Weissman v. Boating Magazine

946 F.2d 811, 1991 WL 209801
CourtCourt of Appeals for the Eleventh Circuit
DecidedNovember 5, 1991
DocketNo. 90-5286
StatusPublished
Cited by12 cases

This text of 946 F.2d 811 (Weissman v. Boating Magazine) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weissman v. Boating Magazine, 946 F.2d 811, 1991 WL 209801 (11th Cir. 1991).

Opinion

RONEY, Senior Circuit Judge:

This action arose as a result of a collision between two vessels in the intracoastal waterway near Miami, Florida. A thirty-eight foot powerboat was being demonstrated and tested for the editor of a boating magazine. The boat overtook and collided with a smaller twenty-one foot boat, killing two passengers and injuring others. The injured occupants of the smaller boat sued the boating magazine and its editor. After settling the lawsuit, the magazine and its editor sought indemnification from the owner and operator of the powerboat. They argued that their liability was derivative or vicarious for the negligence of the owner and operator. The district court denied relief by entering a summary judgment for the owner and operator defendants. The district court held that the plaintiff editor was a joint tortfeasor whose own negligence contributed to the accident, thus depriving them of the right of indemnification against their joint tortfeasor. We affirm on the ground that the third-party plaintiffs settled a potential liability for their own active negligence and, therefore, are not entitled to indemnification.

The accident occurred when the thirty-eight foot Tempest powerboat (“Tempest 38”) operated by Richard Simon, Chairman of the Board of Tempest Marine, Inc. (“Tempest”), overtook and collided with the twenty-one foot Regal powerboat (“Regal 21”) in a narrow part of the Intracoastal Waterway, in North Miami, Florida. Douglas Schryver, Executive Editor of “Boating Magazine,” a publication owned by CBS, Inc. (“CBS”), was aboard the Tempest 38 to direct the testing and evaluation of the boat and to gather data for a possible upcoming article in “Boating Magazine.”

Schryver’s intended evaluation was to include objective tests measuring fuel consumption, speed, inclinometer, and sound levels. All of these tests were to be completed at 500 RPM increments, ranging from a level of 1500 RPMs up to approximately 5500 RPMs. Schryver brought with him the appropriate instruments to conduct the tests.

Under Schryver’s direction, the first three objective tests were completed without incident. The final objective test, the sound level test, was designed to measure the amount of noise at the helm station of the boat while traveling at different speeds. Schryver positioned himself at approximately the center line of the boat, outside of the safety bolster and just to the left of the helm where Simon was located. He stood in this position so that he could hold the decibel-meter close to the helm in order to receive the best readings. When the Tempest 38 reached 5000 RPMs, Schry-ver instructed Simon to “put the throttles to the wall.” Simon complied and then monitored the boat’s two tachometers to ensure that the twin engines were synchronized, as Schryver had requested they be during each of the tests.

About this time both Simon and Schryver noticed the ill-fated Regal 21 approximately 200-300 yards away. In an effort to avoid the other vessel without disrupting the last stage of Schryver’s final objective test, Simon attempted to pass the Regal 21 without reducing speed. During this time Schryver did not warn, gesture, or otherwise indicate that Simon should reduce the boat’s speed, change course, or take any other corrective action to avoid the collision. Simon’s attempts to avoid the smaller boat were unsuccessful. The Tempest 38 passed completely over the Regal 21 at a speed of between 40 to 55 miles per hour, causing serious injury to David Weissman and the death of his wife and stepdaughter.

[813]*813Before any litigation, Tempest, Simon, and Adam Erdberg, the President and Chief Engineer of Tempest who was also on the boat, settled the claims of parties aboard the Regal 21 for $1,650,000. Weiss-man then sued CBS and Schryver alleging that (1) they were engaged in a joint venture with Tempest, (2) Simon was the borrowed servant of CBS, and (3) Schryver was actively negligent in planning and directing the manner of testing. CBS and Schryver settled that lawsuit for $375,000, without any allocation as to which of the claims were being settled. They then sought indemnification against Tempest and Simon in this third-party suit.

The district court granted Simon and Tempest’s Motions for Summary Judgment, concluding that “Simon was operating the vessel with the assistance of Schryver, and that they were joint tortfeasors, both of whom owed a duty to the plaintiff.” A person who is directly liable for his own negligence is not entitled to indemnity from a joint tortfeasor. Seaboard Coast Dine R.R. Co. v. Smith, 359 So.2d 427 (Fla.1978). Even though there also may be some vicarious, constructive, derivative, or technical liability, the active negligence or fault defeats an indemnity action. There is no apportionment between the two theories of liability.

A weighing of the relative fault of tort-feasors has no place in the concept of indemnity for one seeking indemnity must be without fault ... when determining whether a party is entitled to indemnity, we will not weigh the relative fault of the parties, but rather we will look to the party seeking indemnity to determine whether he is without fault.

Houdaille Indus., Inc. v. Edwards, 374 So.2d 490, 493 (Fla.1979) (citations omitted).

Defendants assert in their brief, without contradiction by the appellants, that CBS and Schryver “conceded in the district court that in order to prevail on their indemnity claim they would have to prove that (1) their only potential liability to Weissman was on a purely vicarious basis pursuant to Weissman’s joint venture or borrowed servant theories; and (2) that they had no potential liability on a direct fault basis.”

Although no cases exactly in point have been cited, claims for indemnity under the circumstances here are considered in terms of potential liability. If, before settlement is concluded, the indemnitor is offered a choice between approving the settlement or taking over the defense of the claim, and refuses to do either, the indemnitee can recover by showing potential liability to the original plaintiffs, and need not prove actual liability. Parfait v. Jahncke Serv., Inc., 484 F.2d 296, 304-05 (5th Cir.1973).

[A] settling indemnitee can recover from an indemnitor upon proof of the indemni-tee’s potential liability if the settlement terms are reasonable and if the indemnitor has notice of the suit, has notice of the settlement terms, and has failed to object to those terms even though he has had a reasonable opportunity to approve or disapprove the settlement.

Burke v. Ripp, 619 F.2d 354, 360 (5th Cir1980) (Goldberg, J., concurring).

We have not required proof of actual liability where an indemnitee informs the indemnitor of a proposed settlement and the indemnitor fails to object.... In contrast when the indemnitee has not given the indemnitor an opportunity to review, pass upon, or participate in a settlement, due process and ‘equitable indemnity principles’ compel a demonstration of actual as opposed to potential liability.

GAB Business Servs., Inc. v. Syndicate 627, 809 F.2d 755 (11th Cir.1987) (citations omitted).

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946 F.2d 811, 1991 WL 209801, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weissman-v-boating-magazine-ca11-1991.