The plaintiff-appellee Jones filed this action as an adversary proceeding arising out of a Chapter 11 bankruptcy. The plaintiff initially sued three entities: (1) Production Services, Inc. (PSI); (2) Otis Engineering, Inc. (Otis); and (3) Wilson Industries, Inc. (Wilson or defendant). The dispute between the plaintiff and Wilson arose out of drilling operations at the plaintiff’s oil well. Initially, the plaintiff retained PSI as a consultant and supervisor to recomplete the well. PSI began work on the well in March of 1979. PSI cleared the well of shale bridges; however, the well continued to bridge over. PSI then ordered Otis to the well site to dislodge the shale bridges.
Otis first attempted to сlear the well with the use of a coil tubing unit. This effort proved to be unsuccessful. Otis then employed a milling device known as a dyna-drill 1 to attempt to clear the well. After a short period of drilling, the dyna-drill became stuck in the well. (Tr. XXXI, 101). A “fishing” job was required to remove about 11,700 feet of coil tubing and the dyna-drill from the well.
Wilson was employed to fish the coil tubing and the dyna-drill from the well. (Id. at 114). Wilson was successful in retrieving a large portion of the tubing. It then advised PSI and the plaintiff that it would be difficult to fish out the remaining tubing due to the conditions of the well. The plaintiff, however, with the advice of PSI, decided to attempt to mill up the remaining tubing in the well with the use of а flat-bottom mill. (Id. at 106-07, 247). This was unsuccessful, and the mill was removed from the well. Shortly after removal, it was discovered that the mill had separated from the shaft body and had remained in the well at about 11,000 feet. (Id. at 110).
Wilson spent the next twenty-one days attempting to fish the severed mill from the well. The task was eventually successful. However, the operation at the well was subsequently shut down due to the loss of circulation. (Id. at 115-17). The plaintiff then filed a Chapter 11 petition in bankruptcy.
Pursuant to the then Interim Rules implementing 28 U.S.C. § 1471(c), the plaintiff sued PSI, Otis, and Wilson in an adversary proceeding. The plaintiff sought recovery for the cost of the fishing jobs and damagе to the well. 2 The initial complaint alleged counts of negligence and breach of contract as to PSI, and negligence and manufacturer’s products liability as to Otis and Wilson. The plaintiff, however, dismissed the negligence count against PSI in *1135 his Amended Pretrial Order for the first trial. 3 (Tr. II, 382).
On the day of the first trial, PSI settled with the plaintiff for $100,000 and a release of its claim filed in the bankruptcy proceeding for services performed at the well site. (Tr. XXIV, 3-4). The trial proceeded against Otis and Wilson. The jury was unable to agree upon a verdict and a mistrial was declared. Before the second trial, Otis settled with the plaintiff for $125,000 and a release of its claim in bankruptcy. (Tr. XXXI, 5). The trial then proceeded against Wilson as the sole defendant.
The jury returned a verdict in the plaintiffs favor for $265,000. Wilson’s counsel then moved the bankruptcy court to reduce the verdict by the amounts paid in settlement by PSI and Otis pursuant to Okla.Stat. tit. 12, § 832(H) (1981) (Okla. Contribution Statute). (Tr. XXXI, 670). The court denied Wilson’s motion but did offset the amount of Wilson’s claim for services against the verdict.
4
The parties then agreed to a direct appeal to this court from the final judgment of the bankruptcy court pursuant to 28 U.S.C. § 1293(b) of the 1978 Bankruptcy Code.
See Berg v. Shannon (In re Shannon), -
Wilson contends on appeal that the bankruptcy court lacked subject matter jurisdiction to hear the state negligence and products liability claims against it. Wilson further says that the court erred in failing to enforce an exculpatory clause in the contract between it and the plaintiff. Wilson finally argues that the court erred in failing to reduce the judgment against it by the amounts paid in settlement by PSI and Otis.
I
Wilson contends that the bankruptcy court could not constitutionally exercise jurisdiction over the statе negligence and products liability claims. It bases its argument on
Northern Pipeline Construction Co. v. Marathon Pipe Line Co.,
In the present case, all of these considerations militate against the retroactive application of our holding today. It is plain that Congress’ broad grant of judicial power to non-Article III bankruptcy judges presents an unprecedented interpretation of Article III. It is equally clear that retroactive application would *1136 not further the operation of our holding, and would surely visit substantial injustice and hardship upon those litigants who relied upon the Act’s vesting of jurisdiction in the bankruptcy courts.... We hold, therefore, that our decision shall apply only prospectively.
Id.
at 88,
Wilson argues that we should apply the Northern Pipeline decision to- all cases pending at trial level, on appeal, or in which no final order had been entered as of June 28, 1982, the day of the Supreme Court’s decision. (Appellant Reply Brief 9). The effect of this contention here would be to nullify the proceedings to date, necessitating the retrial of the case.
In deciding what the Supreme Court intеnded when it stated that the
Northern Pipeline
decision was to be applied prospectively, we begin with the decision itself. The prospective or retroactive effect of a new rule depends upon the enunciating court’s intention.
N.S.C. Contractors, Inc. v. Twin Parks Limited Partnership (In re Twin Parks Limited Partnership),
The language employed by the Court is not dispositive itself. The opinion states “that our decision shall apply only prospectively.”
In
Boise City Farmers Cooperative v. Palmer,
Such a result is supported by the reasons given by the Court for the prospective effect of its decision in
Northern Pipeline.
Substantial injustice and hardship would surely be visited “upon those litigants who relied upon the Act’s vesting of jurisdiction in the bankruptcy courts....”
Northern Pipeline,
Wilson cites the Fourth Circuit’s decision in
1616 Reminc Limited Partnership v. Atchison & Keller Co.,
[T]his case does not present the same issue decided in Marathon. Even though the principles invoked and applied in Marathon are the same which govern the decision here, Marathon dealt with only the powers of bankruptcy judges under the 1978 Bankruptcy Act. We are concerned with the validity of a rule promulgated under the 1898 Bankruptcy Act.
Reminc,
Wilson further contends that it contested the validity of jurisdiction prior to the decision in
Northern Pipeline.
The record supports this contention. (Tr. XXXI, 607). In light of this assertion by Wilson that jurisdiction was lacking, arguably the plaintiff’s reliance on jurisdiction would be tеnuous here. However, the
Northern Pipeline
opinion makes no distinction between those cases where one of the litigants raised the jurisdictional issue before the decision and those cases where one raised the issue after the decision. It is true that Wilson is “not now before us claiming a windfall from any change in the law wrought by
[.Northern Pipeline
],”
Rem-inc,
II
Wilson asserts the court erred in concluding that the exculpatory clause in the contract between it and the plaintiff was void as against the public policy of Oklahoma. Wilson contends that Oklahoma law is to the contrary and the exculpatory clause is enforceable. We disagree.
The plaintiff originally sued Wilson in negligence and manufacturer’s products liability. (Tr. I, 4). When the plaintiff filed his motion in limine seeking,
inter alia,
to exclude the exculpatory provision of the contract, he relied on two independent bases. As to the negligence count, the plaintiff argued the clause was barred by
Mohawk Drilling Co. v. McCullough Tool Co.,
We have previously addressed this issue. In
Sterner Aero AB v. Page Airmotive, Inc.,
It is our conclusion that the disclaimer provision was not effective to bar an action based upon Manufacturers’ Products Liability as that doctrine has been defined in Kirkland v. General Motors Corp., [521 P.2d 1353 (Okla.1974)]. The Kirkland case involved an allegedly defective seat back adjustment mechanism in a 1969 Buick automobile. The Oklahoma Supreme Court decided that traditional concepts of contract law are inapрlicable in Manufacturers’ Products Liability cases. We construe this as precluding the defendants from asserting the existence of a contractual disclaimer provision as a valid defense to liability.
Id. at 713 (footnote omitted and emphasis in original).
In
Kirkland v. General Motors Corp.,
This result is further supported by the public policy rationales for products liability articulated in Kirkland and its progeny. The court in embracing products liability stated:
The burden of losses consequent upon use of defective articles is borne by those who are in a position to either control the *1139 danger or make an equitable distribution of the losses when they do occur
Kirkland,
Wilson cites
The Rucker Co. v. M & P Drilling Co.,
We conclude that the Oklahoma Supreme Court would not give effect to the attempt by Wilson to contract to limit its strict liability from injuries resulting from defects in the products it supplied. Such an exculpatory attempt is void as against the policy of Oklahoma. Hence the ruling of the Bankruptcy Court on this issue is affirmed.
Ill
Wilson finally contends that the court erred in not crediting the judgment against it by the amounts paid in settlement by PSI and Otis. 10 Specifically, the court found that Wilson’s claim was based on Okla.Stat. tit. 12, § 832(H) (1981) (Oklа. Contribution Statute). The court further found that:
The rule which prevails in Oklahoma to this date is that there is no contribution among joint tort feasors except in very limited circumstances. See Boyles v. Okla. Nat. Gas Co., et al., Old.,619 P.2d 613 (1980). The statute upon which Wilson relies is in derogation of the common law rule and therefore must be strictly construed. See Adoption of Graves, Okl.,481 P.2d 136 (1971)....
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Sub-section (H) of the statutes provides the release, covenant not to sue or similar agreement must be given to one of two or more persons liable for the same injury before it is applicable. In this case, in accordance with the supplemental pretrial order filed December 28, 1981, plaintiff sought recovеry against Production Services, Inc. on the theory of breach of contract only_ [A]ny settlement based on a contract action would not come within the purview of that statute and Wilson Industries, Inc. is not entitled to any. credit for that settlement. ...
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Under the evidence in this case, Wilson can be considered a consecutive tort fea-sor and not jointly and severally liable in tort with Otis
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Defendant, Wilson’s application for reduction of the amount of the judgment by those amounts paid in settlement by either PSI or Otis is therefore denied.
(Tr. Ill, 641-43).
Wilson’s claim is based on Okla.Stat. tit. 12, § 832(H) which provides in part:
H. When a release, covenant not to sue or a similar agreement is given in good faith to one of two or more persons liable in tort for the same injury or the same wrongful death:
I. It does not discharge any of the other tortfeasors from liability for the *1140 injury or wrongful death unless its terms so provide; but it reduces the claim against others to the extent of any amount stipulated by the release or the covenant, or in the amount of the consideration paid for it, whichever is the greater ...
The statute upon which Wilson relies is in derogation of the common law rule on contribution as the trial court correctly noted. However, Oklahoma statutes in derogation of the common law are to be liberally construed to give full effect to the purposes of the statute.
11
Okla.Stat. tit. 25, § 29 (1981);
see Terry v. Edgin,
Section 832(H) is essentially a direct codification of § 4 of the Uniform Contribution Among Tortfeasors Act of 1955, 12 U.L.A. 98 (1955 revised act).
See Cleere v. United Parcel Services, Inc.,
Essentially three conditions must be satisfied before § 832(H) may apply. First, there must be a release or covenant not to sue given to one of two or more persons. 12 Second, the multiple parties must be liable in tort. Third, they must be liable for the same injury.
The trial court concluded that because the plaintiff settled with PSI in the disposition of a breach of contract action, Wilson would not bе entitled to any credit for the settlement. This theory seems sound because for the statute to apply, liability must be in tort. However, turning to the allegations as framed on the Amended PreTrial Order, we find that although the contentions are labeled as contract, they actually sound in tort. 13 The plaintiff’s contentions were:
The defendant, PSI, breached its contract with this plaintiff in the following manner, to-wit:
1. Failing to keep a rigid cost accounting or make required reports.
2. Failing to insure that there was an individual on the well site supervising *1141 operations when diligence of a prudent engineer would have required it.
3. Turning control of the well over to a third party who cоnducted operations in an imprudent manner.
4. Failure to provide experts sufficiently knowledgeable in high pressure gas operations.
5. Failure to perform the contract in the workmanlike manner of one skilled in working deep gas wells.
(Tr. II, 384).
On facts remarkably similar to these, the Oklahoma Supreme Court has held that although the transaction complained of had its origin in contract, the breach of duty complained of was in tort.
Jackson v. Central Torpedo Co.,
The question before the court in Jackson was whether to apply the two year tort statute of limitation, which would bar the action, or the three year contract statute of limitation which would not. The plaintiffs argued that the action was based upon the contract of employment to shoot the well and thus should be governed by the statute of limitations for contracts.- Id. at 427. The Oklahoma Supreme Court concluded that although the contract was the origin of the relationship of the parties, the gravamеn of the action was in tort and affirmed the trial court’s dismissal of the petition stating:
[N]o cause of action arose by reason of a breach of the contract. The defendant was attempting to perform the contract, but performed it in an unskillful and negligent manner, and the injuries resulting were not the result of a breach of contract, but the result of negligence on the part of the defendant in the performance of the contract.
Id. at 428. The plaintiffs allegations here are essentially that in attempting to perform the contract, PSI conducted itself in an unskillfull and imprudent manner. Thus, although the source of the relationship between the plaintiff and PSI was the contract, the duty itself was grounded in the principles of tort law.
Other jurisdictions which have addressed analogous situations under the Uniform Contribution Among Tortfeasors Act have also looked past the bare allegations to identify the nature of the action.
14
In
Loh v. Safeway Stores, Inc.,
In
Wolfe v. Ford Motor Co.,
We believe
Jackson
states the law in Oklahoma. We further feel that the Oklahoma Court would find the reasoning in
Loh
and
Wolfe
persuasive. The Uniform Act does not require that multiple tort-feasors be liable under the same theories of recovery.
See Cartel Capital Corp. v. Fireco of New Jersey,
Although we conclude that PSI, Otis, and Wilson are liable in tort, our analysis is not complete. We must also determine whether they are liable “for the same injury.” Okla.Stat. tit. 12, § 832(H) (emphasis added). The court did not reach this issue as to PSI; however, as to Otis, the court held that Otis and Wilson were consecutive tort-feasors and not jointly and severally liable in tort. (Tr. Ill, 643).
We believe the cases of
Anderson v. O’Donoghue,
In
Radford-Shelton,
Saint Francis hospital argued that the torts allegedly committed by it and Radford-Shelton were successive rather than joint and thus independent and consecutive acts of both defendants. Radford-Shelton, however, argued that Saint Francis hospital aggravated the plaintiffs injury.
Radford-Shelton,
Section 832(H) itself does not require that the parties act in concert in order to be liable as multiple tortfeasors.
See Applegate v. Riggall,
The plaintiff cites
Beesley v. United States,
We conclude that the court erred in not crediting the jury verdict against Wilson by the amounts paid in settlement by PSI and Otis. Our conclusion is further supported by the fact that substantially all the damages asserted against Wilson as the sole defendant were at one time asserted against all three defendants. (Tr. II, 382, 386; Tr. XXXI, 174, 196). Though part of the plaintiffs initial complaint may be construed to claim damages for injuries occurring before Wilson was called to the well, Wilson along with PSI and Otis were there when substantial damage was done.
See Applegate,
The jury was not made aware in a dollar amount of any settlement by either PSI or Otis. Wilson timely objected to the court’s failure to advise the jury of the settlements. (Tr. XXXI, 611). The court limited Wilson to discussing the settlements only for impeachment purposes of the plaintiff.
(Id.
at 17-18). Wilson was specifically ordered not to discuss any settlement amounts in the presence of the jury.
(Id.
at 19). Thus, the verdict rendered must be considered as the full amount of damages suffered by the plaintiff.
See, e.g., Price v. Wabash R.R. Co.,
Accordingly, the judgment is AFFIRMED in part, REVERSED in part, and REMANDED to the bankruptcy court with directions to credit the final judgment of $208,308.02 with the amounts of settlement paid by PSI and Otis, and to re-еnter such *1144 judgment together with interest pursuant to 28 U.S.C. § 1961 from the September 17, 1982 entry of judgment.
Notes
. A dyna-drill is a specialized hydraulic drill often used for directional drilling. The dyna-drill was used here to mill up the bridges in the well. (Tr. XXXI, 36, 98-99).
. Specifically, the plaintiff originally sought from all three defendants the expenses incurred in connection with the reworking and fishing job which were in excess of $900,000, and the reasonable value of one-half the lease of the well which was given as consideration to a third party to complete the well. (Tr. I, 4).
. At this time, the plaintiff also amended his claim for damages. He sought damages for the costs of the fishing efforts (approximatеly $900,-000) and for the recompletion or new drilling of the well (approximately $800,000) from all three defendants. (Tr. II, 382, 386).
. Final judgment was adjusted to $208,308.02 and entered September 17, 1982.
. Even assuming that § 1293(b) was repealed by implication by the Bankruptcy Amendments and Federal Judgeship Act of 1984 ("1984 Act”), Pub.L. No. 98-353, § 104(a), 1984 U.S.Code Cong. & Ad.News (98 Stat.) 341 (codified at 28 U.S.C. § 158) and § 113 of the 1984 Act,
see City Nat’l Bank of Miami
v.
General Coffee Corp. (In re General Coffee Corp.),
.Judgment was first stayed to October 4, 1982.
See, Northern Pipeline,
. Those cases are:
Insurance Corp. of Ireland v. Compagnie des Bauxites de Guinee,
. The exculpatory clause reads as follows:
WILSON INDUSTRIES, INC. does not guarantee any rental tool, any fishing tool, or any services performed in any respect. Due to the uncertain, unknown, and integral hazards under which the service of this Company is rendered and its tools are rented, WILSON INDUSTRIES, INC. assumes no responsibility for damage of any nature to wells or equipment or for injury to employees of customers. The acceptance of our tools, supplies, and/or operator service will constitute an agreement by the customer to hold WILSON INDUSTRIES, INC. and its employees оr agents harmless from liability for damage or injury arising from any cause whatsoever to wells, equipment, or employees of the customer. This condition applies equally whether our service personnel are actually operating tools, drilling rigs or equipment, or are directing operation of tools by the customer’s employees. Service of WILSON INDUSTRIES, INC. ordered at any time hereafter will be deemed and considered to be rendered under the same terms and conditions as set forth herein.
(Tr. II, 270).
. The court found there was a disparity in bargaining power between the plaintiff and Wilson. (Tr. II, 415). Wilson does not challengе this finding. The court also found that under Oklahoma law a manufacturer may not contract to limit its strict liability for injuries resulting from defects in its product. (Id.).
. After the jury returned a verdict in favor of the plaintiff for $265,000, Wilson moved the court to setoff from the judgment the amounts paid in settlement by PSI and Otis which totaled $225,000. (Tr. XXXI, 670).
. The trial court’s reliance on
In re Adoption of Graves,
. There is no requirement that the parties be joint tortfeasors in the strict sense of the word. In fact the term "joint tortfeasor” wаs deleted from the 1939 Act. 12 U.L.A. 64 (Commission’s comment).
.In the context of determining federal question jurisdiction, we are cognizant of the dictates of the Supreme Court's opinion in
Pan American Petroleum Corp. v. Superior Court of Delaware,
. A sister state’s interpretation of a uniform law is considered persuasive in Oklahoma.
See Cleere,
. We find it worth noting that the outcome in
Wolfe
was reached in a jurisdiction which strictly construes statutеs in derogation of the common law.
See Hayon,
.
Sanchez
illustrates the pitfalls of attempting to strictly construe the Uniform Act. One judge in
Sanchez
would have read "liable in tort” to mean liability founded on negligence only.
Sanchez,
. The plaintiff does not contend that Otis was not sued in tort. The Amended Pre-trial Order explicitly states that Otis was sued in negligence and manufacturer’s products liability. (Tr. II, 384-85). The court thus correctly concluded that Otis was sued in tort. (Tr. Ill, 643).
.The Radford-Shelton court defined successive tortfeasors as "those whose independent, negligent acts although severable in point of time, caused injury to the same third party.” Id. at 509.
. This result was reached before the enactment of Okla.Stat. tit. 12, § 832(H).
