State Ex Rel. Deere & Co. v. District Court of the Fifth Judicial District

730 P.2d 396, 224 Mont. 384, 1986 Mont. LEXIS 1111
CourtMontana Supreme Court
DecidedDecember 19, 1986
Docket85-594
StatusPublished
Cited by57 cases

This text of 730 P.2d 396 (State Ex Rel. Deere & Co. v. District Court of the Fifth Judicial District) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Deere & Co. v. District Court of the Fifth Judicial District, 730 P.2d 396, 224 Mont. 384, 1986 Mont. LEXIS 1111 (Mo. 1986).

Opinions

[386]*386MR. JUSTICE SHEEHY

delivered the Opinion of the Court.

In this original proceeding in this Court, relators Deere & Company and Robert L. Campbell make application for a writ of supervisory control directed to the District Court, Fifth Judicial District, Beaverhead County, to grant Deere’s motion for summary judgment which the District Court had denied. We determine that the writ should issue.

The principal issue we decide here is that a joint tortfeasor who settles with the claimant before judgment on the claim is entered in a district court is not subject to claims for contribution or indemnity from the nonsettling joint tortfeasors. We further hold that the claim of the plaintiff against the remaining tortfeasors is to be reduced by a dollar credit in the amount of consideration paid by the settling tortfeasor, and not by a percentage amount proportional to the degree of fault of the settling tortfeasor.

In May, 1982, plaintiff Robert L. Campbell was working for Beaverhead Irrigation Company installing an irrigation system. As Campbell was helping to move a mired dump truck, a bulldozer manufactured by Deere & Company backed into him. The bulldozer was operated by an employee of Wade’s Backhoe, Jim Lott.

In April, 1983, Campbell filed suit for his injuries against Wade’s Backhoe and Deere & Company. In May, 1983, Campbell and Deere reached a settlement agreement whereby Deere paid plaintiff $25,000 and Campbell released Deere from all claims. Campbell also agreed in the release to indemnify Deere for any amount it might be required to pay to a joint tortfeasor thereafter. Campbell reserved in the release his claim against Wade’s Backhoe.

The District Court then dismissed Campbell’s action against Deere with prejudice in May, 1983, pursuant to stipulation, leaving Wade’s Backhoe as the sole defendant.

In March, 1984, Wade’s Backhoe filed a third party complaint against Deere for indemnity and contribution because of alleged negligence and strict liability.

In April, 1984, Deere filed an answer which generally denied the third party complaint. In October, 1985, Deere filed a motion to amend its answer to include the defense of release. At the same time, Deere filed a motion for summary judgment relying on the release of Deere by plaintiff Campbell. Deere also argued that it had not been properly brought into the action under Section 27-1-703, MCA.

[387]*387In November, 1985, the District Court denied Deere’s motion to amend its answer to include the affirmative defense of release. The District Court also denied Deere’s motion for summary judgment.

Thereafter, Deere and Campbell, as relators, filed an application in this Court in an original proceeding to procure a writ of supervisory control directed to the District Court. We ordered a response and set up a briefing schedule. We have received such response from Wade’s Backhoe, and have the benefit of briefs from amici curiae as follows:

The Asbestos Claims Facility in support of relators; a brief by the law firm of Moore, Rice, O’Connell and Refling in support of relators; a brief of Burlington Northern Railroad advocating adoption of a rule under which the plaintiff’s recovery against the nonsettling tortfeasor is reduced by the equitable percentage of negligence of the settling tortfeasor or the amount paid, whichever is greater; and a brief from the law firm of Corette, Smith, Pohlmann & Allen advocating a percentage reduction of the plaintiff’s claim proportional to the degree of fault of the settling joint tortfeasor.

We identify the issues to be determined in this cause as follows:

1. (a) Whether defendant Wade’s Backhoe can bring an action for contribution against a joint tortfeasor who settled with the plaintiff and obtained a release;

(b) and if not, what effect should the settlement have upon the the liability of the nonsettling tortfeasor.

2. Whether the defendant Wade’s Backhoe’s claim for indemnity can defeat Deere’s motion for summary judgment.

3. Whether a writ of supervisory control should be granted.

4. Whether a denial of indemnity or contribution to Wade’s Backhoe is a constitutional violation.

5. Whether Wade’s Backhoe followed the correct procedures against Deere & Company in its claims for contribution or indemnity.

I.

We discuss first the effect of a prejudgment settlement by one or more joint tortfeasors with a plaintiff on the rights to contribution or indemnity of the remaining nonsettling joint tortfeasors.

This issue is the natural outgrowth of our decision in Consolidated Freightways Corporation of Delaware v. Osier (1979), 185 Mont. [388]*388439, 605 P.2d 1076 and the subsequent amendment by the Legislature of Sections 27-1-702 and -703, MCA.

Useful to this discussion would be a thumbnail review of the growth and development of the law on the subject of contribution between joint tortfeasors.

A starting point is that a non-negligent plaintiff could and still can recover his damages against any of several concurrently negligent tortfeasors who proximately caused his injuries [we leave aside from this discussion the development of legal cause vis-a-vis proximate cause]. The non-negligent injured plaintiff could sue one or more or all of the concurrent tortfeasors jointly or separately, and could recover against one or all. Black v. Martin (1930), 88 Mont. 256, 265, 292 P. 577, 580.

No right of contribution to pay the non-negligent plaintiff’s damages existed among joint tortfeasors against whom plaintiff obtained judgment. Panasuk v. Seaton (D.C. Mont. 1965), 277 F.Supp. 979; Consolidated Freightways, supra, 185 Mont. at 442, 605 P.2d 1078. No right of contribution existed between tortfeasors against whom judgment had been obtained and any unsued tortfeasors.

Contributory negligence, however, even in the slightest degree, barred a plaintiff prior to 1975 from recovery for his injuries from any tortfeasor, joint or several. Sztaba v. Great Northern Railway Company (1966), 147 Mont. 185, 411 P.2d 379.

The harshness of the contributory negligence rule was abated when the Montana Legislature adopted the comparative negligence statute in 1975. Section 58-607.1, R.C.M. (1947) [later Section 27-1-702, MCA], That statute stated:

“Contributory negligence when bars recovery. Contributory negligence shall not bar recovery in an action by any person or his legal representative to recover damages for negligence resulting in death or injury to person or property, if such negligence was not greater than the negligence of the person against whom recovery is sought, but any damages allowed shall be diminished in the proportion to the amount of negligence attributable to the person recovering.”

In 1977, the Legislature adopted a right of contribution between joint tortfeasors. Section 58-607.2, R.C.M. (1947) [later Section 27-1-703, MCA]. That statute reads:

“Multiple defendants jointly and severally liable right of contribution.

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Bluebook (online)
730 P.2d 396, 224 Mont. 384, 1986 Mont. LEXIS 1111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-deere-co-v-district-court-of-the-fifth-judicial-district-mont-1986.