Troyer v. Adams

77 P.3d 83, 102 Haw. 399, 2003 Haw. LEXIS 455
CourtHawaii Supreme Court
DecidedSeptember 25, 2003
Docket25174
StatusPublished
Cited by121 cases

This text of 77 P.3d 83 (Troyer v. Adams) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Troyer v. Adams, 77 P.3d 83, 102 Haw. 399, 2003 Haw. LEXIS 455 (haw 2003).

Opinions

Opinion of the Court by

LEVINSON, J.

The defendant-appellant Carl W. Adams, M.D., appeals from the order of the third circuit court, the Honorable Ronald Ibarra presiding, granting the petition of the plaintiff-appellee Jennifer L. Troyer, formerly known as Jennifer L. Decker, for issuance of order determining good faith settlement, pursuant to Act 300 (2001),1 with the defen[402]*402dants-appellees John Bellatti, M.D., and Patricia Bailey, M.D. Dr. Adams argues that the circuit court erred in granting the petition on the bases that: (1) Act 300 does not apply to the present matter, because Troy-er’s claims arose out of a contract entered into prior to January 1, 2002, and Act 300, § 6(1) states that the Act shall not apply to “claims arising out of a contract made prior to January 1, 2002”; (2) the settlement in the present matter was not given in good faith, because (a) it exposes Dr. Adams to a “grossly disproportionate allocation” of the damages that Troyer seeks, (b) Troyer withheld “essential information” from the circuit court regarding the total damages that she seeks and the opinions of two of her experts regarding the medical care provided to her by Drs. Bailey and Bellatti, and (c) Dr. Adams was deprived of material witnesses and essential testimony related to the Act 300 good faith determination; and (3) Act 300 violates Dr. Adams’s right to due process, pursuant to article I, section 5 of the Hawai'i Constitution2 and the fourteenth amendment,to the United States Constitution,3 inter alia, because the statute destroys his cross-claims for contribution against the settling tortfea-sors and prevents him from collecting from them based on them proportionate share of liability.

The meaning of a settlement “given in good faith” pursuant to HRS § 663-15.5 (Supp.2002), see supra note 1, the statute promulgated by Act 300, raises a question of first impression for this court. For the reasons discussed more fully infra in section III, we hold that the question of whether a settlement is “given in good faith” for purposes of HRS § 663-15.5 is a matter left to the discretion of the trial court in light of all of the relevant circumstances extant at the time of settlement; thus, absent an abuse of discretion, the trial court’s ’determination should not be disturbed. In addition, we hold that (1) Act 300 applies to Troyer’s claims of medical malpractice, because they do not arise from contracts, (2) the circuit court did not abuse its discretion in determining that the instant settlement was entered into in good faith, and (3) Dr. Adams’s due process rights were not violated in the present matter.

Accordingly, we affirm the order of the third circuit court, filed on June 5, 2002, [403]*403granting Troyer’s petition for issuance of an order determining that • the instant settlement was given in good faith.

I. BACKGROUND

A. Act 300 (2001) And HRS S 663-15.5

HRS § 663-15.5, see supra note 1, governs, inter alia, the effect of a settlement on non-settling joint tortfeasors in the context of multi-party litigation. It provides that a settlement “given in good faith” shall: (1) not discharge the non-settling joint tortfeasors from liability, unless its terms so provide; but (2) reduce the claims against the non-settling joint tortfeasors in the amount stipulated in the settlement or in the amount of the consideration paid for it, whichever is greater; and (3) discharge the settling tort-feasor from all liability for any contribution to the non-settling joint tortfeasors. HRS- § 663-15.5(a). HRS § 663-15.5 also provides for procedures by which a party may petition the court for a healing on the issue of good faith. In addition, pursuant to HRS § 663-12 (1993),4 “[a] joint tortfeasor who enters into a settlement with the injured person is not entitled to recover contribution from another joint tortfeasor whose liability to the injured person is not extinguished by the settlement.” On the other hand, HRS § 663-12 provides that a non-settling joint tortfeasor is entitled to contribution from other joint tortfeasors — ie., other non-settling joint tortfeasors or joint tortfeasors whose settlements with the plaintiff or plaintiffs have not been determined to be in good faith, pursuant to HRS § 663-15.5 — for any amount paid in excess of his or her pro rata share of liability, to be determined on the basis of his or her relative degree of fault, if “there is such a disproportion of fault ... as to render inequitable an equal distribution ... of the common liability.” See supra note 4.

This court has never had occasion to construe the meaning of “good faith” as that term is employed in HRS § 663-15.5; neither has the legislature expressly defined the term. As discussed more fully infra in section III, however, HRS § 663-15.5 is similar to a plethora of statutory acts governing contributions among tortfeasors (CATAs) that are in effect across the country. The courts that have addressed the meaning of a “good faith” settlement for purposes of their own CATAs have generally adopted one of three standards: (1) the “proportionate liability” standard formulated by the California Supreme Court in Tech-Bilt, Inc. v. Woodward-Clyde & Assocs., 38 Cal.3d 488, 213 Cal.Rptr. 256, 698 P.2d 159 (1985), which considers whether the settlement represents a fafr assessment of the settling tortfeasors’ share of liability at the time of settlement; (2) the “non-collusive” or “non-tortious conduct” standard, which simply examines whether the settlement is collusive, fraudulent, dishonest, or involves tortious conduct, in which case the settlement is deemed to be in bad faith; and (3) the “totality of the circumstances” approach, which grants trial courts the discretion to determine whether a settlement is given in good faith in light of any relevant circumstances, but does not dictate the factors that the trial court must consider. The present matter compels this court to determine which of the three foregoing standards, if any, best achieves the legislature’s intent in promulgating Act 300.

B. Procedural History

On February 2, 2001, Troyer filed a complaint in the third circuit court naming Drs. Bailey, Bellatti, and Adams as defendants [hereinafter, collectively, “the defendants”], [404]*404jointly and severally.

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Bluebook (online)
77 P.3d 83, 102 Haw. 399, 2003 Haw. LEXIS 455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/troyer-v-adams-haw-2003.