Holmberg v. Strong
| Decision Date | 03 August 1995 |
| Docket Number | No. 95-093,95-093 |
| Citation | 899 P.2d 1097,272 Mont. 101 |
| Parties | David C. HOLMBERG and Karol M. Holmberg, Plaintiffs, v. Richard A. STRONG, Strong's Crane Service, Inc., Richard E. Lutton and Crown Parts and Machine, Inc., Defendants. Richard E. LUTTON and Crown Parts and Machine, Inc., Cross-Claimants & Appellants, v. Richard A. STRONG and Strong's Crane Service, Inc., Cross-Defendants & Respondents. |
| Court | Montana Supreme Court |
James L. Jones, Dorsey & Whitney, Billings, for appellants.
Michael W. Tolstedt, Brown, Gerbase, Cebull, Fulton, Harman & Ross, Billings, for respondents.
The plaintiffs, David C. Holmberg and Karol M. Holmberg, filed a complaint in the District Court for the Thirteenth Judicial District in Yellowstone County against the defendants, Richard A. Strong, Strong's Crane Service, Inc., Richard E. Lutton, and Crown Parts and Machine, Inc., in which they alleged that the defendants' negligently injured David and that they were jointly and severally liable for the couple's damages. Richard E. Lutton and Crown Parts and Machine, Inc. (referred to collectively as Crown Parts), cross-claimed against Richard A. Strong and Strong's Crane Service, Inc. (referred to collectively as Strong's), for contribution. The District Court granted Strong's motion for summary judgment and held that Strong's was not liable to Crown Parts for contribution. Crown Parts appeals from the District Court's judgment and order. We affirm the District Court.
The issue on appeal is:
Did the District Court err when it granted Strong's motion for summary judgment?
On August 13, 1991, David Holmberg was driving his vehicle west on Highway 87 when he stopped his vehicle in order to make a left hand turn. Before he turned, David was hit from behind by a truck driven by defendant Richard E. Lutton and owned by defendant Crown Parts. Prior to the collision, Richard A. Strong was driving a crane owned by Strong's in an easterly direction, and while turning right off Highway 87, allegedly caused the boom of the crane to encroach into the westbound lane, distracting Lutton and contributing to the accident.
On February 10, 1994, Holmbergs filed a complaint against Richard A. Strong, Strong's Crane Service, Inc., Richard E. Lutton, and Crown Parts and Machine, Inc. Their complaint alleged that the defendants negligently caused David's injuries and were jointly and severally liable. On February 28, 1994, Crown Parts filed its answer and a cross-claim against Strong's for contribution. On March 4, 1994, Holmbergs and Crown Parts filed a joint motion for the District Court's approval of their settlement agreement, dismissal of Holmbergs' complaint, and permission for Crown Parts to proceed with its cross-claim. On March 17, 1994, Holmbergs signed a settlement agreement with Crown Parts. That same day the District Court approved the settlement and dismissed with prejudice Holmbergs' complaint against all defendants, but allowed Crown Parts to proceed with its cross-claim.
In October 1994, Strong's moved for dismissal of Crown Parts' claim by summary judgment. In December 1994, the District Court granted Strong's motion and held that because Holmbergs had released all tort-feasors from liability, Strong's and Richard Strong are not parties against whom recovery is allowed pursuant to § 27-1-703, MCA, and Sprinkle v. Burlington Northern (1989), 236 Mont. 383, 769 P.2d 1261. Therefore, the court held that Crown Parts had no right of contribution against Strong's or Richard Strong.
Did the District Court err when it granted Strong's motion for summary judgment?
Our inquiry on review of an order granting summary judgment is identical to that of the district court. Spain-Morrow Ranch, Inc. v. West (1994), 264 Mont. 441, 444, 872 P.2d 330, 331. Summary judgment is proper when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Rule 56(c), M.R.Civ.P.; Spain-Morrow, 872 P.2d at 331-32.
Crown Parts requests that we reverse the District Court's judgment and, in so doing, expressly overrule Sprinkle. We decline to do so.
Montana has altered the common law and recognizes a statutory right to contribution. Section 27-1-703, MCA. In Senate Bill 212, the Fifty-Fourth Montana Legislature amended § 27-1-703, MCA, so that it now provides in relevant part:
(1) Except as provided in subsections (2) and (3), whenever the negligence of a party in any action is an issue, each party against whom recovery may be allowed is jointly and severally liable for the amount that may be awarded to the claimant but has the right of contribution from any other person whose negligence may have contributed as a proximate cause to the injury complained of.
....
(4) On motion of any party against whom a claim is asserted for negligence resulting in death or injury to person or property, any other person whose negligence may have contributed as a proximate cause to the injury complained of may be joined as an additional party to the action. For purposes of determining the percentage of liability attributable to each party whose action contributed to the injury complained of, the trier of fact shall consider the negligence of the claimant, injured person, defendants, and third-party defendants. The liability of nonparties, including persons released from liability by the claimant and persons immune from liability to the claimant, must also be considered by the trier of fact, as provided in subsection (6). The trier of fact shall apportion the percentage of negligence of all persons listed in this subsection. Contribution must be proportional to the liability of the parties against whom recovery is allowed. Nothing contained in this section makes any party indispensable pursuant to Rule 19, Montana Rules of Civil Procedure.
S.B. 212, 54th Leg.1995 (emphasis added).
We interpreted the underlined statutory language in State ex rel. Deere & Co. v. District Court (1986), 224 Mont. 384, 730 P.2d 396. Although Deere interpreted § 27-1-703, MCA, before the Legislature's 1995 amendment, the highlighted language is in both versions of the statute. Therefore, what was said in Deere is still applicable.
In Deere, a bulldozer manufactured by Deere & Company and driven by an employee for Wade's Backhoe backed into the plaintiff. The plaintiff filed a complaint against Deere and Wade's Backhoe. Before trial, the plaintiff settled with Deere and released Deere from all claims. Following the settlement, Wade's Backhoe filed a third-party complaint against Deere for contribution. At issue was whether a joint tort-feasor who settled with the plaintiff before judgment was entered was subject to a contribution claim from a nonsettling joint tort-feasor pursuant to § 27-1-703, MCA. Deere, 730 P.2d at 398.
We stated that:
[A] joint tortfeasor who settles with the claimant before judgment on the claim is entered in a district court is not subject to claims for contribution or indemnity from the non-settling joint tortfeasors.... [T]he right of contribution under the amended statute [§ 27-1-703, MCA] is "proportional to the negligence of the parties against whom recovery is allowed." Clearly that statutory language excludes a party against whom recovery is not allowed, e.g. a tortfeasor who has previously settled.
Deere, 730 P.2d at 402. Therefore, we held that, based on the statutory language, a joint tort-feasor against whom a judgment for the plaintiff was entered could not seek contribution from another joint tort-feasor, or joint tort-feasors, who settled with the plaintiff before the entry of judgment. Deere, 730 P.2d at 398.
Three years later, in a factual situation nearly identical to this case, we followed the general principles announced in Deere. Sprinkle, 769 P.2d 1261. In Sprinkle, the plaintiff was injured while working for Burlington Northern (BN) and brought suit in the United States District Court for the District of Montana pursuant to the Federal Employers Liability Act. BN joined Tire Guys as a third-party defendant and sought contribution pursuant to § 27-1-703, MCA. Before trial, BN settled with the plaintiff in exchange for a release of all claims, including claims, if any, against Tire Guys. BN then pursued its claim for contribution against Tire Guys. Sprinkle, 769 P.2d at 1261-62.
Tire Guys moved for summary judgment and the Federal District Court certified the following question to this Court:
Plaintiff commences a negligence action against defendant # 1. Defendant # 1 in turn joins defendant # 2 seeking contribution. Prior to trial, defendant # 1 settles with the plaintiff in return for a general release of all claims, including claims against defendant [#] 2. Can defendant # 1 continue its action for contribution against defendant # 2 under Montana law?
Sprinkle, 769 P.2d at 1261. The certified question in Sprinkle is identical to the issue on appeal in this case.
Relying on principles set forth in Deere, we held that:
Regardless of the change in positions here as between the joint tortfeasors, the principle announced in Deere remains the same. The plaintiff's case has ended and the nonsettling tortfeasor is not one "against whom recovery is allowed." As we said in Deere, supra, that statutory language excludes from any duty of contribution a party against whom recovery is not allowed.
In this case, Holmbergs filed their complaint and named Crown Parts, as well as Strong's. Crown Parts filed its claim for contribution from Strong's. Crown Parts and the Holmbergs jointly sought the District Court's order which approved their settlement and dismissed Holmbergs' complaint against "all Defendants ... with prejudice." Although the settlement agreement did not include Strong's as a releasee, the recitals indicate that Holmbergs agreed to "settle and dismiss all claims th...
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