Haderlie v. Sondgeroth

Decision Date15 December 1993
Docket NumberNo. 91-114,91-114
Citation866 P.2d 703
PartiesDavid L. HADERLIE and J.P. Robinson, d/b/a Jack Knife Ranch and Construction, Appellants (Defendants), v. James A. SONDGEROTH, Appellee (Plaintiff).
CourtWyoming Supreme Court

R. Michael Mullikin (argued) of Mullikin, Larson & Swift, Jackson, for appellants.

Gerald R. Mason (argued) of Mason & Graham, and William H. Twichell (argued), Pinedale, for appellee.

Before MACY, C.J., and THOMAS, CARDINE, GOLDEN and TAYLOR, JJ.

CARDINE, Justice.

This was a suit by appellee James Sondgeroth to recover personal injury damages resulting from his automobile striking a horse that had earlier been struck and killed by appellant Haderlie near Bondurant, Wyoming. Two defendants, the owner of the horse and owner of the land where the horse was pastured, had settled prior to trial and were dismissed from the case. Each was on the verdict form and found to be 0 percent at fault. This appeal is from a judgment on the $375,000 jury verdict without credit for the sums paid by the defendants who settled before trial.

We affirm.

Appellants raised the following issues which were presented to the court in the first oral argument:

1. Whether the trial court erred in instructing the jury that David L. Haderlie had a legal duty to take reasonable steps to warn appellee and other motorists, or guard against the danger, of the horse obstructing the highway and in refusing appellants proposed Instructions Nos. 7 and 9.

2. Whether the trial court erred in refusing to admit into evidence the prior pleadings and settlement agreements of appellee which admitted the fault of co-defendants Sleeping Indian Outfitters, Inc. and Paul Anselmi, which co-defendants had settled with appellee, as judicial admissions under Rule 801, W.R.E., and on the issue of damages.

3. Whether the trial court erred in refusing to permit the attorney for appellants to cross-examine the plaintiff with his prior pleadings and with the settlement agreements between appellants and co-defendants, Sleeping Indian Outfitters, Inc. and Paul Anselmi.

4. Whether the trial court erred in refusing to permit the attorney for appellants to advise the jury of the fact of the settlements and the terms thereof, which appellee had made with the former co-defendants, Sleeping Indian Outfitters, Inc. and Paul Anselmi, on the basis of Wyo.Stat. § 1-1-109(b)(i)(B) (1977), which requires the court, when requested, to inform the jury of the consequences of its verdict.

5. Whether the trial court erred in entering judgment for the full amount of the jury verdict without crediting appellants for the aggregate amount received by appellee from the settling co-defendants.

6. Whether the trial court erred in refusing to give the "sudden emergency " instruction proffered by appellants.

7. Whether the verdict of the jury finding appellants one hundred percent (100%) at fault is supported by the evidence. [emphasis in original]

After argument, conference and discussion among the justices, it became apparent that the most significant and critical issue presented was whether the amounts paid appellee by the settling defendants should be credited upon the judgment against appellants Haderlie, et al. Therefore, on February 11, 1993, we ordered additional briefing and argument requiring that

each of the parties shall submit a brief addressing the applicability, if any, of the following: Wyo.Stat. § 1-1-108 (1988); Rambaum v. Swisher, 435 N.W.2d 19 (Minn.1989); and, such other additional authorities as the parties may choose to present. Each party may submit a brief in reply 15 days thereafter. And it is,

FURTHER ORDERED that this matter shall then be set for argument before the Court at its earliest convenience.

Order Directing Additional Briefing and Argument (Feb. 11, 1993).

Facts

On the evening of October 29, 1987, appellant David Haderlie was driving a truck northbound on U.S. 191 near Bondurant, Wyoming. Appellant came upon a dark-colored horse in his lane of traffic. Before he could take evasive action, appellant struck and killed the horse. When appellant struck the horse, the hood of his vehicle flew up. He pulled to the side of the road and discovered that his truck was inoperable. Appellant shut the hood of his truck, turned on his flasher lights, walked to the horse, and discovered that it was dead. He began to walk toward some lights for help when he came upon another pickup truck coming down a side road towards the highway. He informed the group in that truck that he had hit a horse. Appellant and the group then drove to the highway to move the horse from the center of the road.

The group parked on the side of the road, and, while there, another vehicle was approaching where the horse lay. Appellant testified at trial that someone turned the flashers on in the group's pickup and flashed the headlights to warn the approaching vehicle. This testimony, however, was impeached on cross-examination and not corroborated by others in the group. The highway patrol officer testified that one minute and thirty seconds had passed between the time that appellant and the group in the truck had seen the vehicle approaching before it hit the horse.

Appellee James Sondgeroth was driving the approaching vehicle. He noticed a truck pulled over with just the yellow running lights on. Appellee testified that there were no flashing or blinking lights. Appellee passed the pickup, his vehicle struck the dead horse in the road, and he became "airborne."

Appellee suffered severe injuries in the accident consisting of cervical spine fractures, a dislocation of vertebral bodies with nerve injury, and a severe concussion. Appellee brought suit against: appellant, the driver of the first vehicle; appellant's employer J.P. Robinson, d/b/a Jack Knife Ranch and Construction (appellants); and Sleeping Indian Outfitters, the owner of the horse. Appellee later amended his complaint to join Paul Anselmi, the owner of the property where Sleeping Indian Outfitters pastured this horse. Sleeping Indian Outfitters and Paul Anselmi settled with appellee before trial and were dismissed from the suit.

Appellee proceeded to trial against appellants. After hearing the evidence, the jury returned its verdict finding fault as follows: appellee 0 percent, appellants David Haderlie and J.P. Robinson d/b/a Jack Knife Ranch and Construction (Haderlie) 100 percent, Paul Anselmi 0 percent, and Sleeping Indian Outfitters 0 percent. The jury found that $375,000 was the amount of damages sustained by appellee and that appellants were liable for 100 percent of the damage.

Appellants challenge the judgment below on several grounds. Their initial primary focus on appeal was directed to whether or not appellants should have been allowed to introduce evidence of the settlements with other defendants that occurred prior to trial. Upon rebriefing and reargument, the primary focus of the appeal has shifted to the issue of credit upon the judgment for payments made by the settling defendants. The parties in their additional briefs filed pursuant to the court's order agreed that the issue presented was clearly stated in issue five above as:

Whether the trial court erred in entering judgment for the full amount of the jury verdict without crediting appellants for the aggregate amount received by appellee from the settling co-defendants.

This is the issue we discuss first.

Entry of Judgment without Settlement Credit

Appellants argue that the trial court erred in entering judgment for the amount of the verdict without first deducting the amount appellee received from Paul Anselmi and Sleeping Indian, the settling defendants.

In this case, prior to trial, appellee settled for the sums shown and dismissed his case against:

                (a)  Sleeping Indian Outfitter (horse owner)  $195,000
                (b)  Paul Anselmi (pasture owner)               10,000
                                                              --------
                     Total agreed upon settlement             $205,000
                

Thereafter, the case was tried to a jury against appellant David Haderlie and his employer, the only defendants remaining, with the settling participants listed on the verdict form. The jury returned the following verdict:

                (a)  Sleeping Indian percentage of fault                                     0%
                (b)  Paul Anselmi percentage of fault                                        0%
                (c)  David Haderlie and J.P. Robinson, dba Jack Knife Ranch and            100%
                       Construction percentage of fault
                     Total damages suffered by Sondgeroth                              $375,0001
                

Thus the jury found that the settling defendants owed appellee nothing since they were 0 percent at fault. The settling defendants, in hindsight, paid more than this jury found they owed. Aside from the law (which is clear), the policy question presented is who should receive the benefit of the $205,000 paid by the settling parties. Should it be:

(a) Returned to Anselmi and Sleeping Indian? The parties' settlement agreement does not provide this result.

(b) Should that defendant, who took his chances on trial and who was found 100 percent at fault, receive a $205,000 credit? If he does, he will only pay 45 percent of the judgment rather than the 100 percent found due. If this is the result, tortfeasors will hold off settling to get credit for the payment of others. There will be little incentive to settle.

(c) Should it go to the injured plaintiff? He gambled that the settlement would be right--if it is less, he loses--if it is more, he gains.

Prior to 1986, joint tortfeasors were jointly and severally liable for damages payable to an injured party. Thus, all parties liable were jointly obligated for the total damage and each party was individually obligated to pay the total damage. An injured party, not at fault, could recover his entire judgment (100 percent) from a five percent negligent party. With joint and several liability, there was the right of contribution among...

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