Wright v. Haskins

• Decision Date: 21 December 1977
• Docket Number: No. 59398,59398
• Citation: 260 N.W.2d 536
• Parties: Robert A. WRIGHT, Appellee, v. John L. HASKINS, Appellant.
• Court: Iowa Supreme Court

Page 536

260 N.W.2d 536

Robert A. WRIGHT, Appellee, v. John L. HASKINS, Appellant.

No. 59398.

Supreme Court of Iowa.

Dec. 21, 1977.

John F. Davis, of Lindgren, Davis & Baker, Des Moines, for appellant.

Alfredo G. Parrish, Des Moines, for appellee.

Heard before MOORE, C. J., and MASON, RAWLINGS, REYNOLDSON, and HARRIS, JJ.

MASON, Justice.

This is an appeal by John L. Haskins, defendant in a law action tried to the court, from an order overruling his motion for summary judgment and from an adverse final judgment on the merits. Plaintiff, Robert A. Wright, instituted an action in the Polk District Court seeking to enforce an assignment executed and delivered to him by Gertrude I. Hall of a judgment held by her against defendant.

In answer to plaintiff's original petition defendant denied each paragraph thereof and alleged that an accord and satisfaction executed by Mrs. Hall operated as both a satisfaction and release against him as well as Wright. Before trial defendant used the same argument in a motion for summary judgment.

The trial court overruled Haskins' motion because it found there was a question of fact to be determined " * * * herein as to whether or not it was the intent of the parties that payment to Mrs. Hall by Robert Wright released both judgments, whether or not Mrs. Hall received full satisfaction for the alleged wrong."

Before the court's ruling on Haskins' motion Wright amended his petition alleging Haskins should contribute his share of a judgment paid by Wright to Gertrude I. Hall which had been rendered on a verdict for Mrs. Hall in an action in which Wright and Haskins were sued as joint tortfeasors guilty of fraud. Haskins answered denying the allegations contained in the amendment.

Following trial the court concluded the assignment from Mrs. Hall to Wright was valid because the release of Wright was not intended to be also a release of Haskins. The court recognized the old common law rule that contribution is not available between intentional tortfeasors but found the whole area of intentional torts had been greatly expanded in recent years. The court held under the facts of the case " * * * where there is no pronounced disparity in the severity of the duties of the two tortfeasors and the two are roughly in the same plane of moral guilt, the one who settled a judgment involving both is entitled to contribution against the other."

The court entered judgment against Haskins for $6,500 with interest at seven percent from June 1973 and for costs.

The factual background leading to the present lawsuit is narrated in Hall v. Wright, 261 Iowa 758, 156 N.W.2d 661 (Case I). In that action, commenced February 23, 1965, Wright and Haskins were sued for fraud by Mrs. Hall who has since died. September 18, 1961, Haskins had confessed judgment in favor of Gertrude Hall in the amount of $14,500 in another action pending in Polk District Court brought by Mrs. Hall against Haskins only.

In Case I the jury was asked whether the confession of judgment signed by John L. Haskins on September 15, 1961, entered as Hall v. Haskins, Law No. 76447 on September 18, 1961, in favor of Gertrude I. Hall, was the same cause of action as that which Mrs. Hall claimed against Robert A. Wright. On October 27, 1965, the jury returned its verdict against Robert A. Wright for $10,000 compensatory damages and $15,000 punitive damages. The jury also answered, yes, that Mr. Haskins' confession of judgment for $14,500 was the same cause of action and, therefore, awarded no judgment against Mr. Haskins.

In Case I no judgment was entered against Haskins. However, judgment was entered against Wright for $17,400 and this court affirmed the judgment.

After this court affirmed the judgment in Case I, Wright negotiated a settlement with Mrs. Hall. He paid Mrs. Hall $14,000 of which $13,000 was toward her judgment against him and $1000 was for her assignment to him of the $14,500 judgment she had by confession against Haskins in 1961. In return Mrs. Hall executed an instrument entitled Accord and Satisfaction in which she stated her acceptance of the $14,000 was in complete satisfaction of the judgment she held against Wright and in release of all future claims against him.

Wright then instituted the case presently before us.

This appeal presents the following questions for review:

1. Is a party entitled to contribution from a joint tortfeasor where the element of intent of the intentional tort of which they have been found guilty is implied by law?

2. Should a tortfeasor be allowed to avoid the effect of the rule forbidding contribution between joint intentional tortfeasors by institution of suit to enforce an unsatisfied judgment against his joint tortfeasor where such judgment arose out of the incident in which they jointly, intentionally and tortiously injured a third party?

3. Did the trial court err in its conclusion the Accord and Satisfaction did not release defendant?

I. Defendant contends the trial court erred in finding plaintiff was entitled to contribution where he and plaintiff were guilty of an intentional tort, fraud.

Defendant asserts no contribution or indemnity is allowed in this state where there has been a showing of intentional wrong, or of moral turpitude or of concerted action by the tortfeasors. Defendant admits, however, contribution has been allowed where the unintentional negligence of two or more parties concurs to injure a third party. We agree. See Best v. Yerkes, 247 Iowa 800, 77 N.W.2d 23, 60 A.L.R.2d 1354; Hawkeye-Security Ins. Co. v. Lowe Constr. Co., 251 Iowa 27, 99 N.W.2d 421; National Farmers Union Etc. Co. v. Nelson, 260 Iowa 163, 147 N.W.2d 839; and Dairyland Insurance Company v. Mumert, 212 N.W.2d 436 (Iowa 1973).

Plaintiff contends there is ample authority to support an extension of the right of contribution to cases where intent, scienter or knowledge is presumed, implied or proved by circumstantial evidence. He cites us to numerous cases from other jurisdictions which he contends extend the right of contribution to incidents of intentional tort. In the majority of these cases such extension is provided for by statute. In the remainder of the cases the statements of extension are merely dictum. We do not find these citations persuasive.

According to plaintiff there is a difference between the effect of an intentional tort in which the proof of intent is indirect rather than direct. This contention is untenable. The implication of intent from the circumstances and acts of the tortfeasor does not make the wrong to the third person less intentional than it is when intent is established by direct proof. A person is as guilty of fraud, an intentional wrong, whether the elements of intent, scienter or knowledge are presumed, implied or proved by circumstantial evidence or are proved by direct evidence. The harm to the third person is just as pernicious in either case.

Plaintiff argues where two tortfeasors are equally guilty the doctrine of contribution which developed in equity should be applied to effect a fair and equitable result. To do otherwise, plaintiff argues, would be to penalize the one who settled the judgment in good faith, while allowing the other to go scot-free. Plaintiff argues this would be an inequitable result which should not be tolerated. This argument and its counterpoise are discussed in a case cited to us by plaintiff, Judson v. Peoples Bank & Trust Company of Westfield, 17 N.J. 67, 110 A.2d 24.

In Judson, 110 A.2d at 34, Justice Brennan of the United States Supreme Court, then a justice of the New Jersey Court, stated both arguments as follows:

"The relief in equity was not available, however, 'as between conscious, willful, malicious or intentional wrongdoers or tortfeasors who are in pari delicto,' * * * (citing authority). This was upon the ground that society's interest in the deterring of intentional wrongdoing would be better served if wrongdoers were taught that they 'must not expect that a judicial tribunal will degrade itself by an exertion of its powers by shifting the loss from one to the other; or to equalize the benefits or burdens which may have resulted by the violation of every principle of morals and of laws.' * * * (citing authorities). The soundness of this reasoning was strongly questioned by those who found difficulty in finding either logic or common sense in a rule which, if it deters the paying tortfeasor from further wrongdoing, encourages those who go scott free to repeat the offense, although equally or perhaps even more morally culpable. These critics urged that the wholesome social objectives of the rule would be 'best procured by making certain that none of the tortfeasors will go entirely free.' * * * (citing authority); in other words, that if each intentional wrongdoer knew that his conduct was exposing him to the risk of the certainty of liability in some amount, the desired deterrent effect would be produced more surely than if contribution among the wrongdoers is denied."

While we adhere to the first view expressed in Judson (see Best v. Yerkes, 247 Iowa at 807, 77 N.W.2d at 27-28), we see logic and soundness in the second view. However, we do not believe the present case presents appropriate factual circumstances to expand the right of contribution as it stands today in this state. This means we will not aid Wright, the intentional tortfeasor, in the factual situation presented here. In this connection see Restatement, Second, Torts, section 886A(3), Tentative Draft No. 16, April 24, 1970, cited in Wassel v. Eglowsky, 399 F.Supp. 1330, 1366-1367 (D.C.) affirmed, 542 F.2d 1235 (4 Cir. 1976). The trial court erred when it found plaintiff entitled to contribution.

II. Defendant contends the trial court erred in finding the assignment of the 1961 confessed judgment valid. He argues an assignment obtained by one joint tortfeasor from the creditor holding a judgment against his co-tortfeasor is legally...