Lead Opinion
The underlying facts in the three cases which give rise to this appeal are set out in the opinion of this court in Libbey-Owens Ford Glass Co. v. L & M Paper Co.,
The appeal in this case is from an order of the District Court sustaining the separate demurrers filed by the respective defendants to the petition in an action filed by the plaintiff, Royal Indemnity Company, the liability carrier of Yale & Towne, Inc., one of the defendants in the action previously referred to. The present action was instituted for the purpose of recovering contribution from Aetna Casualty and Surety Comрany, insurance carrier for L & M Paper Company; from Iowa National Mutual Insurance Company, the insurance carrier for Phil D. Fitzwater, and from Phil D. Fitzwater individually, who was the only insured made a party to the action. In Libbey-Owens Ford Glass Co. v. L & M Paper Co., supra, however, the insured defendant was there designated as “Phil D. Fitzwater and Gerald E. Gathmann, doing business as All Makes Forklift Service.” It appears that Gerald E. Gathmann has since died, but the administratrix of his estate Roberta J. Gathmann, was not made a party defendant.
The three defеndants separately demurred to the petition of Royal Indemnity. Following a hearing on the matter, the District Court determined that each of the separate demurrers should be sustained. The court thereupon entered an order dismissing plaintiffs petition. Plaintiff’s motion for rehearing was overruled, and it then perfected its appeal to this court.
The issues in this action, raised by the separate demurrers of the above-named defendants, were whether or not there may be contribution between joint tortfeasors in Nebraska, and also whether the direct action by plaintiff against the liability insurance carriers in this case is permissible. The demurrers also allege a defect of parties defendant to the action.
This case necessitates an examination and determination of the present status in Nebraska of the frequently annouced rule that there can be no contribution between joint wrongdoers or tort-feasors, and that one of several persons who become liable to another for a wrong cannot enforce contribution from his cowrongdoers, although he is comрelled to discharge the whole or more than his share of such liability; and particularly whether that doctrine applies between parties jointly charged with mere negligence, as in the present case, rather than with willful or intentional acts. In this appeal, Royal Indemnity asserts that Nebraska ignores and disregards the historical development of the doctrine, has misinterpreted its scope and applicability, and has incorrectly applied the doctrine in the recent cases decided by this court.
The law regarding the right to contribution bеtween joint wrongdoers appears to be an offshoot from, and an exception to, the general rule of contribution. The general rule is that one who is compelled to pay or satisfy the whole or bear more than his just share of a common burden or obligation, upon which several persons are equally liable or which they are bound to discharge, is entitled to contribution against the others to obtain from them the payment of their respective shares. 18 Am. Jur. 2d, Contribution, § ,1, p. 6; Exchange Elevator Co. v. Marshall,
The history of the doctrine in Nebraska has been checkered and unclear. A detailed discussion of the histоrical development of the doctrine in Nebraska, including an analysis of specific cases, may be found in Busick, Contribution and Indemnity Between Tortfeasors in Nebraska, 7 Creighton L. Rev. 182 (1974), and Comments, The Rule Against Contribution and Its Status in Nebraska, 37 Neb. L. Rev. 820 (1958). Early cases in this jurisdiction strongly indicate that Nebraska followed English Law, and would permit contribution among joint tort-feasors where the party seeking contribution had not been guilty of intentional wrongdoing. The earliest case dealing with the problem was Johnson v. Torpy,
Since the decision of this court in Schappel v. First National Bank, supra, in 1908, there have been only two other cases in which this court has had occasion to consider and discuss the issue of contribution between joint wrongdoers. These were the cases of Tober v. Hampton,
We now consider the latest and only other opinion decided by this court which in any manner discusses the question of contribution among negligent joint tortfeasors. In the case of Farmers Elevator Mut. Ins. Co. v. American Mut. Liability Ins. Co., supra, Farmers Cooperative Association and Wilmac Construction Company entered into a construction contract under which Wilmac was to remodel and renovate the facilities of Farmers Co-op. One Strand, an employee of Wilmac, was injured оn the job and brought a negligence action against Farmers Co-op in federal District Court. Farmers Co-Op filed a third party complaint in that action against Wilmac apparently based upon a clause in the construction contract which provided: “Contractor shall further save and hold harmless the owner from any claim, liability, action, or cause of action arising out of the performance of this contract based upon the negligence of the contractor, his agent or employees.” (Emphasis supplied.) It was obviously the theory of Farmers Co-op that the negligence of the contractor, Wilmac, had caused the injury to Strand. Ultimately, Strand recovered a judgment in the amount of $200,000 against Farmers Co-op. Thereafter, Wilmac consented to entry of judgment against it on the third party claim in the amount of $272,955.74 in the federal court action. Following the judgments rendered in the federal court action, above referred to, Farmers Elevator Mutual Insurance Company and Farmers Cooperative Association brought a declaratory judgment action in the District Court for Douglas County to determine the liability of one of the defendants, Empire Insurance Company, which was the liability insurer of Wilmac, to pay the amount of the judgment in federal court on the third party claim of Farmers Co-op. Although it is possible that the- case might have quite simply been disposed of on the grounds that a clause in the insurance policy of Empire Insurance Company provided that the policy did not apply “to liability assumed by the insured under any contract or agreement,” nevertheless, the court proceeded to point out that even if that clause were ignоred, the result would still be the same since Farmers Co-op and Wilmac were joint tort-feasors. The court stated: “Both joint tort-feasors being active wrongdoers, contribution or indemnity cannot be maintained by one against the other.” Again, however, as with the case of Tober v. Hampton, supra, it is not entirely clear to what extent the issue of contribution was decisive of that case. It is equally arguable that the result in the
However, even assuming that Tober v. Hampton, supra, аnd Farmers Elevator Mut. Ins. Co. v. American Mut. Liability Ins. Co., supra, may be interpreted as authority for the rule in this state that there may be no contribution between negligent joint tort-feasors, we must now consider the question of whether justice and equity require a change in that rule.
The rationale relied upon in denying contribution among intentional wrongdoers, and apparently also the rationale applied to deny contribution in such cases as Andromidas v. Theisen Bros., supra, and Tober v. Hampton,' supra, is that it would be against public policy “to adjust equities between wrongdoers, or to allow a person to fоund an action on his own wrongdoing.” 18 C. J. S., Contribution, § 11, p. 15. However, it has been pointed out that “* * * this reason fails when the tort committed against the third party was due only to inadvertance, without any intent on the part of the tortfeasors to injure him.” Best v. Yerkes,
There remains only the need to clarify the situation in regard to the parties involved herein. A copy of plaintiff’s insurance policy does not appear in the record of this case and we are therefore unable to determine whether or not there is any contractual provision contained in that policy giving subrogation rights to the plaintiff in the event of payment of an insurance claim. However, even assuming that there is no such specific policy provision, the common law rule is that where an insurer of a joint judgment debtor jointly liable in tort for damage negligently caused discharges more than its insured’s proportionate share of the common liability, such insurer is subrograted to the right of its insured to recover contribution from the other judgment debtors. See Annotation, 75 A. L. R. at 1490, and Annotation, 171 A. L. R. at 272. Hence, Royal Indemnity must be regarded as the real party in interest to assert the right of contribution of its insured, Yale and Towne, Inc., against the joint judgment debtors of that insured. Neither Aetna nor Iowa National seriously claim that Royal Indemnity is not subrоgated to the rights of its assured, but both companies maintain that by law and the provisions of their respective liability insurance contracts, neither Royal Indemnity, nor its insured Yale and Towne, Inc., can bring a direct action against them. They point out that there is no contractual or statutory provision, or rule of court, authorizing a direct action against a liability insurance carrier, and, in fact, such a direct action violates the provisions of their respective policies, and hence their demurrers against plaintiff’s petition were properly sustained. While there are a few jurisdictions that permit direct actions against liability insurance carriers in situations such as this, Nebraska does not have a statute to that effect, or other decision or rule authorizing such direct action. The legal principle governing this situation is set out in 44 Am. Jur. 2d, Insurance, § 1575, p. 460, as follows: “As a general rule, and in the absence of a contractual or statutory provision, or a rule of court, authorizing a direct action against, or the joinder of, a liability insurer, there is no privity between an injured person and the tort-feаsor’s liability insurer, and the injured person has no right of action at law against the insurer and therefore cannot join the insured and the liability insurer as parties defendant.” Moreover, the respective insuring agreements of the defendants are set out in the record, and both policies provide that the insurance company will pay all sums which the insured shall become legally obligated to pay as damages, and also further require as a condition precedent to an action against the insurance company that “the amount of the Insured’s оbligation to pay shall have been finally determined either by judgment against the insured after actual trial * * There is also a provision in the respective policies prohibiting joining the insurance company as a codefendant in any action to determine the insured’s liability. Although it is true that the plaintiffs
Affirmed in part, and in part
REVERSED AND REMANDED.
Dissenting Opinion
dissenting.
I respectfully suggest that the majority opinion ignores the rule of stare decisis and invades the legislative arena.
Whatever doubt there may have been as to the scope of the rule in this state regarding the right of contribution among negligent joint tort-feasors, the matter was resolved and laid to rest by this court in the case of Tober v. Hampton (1965),
Approximately 20 years ago аn attempt was made to change this rule legislatively. The effort failed. So far as I have been able to determine, the rule has been changed in 28 jurisdictions. In 23 of them it was done legislatively, and only in 5 was it done by judicial decision. It occurs to me that those of us who denounce the attempts by the legislative branch of government to encroach into the executive and the judicial areas should exercise restraint by practicing what we preach. This was a proper area for legislative consideration. I refuse to join my colleagues in encroaching into the legislative arena.
