Catipovic v. Peoples Community Health Clinic, Inc.

• Decision Date: 06 January 2003
• Docket Number: No. C00-2096-LRR.,C00-2096-LRR.
• Citation: 239 F.Supp.2d 917
• Parties: Branimir CATIPOVIC, M.D., Plaintiff, v. PEOPLES COMMUNITY HEALTH CLINIC, INC.; Ronald W. Kemp; IBP, Inc.; Thomas O'Rourke; and Black Hawk County Health Department, Defendants.
• Court: U.S. District Court — Northern District of Iowa

239 F.Supp.2d 917

Branimir CATIPOVIC, M.D., Plaintiff, v. PEOPLES COMMUNITY HEALTH CLINIC, INC.; Ronald W. Kemp; IBP, Inc.; Thomas O'Rourke; and Black Hawk County Health Department, Defendants.

No. C00-2096-LRR.

United States District Court, N.D. Iowa, Eastern Division.

January 6, 2003.

Kevin J. Visser, Randall D. Armentrout, Lisa Stephenson, Marcia V. Harris, Moyer & Bergman, PLC, Cedar Rapids, IA, for plaintiff.

Thomas W. Foley, Mary E. Funk, Nyemaster Goode Voights West Hansell & O'Brien, PC, Des Moines, IA, for Peoples Community Health Clinic, Inc., Ronald W. Kemp, Sharon Duclos, defendants.

Robert D. Houghton, Nancy J. Penner, Shuttleworth & Ingersoll, Cedar Rapids, IA, for Iowa Beef Processors, Inc., Rex Hofer, defendants.

John T. McCoy, Yagla, McCoy & Riley, PLC, Waterloo, IA, for Thomas O'Rourke, Ann Rogers, Black Hawk County Health Dept., defendants.

ORDER ON MOTION FOR LEAVE TO FILE SECOND AMENDED ANSWER AND CROSS CLAIM

ZOSS, United States Magistrate Judge.

I. INTRODUCTION

On December 16, 2002, the defendant IBP, Inc. ("IBP") filed a motion for leave to file a second amended answer and cross claim, together with a supporting brief. (Doc. Nos. 109 & 110, respectively) Attached to the motion was a proposed second amended answer and proposed cross claim.

In the proposed cross claim, IBP seeks contribution from the four other defendants, "in the event IBP is found to be liable for Plaintiffs damages." The defendants Thomas O'Rourke and Black Hawk County Health Department (collectively, the "County defendants"), the defendants Peoples Community Health Clinic, Inc. ("PCHC") and Ronald W. Kemp (collectively, the "Clinic defendants"), and the plaintiff Branimir Catipovic, M.D. ("Catipovic"), all have resisted the motion. (Doc. Nos. 102, 103, 105, 106, and 104, respectively) The court now finds the motion is ready for decision.

There are seven counts in Catipovic's Second Amended Complaint (Doc. No. 91). In Counts I through V and Count VII,¹ he asserts causes of action against the County defendants and the Clinic defendants arising out of his dismissal from employment as a medical doctor with PCHC. In Count VI, he asserts that IBP, the County defendants, and Kemp all tortiously interfered with Catipovic's employment contract with PCHC.²

Shortly before IBP filed its motion for leave to file a second amended answer and cross claim, Catipovic entered into a settlement agreement with the County defendants and the Clinic defendants that reportedly resolved all of Catipovic's claims against these defendants. Presumably, when the settlement agreement is finalized and fully implemented, the County defendants and the Clinic defendants will be dismissed from the case. The only remaining claim in the case will be Catipovic's tortious interference claim against IBP in Count VI. If IBP is permitted to file its proposed cross claim, the County defendants and the Clinic defendants will remain in the case as defendants in the cross claim.

Catipovic, the County defendants, and the Clinic defendants all resist IBP's motion for leave to file a second amended answer and cross claim,³ asserting that if IBP is found to be liable on Count VI, its liability would be for an intentional tort (i.e., tortious interference with contract) for which Iowa law does not permit contribution. In addition, the County defendants and the Clinic defendants argue that under Iowa law, IBP is not entitled to contribution from a discharged party.

ANALYSIS

A. Claim for Contribution by Intentional Tortfeasor

Catipovic's claim against IBP for tortious interference with an employment contract is a common law, intentional tort. See Sawheny v. Pioneer Hi-Bred Int'l, Inc., 93 F.3d 1401, 1408 (8th Cir.1996); Gibson v. ITT Hartford Ins. Co., 621 N.W.2d 388, 399 (Iowa 2001); Grahek v. Voluntary Hosp. Coop. Ass'n of Iowa, Inc., 473 N.W.2d 31, 35 (Iowa 1991). The parties all agree that Iowa law has long prohibited a contribution recovery by an intentional tortfeasor. See, e.g., Best v. Yerkes, 247 Iowa 800, 77 N.W.2d 23, 28 (Iowa 1956); see also, Beeck v. Aquaslide `N' Dive Corp., 350 N.W.2d 149, 169-70 (Iowa 1984); Hawkeye-Security Ins. Co. v. Lowe Constr. Co., 251 Iowa 27, 99 N.W.2d 421, 424-25, 429 (Iowa 1959).

In Wright v. Haskins, 260 N.W.2d 536, 539 (Iowa 1977), the Iowa Supreme Court reversed a ruling by a trial judge who had permitted contribution between two intentional tortfeasors, adhering to its precedent on this issue, but commenting that "logic and soundness" favored permitting contribution between intentional tortfeasors. The court found, however, that the case did not present it with "appropriate factual circumstances to expand the right of contribution as it stands today in this state." Id. The Iowa Supreme Court has continued to adhere to this position, relying upon the Restatement (Second) of Torts section 886A(3), which provides, "There is no right of contribution in favor of any tortfeasor who has intentionally caused the harm." See, e.g., Reimers v. Honeywell, Inc., 457 N.W.2d 336, 339 (Iowa 1990); Beeck v. Aquaslide `N' Dive Corp., supra, 350 N.W.2d at 169-70.

In Reimers v. Honeywell, supra, the Iowa Supreme Court discussed this issue in light of Iowa's then recently-enacted Comparative Fault Act, codified in chapter 668 of the Iowa Code. The defendant sought to pursue a contribution claim on a punitive damages settlement against a codefendant. The court held a party is not entitled to contribution for punitive damages under chapter 668, but commented that the prohibition on contribution for reckless conduct may no longer be valid. "The argument that the legislature rejected Aquaslide (and therefore the Restatement) view is certainly tenable. Fault is defined in the Act as `acts or omissions that are in any measure negligent or reckless.'" Id., 457 N.W.2d at 339 (emphasis provided) (citing Godbersen v. Miller, 439 N.W.2d 206, 209 (Iowa 1989)). The court in Reimers further held the following:

[The defendant to the cross claim] goes so far as to contend that the prohibition extends beyond barring contribution recoveries for punitive damages. [The defendant] contends that the prohibition also bars a tortfeasor against whom punitive damages were awarded from seeking contribution for any damages. We think this would take the prohibition of contribution recovery too far. The prohibition is aimed at outrageous conduct, not tortfeasors personally. When and if the conduct giving rise to punitive damages can be separated from damages arising from the tortfeasor's other, less egregious, conduct there is no reason to bar contribution for that part of the damages which was not punitive in nature.

Id.

IBP argues, "Given that punitive damages are usually reserved for intentional tort cases, the Reimer[s] Court's discussion contemplates and supports the expansion of contribution to intentional tortfeasors." (Doc. No. 110, p. 6) IBP also points out that the prohibition against contribution in the Restatement (Second) of Torts has been dropped in section 23 of the Restatement (Third) of Torts—Apportionment of Liability.⁴

From these authorities, it is clear that Iowa law prohibits IBP from pursuing the contribution claim it proposes to assert in its cross claim. However, it is equally clear the Iowa Supreme Court has suggested, in dicta, that it might change Iowa law to permit such a cause of action, given the proper vehicle.

B. Claim for Contribution Against Discharged Party

The County defendants and the Clinic defendants argue that even if IBP were to prevail on its argument that an intentional tortfeasor is entitled to pursue a contribution claim under Iowa law, IBP would be precluded from doing so by the settlement between Catipovic, the County defendants, and the Clinic defendants. Their argument is based on the provisions of Iowa's Comparative Fault Act, Iowa Code chapter 668. IBP responds, without authority or argument, by asserting the Act "does not apply to this case." (Doc. No. 110, p. 8)

Under the Act, "fault" is defined to include "one or more acts or omissions that are in any measure negligent or reckless toward the person or property of the actor or others, or that subject a person to strict tort liability." IOWA CODE § 668.1(1). The Comparative Fault Act includes the following additional pertinent provisions that relate to contribution among tortfeasors:

2. In the trial of a claim involving the fault of more than one party to the claim, including third-party defendants and persons who have been released pursuant to section 668.7, the court, unless otherwise agreed by all parties, shall instruct the jury to answer special interrogatories or, if there is no jury, shall make findings, indicating all of the following:

a. The amount of damages each claimant will be entitled to recover if contributory fault is disregarded.

b. The percentage of the total fault allocated to each claimant, defendant, third-party defendant, person who has been released from liability under section 668.7, and injured or deceased person whose injury or death provides a basis for a claim to recover damages for loss of consortium, services, companionship, or society. For this purpose the court may determine that two or more persons are to be treated as a single party.

* * * * * *

IOWA CODE § 668.3.

1. A right of contribution exists between or among two or more persons who are liable upon the same indivisible claim for the same injury, death, or harm, whether or not judgment has been recovered against all or any of them. It may be enforced either in the original action or by a separate action brought for that purpose. The basis for contribution is each person's equitable share of the obligations, including the share of fault of a claimant, as determined in accordance with section 668.3.

2. Contribution is available to a person who enters into a settlement with the claimant only if the liability of the person against whom contribution is...