Terry P. Murphy, Stephen A. Murphy v. Florida Keys Electric Cooperative Assn., Inc.

Court of Appeals for the Eleventh Circuit·Decided May 9, 2003·No. 02-11574·Published

Opinion

[PUBLISH]

IN THE UNITED STATES COURT OF APPEALS FILED

FOR TH E ELEV ENTH C IRCUITU.S. COURT OF APPEALS ________________________ ELEVENTH CIRCUIT MAY 09, 2003

THOMAS K. KAHN

No. 02-11574

CLERK

D. C. Docket No. 01-10009-CV-SH

TER RY P . MU RPH Y, STE VEN A. M URP HY, a s co-per sonal representatives of the Estate of Brendan M. M urphy, a nd as pa rents and natural guardia ns of S teven A . Murp hy, Jr., a m inor,

Plaintiffs ,

versus

FLO RIDA KEY S EL ECT RIC C OOP ERA TIVE ASS OCIA TION , INC.,

Defendant-Third-Party-Plaintiff-

Coun ter-Def endant- Appe llant,

versus

RAY MOND A SHM AN, I II, Individ ually and as paren t and natu ral guard ian, of Raym ond A shman , IV, a m inor child ,

Third-Party-Defendant- Counter-

Claiman t-App ellee,

STE VEN A. M URP HY, S R., et al., Third- Party-D efendan ts.

Appeal from the United States District Court for the Southern District of Florida

(May 9, 2003)

Before BIRCH, CARNES and BRUNETTI*, Circuit Judges. CARNE S, Circuit Judge:

The issue in this appeal is whether the defendant in an admiralty tort1 action who settles with the plaintiff without obtaining a release from liability for other potential defendants can then be entitled to contribution from them toward the amoun t it paid to se ttle its own liability. Pu tting the S uprem e Cour t’s decision in McDermott, Inc. v. AmClyde, 511 U .S. 202 , 114 S . Ct. 146 1 (199 4), togeth er with our decision in Jovovich v. Desco Marine, Inc., 809 F.2d 1529 (11th Cir. 1987), we con clude tha t a settling d efendan t cannot b ring a su it for con tribution against a nonsettling defendant who was not released from liability to the plaintiff by the settlemen t agreem ent.

*

Honorable Melvin Brunetti, United States Circuit Judge for the Ninth Circuit, sitting by designation.

1 We use the term “admiralty tort” in the first part of this opinion to mean a tort asserted under a federal court’s admiralty jurisdiction. Later in the opinion, we use the term “maritime tort,” which is a species of tort which can be brought under a federal court’s admiralty jurisdiction, although it need not be.

That is the simple bottom line of our decision, and it is a result that makes good sense, but how our circuit law has gotten to that point is anything but simple. Instead o f follow ing a straig ht path o ur decisio ns on co ntributio n in adm iralty cases having lurched back and forth like a drunken sailor. After we set out the facts and proced ural histo ry, we w ill explain th e propo rtionate sh are appr oach to apportio ning liab ility amon g joint tor tfeasors a nd wh y contrib ution is n ot availab le from nonsettling tortfeasors under that approach, and then explain why we conclude that our Jovovich decision is once again good law. There is also an issue in this case about the district court’s dismissal of a counterclaim brought under the supplemental jurisdiction of the court, which we will take care of at the end of the opinion .

The facts leading up to these legal issues began shortly after midnight on July 25, 2000, when Raymond Ashman IV and two of his friends went out in a boat owned by his father, Raymond Ashman III, to enjoy the start of the annual “Sports men’s L obster M ini-Seas on.” Ra ymond Ashm an IV w as piloting the boat. His two friends along for the ride were Brendan and Steven Murphy who w ere brothers. The trio’s trip ended in tragedy soon after it began when the boat collided with an “electrical pole abutment support structure” owned by Florida Keys Electric Co-op Association, Inc. Brendan Murphy was thrown from the boat

and killed , and his b rother S teven w as injured . Raymond A shman IV w as also injured.

Brendan and Steven’s parents, the Murphys, sued Florida Keys in federal district court for the wrongful death of B rendan and for Steven ’s injuries.2 Their complaint invoked the court’s admiralty jurisdiction. The Murphys did not sue any member of the Ashman family, and still have not done so. In response to the Murp hy’s com plaint aga inst it, how ever, Flo rida Ke ys filed a th ird-party complaint against the Ashmans3 which also invo ked the d istrict cour t’s admira lty jurisdictio n. Florid a Keys c laimed th at, if it were found liable to the Murp hys, it was entitled to contribution from the Ashmans. The Ashmans, for their part, filed a counterclaim against Florida Keys to recover for Raymond IV’s injuries, but they brought that as a civil action under the district court’s supplemental jurisdictio n, not un der its adm iralty jurisd iction. Th ey later bro ught a se parate su it against Florida Keys in state court to recover for R aymond IV’s injuries.

2 The Murphys sued as parents and natural guardians of Steven, a minor, and as copersonal representatives of the estate of Brendan.

3 Florida Keys’ third-party complaint is against Raymond Ashman III, the father of Raymond Ashman IV, individually, and also in his capacity as parent and natural guardian of his son. Our references hereafter in this opinion to “the Ashmans” mean Raymond III, individually, and Raymond IV through him as parent and natural guardian.

While all of the actions were pending, Florida Keys settled with the Murphys. The settlement agreement, however, did not release the Ashmans from liability to the Murphys, should the Mu rphys ever bring suit against them. As a result, the A shman s move d for su mmary judgm ent on F lorida K eys’ third p arty contribution claim, taking the position that Florida Keys’ failure to obtain a release for them as part of the settlement agreement barred it from seeking contribution from them. The district court agreed and granted the Ashmans’ motion for summary judgment. The court also exercised its discretionary powers under 28 U.S.C. § 1367(c)(3 ) and dismiss ed withou t prejudice the A shman’ counter claim against Florida Keys. Florida Keys appeals both the grant of summary judgment on its contribution claim against the Ashmans and the dismissal without prejudice of their co unterclaim against it. 4

DISCUSSION

4 Of course, parties ordinarily do not complain about the dismissal of a claim or counterclaim against them, but the dismissal without prejudice allowed the Ashmans to pursue their claim against Florida Keys in state court. Florida Keys’ apparent motivation in appealing the dismissal is its preference for a federal court forum.

In 1994 the Supreme Court settled decades of debate over the proper method of appo rtioning liability betw een settling and no nsettling to rtfeasors in admir alty cases by h olding th at the “pro portion ate share a pproac h” applie s. See McD ermott, 511 U.S. at 217, 114 S. Ct. at 1470. Under the proportionate share approach adopted in McD ermott, if at least one defendant does not settle with the plaintiff and the c ase goes to trial, the am ount of damag es and th e percen tage of liab ility attributable to each tortfeasor is determined at trial, and any nonsettling defendant is responsible for only the proportion of the total damages attributed to it in the verdict. Id. at 208-13, 114 S. Ct. at 1465-67. We must decide, under the proportionate share approach, whether Florida Keys is now entitled to have determined at trial the actual amount of the Mur phys’ damages and the parties’ relative degrees of fault, all for the purpose of Florida Keys recovering from the Ashm ans any a moun t that it “over paid” fo r its share o f the dam ages in its settlement with the Murphys.

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Terry P. Murphy, Stephen A. Murphy v. Florida Keys Electric Cooperative Assn., Inc., (11th Cir. 2003).

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