On 8 October 1992, defendant Patricia Fitzgerald Poole (“Poole”) traveled in the left lane of Peters Creek Parkway in Winston-Salem, North Carolina followed by plaintiff Kent Baity (“plaintiff’) who in turn was followed by defendant Stephen Brewer (“Brewer”). An accident occurred when Poole slowed to make a left turn and in response plaintiff slowed his car resulting in Brewer colliding into the rear end of plaintiffs car. Plaintiff suffered serious injury.
Prior to the trial of the subject action, Brewer settled with the plaintiff for fifty thousand dollars ($50,000), the limits of his insurance policy. Plaintiff in turned signed a release with Brewer and his insurance carrier, releasing them from liability but reserving the right to proceed against Brewer in order to prosecute a claim against the underinsured motorist carriers (UIM carriers). Upon the consent of all parties, the trial court relieved Brewer’s insurance carrier of its duty to defend in the subject case.
The case was tried against both defendants. The jury found Poole to be negligent, Brewer not to be negligent, and awarded plaintiff $67,500.
Poole moved that the trial court grant her a credit for the $50,000 already received by the plaintiff from Brewer for his injury. The trial court denied Poole’s motion for a credit, holding that there cannot be contribution or a credit unless there is joint liability, and since the jury found Brewer not to be negligent there was no joint liability. From this portion of the judgment, Poole appeals.
On appeal, Poole contends that the trial court erred when it failed to grant her a credit for the money paid by Brewer to plaintiff. We agree, and therefore reverse the contrary part of the judgment below.
Chapter IB of the North Carolina General Statutes, commonly known as the Uniform Contribution Among Tortfeasors Act, provides that a right of contribution exists “where two or more persons become jointly or severally liable in tort for the same injury to person or property . . . .” N.C. Gen. Stat. §1B-I(a) (1983);
see also Cox v. Robert C. Rhein Interest, Inc.,
In
Holland v. Utilities Co.,
[A] payment by any person made in compensation of a claim for a harm for which others are liable as tortfeasors diminishes the claim against the tortfeasors, at least to the extent of the payment made, whether or not the person making the payment is liable to the injured person and whether or not it is so agreed at the time of payment or the payment is made before or after judgment.
Restatement (Second) of Torts §885(3) (1982) (emphasis supplied) (citing Holland). The rule in Holland is directly on point here and mandates reversal of the portion of the trial court’s judgment denying defendant Poole a credit.
Reversed and remanded for proceedings consistent with this opinion.
