Hanselman v. Consolidated Rail Corp.

• Citation: 158 Pa.Cmwlth. 568,632 A.2d 607
• Parties: Kenneth HANSELMAN, Darryl Lengle and Marco Gasper v. CONSOLIDATED RAIL CORPORATION, Department of Transportation, Commonwealth of Pennsylvania, Public Utilities Commission, Harmar Township and Allegheny County, Mark Schubert. Appeal of CONSOLIDATED RAIL CORPORATION, Appellant.
• Decision Date: 29 September 1993
• Court: Pennsylvania Commonwealth Court

Page 607

632 A.2d 607

158 Pa.Cmwlth. 568

Kenneth HANSELMAN, Darryl Lengle and Marco Gasper v. CONSOLIDATED RAIL CORPORATION, Department of Transportation,

Commonwealth of Pennsylvania, Public Utilities

Commission, Harmar Township and

Allegheny County, Mark Schubert.

Appeal of CONSOLIDATED RAIL CORPORATION, Appellant.

Commonwealth Court of Pennsylvania.

Argued June 15, 1993.

Decided Sept. 29, 1993.

David P. Helwig, for appellant.

No appearance, for appellees.

Before DOYLE and SMITH, JJ., and KELTON, Senior Judge.

SMITH, Judge.

Consolidated Rail Corporation (Conrail) appeals from an October 22, 1990 order of the Court of Common Pleas of Allegheny County which granted summary judgment to additional defendant Mark Schubert and dismissed all claims against him filed by Kenneth Hanselman and Marco Gasper arising out of an automobile accident as well as all claims of the original defendants filed against Schubert which derived from Hanselman and Gasper's claims. ¹ The issues Conrail presents in this appeal are whether the trial court committed an error of law by granting Schubert's summary judgment motion where releases signed by Hanselman and Gasper did not extinguish Schubert's liability to Conrail for contribution; by granting Schubert's motion for summary judgment where Schubert's continued presence as a party is necessary in order to determine the effect to be given the releases signed by Hanselman and Gasper; and by denying Conrail's motion for summary judgment.

On September 24, 1987, Schubert was operating an automobile in which Hanselman, Gasper and Darryl Lengle (collectively Plaintiffs) were passengers when the vehicle was struck by a Conrail train. On June 1, 1988 and August 7, 1989, respectively, Hanselman and Gasper signed releases specifically discharging "Donna P. Eggers [owner of the vehicle], Mark Schubert and Erie Insurance Group ... and any and all other persons, firms, corporations, associations of and from any and all causes of action, suits, rights, judgments, claims and demands of whatsoever kind ... arising out of the accident on or about September 24, 1987...." The releases provided for settlement of Hanselman's claims for $100,000 and Gasper's claims for $25,000. Plaintiffs filed a complaint on April 24, 1989 against Conrail, the Department of Transportation, the Public Utilities Commission, Harmar Township and Allegheny County. Conrail filed a complaint joining Schubert as an additional defendant alleging that Schubert was solely liable to Plaintiffs or, alternatively, that Schubert was liable to Conrail for contribution.

Schubert filed new matter declaring that he could not be liable to Hanselman or Gasper or any other parties for contribution and/or indemnity for Hanselman and Gasper's claims because of the settlements reached. During depositions on April 12, 1990, Hanselman and Gasper testified that although they read, reviewed with counsel and signed the releases, they thought the releases only pertained to the people specifically mentioned. Schubert and Conrail filed motions for summary judgment predicated on the releases.

Although the trial court determined that the releases were not general releases in that Hanselman and Gasper did not intend to release any defendants not specifically listed, it granted Schubert's motion for summary judgment and also dismissed Conrail's claims for contribution derived from Hanselman and Gasper's claims. By separate order dated October 25, 1990, the trial court denied Conrail's motion for summary judgment and thereafter refused Conrail's request to certify the order for appeal pursuant to Section 702(b) of the Judicial Code, as amended, 42 Pa.C.S. § 702(b). On appeal to this Court, Conrail first argues that the trial court erred in granting summary judgment to Schubert and dismissing Conrail's claims for contribution because if the release is a joint tort-feasor release, Conrail is entitled to seek contribution from Schubert as an additional defendant. Conrail alternatively argues that if the release is a general release, the trial court erred in denying its motion for summary judgment since any possible liability of Conrail to Hanselman and Gasper was extinguished by the release.

In reviewing a grant of summary judgment, this Court's scope of review is limited to determining whether the trial court committed an error of law or abused its discretion. Agostine v. School Dist. of Philadelphia, 106 Pa.Commonwealth Ct. 492, 527 A.2d 193, appeal denied, 517 Pa. 610, 536 A.2d 1334 (1987). Summary judgment shall be rendered only in cases wherein there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Beardell v. Western Wayne School Dist., 91 Pa.Commonwealth Ct. 348, 496 A.2d 1373 (1985). Further, when reviewing a trial court's grant of summary judgment, this Court must view the evidence in the light most favorable to the non-moving party and resolve any doubts against the entry of summary judgment. See Himes v. New Enterprise Stone & Lime Co., Inc., 399 Pa.Superior Ct. 301, 582 A.2d 353 (1990), appeal denied, 527 Pa. 617, 618, 590 A.2d 758 (1991).

Section 8326 of the Uniform Contribution Among Tort-feasors Act, 42 Pa.C.S. § 8326, provides:

A release by the injured person of one joint tort-feasor, whether before or after judgment, does not discharge the other tort-feasors unless the release so provides, but reduces the claim against the other tort-feasors in the amount of the consideration paid for the release or in any amount or proportion by which the release provides that the total claim shall be reduced if greater than the consideration paid.

In addition, the right of contribution exists among joint tort-feasors. 42 Pa.C.S. § 8324(a). The release of one tort-feasor by the injured party does not relieve that tort-feasor from liability for contribution to another tort-feasor "unless the release is given before the right of the other tort-feasor to secure a money judgment for contribution has accrued and provides for a reduction to the extent of the pro rata share of the released tort-feasor of the injured person's damages recoverable against all the other tort-feasors." 42 Pa.C.S. § 8327.

This Court notes that the releases make no provisions for Hanselman or Gasper's future recovery against other tort-feasors which would provide the bases for determining whether the releases constitute pro rata or pro tanto joint tort-feasor releases. ² Therefore, if the releases Hanselman and Gasper executed only pertain to the liability of the parties identified therein and do not release the other defendants, the trial court erred in granting Schubert's motion for summary judgment because Conrail is permitted to seek contribution from Schubert pursuant to 42 Pa.C.S. § 8327 and his continued presence in the case is necessary in order to determine and allocate damages. See Davis v. Miller, 385 Pa. 348, 123 A.2d 422 (1956); Wirth v. Miller, 398 Pa.Superior Ct. 244, 580 A.2d 1154 (1990), appeal granted, 527 Pa. 628, 635, 637, 592 A.2d 1296, 1303, 1304 (1991).

It is well settled that the effect of a release must be determined from the ordinary meaning of its language. Wolbach v. Fay, 488 Pa. 239, 412 A.2d 487 (1980); Hasselrode v. Gnagey, 404 Pa. 549, 172 A.2d 764 (1961). There is no requirement that all of the parties to be discharged from liability are specifically named within a release if the terms of the release clearly extend to other parties. Estate of Bodnar, 472 Pa. 383, 372 A.2d 746 (1977). The Pennsylvania Supreme Court has held that when the terms of a release discharge all claims and pa...