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Neves v. Potter
769 P.2d 1047
Colo.
1989
Check Treatment

*1 NEVES, individually Deanna M. and as Neves, guardian

natural of Manuel D.

III, minor, Neves, II, and Manuel D.

individually guardian and as natural duly appointed conservator of the Neves, III,

Estate of Manuel D. a mi-

nor, Petitioners, protected person, POTTER, D.O.,

Robert E. and Gilbert

Roth, D.O., Respondents.

No. 87SC373. Colorado,

Supreme Court of

En Banc.

Feb. 1989. Rehearing

As Modified Denial

March Kinnaird,

Law Firm of Kenneth D. Ken- Kinnaird, Springs, neth D. Colorado petitioners.

Cooper P.C., Mihm, Kelley, & Mick T. Mann, Denver, respondent, John R. Potter, Robert E. D.O. *2 given Wills, Manny appropriate Kirgis, Lee R. directions that and Gorsuch

Wills signs respondent, if he exhibited Springs, for Gilbert doses of codeine Colorado Roth, D.O. discomfort. Johnson, Carney Pryor, and Robert W. being A after taken to the few hours Johnson, Irving and

Carney, G. Elizabeth room, breathing. recovery Manny stopped curiae, Moran, Englewood, for amicus C. staff, hospital removing post- after The Lawyers Ass’n. Defense Colorado successfully pack, nasal resuscitated the During the course of the resuscita- child. Springer McDermott and and Gerald P. Manny had mis- tion it was discovered P.C., Steinberg, Jeffrey Springer, Den- A. takenly an adult dose of been administered ver, curiae Colorado Trial Law- for amicus morphine rather than the ordered amount yers Ass’n. Manny appeared for a child. codeine ERICKSON, however, Justice. from the incident. Later recover speech he exhibited both a defect and a granted certiorari to review the court We learning disability. mild Potter, in appeals decision Neves v. (Colo.App.1987),which affirmed The threatened to sue Eisenhower entry summary judg- the trial court’s Hospital, alleging Manny was brain respondent doctors. ment favor of damaged respiratory as a result of the executed The issue is whether a release brought morphine arrest over- specifically released the the Neves which dose. Counsel for the Neves enterеd into any Hospital Eisenhower “as well as and negotiations settlement with Eisenhower’s all other carrier, Falls Insurance insurance Glen operated liability malpractice from also agreement Company, and an was reached. doctors, to release the required part agreement specifically named in the release. were not Neves execute a release favor of the genuine there is a issue as to Because hospital. to release the whether the Neves intended Appoint- The Neves filed a Petition for through from the execution doctors ment of Conservator with the district court release, and return the of this we reverse sitting probate as a court and attached a appeals case to the сourt of with directions copy proposed of the which had to remand to the trial court for further September been executed on proceedings opinion. consistent with judge Sep- district court issued an order on 28,1978, approving petition tember and I. stated: malprac- a medical This action involves proposed compromised That the settle- brought against respondents, Drs. tice suit ment on behalf of said minor set forth Roth, by E. Potter and Gilbert De- Robert filed herein Petition be and same Neves, II, anna M. and Manuel D. individu- authorized, hereby is and said Conserva- ally, guardians as of and as conservators $17,- accept tor is directed to sum Neves, (Man- III for their son Manuel D. Neves, 000.00 for Manuel D. III in full 21, 1974, ny). April Manny, then twen- On complete settlement of and all claims old, to the ty-two months was admitted said minor and said Conservator Hospital Springs in Colorado Eisenhower Hospital, its successors and for treatment of an ear infection. assigns, any growing and all claims day, performed following surgery with out of said accident and to execute a serving Manny’s Drs. Potter and Roth release. operating attending physicians. After and (Emphasis added.) post-nasal surgery, the doctors used a pack bleeding, materially to control was left The order is different place Manny September 20 tied in when was taken to the release because the class recovery post-operative persons room. Routine or- of described sub- nurses, including stantially persons ders were issued to the broader than the class of Specifically, malpractice described the order. specific which occurred” on a September 20 release states that the Neves sufficiently specific date is identify discharged those to be comply acquit Ei- forever requirements Hospital, successors,

senhower and its [Uniform Among assigns, servants, Contribution Tortfeasors agents, principals and Act]. Hence, insurers, correctly the trial court per- ruled that *3 sons, the discharged Neves’ release the firms, corporations who are or defen- dants. any be liable of and from claims resulting malprac- ... or to result from Potter, 1335, (Colo. Neves v. 748 P.2d August, tice which occurred on or about App.1987). granted We certiorari to ad- Springs, at Colorado Colorado. question the dress of whether the form added.) (Emphasis persons, release of “all other firms or cor- porations” discharges joint tortfeasors 2, 1980, On October the Neves filed a from liability under section 13-50.5-105. malpractice respondent suit the County doctors in the El Paso District II. complaint alleged Court. The that before case, arising The issue in this from the administered, morphine overdose was differences between the terms of the re- respondents negligently placed agreement lease and the district court’s pack post-nasal way in such a authorizing agreement, order focuses Manny’s. airway blocked and induced the scope on the intended of the release. The respiratory respondents arrest. The conflict between the terms creates an ambi- summary judgment, asserting moved guity scope as to the intended of the re- September 20 release entered into lease, and causes us to determine whether between Neves and Eisenhower effec- any genuine there was issue of material tively liability released them from scope. fact as to the intended We reach arising claims from that incident. The upon grant- the issue which certiorari was Neves moved to reform the release. The ed if because it is found that the release motion, trial court denied the and entered intent, parties’ reflects then it must be summary judgment respondents’ favor whether, law, determined as a of matter April appealed 1985. The Neves provides form which for the release of “all trial court’s action to the Colorado of Court other dis- Appeals. charged respondent doctors. appeals court of opinions issued two regarding opinion, the case. Its first is- relinquishment A release is the of a 28, 1987, May sued reversed the trial right person against vested or claim to a entry summary judgment court’s be- E.g., whom the claim is enforceable. expressly identify cause the release did not Bresnahan, Trustee Co. respondents who re- were (1949). law, P.2d 499 At common and discharged. leased and whose Colorado, many years release of Potter, (Colo.App. Neves v. No. 85CA1001 joint one tortfeasor served release all May 1987). doctors E.g., tortfeasors. Cox v. Pearl rehearing, filed a motion for which was Inv. 168 Colo. 450 P.2d 60 granted. appeals The court of then with- Baker, Price v. 143 Colo. May opinion drew its and issued a new (1959); Diers, Morris v. 134 Colo. opinion affirming the trial court. (1956). The traditional rationale appeals court of stated: given for this rule was that where two or

While release before us did ex- more tortfeasors acted concert cause plicitly injury, the defendants as an the act of one became the act of name liability, action, single we hold that all and a cause with each language “any persons” participant being liable for the entire loss coupled Prosser, in a plaintiff. release when the limit- sustained Joint ing language “resulting or to Liability, result from Torts and Several Calif.L. of one have advocated that desir- The release “[t]he

Rev. plaintiff would seem to be that able rule was a surrender joint tortfeasor cause deprived never be of a action, should resulted re entire cause ‍​​‌‌​​​​​​‌‌​‌‌‌​‌​‌​​‌‌​​​​‌‌‌​​​​​​‌‌‌‌‌​​​‌​‌‍of plain- against wrongdoer аction when liability. W. leasing each tortfeasor from intentionally neither surrendered tiff has Dobbs, Owen, Keeton, Keeton & D. W. R. cause of action nor received substan- Torts Keeton on the Law Prosser and Keeton, compensation.” tially full W. W. (5th 1984); e.g., Cingora ed. at 332 § Dobbs, Owen, Keeton Prosser R. & D. Paul Marine Ins. nelli v. St. Fire & 49, at on the Torts Keeton Law § (Colo.1983). 1984). (5th ed. of release of The common-law doctrine 1, 1977, July the General Effective As- has come under wide tortfeasors abrogated sembly common law release yielding that are spread criticism as results UCATA, passage rule Colorado basis,” “harsh,” “without rational -106, 6A sections 13-50.5-101 to C.R.S. Perillo, “very J. & J. *4 unfair.” Calamari (1987 Supp.). & 1988 Section 13-50.5-105 (2d 1977); 20-3 ed. The Law Contracts § of provides of the UCATA that: Alsup v. Firestone Tire & Rubber e.g., given good When a release ... is Co., 461 101 Ill.2d 77 Ill.Dec. persons of faith to one twо or more liable (1984); Chrysler 361 v. Bjork N.E.2d injury tort same or same 146 Corp., (Wyo.1985). basis wrongful death: put by the Ohio for the criticism well (a) discharge any It does of the other v. Supreme Court when it stated Whitt liability from tortfeasors for their sever- Huchison, 43 Ohio 330 N.E.2d 678 St.2d pro rata for shares of al (1975), that: death, injury, damage, or loss unless its injustice rule of the traditional provide_ terms so frequently that acted to extin- added.) (Emphasis only of guish cause action which was par- partly compensated, though even phrase, The underscored “unless its intention. ties themselves had no such provide,” terms so at the heart of lies this very The rule also made it difficult for a dispute. Specifically, must determine we by partial Neves, executing to settle set- by claimant a claim whether doc- releasing persons Hospital tlements with several who were ument major corpo- jointly “any persons, A firms or injury. liable his these the doc- who are or liable” for cause of difficulties was rations itself, damages, “provide[d]” pursuant joint liability of a doctrine section trine 13-50.5-105, respondent grounded assuring doctors largely policy in a liability. this were released from While compensation plaintiffs, but injured Colorado, impression in a case of first paradoxically sev- which the traditional rule jurisdictions eral other have addressed the trap into a and a converted burden issue, with identical mixed results. unwary plaintiffs. (citation at 330 N.E.2d at 681 omit- jurisdic- Id. A review cases from other ted). tions reveals there are three different partic- views as to whether the release of a Many states have the com- abandoned bоilerplate along ular tortfeasor with a re- enacting release rúle a version mon-law persons, corpo- lease of “all other firms or Among Tort- of the Uniform Contribution discharges rations” all tortfeasors. There (UCATA), Act drafted feasors which was appears majority clear be neither a avoiding specific purpose jurisdictions favor one view over the inequities that resulted from adherence to among others nor a trend detectable the traditional rule. Uniform Contribu- See most recent cases. Among Act, 12 tion Tortfeasors U.L.A. (1975). place 59-62 In the traditional jurisdictions hold that a Some release rule, adopted rule ad- present UCATA similar to the one involved Keeton, dispute absolutely plaintiff vanced Professors Prosser and bars

1051 proсeeding against presumes unnamed tortfeasors. rule intended to See, e.g., Douglas v. United States Tobac persons those entities (8th Cir.1982); 791 co F.2d Mori are named or discernible from the re Corp., v. son General Motors 428 F.2d 952 lease, the “intent” rule abandons both (5th Cir.1970), denied, cert. U.S. presumptions permits fictitious (1970); 91 S.Ct. 27 L.Ed.2d 141 Doga actual intent of the to control. States, F.Supp. nieri v. United McInnis, F.Supp. at 949. (N.D.W.Va.1981); Clanton, 27 Battle v. (1975); N.C.App. S.E.2d Hassel A. Gnagey, rode 404 Pa. 172 A.2d v. The easiest of the three rules to adminis jurisdictions Other have reached ter is that which the doctors conclusion, give opposite choosing urge adopt, tous the “absolute bar” rule. language statutory “unless its terms so rule, This which a under release of provides” a narrow construction. Under “all dis view, of one tortfeasor charges tortfеasors, all has been criticized does not tortfeasors prolonging pre-UCATA legacy of unless the latter are either named in the releasing although tortfeasors specifically release or identifiable from the may releaser not have intended to release See, face of e.g., the release. Alsup v. unnamed or may tortfeasors not have re Firestone Tire & Rubber 101 Ill.2d compensation. ceived full Many courts 196, 199-200, 738, 740-41, Ill.Dec. justifiably have been critical of the “abso Hale, N.E.2d Sage *5 lute strong bar” rule. A case 256, 257, 416, Misc.2d 347 N.Y.S.2d 418 adopting this rule is found McInnis v. (N.Y.Sup.Ct.1973); Cianchetti, Beck 1 v. Co., Harley-Davidson Motor F.Supp. 625 231, 234, 417, Ohio St.3d 439 N.E.2d 420 (D.R.I.1986). Rejecting 943 both the “abso (1982); Bjork Chrysler v. Corp., 702 P.2d “express designation” lute bar” and rules 146, (Wyo.1986); 163 rule, in favor of the “intent” the court A third line of cases takes a middle road stated rejection of the “absolute bar” and holds “per that while the release of all appealing rule is sons, firms or does not simple justice as a matter of and is con- and of itself discharge joint unnamed tort- sonant approach with the consistently feasors, purpose it will if serve ‍​​‌‌​​​​​​‌‌​‌‌‌​‌​‌​​‌‌​​​​‌‌‌​​​​​​‌‌‌‌‌​​​‌​‌‍that and to by Supreme taken Court over last the extent that negotiated two decades. The tenor of [the state’s] See, the release intended it to do e.g., so. jurisprudence is to withhold from a Harley-Davidson Co., McInnis v. Motor wrongdoer a trouvaille for which it has 943, F.Supp. (D.R.I.1986); 625 957 Sellon bargained and to strip be slow to 978, v. General Corp., F.Supp. Motors away right a victim’s recover ac- (D.Del.1981); 983-84 v. Manos Trans negligence. preclude tionable To redress Airlines, Inc., World F.Supp. legal on thе arising basis of a fiction (N.D.Ill.1968) 1169-70 (applying California from the chance boilerplate insertion of law); Chakov v. Corp., Outboard Marine wording printed in a pro- form of release (Del.1981); 429 A.2d 984 Hurt v. Leather by cured one other than the defendant is by (Fla. Ins. 380 So.2d 433-34 at odds both with fundamental fairness 1980); Grizzle, Harris v. cf. together and with the threads which bind (Wyo.1979) (involving a release of judge-made tort law. [the state’s] “any opposed claims” as to a release of “all Id. at 954-55. persons, corporations”). As noted by Mclnnis, Supreme requiring court Court of Illinois expressed view parties’ adoption intent a similar concern be ascertained is a over the synthesis of the two other views. Whereas “absolute bar” rule. In Alsup v. Firestone presumes “absolute bar” rule that the Tire & Rubber 101 Ill.2d 77 Ill. intended to release all (1984), tort- Dec. 461 N.E.2d 361 the court feasors, and the “expressly designated” purpose noted that [adopting “[a] in favor the rule that abrogate gent common-law act statute was

UCATA] plaintiff given to runs date the If liberal effect were limitations from the rule.... general discovered, ‘all form and every use of release or exercise of reasonable corporations’ discovered, ... firms and diligence negli should have discharged, important pur an Trevarton, were to be Trevarton v. gence); Colo. by pose would be thwarted (1963) (parent-child [UCATA] immu persons who release of the unintended suing nity does not bar from his father son strangers contract.” were personal injuries by caused father’s 740-41, 199-200, Id. Ill.Dec. at at negligence injuries where were inflicted on to went N.E.2d at 363-64. performancе of duties related to say that parental distinguished from work legislature to abolish Rains, duties); Rains v. 97 Colo. produced an invol- common law rule that (1935) (abrogating the common P.2d tortfeasors. untary holding by that a wife could sue her law 2(c) states that a release will Section personal injuries husband caused ‘discharge any of the other operate to negligence); his Bendix-West Bradford inju- tortfeasors Co., inghouse Auto. Air Brake ry....’ We do not consider App. (permitting follows, i.e., language modifying injured party in the zone of who was dan provide,’ so should be ‘unless its terms ger product created defective but who legislative in- interpreted to allow the neither the nor ultimate consumer user nullifying the common law tendment liability theory to sue under strict and abol through the use of frustrated rule ishing privity requirement of contract un forms. what are often recovery available der which Id. at at at 77 Ill.Dec. 461 N.E.2d consumer”); “ultimate user overriding has Our concern been and will view, expressed In our concerns to be victim of tortious continue that a Alsup Mclnnis are well-founded. opportunity conduct has a fair and realistic spirit of rule violates the “absolute bar” appropriate damages. to recover The “ab- *6 the 13-50.5- UCATA and frustrates section rule is odds with this con- solute bar” at liability express goal retaining of the 105’s cern. Since the common-law rule re- joint joint It tort- provides of tortfeasors. garding the release of tortfeasors has feasors, of nor signatories who are neither Colorado; in will been abolished we not release, to a benefit contributors a windfall general by holding it now resurrect that a they bargain. Adoption which did itself, discharges in and of the rule would contravene Accordingly, do not apply tortfeasors. we UCATA, the modern but would also curb bar” in this case. the “absolute rule judiciary stripping trend of the Colorado away artificial and anachronistic barriers B. See, injured recovery by parties. to tort apply “express We also chose not to Co., e.g., v. Ins. Myer State Farm Mut. designation” rule in this case because it (common-law (Colo.1984) doctrine swings pendulum too far other intra-family immunity abrogated tort Assembly ex direction. General has arising from colli motor vehicle actions provided pressly that a release of one tort- allow, specific class of sions in order “a does not feasor tortfеasors persons those related to innocent provide.” its driver,” “unless terms so living negligent with 13-50.5-105(l)(a). nothing There is negli injured by § recover when driver’s Brochner, suggests which that a the statute releaser v. gence); Owens punctilious point patently must mathe (rejecting unjust year precision identifying every per matical two the traditional rule that malprac discharge. he limitations medical son whom intends to statute of negli legislature easily tice at could chosen to re action accrued the date have application by See, strict the of a release to those e.g., release.1 Hansen v. Col specifically named therein. It chose lett, not to. Nev. 380 P.2d meaning of the statute should be de (1963); Hale, Sage v. 75 Misc.2d 257- plain language, termined from the statute’s 347 N.Y.S.2d (N.Y.Sup.Ct. Lobato, (Cоlo.1987), 743 P.2d v. Charnes 1973). Had the Assembly General usurp legislature’s pow and we will not require express designation was a by deciding er what should have been said. prerequisite releasing joint tortfeasor, policy There are also it could adopted several considera- have a version of the argue against “express tions which des- UJOA rather than the UCATA. ignation” rule. Under the UCATA “[a] tortfeasor who enters into a settlement C.

with a is not claimant entitled to recover contributions from another tortfeasor view, In our the “intent” rule most liability injury wrongful whose nearly comports existing Colorado extinguished death is not by the settle- case effectively promotes law and most ment_” 13-50.5-102(4). Under the § purpose spirit of the' UCATA. Under statute, settling may defendant who have rule, scope general of a release is planned to seek contribution from other dependent upon the parties intent of the tortfeasors would be unable to do so if negotiated the release. Tortfeasors express designation required because who are not to the release are liability non-settling tortfeasors called on to show either that the release extinguished would not have been intended to them or that the Thus, release. the tortfeasor who settled releaser compensation has received full pro for more than his rata share of injuries sustained. Fieser v. St. Fran potential order to avoid the larger of a Hosp. Inc., cis Nursing, & School judgment would recovering be barred from Kan. 510 P.2d 145 Missouri v. pro excess of this rata share from other Crandall, (Mo.1979); 581 S.W.2d 829 Har joint tortfeasors who were not expressly Grizzle, ris v. (Wyo.1979). designated. This only ineq- result is not uitable, It rule of law that it is a but it also express frustrates the duty court’s purpose UCATA, to construe an instrument so is to “en- courage rather as to effectuate the discourage than manifest intention of settle- parties. ments.” E.g., Uniform Among Corp. Contribution Harrison Western Act, Tortfeasors 12 U.L.A. (10th Oil 662 F.2d 690 Cir. Gulf 1981); Enter., Martinez v. Continental noting It is worth that the Colorado Gen (Colo.1986). The intention of Assembly eral elected to enact the Uniform as determined the court shall Among Contribution Tortfeasors Act rath good plain rest on sense and understanding *7 Obligation er than the Uniform Joint Act of the words used and acts directed to be (UJOA). abrogate Both Acts the common- performed. E.g., Charles Tay Co. v. rule, virtually law release and are identical Ilfeld lor, (1964). 156 Colo. 397 P.2d 748 In respects in all but one: The UCATA does rules, spite general respondent discharge joint not tortfeasors “unless [the argue doctors that since the in release provide,” terms so while the UJOA release] unambiguous volved in this dispute is does not release tortfeasors “unless clear, may resort not be had to extrin expressly provide.” terms so [the release] source, sic if added.) light even that source (Emphasis sheds Those states which parties’ See, on the have enacted a form of intent. typically e.g., Radiology the UJOA require a expressly designate Corp. that v. Trinidad Area Health Prof. Ass’n, specially Inc., name or otherwise describe 195 Colo. 577 P.2d 748 discharged those tortfeasors who are ‍​​‌‌​​​​​​‌‌​‌‌‌​‌​‌​​‌‌​​​​‌‌‌​​​​​​‌‌‌‌‌​​​‌​‌‍to be vada, York, adopted Utah,

1. Six states have a version of the Uni- New and Wisconsin. Hawaii, Maine, Obligations form Joint Act: Ne- 1054 claims within the terms of the generally is correct that an did

While it interpret must unambiguous document be the driver’s automobile insur- only upon obligation con pay ed based information ance carrier its to PIP corners, is not its four such injured passenger tained within to benefits absent a always case. Parol evidence can be contrary at 869. The intent. Id. court contradict document vary used to distinguished Cingoranelli’s tort claim from party to litigation is between a when the claim, stating PIP the two her that were stranger thereto. Bard the contract and a separate and distinct. Since two distinct (10th Cir.1963); C.I.R., 318 F.2d 786 well v. claims since under the Colorado existed and Nicholas, Crystal Sugar Co. v. American Act, Reparations Auto sections Accident Cir.1941) (10th (applying Utah 477 F.2d -723, (1973 10-4-701 to C.R.S. & 1982 Johnston, law); Trust Co. v. Continentаl Supp.), could be when a tort action main- P. 1112 Green tained, recovery tort excluded losses re- Grant, (Colo.App.1981); P.2d see quired coverage, PIP paid to be under Wigmore, generally 9 J. Evidence § court that reasoned (3d Supp.). exception 1940 & This ed. simply is unreasonable to assume that accurately rule parol to evidence re executing an accident victim automobile unsympathetic position to flects Colorado’s thereby intends tort release gratuitous seek to parties ward take release PIP claims that are unrelated to agreement they advantage of an when are principles liability. tort fault agreement. to the an Such Rather, in presumed intention such a exactly is what the interdiction claims, PIP preserve case wоuld be doctors, strangers to the Neves-Eisenhow underlying since the losses their claims release, attempt accomplish. er In view and, compensable are not a tort action law, attempt to their bar admission case therefore, part not constitute would might of extraneous evidence which show any judgment subsequent- ly in that action. satisfied must fail. Id. at 869. why to the We next turn reason emphasis Cingoranelli the in adopted govern “intent” rule should be presumed releasing tent and intent of the analysis our of this case. While this party suggests that a strongly has similar em not addressed the “intent” rule with regard phasis present is appropriate releas case. to which document ing traditionally firms or corporations” “all Colorado have courts viewed discharges, regarding it has dоne so key intent as in other element situa discharges. such a release In Cin See, claims e.g., tions well. Allard Cattle Co. goranelli v. St. Paul Fire & Marine Ins. 187 Colo. Ry. v. Colorado & S. (Colo.1983), 658 P.2d 863 we held (1974) (intent very is the essence scope discharged by of claims to be claim); of an abandonment In re Dewson’s upon ascertained release was to be based Estate, 181 Colo. parties' gener intent. Id. at 865. The (cardinal construing wills is to rule ascer Cingoranelli al release involved testator); tain the intent of the Falbo v. prior to executed Colorado’s enactment Bank, Nat’l U.S. 116 Colo. and was UCATA decided under (1947)(an requirement essential of an release rule as common-law it existed intent); gift inter vivos Koscove v. Kos *8 Nevertheless, reasoning Colorado. cove, 317, 113 Colo. Cingoranelli instructive on the issue (intention a home in to make fact and ab intent. sence of any intention to live are elsewhere domicile); acquisition essential to the of a Cingoranelli stated that an Co., v. injured passenger’s Razatos Daniels & Fischer general automobile re- Store 105, (1942)(whether driver, 110 Colo. 417 lease of the of a 131 P.2d absence specific provision unequivocally property brought in- chattel to land becomes a (PIP) injury protection personal dependent upon cludes fixture is the party’s in

1055 tent); 89, Briggs, covering compensation. 60 Taylor reasons, v. Colo. For these (1936) (whether conveyance apply was we the “intent” rule and hold that purposes security only or for de absolute the release this case discharge does not intent); pends upon party’s parties Farmers Res those are who to the release Co., ervoir & Irr. Co. v. Sun Productions unless the releasers so intended. (construction (Colo.App.1986) 721 P.2d paramount

of deed is matter of with law IV. ascertaining parties). purpose of intent of Summary judgment remedy is a drastic Similarly, Supreme the United States appropriate only upon and is a clear show polestar Court has viewed intent as the to ing genuine that no issue of material facts determining ‍​​‌‌​​​​​​‌‌​‌‌‌​‌​‌​​‌‌​​​​‌‌‌​​​​​​‌‌‌‌‌​​​‌​‌‍scope of a release. In moving exists and party is entitled arenas, variety Supreme Court has judgment to a as a matter of law. Chur disdain, signaled policy its as a matter of as Co., chey Adolph 1336, Coors 759 P.2d law, give as federal for rules which (Colo.1988); well Ginter v. Palmer & preclusive agree- effect to 203, broad Thus, area, in the antitrust ments. moving party has the burden adopted straightforward has Court establishing the lack of a “[t]he triable factual party only rule ... that a releases those issue, and all doubts as to the existence he intends to release.” whom against such an issue must be resolved Corp. Research, Zenith Radio v. Hazeltine moving party. Churchey, 759 P.2d at Inc., 321, 347, 795, 810, 1339-40; U.S. 91 S.Ct. Savio, Travelers Ins. Co. v. (1971). So, too, L.Ed.2d 77 has Court (Colo.1985). These are the property looked to intent in the intellectual standards applied by appellate to be an setting. Mfg. Aro See Co. v. Convertible reviewing court when a trial court’s sum Top 377 U.S. 84 S.Ct. 12 mary judgment generally order. See J. (1964)(adopting L.Ed.2d 457 intent rule for Wicker, Moore & J. Moore’s Federal Prac cases). patent infringement ¶ tice, The Zenith (2d ed. 1987 & 1987-88 56.27[1] rejected Court the older rules which auto- Supp.); Wright, Kane, A. C. Miller & M. tortfeasors, matically joint released the see Federal Practice and Procedure § Zenith, 401 U.S. at 91 S.Ct. at or (2d 1983). ed. required express rights an reservation of In presented this case arewe them, see id. at 91 S.Ct. at ascertaining the task of because these rules “would frustrate ... upon intended to release based two doc settlements, partial thereby promote which, together, uments when read con litigation trap ... would create a [and] flict. For this must we look to the intent unwary plaintiffs’ attorneys.” at Id. expressed in the release 91 S.Ct. at 810. instrument, light considered in of the na emphasis

We believe that on ture of the claim objective and the circum ascertaining party’s intent underlying is well- stances the release’s execution. placed and should be extended to the con Cingoranelli, See 658 P.2d at 865. As earlier, struction of releases. Such a con noted the release executed purpose struction effectuates the of the Neves in favor of Eisenhower released the it hospital UCATA that retains the “any firms, tortfeasors unless the corporations releaser intend who are or potential ed to claims. More any [arising liable of and from claims over, injured plaintiff injuries ensures that an by Manny suffered while at the recovery will not be barred from Hospital].” because Eisenhower district order, he executed a release in which he unknow court’s to which the release was ingly discharged attached, and unintentionally significantly more restrictive Finally, on-going tortfeasors. it continues that it Hospi “Eisenhower released out-dated, tal, inequitable efforts to eradicate assigns, its successors and prevent rules that injured parties from re- growing all claims out of said accident.” *9 to to that it was their whom the intended release.2

The Neves assert hospital from only to the summary judgment intent Since is to be entered in liability. Neves stated an affida Manuel only genuine no issue of a where material my with attor my discussions vit that “[i]n exists, grant fact it was error to summary Southam, agents with of ney, Lynn and judgment in case. this Osteopathic, there Hospital Eisenhower genuine issues of material Because fact releasing any about never discussion was remain as to whether the Neves Hospital parties Eisenhower any other than release the doctors from liabili- company.” An its affidavit insurance ty, summary judgment should not have by Southam stated: granted respondents’ been in favor. Ac- hospital negotiator for thе ... and The cordingly, we reverse and return this case feel, opinion same myself, I share the appeals to the court of directions throughout negotiations, of our pro- remand to the trial court for further only hospi- concerned about the we were ceedings opinion. consistent with this representation on There never a tal. was that this settlement parts either of our LOHR, J., specially concurs and any way Dr. Potter or would release ROVIRA, J., joins special liability. person That from was concurrence. part of the consideration at not all. underlying re- circumstances of the The concurring: specially LOHR JUSTICE execution, by evidenced Manuel as

lease’s I concur with section II of the court’s testimony, and Southam’s indicate Neves’s opinion holds the rе- a as genuine that there is issue to whether lease in case did not those respon- the Neves intended to the to the release were unless liability. from the the dents When so I also releasers intended. concur order, Manuel’s probate court’s and Sout- summary with the court’s conclusion that respondents’ ar- testimony, ham’s and the whole, judgment granted should not have been guments are considered as a it is there a favor of Doctors Potter and Roth clear that remains factual issue since hearing ponderance" petitioners’ on is We note that after the evidence standard irrele- held, trial motion to reform the release was vant to the resolution the motion for summa- court stated: ry judgment. guardianship Moreover, denying peti- The Court’s file in the together sеttlement in its modified order during settle- reformation, with the care taken for trial tioners’ motion court hearing replete ment are with evidence upon reaching listed the documents relied and the Court intended full composed its The conclusion. list is compensation child’s con- final entire I, (1) following being documents: Exhibit mention, absolutely dition and- there is no Transcript hearing the time of held at whatsoever that [sic] inuendo or inference (2) guardianship Petition for Settle- settlement: partial such was settlement. ment; Settlement; (3) (4) Approving Order Re- respondents finding that this dis- contends lease; (5) Larry Neuropsychological Wellman’s disagree. poses of the issue. We intent Report; Evaluation Affidavit of Dr. Lo- occurred while it The trial court’s statement by vejoy. The affidavits sworn out Manuеl grant considering whether motion they Neves and counsel which state that intend- reformation, summary judg- not a motion Hospital ed to release stated that under either a ment. trial court the trial were considered court. "preponderance convincing” "clear and or determining grant In reform, whether a motion standard, petitioner failed to meet evidence” must whether the court ascertain there his burden which would allow reformation parties. mistake a mutual See Crews point in a release. out that motion We Yenter, k Colo. summary judgment the “clear and con- neither Whitlow, vincing” "preponderance of the evidence” nor Smith v. Rather, are, applicable. appropriate petitioners’ is standard affidavits our genuine view, issue of standard is whеther there probative of the mutual mistake. issue of Adolph Churchey fact. Coors such, material As the trial should have considered (Colo.1988). Thus on ruling petitioners’ when affidavits must whether remand the trial court determine Likewise, reform. the affidavits motion to genuine fact existence of a issue material reviewing the re- should also considered summary judgment. forecloses Whether judgment. spondents’ summary motion for convincing" "pre- facts meet the “clear and *10 agreement directing and material fact remain. to genuine issues of conservator $17,000 separate accept on behalf of his minor son However, presents two this case regarding scope material fact complete issues of in full and settlement the issue addressed First is minor of the release. of said and said conservator claims whether, against Hospital, under the “in- majority: its succes- by the assigns, today, sors and and all applicable held claims tent” rule growing out of accident and to to release the re- said exe- to the release Second, cute a release. and not ad- spondent doctors. majority, is the issue of by the dressed authorizing The terms of the court order by the difference be- material fact created directing payment the release and are nar- agreement the release the terms of

tween of the rower than terms release doc- authorizing court’s order and the district ument executed the Neves. Whereas remand, agreement. the issue of On agreement purported to release release parties to the release need the intent of the “any persons” and all liable mal- if the finder of fact deter- reached not be practice, provided the district court's order the district court’s order autho- mines that only for the settlement of all claims rizing agreement scope limited the hospital. The difference between the not to release the doctors. the release so as language agreement of the release and the Therefore, separately I to write discuss of the district order2 terms court’s creates importance of this additional issue of mate- an issue of material fact as to the autho- fact. rial scope rized of the release. If the effect of court order the district authorize a II, D. in his individual Manuel Neves only hospital release of the and not the capacity and as conservator of his son’s doctors,3 then the issue of whether the estate,1 and Deanna M. Neves executed an parties to the release intended that agreement purported release released need not doctors be be reached. only hospital not and its scope This factual issue of the authorized agents, “any but also release cannot without a of the be resolved be liable presentation regarding evidentiary full malpractice related to their son’s sur- surrounding negotiation circumstances gery. executing agreement, After Ma- execution of the release and the is- petition nuel D. Neves II filed a with the suance of the district court’s order. seeking aрpointment as con- district court I requesting servator of his son’s estate and Because ‍​​‌‌​​​​​​‌‌​‌‌‌​‌​‌​​‌‌​​​​‌‌‌​​​​​​‌‌‌‌‌​​​‌​‌‍view the differences between agreement agreement the terms of the release and the approval of the settlement 15-14-401, creating genuine and release. 6B C.R.S. district court’s order as See § (1987)(detailing appoint regarding power court’s issue material fact the autho- release, instruct scope I conservator to oversee a minor’s estate rized would affairs). hearing The district court held a the district court on remand to resolve this if petition. necessary on the At the conclusion of the issue first to determine it is hearing, appointed the court Manuel D. reach the intent issue discussed conservator, agree genuine majority. II as his and it Since I is- son’s remain, I authorizing the settlement sues of material fact concur in issued an order purports "malpractice which 1. Neves executed the release as conservator of cover August, September his son’s estate on 1978. He was occurred on or about at Colorado September appointed Springs, describing malprac- conservator until In Colorado." hearing approval 1978. tice to the court in the on the counsel for Manuel D. Neves II hospital just 2. The record indicates that the district court said that "the nurse involved prepared by wrong things,” presumably order was the Neves’s counsel. did some a reference morphine to the overdose. No mention was post-nasal pack. Additionally, entirely made of the The court order clear thаt the malpractice approving dent,” simply the release refers to the "acci- described in the and the any malpractice by court order includes and relies for further definition on the post-nasal pack. petition, incorporates doctors in the use of the the release. by the court that the conclusion reached

summary judgment inappropriate. *11 joins in ROVIRA

JUSTICE

special concurrence. SCHAERRER, Petitioner,

Irma L.

WESTMAN COMMISSION

COMPANY, Respondent.

No. 87SC315. Colorado,

Supreme Court

En Banc.

Feb. Poskus, Legal Society

Bernard A. Aid Denver, Denver, Metropolitan petition- er. Norman, Lirtzman,

Joan M. Nehls & Boulder, Meyrich, respondent. MULLARKEY, Justice. granted
We certiorari to determine may garnish pro- whether a creditor federally guaranteed ceeds of a student’s (GSL) student loan in order to collect an antecedent business debt owed the stu- appeals dent. We reverse the court of garnishment pro- hold that the use of state pur- cedures to attach GSL funds such pose clearly inconsistent the federal

Case Details

Case Name: Neves v. Potter
Court Name: Supreme Court of Colorado
Date Published: Mar 13, 1989
Citation: 769 P.2d 1047
Docket Number: 87SC373
Court Abbreviation: Colo.
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