Utts v. Short

81 S.W.3d 822, 45 Tex. Sup. Ct. J. 1045, 2002 Tex. LEXIS 121, 2001 WL 1902797
CourtTexas Supreme Court
DecidedJuly 3, 2002
Docket99-0366
StatusPublished
Cited by107 cases

This text of 81 S.W.3d 822 (Utts v. Short) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Utts v. Short, 81 S.W.3d 822, 45 Tex. Sup. Ct. J. 1045, 2002 Tex. LEXIS 121, 2001 WL 1902797 (Tex. 2002).

Opinions

Justice BAKER

delivered the opinion of the Court in Parts I-IV,

in which Chief Justice PHILLIPS, Justice ENOCH, Justice HANKINSON, Justice O’NEILL, and Justice JEFFERSON join, and delivered a concurring opinion in Part V, in which Justice ENOCH, Justice HANKINSON, and Justice O’NEILL join.

We grant Dr. Utts’s motion for rehearing. We withdraw our opinion of Febru[825]*825ary 28, 2002, and substitute the folio-wing in its place.

I. INTRODUCTION

In this wrongful-death case, we must determine whether a nonsettling defendant is entitled to settlement credits under Chapter 33 of the Texas Civil Practice and Remedies Code. We hold that the record here triggers the presumption that the nonsettling defendant is entitled to settlement credits against the amounts the jury awarded the nonsettling plaintiffs because the nonsettling plaintiffs benefited from the settling plaintiffs settlement proceeds. We further hold that the trial court must give the nonsettling plaintiffs an opportunity to demonstrate that they did not benefit from another party’s settlement. Consequently, we reverse the court of appeals’ judgment and remand this case to the trial court for proceedings consistent with this opinion.

II. BACKGROUND

Clifton Short died from blood loss and infection related to a perforated colon that occurred during polypectomy surgery. Dr. Stephen James Utts performed the initial surgery, and Dr. Jean-Pierre Forage performed the subsequent surgery to repair the colon. Dennie Short, individually and as executor of Clifton Short’s estate, Norma Short, Patricia Ann Cain, and Sam Short, respondents in this case, and Dorothy Short Walker sued Utts, Forage, and HCA South Austin Medical Center for Clifton Short’s alleged wrongful death.

Early in the litigation, all plaintiffs non-suited with prejudice their claims against Dr. Forage, leaving Dr. Utts and HCA as defendants. Later, Dorothy Walker agreed to settle with HCA for $200,000. The settlement agreement between Walker and HCA states that HCA agreed to pay $50,000 to Dorothy Walker Short and $150,000 to Shore & Fineberg, L.L.P. The HCA settlement check in the record shows that HCA paid the entire $200,000 directly to Shore & Fineburg’s trust account.

On the same day Walker signed the settlement agreement, she signed another document requesting that the Short family’s counsel distribute — from “any monies belonging to me that he or his firm may have in his possession” — $10,000 to each Short family member remaining in the suit in his or her individual capacity. Soon thereafter, the individual Short family members and the Estate settled with HCA for $10 each. Then, Walker and the Short family nonsuited with prejudice their claims against HCA. About two months later, Walker nonsuited with prejudice her claim against Dr. Utts. Thus, Walker no longer participated in the suit, and only Dr. Utts and the other Short family members remained parties.

Before trial, Dr. Utts filed his written election for a $200,040 dollar-for-dollar settlement credit under Chapter 33 of the Texas Civil Practice and Remedies Code. (At the motion-for-judgment hearing, Dr. Utts’s counsel noted that the written election inadvertently omitted the $10 reflecting the estate’s settlement with HCA.) The Short family members and the Estate objected to Dr. Utts’s election. They argued they were the only “claimants” currently involved in the case and that HCA’s settlement with them was only $10 each. Therefore, they argued that Dr. Utts was entitled to a $10 per plaintiff credit. Dr. Utts did not respond to this argument.

The parties tried the case to a jury. The jury found that Dr. Utts’s and HCA’s negligence proximately caused the Short family’s damages. The jury found Dr. Utts twenty-five percent negligent and HCA seventy-five percent negligent. The jury awarded the Estate $100,000, Norma Short $300,000, and the three children [826]*826Dennie, Patricia, and Sam, $12,000 each. The Short family and the Estate moved for judgment on the verdict, allowing only a $10 per plaintiff settlement credit. Dr. Utts responded to the motion for judgment, objected to the $50 credit limitation, and requested a credit for the entire $200,000 HCA paid to Walker. In his response, Dr. Utts asserted that he was entitled to the entire $200,000 credit because the Short family benefited from Walker’s settlement, and Walker’s nonsuit-ing him was merely an attempt to circumvent how the statutory settlement credit should apply.

The Short family, in response, argued that Walker was not a “claimant” as Chapter 33 defines that term; therefore, Dr. Utts was not entitled to a credit for Walker’s $200,000 settlement. They also argued that the factual claims and references to documents in Dr. Utts’s response to their motion for judgment were never offered into evidence during trial, were not part of the record, and were inadmissible hearsay.

Dr. Utts replied that Walker was a “claimant” under Chapter 33. He also filed a motion to reopen the evidence in the event the plaintiffs argued that the evidence about the settlement details that Dr. Utts intended to rely on during the motion-for-judgment hearing was untimely. Finally, Dr. Utts requested that the trial court take judicial notice of various pleadings and motions filed in the case.

During the hearing on the motion for judgment, the trial court took judicial notice of several documents in the trial court’s file, including the pleadings and Dr. Utts’s election for a settlement credit. Then, Dr. Utts attempted to offer several documents into evidence, but the Short family members objected. These documents included (1) correspondence between plaintiffs’ counsel and HCA’s counsel about how Walker’s and the Short family members’ settlement proceeds would be distributed; (2) a copy of the HCA $200,000 check made payable to a trust account of the plaintiffs’ counsel; and (3) correspondence from Walker instructing the plaintiffs’ counsel to give each Short family member $10,000 from the monies belonging to Walker in the firm’s trust account. The trial court allowed Dr. Utts to offer the documents and discuss their contents on the record, and it heard the Short family’s objections. Additionally, during the motion for judgment hearing, the Short family’s counsel stated that “[Walker] got $200,000, and then she also executed the document giving me permission to put $150,000 into my trust account for fees and expenses which she was jointly and severally liable for.” The trial court advised the parties that it would take all the matters at the hearing, including whether Dr. Utts’s evidence was admissible, under advisement.

Following the hearing, the trial court notified the parties in a letter that it could not consider Dr. Utts’s post-verdict evidence and that Dr. Utts waived his right to a $200,000 credit because he did not introduce the evidence about the settlement before submission to the jury. The trial court’s letter also stated that Walker was not a “claimant” under Chapter 33, because the statute’s definition of that term requires that the claimant be a party seeking recovery when the trial and verdict occurred. The trial court sent with the letter its final judgment, which reflected the amounts the jury awarded, less a $10 credit ($50 total) for the Estate’s and each family member’s settlement with HCA.

Dr. Utts then filed several formal bills of exception, identifying the evidence the trial court heard but refused to admit during the hearing on the motion for judgment.

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Cite This Page — Counsel Stack

Bluebook (online)
81 S.W.3d 822, 45 Tex. Sup. Ct. J. 1045, 2002 Tex. LEXIS 121, 2001 WL 1902797, Counsel Stack Legal Research, https://law.counselstack.com/opinion/utts-v-short-tex-2002.