Southwestern Bell Telephone Co. v. General Cable Industries, Inc.

966 S.W.2d 166, 1998 Tex. App. LEXIS 1935, 1998 WL 136495
CourtCourt of Appeals of Texas
DecidedMarch 26, 1998
Docket08-97-00047-CV
StatusPublished
Cited by4 cases

This text of 966 S.W.2d 166 (Southwestern Bell Telephone Co. v. General Cable Industries, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southwestern Bell Telephone Co. v. General Cable Industries, Inc., 966 S.W.2d 166, 1998 Tex. App. LEXIS 1935, 1998 WL 136495 (Tex. Ct. App. 1998).

Opinion

OPINION

McCLURE, Justice.

Southwestern Bell Telephone Company, Appellant, (SWBT) appeals from a summary judgment rendered in favor of General Cable Industries, Inc., Appellee (General Cable). General Cable, as cross-appellant, appeals from a summary judgment granted in favor of cross-appellee, Davis Fleet Maintenance, Inc. (Davis Fleet). We reverse summary judgment granted in favor of General Cable; we affirm summary judgment granted in favor of Davis Fleet.

FACTUAL AND PROCEDURAL SUMMARY

On January 20, 1995, a device known as a braking bar fell from a SWBT truck traveling on Interstate 10 in El Paso. Mark Wom-ack, a driver of another vehicle, suffered severe and permanent injuries when he lost control of his vehicle after it struck the braking bar. On February 22, 1995, Womack filed a negligence suit against SWBT and one of its employees. The following procedural events are pertinent to resolution of the issues presented by this appeal:

5/22/95 Case set for jury trial on November 6, 1995.
■ 5/25/95 Case referred for mediation scheduled to be held on September 22,1995.
■ 6/12/95 Upon obtaining leave of court, SWBT filed a third-party petition against General Cable for contribution, alleging a theory of products liability.
■ 7/26/95 General Cable filed its answer.
■ 8/95 General Cable sought continuance of mediation and trial, but it agreed to allow mediation to proceed in exchange for Womack’s agreement to postpone the trial if he failed to reach a settlement with SWBT at mediation.
■ 9/22/95 Mediation attended by Womack, SWBT, and General Cable.
■ 10/05/95 Settlement agreement reached between Womack, SWBT, and General Cable whereby SWBT agreed to pay $1.675 million to Womack while SWBT reserved its right to seek contribution from General Cable and General Cable reserved its defenses to the contribution claim; Womack released both SWBT and General Cable.
■ 5/08/96 Womack non-suited SWBT.
■ 5/07/96 Upon obtaining leave of court, General Cable filed a third-party petition against Davis Fleet, alleging that it negligently maintained the SWBT vehicle. 1
■ 6/17/96 Davis Fleet filed special exceptions.
■ 9/20/96 General Cable responded to Davis Fleet’s special exceptions by alleging that it did not settle with Womack and therefore its contribution claim was not prohibited; alternatively, General Cable moved for summary judgment as to SWBT’s contribution claim, alleging that if General Cable is a settling defendant, it is immune from any contribution claims.
■ 10/11/96 Trial court sustained special exception of Davis Fleet that General Cable failed to state a cause of action and ordered it to replead within 15 days.
■ 10/16/96 Davis Fleet filed motion to strike for failure to replead; it also moved for summary judgment as to General Cable’s claim against it for contribution, alleging that General Cable’s claim for contribution is barred by the settlement with Womack and the release of both General Cable and SWBT.
■ 1/19/97 Womack filed a separate suit against General Cable.
■ 1/20/97 Trial court granted all motions for summary judgment and entered judgment in favor of General Cable with respect to the suit by SWBT, and in favor of Davis Fleet with respect to the suit by General Cable against it.

THE SETTLEMENT AGREEMENT

The agreement is entitled “Settlement agreement between Southwestern Bell Telephone Company, American Premier Underwriters, Inc., General Cable Company, a division of the Penn Central Corporation, Mobile *168 Tool International, Inc. and Mark Womack with rights reserved to continue certain claims.” It recites that the parties entered into the agreement with respect to the disputes between SWBT, General Cable, and Womack arising out of a suit in which Wom-ack alleges that SWBT is responsible for his injuries while SWBT alleges that it is entitled to contribution from General Cable. Both SWBT and General Cable agreed that Womack’s claim is of a serious nature and continued litigation would only increase the parties’ expense and exposure to additional damages from the suit. The parties further agreed as follows:

■ SWBT would pay $1,675 million to Wom-ack in satisfaction of all of Womack’s claims arising out of the accident and the suit in question.
■ SWBT would continue its third party complaint against General Cable with SWBT to remain as plaintiff and General Cable as defendant The parties agreed to continue the trial date, to establish a new pretrial order, and to cooperate in discovery.
■ Notwithstanding any law to the contrary, General Cable agreed that SWBT retained its legal rights to seek contribution or indemnity from General Cable for damages it sustained by making the $1,675 million payment to Womack. General Cable agreed that SWBT did not waive, relinquish, or lose its right to assert the claim for contribution or indemnity by its payment of the $1,675 million or by obtaining a release from Womack.
■ Notwithstanding any law to the contrary, SWBT agreed that General Cable retained its right to assert any and all defenses or counterclaims to SWBT’s third-party complaint against it except for those defenses expressly waived by the agreement. SWBT specifically agreed that General Cable retained the right to assert that SWBT’s own contributory or comparative negligence caused the accident.
■ Womack agreed that upon receipt of the $1,675 million payment, he released SWBT from any and all claims arising out of the accident.
■ Womack agreed that, “[a]s part of SWBT’s payment” of the $1,675 million, he released General Cable from all claims arising out of the accident. However, the parties agreed that Womack’s release of General Cable did not have any effect on and is not to be considered as a defense to SWBT’s contribution claim against General Cable.
■ General Cable agreed “that in consideration of SWBT advancing the payment of the aforementioned claim of Mark Wom-ack,” SWBT could seek, as an additional element of damage in its contribution claim against General Cable, interest on any sum SWBT advanced in excess of what it may actually owe towards satisfaction of the Womack claim.
■ SWBT and General Cable agreed that set tlement in the sum of $1,675 million is reasonable and that neither party would contest the reasonableness of that amount in any future proceeding. They also agreed that SWBT would not seek any sum in excess of that amount and interest.
■ The parties agreed that venue of the existing action would remain in El Paso County unless the parties later agreed otherwise in writing.

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Cite This Page — Counsel Stack

Bluebook (online)
966 S.W.2d 166, 1998 Tex. App. LEXIS 1935, 1998 WL 136495, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southwestern-bell-telephone-co-v-general-cable-industries-inc-texapp-1998.