St. Louis v. Beckles

GARRITY, Judge. In this matter, we shall examine the language of a joint tort-feasor release to determine its effect upon the obligation of the remaining party when the settling defendant is found not liable. Factual Background On April 23, 1984, Curtis C. Beckles, a minor, was crossing Riggs Road in Hyattsville, Maryland, when he was hit by a car driven by Janet T. Dierks. At the time of this accident and pursuant to a request from Curtis’s parents, Clem and Marilyn Beckles, Curtis was in the care of a neighbor of the Beckles, Noreen St. Louis, and her son, Roger St. Louis.

On January 31, 1986, both Curtis and his parents filed an amended complaint in the Circuit Court for Prince George’s County against Janet T. Dierks and Max M. Dierks (husband of Janet Dierks and owner of the vehicle involved in the accident), Noreen St. Louis, and Roger St. Louis. 1 On April 6, 1987 Curtis, Clem, and Marilyn Beckles (hereinafter referred to as appellees) settled their claim against ⁴⁴ defendant Janet T. Dierks, pursuant to the terms of a document labeled “Joint Tort-Feasor Release.” In consideration of the sum of $100,000.00 ($40,000.00 paid to the parents and $60,000.00 to the minor) the appellees agreed to release the defendant Dierks and Allstate Insurance Company from all damages and liability. The Joint Tort-Feasor Release further provided as follows: We further understand and agree that we are not releasing any actions, causes of action, claims, and/or demands which have accrued or which may hereafter accrue to us against Noreen St. Louis and Roger St. Louis, their heirs, personal representatives, executors, administrators, or assigns, on account of injuries, damages sustained at the time above mentioned, but for the consideration recited above, it is agreed that all claims recoverable by us against Noreen St. Louis and Roger St. Louis, their heirs, personal representatives, executors, administrators, or assigns, are hereby reduced to the extent of the statutory pro rata share of said Janet T. Dierks under the provisions of the Uniform Contribution Among Joint Tort-Feasors Act, Article 50, Sections 16-21 inclusive, of the Annotated Code of Maryland, and all such damages recoverable by us on account of said account, and we warrant that we have not heretofore released any persons, firms or incorporations from any claims or liability for any damages arising out of said accident ... ... we further understand and agree that for the purposes of this release, Janet T Dierks, Noreen St Louis, and Roger St Louis, their heirs, personal representatives, executors, administrators, or assigns are considered as “JOINT TORT-FEASORS” within the meaning of the aforesaid Uniform Contribution Among Joint Tort-Feasors Act (emphasis added). By order of May 6, 1987, the circuit court (Blackwell, J.) approved the parties’ settlement. That order stated that, ⁴⁵ “the Entry of Judgment in favor of the Plaintiffs and against the Defendant Janet T. Dierks, only, be withheld until the conclusion of this case ...,” and further ordered that “no mention be made or evidence be introduced at trial by any party regarding the settlement referred to herein.” 2 On August 23, 1988, the matter proceeded to trial (Levin, J., presiding) against both defendant Janet Dierks and appellant Noreen St. Louis, and, pursuant to the May 6, 1987 order of the circuit court, the jury was not advised of the existence of a settlement agreement between the appellees and defendant Dierks. 3 On August 29, 1988, the jury returned a verdict in favor of the appellees against the appellant only for a total of $154,829.55: $79,829.55 on behalf of appellees Clem and Marilyn Beckles and $75,-000.00 on behalf of appellee Curtis C. Beckles.

By special issue verdict sheet, the jury specifically found that defendant Dierks was not negligent in operating her husband’s car on April 23, 1984. The appellant filed a “Motion to Revise Judgment and/or to Reduce Amount of Judgment Against St. Louis to Reflect Prior Settlement Amount Paid by Co-Defendant Dierks.” She argued in that motion, as she argues before us, that under the unambiguous terms of the release between the appellees and Dierks, both she and Dierks are joint tort-feasors. The appellant argues that she is therefore, as “a third party beneficiary of the unconditional promise made by the [appellees],” entitled to reduce any claim against her to the extent of the statutory pro-rata ⁴⁶ share of defendant Dierks. 4 After a hearing on the appellant’s motion, the trial judge disagreed, opining: When Mrs. Dierks paid $100,000.00 she bought her peace, and the fact that they paid her or her carrier paid the $100,000.00, they were mere volunteers. [Appellees] get a windfall. It’s that simple. [Appellees] get a windfall that by right Dierks shouldn’t have paid anything.

Of course, the jury says she wasn’t responsible ... you can’t take advantage of that $100,000.00 until and when somebody says that the co-defendant was a joint tort-feasor ... Once that jury found [appellant] responsible and [Dierks] not responsible, you can’t cut anything in half ... and if somebody says I am wrong, they have people down Route 50, you know. Accordingly, on November 29, 1988 Judge Levin denied the appellant’s Motion to Revise. Discussion The Joint Tort-Feasor Release at issue was drawn in contemplation of, and refers to, Maryland’s version of the Uniform Contribution Among Tort-Feasors Act (“the Act”), Maryland Code (1957, 1986 Repl.Vol.), Art. 50, §§ 16-24.

Section 19 of the Act provides: § 19. Effect of release on injured person’s claim. 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. ⁴⁷ This section is not applicable, however, unless the person released was a joint tort-feasor. Section 16(a) of the Act defines “Joint tort-feasors” as “two or more persons jointly or severally liable in tort for the same injury to person or property, whether or not judgment has been recovered against all or some of them.” Section 16 does not specifically define the term “liable.” In determining whether Dierks is a joint tort-feasor together with the appellant, we turn to Swigert v. Welk, 213 Md. 613 , 133 A.2d 428 (1957), in which the Court of Appeals stated: “The Act does not specify the test of liability.

Clearly, something short of an actual judgment will suffice; we think it equally clear that a denial of liability will not.” Id. at 619 , 133 A.2d 428 . In Jones v. Hurst, 54 Md.App. 607 , 459 A.2d 219 (1983), we held a release similar in language to that before us today sufficient to confer joint tort-feasor status on the released party. In Jones , the plaintiff sued defendants Hurst and General Motors. Shortly before trial, she settled her case against General Motors and executed a release absolving General Motors of liability in exchange for its promise to provide an expert at trial.

The release included a provision whereby General Motors expressly denied liability to Jones for the subject accident. The release then continued: I [Jones] further understand and agree that in any action or suit in which General Motors Corporation may be of [sic] has been joined as a defendant, any and all judgments recovered [sic] by me against any person, firm or corporation for any and all claims as aforesaid shall be reduced in the amount of the consideration paid for this release or to the extent of the pro rata share of said General Motors Corporation if said pro rata share is greater than the consideration paid for this release [recited to be $10.00]; or in accordance with the Uniform Contribution Among Joint Tort Feasors Act, Article 50, Sections 16-20 of the Maryland Code. I further agree that for the purpose of determining the amount of any judgments that may be recovered by me against any ⁴⁸ person, firm or corporation, except General Motors Corporation in the aforesaid action ... that the said General Motors Corporation shall be considered as joint tortfeasors [sic] to the same extent and effect as if judgments had been rendered against them [sic] as joint tort-feasors. Thereafter, the plaintiff dismissed General Motors Corporation and obtained a judgment against defendant Hurst, prompting Hurst to seek a pro-rata reduction in the verdict based upon the provisions of the release to General Motors Corporation.

Although the release in the Jones case, set forth above, contained an express denial of liability by General Motors, we held their joint tort-feasor status to be established in light of the remaining language of the release that “the said General Motors Corporation shall be considered as joint tort-feasors to the same extent and effect as if judgment had been rendered against them as joint tort-feasors.” We held this to be so even in the absence of a judicial determination of General Motors’ liability. The release we interpreted in Jones is to be distinguished from that employed in the cases that the appellees urge upon us, specifically Allgood v. Mueller, 307 Md. 350, 354 , 513 A.2d 915 (1986), and C & K Lord, Inc. v. Carter, 74 Md.App. 68, 78 , 536 A.2d 699 (1988). In Carter, supra, the pertinent provision of the release involved stated: Plaintiff agrees that his right to recover damages from C & K Lord, Inc. is hereby reduced to the extent of the pro-rata share of the settling defendants of the damages of the Plaintiff recoverable against C & K Lord, Inc. should any of the settling defendants be found jointly liable to Plaintiff with C & K Lord, Inc. (emphasis added). Similarly, in Allgood the release read in part: Plaintiff agrees that her right (individually and as mother and next friend of Gary Lyon) to recover damages from Jayfro Corporation is hereby reduced to the extent ⁴⁹ of the pro-rata share of the settling defendants of the damages of the Plaintiff recoverable against Jayfro Corporation should any of the settling defendants be found jointly liable to Plaintiff with Jayfro Corporation.

(emphasis added). Not surprisingly, the courts in both cases held that, as both releases conditioned the contracted-for reduction on a judicial finding of