McCloskey v. Porter

No. 12314 I N THE SUPKEME C U T O THE STATE O M N A A OR F F OTN NORA MAKLE I~CCLUSKEY, I n d i v i d u a l l y and a s A d m i n i s t r a t r i x of t h e E s t a t e of JOHN M. McCLOSKEY, Deceased, P l a i n t i f f and A p p e l l a n t , DENISE GROSS PORTER, Defendant and Respondent. Appeal from: D i s t r i c t Court of t h e Fourth J u d i c i a l D i s t r i c t , Honorable J a c k L. Green, Judge p r e s i d i n g . Counsel o f Record: For Appellant : Boone, Karlberg and Haddon, Missoula, Montana. Sam E. Haddon argued, Missoula, Montana. For ~ e s p o n d e n: t Worden, Thane, Haines and Williams, Missoula, Montana. Shelton C. Williams argued, Missoula, Montana. Submitted: November 3 0 , 1972 Decided : , ttdj ~5 JAN 3 O 1973 Filed: , ! I-. Xr. J u s t i c e John Conway Harrison d e l i v e r e d t h e Opinion of t h e Court. This i s an a p p e a l from a judgment e n t e r e d i n t h e d i s t r i c t c o u r t of t h e f o u r t h j u d i c i a l d i s t r i c t , county of Missoula. Plaintiff, Nora Marie McCloskey, brought t h e a c t i o n a g a i n s t defendant Denise Gross P o r t e r , i n d i v i d u a l l y and a s a d m i n i s t r a t r i x of t h e e s t a t e of h e r deceased husband, John M. McCloskey, f o r p e r s o n a l i n j u r i e s s u s t a i n e d by each of them i n an automobile a c c i d e n t which occurred i n Missoula on May 14, 1970. T r i a l b e f o r e a j u r y began on A p r i l 1 9 , 1972. During t h e p r e s e n t a t i o n of d e f e n d a n t ' s c a s e , t h e t r i a l judge g r a n t e d d e f e n d a n t ' s motion f o r a d i r e c t e d v e r d i c t a f t e r denying p l a i n t i f f ' s o f f e r of proof r e g a r d i n g a l l e g e d a m b i g a i t y ' i n c e r t a i n agreements. From t h e judgment e n t e r e d pursuant t o t h e d i - rected v e r d i c t , p l a i n t i f f appeals. The a c c i d e n t occurred a s a r e s u l t of d e f e n d a n t ' s f a i l u r e t o s t o p h e r v e h i c l e a t a s t o p s i g n , thereby c o l l i d i n g i n t o t h e s i d e of t h e ~ c C l o s k e y s 'pickup t r u c k . Defendant's f a i l u r e t o s t o p i s n o t denied. The pickup t r u c k was turned on i t s s i d e , b u t p l a i n t i f f and h e r husband d i d n o t f e e l i t n e c e s s a r y t o c a l l an ambulance. Some f r i e n d s l a t e r took them t o S t . P a t r i c k ' s H o s p i t a l i n Missoula, where both were t r e a t e d and r e l e a s e d , I n June 1970, John McCloskey was h o s p i t a l i z e d f o r a few days w i t h neck problems which had ap- p a r e n t l y responded t o treatment by t h e time of h i s d e a t h . Over a c o u r s e of s e v e r a l months, p l a i n t i f f was t r e a t e d f o r broken o r s p r a i n e d r i b s and o t h e r i n j u r i e s . I n December 1970, t h e McCloskeys were involved i n a s e p a r a t e a c c i d e n t wherein John McCloskey r e c e i v e d i n j u r i e s r e s u l t i n g i n his d e a t h . Neither t h a t a c c i d e n t n o r t h e i n j u r i e s s u s t a i n e d t h e r e i n a r e a p a r t of t h i s l i t i g a t i o n . S h o r t l y a f t e r t h e a c c i d e n t i n q u e s t i o n , John McCloskey c o n t a c t e d t h e a d j u s t e r f o r Safeco I n s u r a n c e Company, d e f e n d a n t ' s i n s u r e r . A s a r e s u l t of s e v e r a l meetings between t h e a d j u s t e r and t h e Mc- Closkeys, t h e p a r t i e s e n t e r e d i n t o two agreements. These agreements were e n t i t l e d "Agreement and Release", one was signed by p l a i n t i f f and t h e o t h e r by h e r husband. The agreements, i d e n t i c a l p r i n t e d forms, r e c i t e d t h a t t h e p a r t i e s "* ** i n t e n d t h a t t h i s agreement s t a t e a l l terms of t h e i r mutual s e t t l e m e n t of demands made a g a i n s t John Gross", t h e f a t h e r o f defendant. A t t h e time of t h e a c c i d e n t , defendant was a minor. She was i n s u r e d under h e r f a t h e r ' s automobile i n s u r a n c e p o l i c y w i t h Safeco Insurance Company, These agreements were executed on May 28, 1970, f o u r t e e n days a f t e r t h e a c c i d e n t occurred, I n p e r t i n e n t p a r t , both agree- ments s t a t e : "(4) Claimant and Claimant's Spouse a g r e e a s follows : " ( a ) Those named i n Paragraph 1 [John Gross] a r e r e l e a s e d from a l l l i a b i l i t y r e s u l t i n g because of t h e a c c i d e n t . This r e l e a s e i s intended t o a p p l y t o l i a b i l i t y f o r o r because of p r o p e r t y damage, d e a t h , b o d i l y i n j u r i e s which a r e known t o Claimant and b o d i l y i n j u r i e s of which Claimant i s n o t y e t aware. " (Emphasis added) . Under t h e s e agreements McCloskeys were paid a t o t a l of $4,200 on t h e day t h e agreements were executed, p l u s medical ex- penses f o r a d e f i n i t e p e r i o d following t h e a c c i d e n t , n o t t o exceed certain dollar l i m i t s . I n a d d i t i o n , they were i s s u e d checks t o t a l i n g $674.60 f o r medical expenses i n c u r r e d a f t e r t h e agree- ments were signed. However, of t h a t amount a check f o r $406.90 was n o t n e g o t i a t e d , on a d v i c e of c o u n s e l . P l a i n t i f f maintained t h a t a p o r t i o n of t h e compensation r e c e i v e d was f o r p r o p e r t y damage only; t h a t i s , s i n c e two of t h e d r a f t s equaled t h e e x a c t amount h e r husband had paid f o r t h e t r u c k , chose d r a f t s were intended t o compensate t h e l o s s of t h e t r u c k only. Defendant, on t h e o t h e r hand, noted t h a t t h e agreements i n no way l i m i t t h e amount s t a t e d a s b e i n g o n l y f o r p r o p e r t y damage. Rather, t h e agreements s p e c i f i c a l l y r e f e r t o " a l l l i a b i l i t y r e s u l t i n g be- cause of t h e accident.!' p l a i n t i f f s main c o n t e n t i o n was t h a t t h e agreements do n o t p r o t e c t defendant, w h i l e d e f e n d a n t ' s main defense was t h e agreements. Numerous i s s u e s a r e r a i s e d on appeal but t h e determinative i s s u e s a r e these: (1) whether t h e t r i a l c o u r t e r r e d i n d i r e c t i n g a v e r d i c t f o r defendant, and (2) whether t h e t r i a l c o u r t c o r r e c t l y denied p l a i n t i f f ' s o f f e r of proof. Before d i s c u s s i n g t h e s e i s s u e s , we must f i r s t determine t h e e f f e c t of t h e agreements signed by p l a i n t i f f and h e r husband when only t h e defendant's f a t h e r ' s name appears on t h e f a c e of each agreement. Section 31-131(b), R,C.M, 1947, provides t h a t t h e negligence of a minor s h a l l be imputed t o t h e person signing t h e a p p l i c a t i o n f o r a d r i v e r ' s l i c e n s e , making t h a t person j o i n t l y and s e v e r a l l y l i a b l e f o r any damages caused by t h e minor. John Gross had signed defendant's a p p l i c a t i o n , and, by s t a t u t e , would b e l i a b l e f o r damages caused by h i s daughter's negligence. P l a i n t i f f argues t h a t negligence, being a l e g a l word of a r t , cannot e x i s t u n t i l i t i s determined by a t r i e r of t h e f a c t s ; t h a t i s , s i n c e defendant had n o t been adjudged n e g l i g e n t by a judge o r j u r y , she cannot t a k e advantage of t h e s t a t u t e , P l a i n t i f f ' s argument i s c i r c u l a r ; i f a j u r y was t o determine t h a t defendant was indeed n e g l i g e n t , t h e s t a t u t e would absolve h e r through h e r f a t h e r ' s r e l e a s e , t h e r e s u l t of which i s discussed l a t e r i n t h i s opinion. On t h e o t h e r hand, i f a juryd&rmined she was not n e g l i g e n t , t h e r e s u l t would be the same. Moore v , Jacobsen, 127 Mont. 341, 263 P,2d 713. The t h r u s t of p l a i n t i f f ' s argument i s t h a t s i n c e John Gross could not be j o i n t l y and s e v e r a l l y l i a b l e f o r t h e damages caused by t h e negligence of defendant u n t i l a f t e r h e r negligence was j u d i c i a l l y determined, t h e r e l e a s e of John Gross does not r e l e a s e defendant. I n o t h e r words, Gross and defendant were n o t j o i n t t o r t f e a s o r s a t t h e time t h e r e l e a s e s were signed. That view misses t h e p o i n t . I f , i n f a c t , a j u r y d i d f i n d defendant n e g l i g e n t , she would n o t be n e g l i g e n t from t h e d a t e of t h e j u d i - c i a l determination, b u t r a t h e r from t h e d a t e of t h e t o r t . Sleeper v. Woodmansee, 1 C.A.2d 595, 54 P.2d 519, 521, 1 Any r e l e a s e of defendant o r h e r f a t h e r would d a t e back t o t h e a c c i d e n t , n o t t o t h e d a t e t h e j u r y found h e r n e g l i g e n t . Having found t h a t John Gross was j o i n t l y l i a b l e w i t h de- f e n d a n t , we proceed t o t h e e f f e c t of t h e r e l e a s e s . Does a r e l e a s e of Gross, r e l e a s e t h e defendant? Yes, i t does. I n Montana, t h e r u l e h a s long been e s t a b l i s h e d t h a t t h e r e l e a s e of one j o i n t t o r t - feasor releases the others, unless there a r e c l e a r provisions i n the release t o the contrary. Black v. Martin, 88 Mont. 256, 266, 292 P. 577; L i s o s k i v. Anderson, 112 Mont. 112, 117,118, 112 P.2d 1055; Beedle v. Carolan, 115 Mont. 587, 590, 148 P.2d 559. L i s o s k i was an automobile p e r s o n a l i n j u r y c a s e , There p l a i n t i f f was a passenger i n a t a x i c a b owned by t h e defendant. The t a x i c a b was involved i n an i n t e r s e c t i o n c o l l i s i o n w i t h a n o t h e r c a r belonging t o Glasgow Motors. P l a i n t i f f signed an instrument s p e c i f i c a l l y r e l e a s i n g Glasgow Motors and " a l l o t h e r persons *** from a l l claims". P l a i n t i f f urged she be allowed t o show t h a t t h e r e l e a s e was n o t intended t o cover t h e defendant. Answering t h a t argument, t h i s Court s a i d : II The language could n o t be more p l a i n t o show t h e i n t e n t i o n t o make t h e r e l e a s e o p e r a t e a s t o a l l h e r claims a g a i n s t a l l persons which would i n c l u d e t h e s e defendants. 11 W b e l i e v e t h e language of Clause (4) of t h e two "Agreement e and el ease" documents i n t h e i n s t a n t c a s e t o be no l e s s p l a i n q 6 B l a s h f i e l d , Automobile Law and P r a c t i c e , 3rd Ed, 5257.52,states t h e r u l e i n t h i s manner: "The g e n e r a l r u l e t h a t , i n t h e absence of s t a t u t e , t h e r e l e a s e of one t o r t - f e a s o r e x t i n g u i s h e s and d i s c h a r g e s t h e l i a b i l i t y of o t h e r t o r t - f e a s o r s a p p l i e s where a motor v e h i c l e s a c c i d e n t occasions an i n j u r y . It h a s been h e l d t h a t t h e amount p a i d f o r t h e r e l e a s e i s n o t m a t e r i a l o r open f o r q u e s t i o n provided i t h a s been accepted i n f u l l s a t i s f a c t i o n and d i s c h a r g e of t h e claim. The r u l e t h a t a r e l e a s e of one o p e r a t e s a s a d i s c h a r g e of a l l l i a b l e f o r t h e i n j u r y i s based on t h e view t h a t a r e l e a s e and d i s - charge c o n s t i t u t e a s a t i s f a c t i o n of t h e claim, 1: Mere, t h e r e i s no mention i n t h e r e l e a s e agreements of any r e s e r v a t i o n r e g a r d i n g p o s s i b l e f u t u r e a c t i o n a g a i n s t defendant, a s opposed t o an a c t i o n a g a i n s t h e r f a t h e r . C e r t a i n l y , i t cannot be a s s e r t e d h e r e t h a t Clause ( 4 ) , h e r e t o f o r e quoted, should be given any meaning d i f f e r e n t from t h e p l a i n import of t h o s e words. In L i s o s k i , t h i s Court s a i d : "* + * t h e r u l e i s t h a t t o s a v e t h e r i g h t : of r e c o u r s e a g a i n s t t h e o t h e r f e a s o r s , t h e r e l e a s e must b e i n t h e n a t u r e of a covenant n o t t o sue o r t h e r e must be words i n t h e r e l e a s e which show t h a t i t i s n o t i n f u l l s a t i s f a c t i o n of t h e c l a i m and t h a t he [ c l a i m a n t ] does n o t thereby d i s c h a r g e t h e o t h e r s from liability." Here, w e do n o t f i n d t h e r e l e a s e agreements contained any such covenants, Furthermore, t h e d r a f t s by which p l a i n t i f f and h e r husband were paid a l l r e c i t e on t h e back of each t h e s e words: II By endorsement h e r e o f payee hereby r e l e a s e s a l l claims a r i s i n g o u t of t h e occurrence r e - f e r r e d t o on t h e f a c e hereof a g a i n s t 1I Safeco Insurance Company of America "and, where a p p l i c a b l e , i t s i n s u r e d . " Tn and of i t s e l f , such a statement on t h e r e v e r s e of a check would be s u s p e c t . But,when coupled w i t h t h e c l e a r and unambiguous language of t h e r e l e a s e agreements, t h e i n t e n t i s obvious. We f i n d i t d i f f i c u l t t o a l l o w p l a i n t i f f t o endorse f i v e d r a f t s b e f o r e r a i s i n g q u e s t i o n s concerning t h e e f f e c t of t h e language appearing on them. T h i s Court h a s considered such r e l e a s e s and t h e i r e f f e c t many times. Black v. Martin, 88 Mont. 256, 292 P. 577, p r e s e n t s a l e a r n e d and a u t h o r i t a t i v e account of t h e law concerning r e l e a s e s . The v a l i d i t y of t h e r u l e s s t a t e d i n Black h a s r e p e a t e d l y been affirmed. I n Chisholm v. Vocational School, 103 Mont. 503, 511, 64 P.2d 838, we s a i d : h he v o l u n t a r y payment of a d e b t by one n o t l e g a l l y l i a b l e t o do so n e v e r t h e l e s s e x t i n g u i s h e s the debt a s t o the c r e d i t o r 9 ; ** and t h e r e s u l t i s t h e same where one of two j o i n t t o r t - f e a s o r s pays t h e damages claimed. ** JC "1n a c a s e such a s t h i s , i f t h e two p a r t i e s t o whom t h e i n j u r e d person looks f o r compensation a r e j o i n t t o r t - f e a s o r s , where t h e i n j u r e d person a c c e p t s f u l l s a t i s f a c t i o n o r what t h e law con- s i d e r s such *** i t i s a b a r t o an a c t i o n a g a i n s t the other ** * *". W b e l i e v e t h a t r u l e t o be c o r r e c t l y s t a t e d . e See a l s o : Tanner v. Bowen, 34 Mont. 121, 124, 85 P. 876. A s t o t h e determinative i s s u e s : P l a i n t i f f , i n h e r o f f e r of proof, contended she should n o t be bound by t h e r e l e a s e s , She o f f e r e d t o show, by o r a l testimony, a s i t u a t i o n d i f f e r e n t than t h a t appearing on t h e f a c e of t h e "Agreement and ele ease" forms, She argues f u r t h e r t h a t t h e v a l i d i t y of t h e agreements was i n dispute. P l a i n t i f f r e l i e s upon s e c t i o n 93-401-13, R.C.M, 1947, regarding when evidence o t h e r than t h e c o n t e n t s of a w r i t t e n agreement may be introduced; and, s e c t i o n 93-401-17, R.C.M. 1947, n o t i n g t h a t surrounding circumstances should be considered, At t h e same time, p l a i n t i f f contends t h a t one of t h e agreements was t o cover t h e damage t o t h e t r u c k , and t h e o t h e r medical expenses and h e r " d i f f i c u l t y " up t o t h a t time. That argument, however, goes merely t o t h e scope of the agreements, n o t t h e i r v a l i d i t y . P l a i n t i f f a l s o claims t h e i s s u e of fraud was r a i s e d i n t h e o f f e r of proof. W do not f i n d t h a t i s s u e r a i s e d , nor can i t now be e r a i s e d on appeal. W note t h a t p l a i n t i f f ' s o f f e r of proof came a t t h e end e of t h e c a s e , and a f t e r defendant had made a motion f o r a d i r e c t e d verdict. The o f f e r of proof purported t o show p l a i n t i f f was not bound by h e r r e l e a s e because: (1) she d i d not i n t e n d t o r e l e a s e Denise Gross; (2) t h e r e l e a s e was intended t o cover j u s t property damage, medical b i l l s , and pain and s u f f e r i n g t o t h e d a t e of t h e r e l e a s e ; (3) she was a l l e g e d l y t o l d t h a t even i f she signed a r e l e a s e she would be a b l e t o b r i n g a lawsuit w i t h i n t h r e e y e a r s ; (4) Safeco f a i l e d t o pay a l l t h e b i l l s i t was r e - quired t o pay under t h e terms of t h e r e l e a s e . W f i n d no e r r o r i n t h e t r i a l c o u r t ' s d e n i a l of t h e o f f e r e of proof. Here, a p r e t r i a l order was prepared and executed by counsel; p l a i n t i f f made no contentions a t t h e p r e t r i a l s t a g e a s t o h e r competency, a s t o fraud o r mistake o r lack of c o n s i d e r a t i o n for the release. These a r e a l l a f f i r m a t i v e matters which should have been r a i s e d a s contentions a t p r e t r i a l and t o r a i s e them when she d i d , was too l a t e . P l a i n t i f f r e l i e s upon t h e r e c e n t c a s e of L i t t s v . P i e r c e County, 5 Wash.App. 531, 488 P.2d 785, 790, and a s k s t h i s Court t o adopt t h e r u l e s e t down i n t h a t c a s e . W d e c l i n e t o c o n s i d e r e t h i s authority f o r f a c t u a l l y i t i s not applicable. In Litts, t h e p l a i n t i f f was i n j u r e d i n a two c a r a c c i d e n t a t an i n t e r s e c t i o n of two r o a d s maintained by t h e county. S u i t a g a i n s t t h e adverse d r i v e r was s e t t l e d and s u i t was then i n s t i t u t e d a g a i n s t t h e county, a l l e g i n g t h a t t h e i n j u r i e s r e s u l t e d from t h e n e g l i g e n t a c t s and omissions o f t h e county. The c o u r t r u l e d : It* ** we adopt t h e r u l e t h a t a r e l e a s e by an i n j u r e d p a r t y of one of s e v e r a l c o n c u r r e n t t o r t - f e a s o r s , whose o b l i g a t i o n i s s o l i d a r y , does n o t r e l e a s e the other concurrent t o r t - f e a s o r s unless i t can be e s t a b l i s h e d a s a f a c t e i t h e r (1) t h a t t h e i n j u r e d p a r t y intended t o r e l e a s e a l l t o r t - f e a s o r s o r (2) t h a t t h e r e l e a s e c o n s t i t u e d s a t i s - f a c t i o n of t h e o b l i g a t i o n . l I Here, t h e t r i a l c o u r t d i s t i n g u i s h e d L i t t s , where t h e r e were s e p a r a t e independent a c t s of negligence by two s e p a r a t e a c t o r s producing t h e i n j u r y , and t h e i n s t a n t case. Even i f w e were t o adopt t h i s r u l e , t h e h o l d i n g would b e t h e same f o r only one a c t , n o t two independent a c t s of n e g l i g e n c e , produced the injury. F u r t h e r , t h a t r u l e i s n o t c o n s i s t e n t w i t h Montana T h i s Court i n Webber v. K i l l o r n , 66 Mont. 130, 132, 212 P. 852, s a i d i t i s elementary: "* * fc t h a t when a c o n t r a c t h a s been reduced t o w r i t i n g t h e c o n t e n t s of such w r i t i n g cannot be added t o , c o n t r a d i c t e d , a l t e r e d , o r v a r i e d by par01 o r e x t r i n s i c evidence, and t h a t such w r i t i n g supersedes a l l o r a l n e g o t i a t i o n s concerning i t s m a t t e r which preceded, accompanied, o r l e d up t o i t s execution. I I See a l s o : West River Equip. Co, v . Holzworth, 134 Mont. 582, 588, 335 P.2d 298; United S t a t e s v. W i l l a r d E , F r a s e r Co., 308 F.Supp. 557, a f f ' d 459 F.2d 483. There must be some p o i n t a t which a p r o p e r l y executed r e l e a s e , accompanied by adequate c o n s i d e r a t i o n , i s immutable. The s i t u a t i o n h e r e seems t o i n d i c a t e t h a t p l a i n t i f f became d i s - s a t i s f i e d w i t h t h e "Agreement and Release" forms a f t e r t h e y were executed. But t h e f a c t remains t h a t t h e instruments were signed and l a t e n t d i s c o n t e n t cannot be grounds f o r a l t e r a t i o n of t h e i r e x p r e s s terms. Therefore, we f i n d t h e r e l e a s e s were v a l i d and e f f e c t i v e w i t h r e g a r d t o defendant and c o n s t i t u t e d complete s a t i s f a c t i o n o f p l a i n t i f f ' s claim. P l a i n t i f f ' s o f f e r of proof a t t e m p t i n g t o v a r y t h e express terms of t h e w r i t t e n r e l e a s e agreements was properly r e j e c t e d . F i n a l l y , we hold t h e d i s t r i c t c o u r t d i d n o t e r r i n d i r e c t i n g a v e r d i c t f o r defendant. The judgment of t h e d i s t r i c t c o u r t i s affirmed. i '---k"--~"--a- A sociate Justic ................................ Associate J u s t i c e s , Mr, J u s t i c e Haswell and M r , J u s t i c e Daly s p e c i a l l y c o n c u r r i n g : W concur i n t h e r e s u l t b u t n o t i n t h e r a t i o n a l e of t h e e m a j o r i t y opinion. I n our view, t h e r e l e a s e agreements h e r e b a r p l a i n t i f f ' s a c t i o n on two grounds: (1) t h e l i a b i l i t y of f a t h e r and daughter i s i n s e p a r a b l e and i d e n t i c a l , both i n kind and i n amount, so t h a t s e t t l e m e n t and r e l e a s e of one must n e c e s s a r i l y c o n s t i t u t e s e t t l e - ment and r e l e a s e of t h e o t h e r , and (2) r a t i f i c a t i o n of t h e r e l e a s e agreements. The r e l e a s e s h e r e b a r p l a i n t i f f ' s a c t i o n , n o t because Denise and h e r f a t h e r a r e j o i n t t o r t f e a s o r s which they a r e n o t , b u t because t h e l i a b i l i t y of each i s i d e n t i c a l , i n d i v i s i b l e , and inseparable. L i a b i l i t y of t h e f a t h e r i s imputed by s t a t u t e , wholly d e r i v a t i v e , and i n l i k e amount t o t h a t of t h e daughter. Accordingly, s e t t l e m e n t o f t h e one c l a i m must n e c e s s a r i l y i n c l u d e settlement of the other. A d d i t i o n a l l y , t h e acceptance of pa.yment and t h e conduct of t h e p a r t i e s c o n s t i t u t e s r a t i f i c a t i o n of t h e r e l e a s e s under s e c t i o n 13-325, R,C,M. 1947, which provides: II A v o l u n t a r y acceptance of t h e b e n e f i t of a t r a n s - a c t i o n i s e q u i v a l e n t t o a consent t o a l l t h e o b l i g a - t i o n s a r i s i n g from i t , so f a r a s t h e f a c t s a r e known, o r ought t o b e known, t o t h e person a c c e p t i n g . 1 1 / Associate J u s t i c e s . f