Terry K. Jones and Christine Jones v. The Glenwood Golf Corporation
956 N.W.2d 138
| Iowa | 2021Background
- Terry Jones (passenger) was severely injured when a golf cart driven by his son Jeff (with permission) struck a bridge at Glenwood Golf Course; the cart is owned by Glenwood Golf Corporation.
- Terry and his wife settled with Jeff and his insurer (Liberty Mutual) for payments including an $817,500 cash component and a structured annuity; the written release discharged claims against Jeff but expressly preserved claims against Glenwood.
- Plaintiffs sued Glenwood for (1) vicarious owner liability under Iowa Code §321.493 and (2) premises liability for the bridge condition.
- The district court denied Glenwood’s summary-judgment motion that the release barred §321.493 liability; at trial the jury found Glenwood not negligent on premises, found Jeff 100% at fault, and awarded $500,000 (including $20,000 past medical).
- After applying the prior settlement credit, the court entered judgment for $0; plaintiffs moved for a new trial on damages (evidence showed past medical bills ≈ $295,463), and the court granted a new trial on damages only. Glenwood appealed to the Iowa Supreme Court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Glenwood preserved the §321.493/release issue for appellate review despite not moving for a directed verdict at trial | Jones argued the district court already ruled on the legal issue at summary judgment and preserved it | Glenwood conceded it did not renew by directed verdict but asked the Court to decide the legal issue now to avoid a needless retrial | Court exercised discretion to decide the legal issue on appeal despite the lack of a directed-verdict motion because deciding it would avoid pointless remand |
| Whether a plaintiff’s settlement/release of the driver (Jeff) extinguishes the vehicle owner’s vicarious liability under Iowa Code §321.493, even when the release expressly reserves claims against the owner | Jones argued the express reservation in the release preserved their §321.493 claim against Glenwood | Glenwood argued the release of the primary tortfeasor (Jeff) extinguished the owner’s vicarious liability under §321.493 when read with Iowa’s Comparative Fault Act (chapter 668) and precedent | Court held the release extinguished Glenwood’s vicarious liability for the damages caused by Jeff; reversed the new-trial order and remanded for dismissal |
Key Cases Cited
- Beganovic v. Muxfeldt, 775 N.W.2d 313 (Iowa 2009) (describing purpose and vicarious nature of owners’ responsibility statute)
- Smith v. CRST Int’l, Inc., 553 N.W.2d 890 (Iowa 1996) (distinguishing owner liability for alleged negligence from driver’s defenses; liability is imposed by statute)
- Estate of Dean v. Air Exec, Inc., 534 N.W.2d 103 (Iowa 1995) (similar treatment under aircraft-owner liability statute)
- Universal Underwriters Ins. v. Am. Fam. Ins. Grp., 587 N.W.2d 224 (Iowa 1998) (owner entitled to indemnity from operator when owner’s liability is vicarious)
- Biddle v. Sartori Mem’l Hosp., 518 N.W.2d 795 (Iowa 1994) (release of agent/physician extinguished hospital’s vicarious liability under Comparative Fault Act)
- Estes v. Progressive Classic Ins., 809 N.W.2d 111 (Iowa 2012) (procedural rule on reviewability of denied summary-judgment orders and preservation)
- Thomas v. Solberg, 442 N.W.2d 73 (Iowa 1989) (treating vicariously liable parties as a single party under Iowa Code chapter 668)
- Hook v. Trevino, 839 N.W.2d 434 (Iowa 2013) (discussing limits of immunity and harmonizing prior vicarious-liability cases)
