Stewart v. Craig

344 S.W.2d 761, 208 Tenn. 212, 12 McCanless 212, 1961 Tenn. LEXIS 413
CourtTennessee Supreme Court
DecidedMarch 10, 1961
StatusPublished
Cited by37 cases

This text of 344 S.W.2d 761 (Stewart v. Craig) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stewart v. Craig, 344 S.W.2d 761, 208 Tenn. 212, 12 McCanless 212, 1961 Tenn. LEXIS 413 (Tenn. 1961).

Opinions

Mr. Justice Burnett

delivered the opinion of the Court.

The Stewarts (plaintiffs in error) filed their separate actions against the defendants, now defendants in error, for damages resulting to them from an automobile accident. The declarations in each case allege that the defendants were the employers of an individual whose negligence was the direct and proximate cause of the accident, and who was then acting within the scope of his employment.

To these declarations the defendants interposed a plea of the general issue and subsequently filed three special pleas, asserting (a) that the plaintiffs had accepted some money from the defendants’ employee, who was the operator of the automobile that caused the accident and that by thus accepting .this sum of money any liability of [214]*214the defendants had been discharged; (b) that the Stew-arts (plaintiffs, plaintiffs in error here) had given the defendants ’ employee a release which served to discharge the defendants; and (c) a nominal plea of accord and satisfaction. To these special pleas the plaintiffs joined issue asserting that the instrument given by the plaintiffs to this employee of the defendants was a covenant not to sue and in no way served to release the defendants.

Thus it is we have as the sole issue in this case the question of whether or not a covenant not to sue given to an employee operates as a release or discharge of his employers. The trial court so held and to this holding exceptions were duly made, and an appeal perfected. Able briefs have been filed and arguments have been heard, and after considerable study and thought we now have the matter for disposition.

In the beginning we think it is well to point out that the covenant not to sue here given was not given to one or more joint tort-feasors but was given to the employee of the defendants, who in and for themselves were guilty of no wrongs, but that any liability on them must be predicated entirely upon the negligent acts of the cov-enantee, that is, the one to whom the covenant was given not to sue. Our courts have uniformly held that a covenant not to sue one tort-feasor does not affect the right to sue other tort-feasors. We have no case though, as far as diligent counsel or the Court can find, in which a situation arises as that herein. The question of the liability of other joint tort-feasors when a covenant not to sue is given to one is thoroughly and ably discussed in Nashville Interurban Ry. v. Gregory, 137 Tenn. 422, 193 S.W. 1053. Of course, the reason given for accepting a covenant not to sue in tort actions of the kind is for the [215]*215purpose of avoiding the technical rule of the common law, that the discharge of a wrongdoer extinguishes the cause of action arising out of the wrong, and therefore operates equally to discharge those jointly guilty thereof.

In the Nashville interurban case, supra, this Court recognized that in a subsequent suit by the covenantor against the covenantee, on the same cause of action, the latter may plead the breach of the covenant by way of set-off or recoupment, the covenant being thus given the effect of a satisfaction of damages which the injured person might otherwise be entitled to, although not, in legal parlance, a technical satisfaction of the cause of action. Likewise in this Nashville Interurban case, supra, this Court held that the amount of money received by the covenantor may not operate to reduce the damages recoverable from a joint tort-feasor. This rule was made necessary by the then accepted rule in this State that there could be no contribution between joint tort-feasors, and not because the sum so received can in no event be treated as the payment for the damages for the injuries inflicted. In 1950, or nearly forty years after the Nashville Interurban case, this Court stated and concluded in the opinion of Davis v. Broad St. Garage, 191 Tenn. 320, 232 S.W.2d 355, that it was still the rule in this State that there could not be contribution between jont tort-feasors where they by concert of action have been guilty of a wilful tort, an immoral act, or where consciously violating the law, but held that where the joint tort-feasor was guilty of mere passive or negative negligence that he may recover a contribution, where other joint tort-feasors have contributed more proximate, positive or active negligence to the injury. This holding was subsequently approved by this Court in American Casualty Co. v. Bill-[216]*216ingsley, 195 Tenn. 448, 260 S.W.2d 173, and has been followed in other nnreported cases.

It is conceded, as it should he, that any liability of the defendants herein, is based on the doctrine of respondeat superior which rests upon the doctrine that the wrong of the servant is the act of his employer. Goodman v. Wilson, 129 Tenn. 464, 166 S.W. 752, 51 L.R.A.,N.S., 1116.

This Court many years ago in Loveman Co. v. Bayless, 128 Tenn. 307, 160 S.W. 841, held that where the servant, the immediate actor, could not be charged with liability for the tort, the principal, the remote actor, had no part in the tortious transaction and could not be held responsible. Thus it is that if the remote actor, the defendants in this case, had no other direct relation to the wrongs or injuries complained of, but was liable only because of the doctrine of respondeat superior they clearly do not occupy the position of a wrongdoer.

The rule of law in this State, and universally so as far as we know, that where the master (defendants in this case) is held liable for negligent acts of his servant (covenantee) solely upon the doctrine of respondeat superior, the master in turn has a cause of action against the servant for any such amount for which he is held liable. Maxwell v. Louisville & N. R. Co., 1 Tenn.Ch. 8; Carter v. E. T. & W. N. Transp. Co., 35 Tenn.App. 196, 243 S.W.2d 505; Williford v. Kansas City M. & B. R. Co., C.C., 154 F. 514; 42 C.J.S. Indemnity sec. 21, p. 597.

Thus it is under this last announced principle if the present suits are maintained to their conclusion, and there is a judgment rendered against the defendants in error, they in turn can turn around and sue their employee, covenantee herein, and would be entitled to a [217]*217judgment against Mm for the amount of the judgment rendered against them, because any judgment rendered against them was due entirely to the employee’s negligence.

We have held over the years in this State that if an injured person is barred by law from suing the servant he is likewise barred from maintaining a suit against the master when liability is predicated solely on the doctrine of respondeat superior. One or two of these eases illustrate what we have just said. In the case of Raines v. Mercer, 165 Tenn. 415, 55 S.W.2d 263, this Court held that a suit was barred against a father where the accident was due solely to the negligent operation of the father’s car by the son after the son had married the party-plaintiff to the law suit. Of course, this was under the well established rule that a wife could not maintain a suit in tort against her husband.

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Cite This Page — Counsel Stack

Bluebook (online)
344 S.W.2d 761, 208 Tenn. 212, 12 McCanless 212, 1961 Tenn. LEXIS 413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stewart-v-craig-tenn-1961.