Terry P. Murphy, Steven A. Murphy, as Co-Personal Representatives of the Estate of Brendan M. Murphy, and as Parents and Natural Guardians of Steven A. Murphy, Jr., a Minor v. Florida Keys Electric Cooperative Association, Inc., Defendant-Third-Party-Plaintiff-Counter-Defendant-Appellant v. Raymond Ashman, Iii, Individually and as Parent and Natural Guardian, of Raymond Ashman, Iv, a Minor Child, Third-Party-Defendant-Counter-Claimant-Appellee, Steven A. Murphy, Sr., Third-Party-Defendants

329 F.3d 1311, 2003 A.M.C. 1217, 2003 U.S. App. LEXIS 8833
CourtCourt of Appeals for the Third Circuit
DecidedMay 9, 2003
Docket02-11574
StatusPublished
Cited by3 cases

This text of 329 F.3d 1311 (Terry P. Murphy, Steven A. Murphy, as Co-Personal Representatives of the Estate of Brendan M. Murphy, and as Parents and Natural Guardians of Steven A. Murphy, Jr., a Minor v. Florida Keys Electric Cooperative Association, Inc., Defendant-Third-Party-Plaintiff-Counter-Defendant-Appellant v. Raymond Ashman, Iii, Individually and as Parent and Natural Guardian, of Raymond Ashman, Iv, a Minor Child, Third-Party-Defendant-Counter-Claimant-Appellee, Steven A. Murphy, Sr., Third-Party-Defendants) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Terry P. Murphy, Steven A. Murphy, as Co-Personal Representatives of the Estate of Brendan M. Murphy, and as Parents and Natural Guardians of Steven A. Murphy, Jr., a Minor v. Florida Keys Electric Cooperative Association, Inc., Defendant-Third-Party-Plaintiff-Counter-Defendant-Appellant v. Raymond Ashman, Iii, Individually and as Parent and Natural Guardian, of Raymond Ashman, Iv, a Minor Child, Third-Party-Defendant-Counter-Claimant-Appellee, Steven A. Murphy, Sr., Third-Party-Defendants, 329 F.3d 1311, 2003 A.M.C. 1217, 2003 U.S. App. LEXIS 8833 (3d Cir. 2003).

Opinion

329 F.3d 1311

Terry P. MURPHY, Steven A. Murphy, as co-personal representatives of the Estate of Brendan M. Murphy, and as parents and natural guardians of Steven A. Murphy, Jr., a minor, Plaintiffs,
v.
FLORIDA KEYS ELECTRIC COOPERATIVE ASSOCIATION, INC., Defendant-Third-Party-Plaintiff-Counter-Defendant-Appellant,
v.
Raymond Ashman, III, Individually and as parent and natural guardian, of Raymond Ashman, IV, a minor child, Third-Party-Defendant-Counter-Claimant-Appellee,
Steven A. Murphy, Sr., et al., Third-Party-Defendants.

No. 02-11574.

United States Court of Appeals, Eleventh Circuit.

May 9, 2003.

David P. Karcher, Underwood, Karcher & Karcher, P.A., Miami, FL, Michael John McHale, Jensen Beach, FL, Robert E. Geisler, Peterson, Bernard, Vandenberg, Zei, Geisler & Martin, West Palm Beach, FL, for Florida Keys Elec. Co-op. Ass'n, Inc.

Joel D. Eaton, Podhurst, Orseck, Josefsberg, Eaton, Meadow, Olin & Perwin, P.A., for Ashman.

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

Before BIRCH, CARNES and BRUNETTI*, Circuit Judges.

CARNES, 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 amount it paid to settle its own liability. Putting the Supreme Court's decision in McDermott, Inc. v. AmClyde, 511 U.S. 202, 114 S.Ct. 1461, 128 L.Ed.2d 148 (1994), together with our decision in Jovovich v. Desco Marine, Inc., 809 F.2d 1529 (11th Cir. 1987), we conclude that a settling defendant cannot bring a suit for contribution against a nonsettling defendant who was not released from liability to the plaintiff by the settlement agreement.

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 of following a straight path our decisions on contribution in admiralty cases have lurched back and forth like a drunken sailor. After we set out the facts and procedural history, we will explain the proportionate share approach to apportioning liability among joint tortfeasors and why contribution is not available 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 "Sportsmen's Lobster Mini-Season." Raymond Ashman IV was piloting the boat. His two friends along for the ride were Brendan and Steven Murphy, who were 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 brother Steven was injured. Raymond Ashman IV was also injured.

Brendan and Steven's parents, the Murphys, sued Florida Keys in federal district court for the wrongful death of Brendan 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 Murphy's complaint against it, however, Florida Keys filed a third-party complaint against the Ashmans3 which also invoked the district court's admiralty jurisdiction. Florida Keys claimed that, if it were found liable to the Murphys, 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 jurisdiction, not under its admiralty jurisdiction. They later brought a separate suit against Florida Keys in state court to recover for Raymond IV's injuries.

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 Murphys ever bring suit against them. As a result, the Ashmans moved for summary judgment on Florida Keys' third party 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 dismissed without prejudice the Ashman' counterclaim 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 counterclaim against it.4

DISCUSSION

In 1994 the Supreme Court settled decades of debate over the proper method of apportioning liability between settling and nonsettling tortfeasors in admiralty cases by holding that the "proportionate share approach" applies. See McDermott, 511 U.S. at 217, 114 S.Ct. at 1470. Under the proportionate share approach adopted in McDermott, if at least one defendant does not settle with the plaintiff and the case goes to trial, the amount of damages and the percentage of liability 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 Murphys' damages and the parties' relative degrees of fault, all for the purpose of Florida Keys recovering from the Ashmans any amount that it "overpaid" for its share of the damages in its settlement with the Murphys.

Allowing Florida Keys to recover contribution from the Ashmans in these circumstances is incompatible with the proportionate share approach. An essential tenet of this approach is that when a tortfeasor settles a claim against it, but does not obtain a release for the other tortfeasors, it has settled only its proportionate share of the total damages, no more and no less. It follows that what remains, and all that remains, to be calculated is the compensation the nonsettling tortfeasors owe the plaintiff.

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329 F.3d 1311, 2003 A.M.C. 1217, 2003 U.S. App. LEXIS 8833, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terry-p-murphy-steven-a-murphy-as-co-personal-representatives-of-the-ca3-2003.