Lead Opinion
We granted certiorari in Kussman v. City and County of Denver,
I.
On September 18, 1977, the plaintiff’s van collided with a fire truck owned by the City and County of Denver (city) at an intersection in Denver. At the time of the collision, Janna Gray was driving the plaintiff’s van and the plaintiff, Barbara Kuss-man, was a passenger in the van. The plaintiff commenced an action against the city in Denver District Court, alleging that the injuries she suffered in the collision were caused by the negligence of the driver of the fire truck, and that the city was liable for this negligence under the doctrine
During trial, the plaintiff gave Gray a covenant not to sue in exchange for a payment of $35,000. The jury found that the city was 51% responsible for the accident and Gray 49%. See section 13-21-111, 6 C.R.S. (1973 & 1984 Supp.). The jury also imputed Gray’s negligence to the plaintiff because the plaintiff owned the car in which she was a passenger. See Moore v. Skiles,
The city filed a motion to amend judgment, contending that it was entitled under the Act to set off Gray’s $35,000 settlement with the plaintiff from the judgment amount of $78,048. The district court denied the motion. The court of appeals reversed, holding that the city was entitled to set off the amount of the settlement under section 13-50.5-105 of the Act, making the city liable to the plaintiff for $43,048 rather than $78,048. We disagree.
II.
The question in this case is whether Gray and the city are “liable in tort for the same injury” under section 13-50.5-105 in a manner that permits the city to set off from its liability the $35,000 Gray paid in consideration for the covenant not to sue. Section 13-50.5-105 provides:
(1) When a release or a covenant not to sue or not to enforce judgment is given in good faith to one of two or more persons liable in tort for the same injury or the same wrongful death:
(a) It does not discharge any of the other tortfeasors from liability for the injury or wrongful death unless its terms so provide; but it reduces the claim against the 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; and
(b) It discharges the tortfeasor to whom it is given from all liability for contribution to any other tortfeasor.
In order to interpret the phrase “liable in tort for the same injury,” we must look at the language and policies of the Act as a whole.
The underlying purpose of the Act is to permit the equitable apportionment of damages among the tortfeasors responsible for those damages. National Farmers Union Property and Casualty Co. v. Frackelton,
(1) Except as otherwise provided in this article, where two or more persons become jointly or severally liable in tort for the same injury to person or property*779 or for the same wrongful death, there is a right of contribution among them even though judgment has not been recovered against all or any of them.
(2) The right of contribution exists only in favor of a tortfeasor who has paid more than his pro rata share of the common liability, and his total recovery is limited to the amount paid by him in excess of his pro rata share. No tort-feasor is compelled to make contribution beyond his own pro rata share of the entire liability.
The “pro rata share” of damages assigned to each tortfeasor is equal to the degree of fault assigned to the tortfeasor by the jury. § 13-50.5-103.
In our view, the Act’s policy of equitably distributing damages is best served in this case by not deducting the amount paid by Gray in settlement from the judgment against the city. The city was found 51% at fault and judgment was rendered against it for 51% of the plaintiff’s damages. Deducting Gray’s settlement figure from the judgment rendered against the city would reduce the city’s liability below its fair share as measured by fault and present the city with a windfall.
The city argues that this conclusion is incorrect because, had Gray been joined as a defendant by the plaintiff in the original suit, Gray would have been liable for 49% of the $78,048 liability of the city. Under this hypothesis, the $35,000 settlement figure, if deducted from the judgment against the city, would not be a windfall, but rather would represent Gray’s share, as a defendant, of the $78,048 in damages. The city urges the following analysis: If Gray had been joined as a defendant, the city and Gray would have been jointly and severally liable for the full $153,000 in damages. However, the city still would have been able to impute Gray’s negligence to the plaintiff. At the same time, Gray would not have been able to do so because a driver cannot impute his own negligence to a passenger-owner as a defense to the passenger’s claim against the driver for negligence. Sommermeyer v. Price,
We reject this argument. It is true that section 13-50.5-102(2) states that a tort-
Moreover, other language in the Act convinces us that a tortfeasor’s proportionate share of liability cannot be considered a “common liability” where, as here, that share of liability has been severed from the entire liability arising from the plaintiff’s injury. A “common liability” giving rise to a right of contribution exists only when tortfeasors are “jointly or severally liable in tort for the same injury.” § 13-50.5-102(1). This latter phrase denotes a situation in which each tortfeasor may be held liable for the entire damages arising from a single injury. Miller v. Singer,
In addition, not deducting the settlement amount from the judgment here comports with goals of the Act other than the equitable distribution of damages among tort-feasors. First, under the Act, joint and several liability is retained; each tortfeasor remains liable for all damages incurred by the plaintiff to the extent that other tort-feasors are insolvent or judgment-proof. § 13-50.5-103; National Farmers Union,
Refusing to deduct Gray’s settlement amount from the judgment against the city serves the Act’s overriding policy of providing full compensation for the plaintiff’s injuries. The plaintiff here was deprived of her right to collect 49% of her damages from the city because of the negligence imputed to her; simultaneously, she surrendered her right to collect those damages from Gray in exchange for $35,000.
Further, the structure and history of the Act evince an intent to encourage settlement of claims even when the settlement results in an inequitable distribution of damages among tortfeasors. The original 1939 Act, as promulgated by the National Conference of Commissioners on Uniform State Laws, provided that a settlement released the settling tortfeasor from contribution liability only if the release required the damages recoverable from the remaining tortfeasors to be reduced by the “pro rata share of the released tortfeasor.” Uniform Contribution Among Tortfeasors Act of 1939, § 5, 12 U.L.A. 58. This provision aimed at ensuring an equitable distribution of damages; the nonsettling tort-feasors would not be required to pay any portion of the settling tortfeasor’s pro rata share. Uniform Contribution Among Tort-feasors Act, Commissioners’ Comment, 12 U.L.A. 99. However, under the 1955 version of the Act adopted in Colorado, the
Despite the potential for an inequitable result, section 13-50.5-105 as it currently exists was formulated to encourage settlements. According to the Commissioners’ Comment to section 4 of the 1955 Act, plaintiffs had proved unwilling to settle under the 1939 Act because they had no way of knowing in advance the exact amount of the “pro rata share” they were giving up. 12 U.L.A. at 99. At the same time, tortfeasors were reluctant to settle if the release provided for the reduction of the claim in a fixed amount, for then they remained exposed under the 1939 Act to contribution liability in an uncertain amount. Id. Therefore, deeming the encouragement of settlements to be a more important public policy than the equitable distribution of losses among tortfeasors, the Commissioners amended the Act into its current form. Id. at 100; Sobik’s Sandwich Shops, Inc. v. Davis,
Not deducting the settlement amount from the judgment against the city promotes the Act’s goal of encouraging settlements. If the plaintiff knew that any settlement reached would be deducted from the proportionate share owed to the plaintiff by another tortfeasor, the plaintiff would be less likely to settle. Similarly, tortfeasors might refuse to settle, hoping that their just share of damages would be reduced by the settlement amount paid by another tortfeasor.
In light of the Act’s policies, we hold that a settling and a nonsettling tort-feasor are “liable in tort for the same injury” within the meaning of section 13-50.5-105 only when judgment is rendered against the nonsettling tortfeasor for an amount greater than its proportionate share of damages as measured by its degree of fault. Where a tortfeasor is found liable for an amount in excess of its proportionate share of damages, it may deduct the settlement amount paid by another tortfeasor from its liability up to the judgment amount in excess of its proportionate share of damages. However, where judgment is rendered against a tortfeasor for no more than its proportionate share of .liability, it is not eligible for deduction of the settlement amount from the judgment. Therefore, the court of appeals erred in deducting the amount paid by Gray in settlement from the judgment against the city.
Judgment reversed and case remanded to the court of appeals with directions to reinstate the district court judgment.
Notes
. The city’s third-party claims for indemnity and contribution from Gray were dismissed prior to trial.
. Under Moore v. Skiles,
. Section 13-50.5-103 provides:
When there is a disproportion of fault among joint tortfeasors, the relative degrees of fault of the joint tortfeasors shall be used in determining their pro rata shares solely for the purpose of determining their rights of contribution among themselves, each remaining severally liable to the injured person for the whole injury as at common law.
See also Act of July 1, 1985, ch. 125, 1985 Colo.Sess.Laws 575.
. Under Sommermeyer v. Price,
. We recognize that in other cases the rule we adopt today may permit the plaintiff to recover an amount greater than the total damages assessed by the jury. For example, if the plaintiff in this case had received $100,000 in settlement from Gray, this amount when combined with the $78,048 judgment against the city would have yielded a recovery greater than the plaintiffs total damages assessed by the jury. For a number of reasons, under the Act there should be no reduction of the judgment even in this situation. First, the nonsettling tortfeasor in such a case would pay no more than its proportionate share of the damages; as soon as it made any payment in excess of this amount it would be permitted to deduct the settlement amount from the judgment against it up to the amount it is required to pay in excess of its fair share of the liability. Cf. Shantz v. Richview, Inc.,
Concurrence Opinion
specially concurring:
I concur in the judgment of the court. However, I write separately to express my views regarding the applicability of the Uniform Contribution Among Tortfeasors Act (Act), sections 13-50.5-101 to -106, 6 C.R.S. (1984 Supp.), to this case and Perlmutter v. Blessing,
My analysis begins with the premise that the purpose of the Act is to permit the equitable apportionment of a claimant’s damages among the joint tortfeasors whose conduct combined to cause those damages. § 13-50-105, 6 C.R.S. (1984 Supp.). See Mountain Mobile Mix, Inc. v. Gifford,
The Act affects claimants only in three ways. First, the principle of joint and several liability is retained by the Act so that each tortfeasor is responsible to the claimant for the full amount of the judgment reflecting the fact finder’s award of damages. Mountain Mobile Mix,
The Act does not define the term “joint tortfeasor.” Prosser states that a joint tort is one in which “two or more persons may be joined as defendants in the same action at law.” W. Prosser, The Law of Torts § 47, 293 (4th ed. 1971) (emphasis added). A joint tortfeasor is defined in Black’s Law Dictionary as follows: “Where two or more persons owe to another the same duty and by their common neglect such other is injured, the tort is ‘joint.’ ” Black’s Law Dictionary 973 (4th ed. 1957) (emphasis added).
B.
With these principles in mind, I turn first to a discussion of Kussman. In my view, the threshold inquiry is whether Janet Gray (Gray) remained a joint tortfeasor with the City of Denver (City) vis-a-vis Barbara Kussman (plaintiff or Kussman) un
Kussman brought suit only against the City. The City, in turn, filed a third-party complaint against Gray in which it alleged that Gray’s negligence should be imputed to Kussman. Hence, when the City chose to submit to the jury the issues concerning Gray’s negligence and the imputation of that negligence to Kussman, it elected its remedy. In these circumstances, a joint tortfeasor may either take advantage of a legal and factual theory of imputation or claim a credit for the settlement under section 13-50.5-105, 6 C.R.S. (1984 Supp.). Having chosen the former path, the negligence of Gray was imputed to Kussman.
While the principle has never been precisely articulated by this court, it is clear that a plaintiff can never be a joint tort-feasor with regard to the plaintiff’s own damage claim. See Frackelton,
The effect of imputing Gray’s negligence is to apportion 49 percent contributory negligence to Kussman and 51 percent negligence to the remaining tortfeasor, the City. Any other interpretation of the facts and the law confuses the doctrine of comparative negligence with that of contribution. The net result is no different than a case in which the claimant herself is negligent rather than having a third party’s negligence imputed to her. I know of no authority which adopts the rule that a claimant can be characterized as a joint tort-feasor with others concerning the claimant’s damages. The logical extensión of such a holding would permit a claimant to sue himself or herself. This extension would be contrary to the generally accepted notion that a plaintiff’s negligence .relates only to a failure to use reasonable care for his or her own protection, while a defendant’s negligence relates to a lack of such care for the safety of others. American Motorcycle Association v. Superior Court,
At least one court has recognized this comparative negligence issue involving imputed negligence. In Laubach v. Morgan,
We do not deal here with such problems as imputed or vicarious liability, where negligence of two or more tortfeasors is treated as a unit, so that so far as the comparative negligence doctrine is concerned, it is the same as if only one defendant is involved.
Id. at 1074 n. 13 (emphasis added). Thus, the negligence of persons in an imputed negligence relationship ought to be treated as a unit, whether they are plaintiffs or defendants, for purposes of comparative negligence. This view is consistent with the combined negligence of defendants rule adopted by this court in Mountain Mobile Mix,
The dispute over how much money Kuss-man is entitled to receive and who shall pay what percentage is answered simply. The inquiry is resolved by a consideration of the principles of comparative negligence. Kussman is deemed 49 percent at fault. Therefore, she may only receive up to 51 percent of the damages fixed by the jury from the City, the only defendant recognized after imputation of negligence. The City cannot be forced to pay more than 51 percent of the total damages; not because of the pro rata requirements of the Act, but because of the Colorado principles governing comparative negligence.
In addition, a predicate for contribution under the Act is that two or more persons are legally liable for the same injury. I.C.I. America, Inc. v. Martin Marietta Corp.,
In summary, the imputation of Gray’s negligence to the plaintiff at the request of the City terminated the joint tortfeasor relationship between Gray and the City. Moreover, the imputed negligence does not render Kussman a joint tortfeasor. Thus, the Act is inapplicable and the City is not entitled to any credit for the amount of the settlement.
c.
In contrast to Kussman, I believe the Act applies in Perlmutter and I agree with the majority’s conclusion that the amount of the settlement should be deducted from the total damages.
At first blush, the result in Perlmutter appears to be unfair. Such is not the case, however. The judgment against Harmony Homes was $67,037. Of that amount, $44,-427 in damages were assessed as the joint and several liability against all of the joint tortfeasors. Accordingly, the claimants could have pursued efforts to collect the $44,427 judgment from just one of the joint tortfeasors. If one of those tortfeasors paid the entire joint and several judgment, that tortfeasor would have no remedy against his fellow tortfeasors absent the Act. Mountain Mobile Mix,
I am authorized to say that Justice ERICKSON joins me in this special concurrence.
. The question of whether the amount of the settlement should be deducted from the jury’s verdict or from the damage figure remaining after P.I.P. benefits, comparative negligence percentages, statutory damage limits, and other deductions or credits are considered is not an issue presented in these cases. The authorities which have addressed that question are in conflict. Compare, e.g., Truesdale v. South Carolina Highway Dep't,
For a more in depth discussion of the amount of damages the plaintiff can recover from non-settling tortfeasors after one or more tortfeasors settles with the plaintiff prior to trial, see J. Fleming, Report to the Joint Committee of the California Legislature on Tort Liability on the Problems Associated with American Motorcycle Ass’n v. Superior Court, 30 Hastings L.J. 1465, 1494-98 (1979).
