Oelschlager v. Magnuson

• Decision Date: 28 February 1995
• Docket Number: No. C5-94-1252,C5-94-1252
• Citation: 528 N.W.2d 895
• Parties: David A. OELSCHLAGER, Appellant, v. Albert C. MAGNUSON, personally, and as Pastor for the Redeemer Covenant Church of Brooklyn Park, Defendant, Northwest Conference of the Evangelical Covenant Church of America, et al., Defendants, Redeemer Covenant Church of Brooklyn Park, Respondent.
• Court: Minnesota Court of Appeals

Page 895

528 N.W.2d 895

David A. OELSCHLAGER, Appellant, v. Albert C. MAGNUSON, personally, and as Pastor for the Redeemer Covenant Church of Brooklyn Park, Defendant Northwest Conference of the Evangelical Covenant Church of America, et al., Defendants Redeemer Covenant Church of Brooklyn Park, Respondent.

No. C5-94-1252.

Court of Appeals of Minnesota.

Feb. 28, 1995.

Review Denied April 27, 1995.

Syllabus by the Court

1. Upon reaching a Pierringer settlement with one of two defendants sued for alleged negligence, the claimant is not entitled to collect the entire jury verdict from the non-settling defendant, either on a negligence theory or on an alternative theory that the non-settling party is vicariously liable for the intentional wrongdoing of a third defendant.

2. The statute enlarging the limitations period for actions based on personal injury caused by sexual abuse, which expressly applies to suits against one who commits the abuse or negligently permits the sexual abuse to occur, does not apply to a claim that a party is vicariously liable for the wrongful conduct of the party who committed the abuse.

Jeffrey R. Anderson, Mark A. Wendorf, Teresa K. Patton, St. Paul, Charles W. Faulkner, Faulkner & Faulkner, Minneapolis, James W. Kerr, Prior Lake, for appellant. ^*

Kenneth F. Daniels, Minneapolis, for defendant Albert C. Magnuson.

W.D. Flaskamp, Meagher & Geer, Minneapolis, for respondent Redeemer Covenant Church of Brooklyn Park.

Considered and decided by RANDALL, P.J., and CRIPPEN and MULALLY ^**, JJ.

OPINION

CRIPPEN, Judge.

A jury found that a pastor, while acting within his scope of employment with respondent, sexually battered appellant. The jury apportioned negligence between appellant David Oelschlager (none), a settling defendant (60 percent), and respondent Redeemer Covenant Church of Brooklyn Park (40 percent). The trial court ordered judgment against Redeemer for only 40 percent of the jury's verdict because of the settlement with the other negligent defendant. Appellant contends that his settlement should be disregarded and he should recover 100 percent of the verdict from Redeemer because it is vicariously liable for the pastor's intentional tort under the principle of respondeat superior. We conclude: (1) Affirming the trial court, that disregarding appellant's settlement would require Redeemer to pay more than its fair share of the verdict; and (2) reversing the trial court, that the vicarious liability claim against Redeemer is also barred by the statute of limitations.

FACTS

Appellant was sexually abused by Albert Magnuson from September 1972 until June 1982. At the time, Magnuson was a pastor at Redeemer and appellant was a member of the church. The abuse occurred while Magnuson was providing religious and emotional counseling to appellant on sexual issues.

In August 1991, appellant commenced a personal injury action for damages caused by Magnuson's abuse, suing Magnuson, Redeemer, the Northwest Conference of the Evangelical Covenant Church of America, an umbrella organization for Redeemer and other congregations, and the Evangelical Covenant Church of America, a still larger grouping of congregations. Appellant settled with the Northwest Conference and the larger church body in exchange for a Pierringer release, and then proceeded to trial against Redeemer and Magnuson.

The jury returned a special verdict finding that Magnuson had committed a battery against appellant and the battery occurred within the scope of Magnuson's employment with Redeemer. The jury also found that Redeemer and the Northwest Conference were negligent and appellant was not negligent. ¹ The jury apportioned 40 percent of the negligence to Redeemer and 60 percent to the Northwest Conference.

In post-trial motions, Redeemer argued that it was not liable for Magnuson's conduct under the doctrine of respondeat superior because (1) the statute of limitations had run on appellant's respondeat superior claim, and (2) Magnuson was acting outside his scope of employment as a matter of law when he abused appellant. Alternatively, Redeemer argued that the judgment against it should be reduced to 40 percent of the verdict ² based on appellant's settlement with the Northwest Conference and the jury's apportionment of negligence. The trial court granted Redeemer's motion to reduce the judgment but otherwise rejected its motion for judgment notwithstanding the verdict.

On appeal, Oelschlager argues that Redeemer is not entitled to a reduction in the judgment because of his settlement. In its notice of review, Redeemer questions the trial court's rulings on the statute of limitation and Magnuson's scope of employment.

ANALYSIS

I. Amount of Judgment

Redeemer is liable to appellant under two different legal theories: direct liability for its own negligence and vicarious liability under respondeat superior. Appellant asserts that he is seeking recovery from Redeemer under respondeat superior. See Lange v. National Biscuit Co., 297 Minn. 399, 401, 211 N.W.2d 783, 786 (1973) (permitting plaintiff to recover from the employer under either theory of liability). He argues that under that theory his settlement and Pierringer release with the Northwest Conference are irrelevant and he is entitled to judgment against Redeemer for 100% of his damages.

An essential element of a Pierringer release is the claimant's agreement to indemnify the settling tortfeasor from any claims of contribution that may be brought by a non-settling tortfeasor, and to surrender any judgment he obtains against the non-settling tortfeasor to the extent the settling tortfeasor has been released. Frey v. Snelgrove, 269 N.W.2d 918, 920 n. 1 (Minn.1978). This ensures that the non-settling tortfeasor is only responsible for its fair share of the verdict. Id. at 922. Accordingly, a plaintiff who enters into a Pierringer release is limited to recovering that portion of the damages attributable to the non-settling tortfeasor. See id.; Frederickson v. Alton M. Johnson Co., 402 N.W.2d 794, 797 (Minn.1987).

There is no dispute that if the verdict against Redeemer were based solely on its negligence, its fair share of liability would be 40 percent, as determined by the jury's apportionment of negligence, and the judgment would be reduced accordingly. See e.g. Frederickson, 402 N.W.2d at 797. We are to determine the amount of Redeemer's fair share if the verdict against it were predicated solely on its vicarious liability. We find guidance principally by considering whether Redeemer would have a contribution claim against the Northwest Conference if it had to pay the entire verdict.

Contribution is an equitable cause of action whereby one party seeks restitution from another for part of a payment made in satisfaction of a joint obligation. Samuelson v. Chicago, Rock Island & Pacific Ry., 287 Minn. 264, 267, 178 N.W.2d 620, 623 (1970). It is based on the equitable consideration that "[p]arties who share liability for an injury should recompense that injury equally or, if not equally liable, in proportion to their liability." Id. (citations omitted). Contribution requires common liability of two or more actors and payment by one of the actors of "more than its fair share of a common liability." City of Willmar v. Short-Elliott-Hendrickson, Inc., 512 N.W.2d 872, 874 (Minn.1994). Common liability exists where the actors are liable to the injured party for the same damages, even if their liability rests on different legal theories. Id. (citing Farmer's Ins. Exch. v. Village of Hewitt, 274 Minn. 246, 249, 143 N.W.2d 230, 233 (1966)).

In the absence of the Pierringer release, Redeemer and the Northwest Conference would be liable to appellant for the same damages, even though their liability might be based on different legal theories. Thus, the parties have a common liability. And where Redeemer's liability is only vicarious, the entire liability would constitute more than Redeemer's fair share of its common liability with the Northwest Conference.

Respondeat superior imposes liability on an employer for the acts of its employees, not because the employer is at fault, but as a matter of public policy. See Lange, 211 N.W.2d at 785. The employer is not ultimately responsible for the plaintiff's damages. Thus, the employer is entitled to full reimbursement from the employee who caused the plaintiff's injuries for any damages paid under respondeat superior. Schneider v. Buckman, 433 N.W.2d 98, 102 (Minn.1988); Kellen v. Mathias, 519 N.W.2d 218 (Minn.App.1994). Equity precludes requiring a merely vicariously liable employer to pay all of the damages and then allow a joint tortfeasor, whose actions were a direct cause of the plaintiff's injuries, to escape all responsibility by denying the employer the right to contribution.

An intentional tortfeasor is prohibited from seeking contribution from other joint tortfeasors. Farmer's Ins. Exch., 274 Minn. at 255, 143 N.W.2d at 236 (quoting Kemerer v. State Farm Mut. Auto. Ins. Co., 201 Minn. 239, 242, 276 N.W. 228, 230 (1937)). Appellant argues that Redeemer is barred from seeking contribution from the Northwest Conference because Redeemer is vicariously liable for Magnuson's intentional tort. But an intentional tortfeasor is barred from seeking contribution because "the courts will not aid one who has deliberately done harm, so that no man can be permitted to found a cause of action on his own intentional tort." Restatement (Second) of Torts § 886A cmt. j. Accord Farmer's Ins. Exch., 274 Minn. at 260, 143 N.W.2d at 239. A party that is only vicariously liable for another's intentional tort has neither deliberately caused harm nor committed a tort, so the intentional tort theory does not operate to bar Redeemer's right to contribution. ³

Because Redeemer would have a contribution claim against the Northwest Conference if it were required to pay the entire verdict, the determination of the amount of its liability...