcohol, 34 Drake L.Rev. 937, 946-56 (1985-1986) (strong trend among state courts to recognize common-law action and to reject common-law rationale as to proximate cause).

A number of states have passed legislation known as dram shop acts. These statutes give innocent parties who are injured by the intoxication of other persons a right of action against the persons from whom the intoxicants were procured. 48A C.J.S. Intoxicating Liquors § 429, at 136. In Iowa such an action is afforded by Iowa Code section 123.92, which provides in part:

Any person who is injured ... by an intoxicated person or resulting from the intoxication of a person, has a right of action for all damages actually sustained, severally or jointly, against any licensee or permittee, who sold and served any beer, wine, or intoxicating liquor to the intoxicated person when the licensee or permittee knew or should have known the person was intoxicated, or who sold to and served the person to a point where the licensee or permittee knew or should have known the person would become intoxicated. If the injury was caused by an intoxicated person, a permittee or licensee may establish as an affirmative defense that the intoxication did not contribute to the injurious action of the person.

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Bluebook (online)
435 N.W.2d 349, 1989 Iowa Sup. LEXIS 10, 1989 WL 4872, Counsel Stack Legal Research, https://law.counselstack.com/opinion/slager-v-hwa-corp-iowa-1989.