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Schneider National, Inc. v. Holland Hitch Co.
843 P.2d 561
Wyo.
1992
Check Treatment

*1 inherently alleging facts which were fidavit inconsistent with

unreliable as well as no abuse of discretion record. discern We deny Ap- decision to court’s district hearing. having a motion without pellant’s Affirmed. NATIONAL, INC., a Neva SCHNEIDER Corporation; Nation da and Schneider Carriers, Corporation, Nevada al (Defendants Third-Party Appellants — Plaintiffs), CO., Michigan Cor HITCH HOLLAND McMurry poration & and Rissler Appellees Corporation, Defendants). (Third-Party No. 91-44. Wyoming. Supreme Court 9, 1992. Dec.

Larry George Argeris B. Kehl and J. Williams, Guy, Argeris, Cheyenne, White & appellants. for Gorman, Thomas Metzke and G. John J. Sharpe Applegate, K. Steven of Hirst & Cheyenne, appellee Holland Hitch Co. Hathaway, Speight, Richard Barrett of Kunz, Barrett, Cheyenne, & Trautwein

appellee McMurry Rissler & Co. Graves,

George Santini Santini & Vil- lemez, Cheyenne, Wyoming Trial

Ass’n, Lawyers amicus curiae. THOMAS, MACY, C.J., Before *

CARDINE, GOLDEN, URBIGKIT and JJ.
URBIGKIT, Justice. legal deadly

In the aftermath of a acci- along Wyoming’s Interstate dent southern Appeals the United States Court of the Tenth certified a number of Circuit Supreme questions of law to the Complex questions of the interrela- Court. tionship comparative negligence between 1-1- legislation, Wyo.Stat. tort reform indemnity, an area of com- mon law which the States Court of United nebulous, Appeals considered are before the court.

Initially, questions presented require application controlling decision found Phillips Roofing, v. Duro-Last (Wyo.1991). Phillips publish- P.2d 834 was argument. * ChiefJustice at time of oral party seeking indemnity iii.The certification order following the

ed present passively/secondarily case. Ulti- either active- Circuit in this Tenth ques- ly/primarily negligent to the certified while the al- mately, the answers principles require policy leged choices about tions indemnitor was liable on allocating common law grounds? under warranty breach of *3 prevent liability to the actor most able Wyoming’s comparative C.If current system a adopt We future occurrences. negate negligence statute does not indemnity for comparative partial right indemnity in all of the above neg- implied situations, and the absence an equitable implied in- ligence. Traditional express indemnity: contraсt of products liabil- demnity rules are stated for Wyoming permit “pas- i. law Does liability or on strict ity actions based “secondarily” negligent sively” or ac- warranty. breach inspect tor failure to whose contribut- questions certified to Specifically, party’s injuries ed to a third obtain inquire: this court “actively” “pri- or compara- Wyoming’s A. Does current marily” negligent actors who created statute, 1-1-109 W.S. negligence tive directly responsible or otherwise were damages in requires that caused third the conditions that neg- “to recover an action party’s injuries? according to allocated ligence” be Wyoming grant ii. law either Does “percentage of fault attributable “passively” negligent ac- “actively” or actor,” liability and permit strict each indemnity against an- right tors a warranty to be considered breach of other actor who was liable the third in the manner as weighed and same injuries on strict or party’s negligence determining each actor’s grounds? warranty breach of plain- “percentage of fault” corresponding injuries and their tiff’s damages? plaintiff’s liability for I. FACTS Wyoming’s

B. If current National, Inc. Schneider permit equal statute does Schneider Carriers, (Schneider)1 Inc. negligence, operate strict lia- National consideration of warranty in bility trucking July allo- firm. On and breach an interstate determining each ac- cating fault and semi-tractor trailer Schneider an damages, does actor tor’s share zone on Inter- into a construction traveled against an- have Rawlins, Wyoming. Traffic state near actor, in the absence responsible other single into had been channeled area indemnity, in express an contract of opposite traveling in directions on lanes following circumstances: point, some shared roadbed. At separated from seeking was the semi- party i. The Schneider trailer into the secondarily negligent trailer veered oncom- passively tractor. The vehicles, lane, alleged was ac- ing indemnitor struck several while the traffic negligent; tively primarily containing four members including one family, the Horo- Englewood, Colorado seeking was ii. The Horowitz, Catherine witz’s. Bruce S. or active- passively/secondarily either Michael Brandon Horowitz Horowitz and negligent the al- ly/primarily while son, Only Brian one Scott strictly were all killed. leged liable to indemnitor was Horowitz, survived. injured party; Inc., National, Inc., corporation. These five busi corpora- an Illinois a Nevada Schneider tion, litigation. corporation For parent of: Schneider named in this is the ness entities are convenience, Inc., corporation; Leasing, a Nevada National will be used the term "Schneider” Inc., Carriers, a Nevada cor Schneider National collectively parent refer to the opinion Transport, poration; a Wiscon Schneider subsidiary entities. business Lines, corporation; Tank and Schneider sin Horowitz, appointed design ad- for the defective Irving Dr. J. estates, instituted a manufacture of a hitch that was unreason- ministrator against proceeding wrongful ably dangerous death at the time it was sold. Brian Scott Horo- Second, on behalf of express Schneider war- 5, 1988, (Horowitz). April Filed on safe, witz that the hitch ranties merchanta- brought in the United States action was Third, ordinary and fit for its use. ble for the District District Court manufacture, negligent design, testing, in- diversity jurisdiction, 28 federal under supply spection and of the hitch. complaint, seeking ac- U.S.C. 1332. theory indemnity recovery Schneider’s damages, alleged Schneid- punitive tual and negligence. Rissler was Schneider negligent entrustment er’s alleged duty per- Rissler breached its and trailer in operating the tractor in: form the construction work a safe and *4 condition; (2) dangerous fail- an unsafe and prudent Specifically, manner. Schneider trailer; (3) ing inspect the tractor and alleged duty provide failed in its Rissler employee; failing to hiring an unfit “non-dangerous” by-pass. traffic supervise employees conducting inspections challenged Holland and Rissler the suffi- trailer; (5) failing tractor and ciency allegations by filing of Schneider’s company policies make and enforce motion to dismiss for failure to state a and; (6) operation of vehicles entrust- safe upon granted. claim relief could which be ing the tractor and trailer to an unfit driv- 12(b)(6). Following briefing and a F.R.C.P. mixture “ac- allegations er. The state a hearing, the United States District Court “passive” negligence. forms of tive” and Wyoming granted for the District of responded wrongful Schneider third-party motion and dismissed the by filing third-party com- death action disposi- Holland and Rissler. In its Company Hitch plaint against Holland order, tion the United States District Court (Holland) McMurry Company & and Rissler stated its view of .the issues which are now (Rissler). designed, Holland manufactured this court: before (hitch) the “fifth device and sold wheel” Contrary McMurry to Rissler & Com- that connected the Schneider semi-tractor assertions, pany’s common law to the trailer. Rissler was the contractor Wyoming despite is still available in supervising highway construction repeal of contribution 1986. Session time of the crash. traffic diversion at the Wyoming, Laws of Ch. Section third-party plaintiff, Schneider As the recognized implied law in- sought indemnity against third-party years at least 47 before a defendants, Rissler, any Holland and “for to contribution was created. Miller v. they, all and losses sums Oil, Wyo. 272], 243 them, pay” New York obligated be Horo- P.[] [34 Nothing repeal wrongful (Wyo.1926). witz death action. negli- allegations implied denied all indicates that indem- Schneider contribution if gence, pled “repealed.” but the alternative that court also nity was also negligent, its McMurry Schneider was disagrees Rissler & Com- with “secondary passive” and/or while Hol- was Convoy Company pany’s assertion negligence or land’s and/or Rissler’s liabili- Dana, (Wyo.1961), ty “primary active.” If indem- was and/or theory under a of im- precludes denied, argued nity was Schneider so, indemnity. the court is plied Even fault, “negligence, liability” and/or that the Schneider defendants convinced third-party should be deter- defendants to assert indemni- are not entitled “pursuant of the State of mined laws ty in this case. third-party Wyoming” because the defen- This accident оccurred after the effec- proximate dants were the “sole and direct repeal joint date for tive several * * cause of the accident adoption pure of a form of result, comparative negligence. in- As a advanced three theories of Schneider First, demnity recovery against Holland. Schneider defendants can be liable wrongful Wyo. fault. determined at the trial of the percentage of the for their 1988). 1-1-109(c) (Supp. apportioned June proved death action and fault Stat. § not will Midway through proceeding, defendants The Schneider incorrect. exclusively resulted fault if the accident Dis- Horowitz and Schneider settled. The fault of all product defect. from a action, underlying missed from the Holland par actors, including those are not who participants Rissler were not ties, in the verdict form. is included negligence, any, settlement. Schneider’s 1-1-109(b)(1)(A)(Supp. June judicially Similarly, never determined. circumstance, 1988). In there is such judicial of Hol- no determination was made no need land’s Rissler's fault. alleges that the Schneider de- Plaintiff settlement, After the the United States responsible are for their own fendants dismissed, prejudice, District Court with plaintiff conduct. As bases wrongful death action. Schneider then fail- entrustment and alleges negligent timely appeal filed a notice of the United inspect. allegations ure These are States District Court’s dismissal of the active, negligence. The passive, third-party complaint against Holland and trucking point to no one who companies appeal, Rissler. The before the United responsibilities. to fulfill these undertook Appeals States Court of Tenth Cir- *5 law, joint tortfeasors Under cuit, seeks to reverse United States indemnity against each oth- may not seek ruling that District Court Schneider had P.2d Convoy Company, er. 359 upon a claim which relief failed state is persuaded court that this rule The is granted.2 may be changed an active tortfeasor not when lia indemnity on theories of strict seeks warranty. See

bility and breach State II. DISCUSSION v. Company ex. Deere & District rel. questions The certified direct this court Court, P.2d Mont. Wyo- legal availability, in to address the (Mont.1986); Company, v. F Rael & S ming, of the remedies which Schneider (N.M.Ct. Inc., 94 N.M. 612 P.2d however, questions, certified seeks. The King Rental App.1979); & Johnson third- not answer whether Schneider’s will Superior Equipment Company complaint sufficient claim to (1979). party states a Court, 123 Ariz. 12(b)(6) dis- Wyo.Stat. 1-1- motion to In this court’s view a F.R.C.P. withstand 1988), com (Supp. ques- June the “fault” This in a certified miss. court’s role pared liability includes strict proceeding tion restricted. negligence. In warranty as well as Supreme may ques- Court answer inappropriate since the it by certified to a federal tions law only held Schneider defendants can be requested by certifying court when fault. That for their share liable court, any proceed- if there involved found, fault, on the will be measured question of law of this ing before it of the Schneider basis of conduct which be determinative state which no one else defendants for certifying in the pending then cause responsible. appears it to the court and as to which in original.)

(Emphasis controlling no there is certifying court the Su- in the decisions of precedent assumption States Dis- United preme Court. order that would trict Court’s especially position, those favorable to their are from the Certification of 2. The facts taken negli- ap- passive Questions might Law and the record on to active or State which refer parties peal to this answering this court. While the before a certified gence, role in this court's briefing attempted argument and in oral action to finding. question Reliance not include fact does most certain facts ‍​‌​​‌​​‌‌‌​‌​‌​​‌​​​‌‌‌​‌​​‌‌​​‌‌‌‌‌​‌​‌​‌​‌‌‌​​‍in manner characterize (B) jury 1-13- Inform the 11.01.3 of the conse- W.R.A.P. See §§ quences per- of its determination of The United through 1-13-107 centage of fault. Appeals for the Tenth Cir States Court of (ii) If a trial the court without apply Wyo before jurisdiction cuit retains fact, jury, special findings make de- ming opinion stated in this to the sub law termining damages the total amount of presented procedural stantive and issues percentage and the of fault attribut- appeal of the United parties their to each actor able whether order. B & District Court’s W States party. Glass, Mfg., Inc. v. Shield Weather (c) The court shall reduce amount (Wyo.1992). damages determined under subsection Comparative Fault— Negligence A. (b) proportion of this section in Phillips person amount of fault to the attributed recovering judgment against and enter our question directs The first certified each defendant in the amount determined 1- language Wyo.Stat. attention to the (d) under subsection of this section. 1-109, provides: (d) Each defendant is liable (a) Contributory negligence shall not proportion of the total dollar amount by any person in an action bar damages paragraph determined as under legal representative or his to recover (b)(i) (ii) percent- this section damages negligence resulting in age of the amount of fault attributed to injury person property, death or in (b)(i) (ii) paragraph him under of this contributory negligence if the of the said section. fifty percent person is not more than question, The answer to the whether (50%) Any of the total fault. comparative negligence proportion diminished in allowed shall be principles apply fault4 to theories of recov- to the amount of attributed to *6 ery based strict or breach of person recovering. warranty, by is controlled this court’s re- (b) may, request- and when The court in Phillips. Answering ques- cent decision by any party ed shall: by tions certified the United District States (i) jury If a trial: Court, Wyoming, for the District of (A) jury separate to find Direct Phillips Wyo.Stat. court held 1-1-109 § special determining the total verdicts by was “confined its text and title to ac- damages percent- amount of and the involving negligence.” Phillips, tions age of fault attributable to each actor specific language P.2d at 836. The party; operation by referring or not a and limits whether statute its U.S.A., Inc., Any by 713 P.2d 766 court. decision rendered Ins. Co. v. Chevron a district 1986). may by (Wyo. court under this section be reviewed supreme through provi- court sions for writ of rеview. Rule 13. substantially changed 3. W.R.A.P. 11.01 has been include, court, in addition to the federal opinion in 4. A distinction is made between by process for certification a state district court. "comparative negligence” the terms and "com 11.01, 1, 1992, W.R.A.P. effective November “Comparative parative negligence" fault.” de states: change by legisla fines the doctrinal created may questions supreme The court answer of adoption principles limiting tive in of by law certified to it a federal court or a state contributory negligence the effect of and mea court, may district and a district court answer suring negligence percentage in terms for the county questions court, it of law certified to purpose reducing plaintiffs recovery of court, justice municipal peace proportion at-, percentage to the of agency, court or an administrative if there is 1-1-109(a), Wyo.Stat. tributed to that actor. § certify- proceeding involved in before the (b) (c). "Comparative principles ap fault” ing agency question court or of law which portion damage recovery among multiple or pend- be determinative of the cause then joint according percentage tortfeasors ing certifying agency in the court or and con- fault attributed to those actors after reduction cerning appears plaintiffs percentage negligence. which it there is no control- 1-1-109(d). ling precedent supreme Wyo.Stat. in the decisions of the § * * * judicial adoption comparative prin- to recover fault recovery in an action “a ** Wyo.Stat. ciples *.” for strict of war- damages 1-1-109(a) added). (emphasis scope ranty beyond of the certified questions presented to this court which arguments con Despite to the availability consider Id. (d) not be read trary, subsection should Third, policy 837-40. reflected comparative fault to ac apply isolation to system present Wyoming’s of tort law negligence. Every subsec other than tions allowing best served alternаtive theories a statute “must be read tion of directing damages toward the mean of all others ascertain context prevent the actor most able future oc- Glass, the whole statute.” B & W ing of Ogle Caterpillar currences. v. Trac- See 816; v. State P.2d at accord Gookin Co., P.2d (Wyo.1986). tor P.2d 229 Fire and Cas. Farm Ins. 1-1-109(d), by its Wyo.Stat. (Wyo.1992). C(l). Policy Wyoming The Tort Law ordinary meaning, is intended to plain and damage to a modify the available award legislative A review of the and common seeking recovery negligence. plaintiff to the policy law choices which have lead development Wyoming pro- will tort law theory of action on a A cause guidance addressing useful certified is, vide warranty breach of question regarding its subparts “C” and therefore, principles of unaffected availability of indemnity. comparative negligence or comparative Wyo.Stat. 1-1-109. Phil- stated history legislative Wyoming’s in this presented P.2d at 837. As lips, 806 adoption comparative negligence action, “A” question the answer certified comparative fault is embodied the vari- “NO.” 1-1-109. ous subsections 1973, Wyoming accepted the com- Prior to Fault Comparative The Limits of B. negli- contributory doctrine of mon law “A” question The answer to certified gence negligent plaintiff's barred question certified “B” and its sub- makes See, recovery. e.g., Greyhound Cimoli v. phrasing of certified parts moot. (Wyo.1962) Corporation, 372 anticipates principles “B” question Vukelic, 1,Wyo. Johnston comparative negligence and (1950). Only plaintiff the innocent P.2d 925 damage re- apply apportion fault would rule of tort under the recovered upon liability or *7 coveries based strict contributory negligence. Commentators warranty if indem- of and then asks the all-or- and scholars criticized doctrine’s have de- nity permitted. would be As we philosophy terming it a “chronic nothing however, termined, under Wyoming law Keeton, Page will not die.” W. invalid who application compara- rejects the of Phillips on Torts & Keeton the Law Prosser of comparative princi- nеgligence or tive 1984). (5th predeces- ed. The at 453 § Wyo.Stat. 1-1-109 to recover- ples from § (c) (a), (b) present sors of subsections upon premised or breach ies adopted 1-1-109 Wyo.Stat. of were § warranty. Phillips, P.2d at 836-37. of 806 Legislature in 1973 Wyoming the State contribu- these harsh effects of argues Phillips should be ameliorate Holland Wyo.Sess. ch. 1973 Laws Supreme tory negligence. Court Wyoming and the reversed (1975)) (codified Wyo.Stat. as 1-7.2 adopt comparative fault 28 judicially § should (amended 1986); County Board Com’rs on strict principles for of Ridenour, 623 P.2d County v. warranty. Campbell of We decline liability or breach of , (Wyo.1981). Wyoming was First, cor- 1179-80 Phillips was invitations. both adopt neg- comparative legislature, The one of ten states rectly Wyoming decided. during a year language, ligence principles plain unambiguous by its E. 1-1- of “tort reform.” Victor application Wyo.Stat. wave limited the of § 1.1 Schwartz, Comparative Negligence arising negli- out of to causes of Second, (2d 1986). ed. Phillips, 806 P.2d at 837. gence. 1-7.3(d) (1975) totally Wyo.Stat. them.” eliminate the

Wyoming did not (amended 1977) 1986). contributory negligence by adopting (repealed The stat of bar comparative negligence. pure provided joint form ute and several Instead, original enact legislature’s the ef among joint tortfeasors and stated compara accepted form of ment a modified fect of a release or covenant not to sue. Wisconsin, per negligence tive Id. negligent plaintiff recovery by a mitted not as contributory negligence “was (b) Indemnity Contribution person negligence great as the parallel provisions The 1973 contribution sought.” recovery is against whom sections Uniform Contribution (codified Wyo. ch. 28 as Wyo.Sess. Laws Act Among promulgated Tortfeasors as 1986). (amended This (1975)) 1-7.2 Stat. § the National Conference of Commissioners as language placed Wyoming a so-called Compare Laws in Uniform State Schwartz, 2.1. supra, at state. “49%” Act Among Unif. Tortfeasors Contribution Contributory operated to bar a negligence 1-2, (act (1975) U.L.A. 57 1939 §§ negligence or her plaintiffs recovery if his 1955) 1-7.3 Wyo.Stat. with withdrawn §§ equal greater negli than the to or was 1977) 1986). (amended (repealed Otherwise, gence of the defendant. incorporated Specifically into the contribu- per reduced plaintiffs recovery was retaining a provision language tion assigned centage to his right indemnity. “Nothing in this act Systems Kirby Bldg.

her conduct. v. Min * * * [a]ny right indemnity un- affects Explorations eral existing Wyo.Stat. der law.” 1-7.4 (Wyo.1985). 1977) 1986). (1975) (amended (repealed This provision is similar to section 6 (a) Contribution and Joint and Several Among Uniform Tortfeasors Contribution Liability promulgated Act 1939.5 adoption comparative negligence general its recodified brought legislative also modification laws, including procedure provi the civil statutory authority to the common law doc- (cid:127) contributory negligence. sions of joint trines of and several contribution Wyo.Sess. ch. as Along Laws with liability. recog- law did While common numbers, legislature signing new contribution, Convoy nize a see Co. language amended Dana, (Wyo.1961), lan adopted statute and new changes permitted tort- statutory guage provisions. for the contribution paid pro more than rata feasor who had comparative negligence amendment to compel share of common other jury required statute to be informed joint pay portion tortfeasors to “consequences of its determination (co- damages. Wyo.Sess. Laws ch. 67 percentage negligence.” Wyo.Stat. through dified as 1-7.3 1-7.6 §§ (1977) (amended 1986). 1—109(b)(iii) § 1 — (1975) (amended 1977) 1986). (repealed A *8 legislative The to the “joint tortfeasor” was defined as “one of amendment its for- persons jointly severally provision or or renumbered two more contribution provisions again, specific injury person in tort the same to mer liable without reference, property, judgment provisions or not of a revised adopted whether against all or some of the Uniform Contribution been recovered version of (Commissioners specifically adopt (1975) Prefatory legislature the did not Note to 1955 5. While Among Revision). Among eight jurisdictions which the Uniform Contribution Tortfeasors the revision, adoptiоn language passed Act of the from the had the 1939 Act the time significant adaptation of 1939 an unfortunate The occurred Act was choice. individual operation Uni- Act's as a uniform National Conference of Commissioners on which defeated the uniformity may the Act account form State Laws withdrew of 1939 from law. Id. This lack legislature change study the further and revision because it had re- decision of the to the acceptance. Wyoming’s text Statutes in ceived Unif. Contribution Contribution minimal Wyo.Sess.Laws Among ch. Act of 12 U.L.A. 59 1977. See 1977 Tortfeasors (50%) had cent total Wyo.Stat. Act which been fault.” Among Tortfeasors Compare 1-1-109(a). Unif. Con promulgated permitted This amendment § Among Act of 1955 plaintiff Tortfeasors contributory negligence tribution whose (1975) Wyo.Stat. 12 U.L.A. 63-64 with found to to be recover from an § 50% 1986). (1977) (repealed Under 1-1-110 (50%) equally negligent § defendant. See statute, joint revised contribution the Schwartz, supra, at 2.1. relationship existed where two tortfeasor significant legislative The more amend persons “jointly became several more comparative Wyo ment brought fault to ly injury in tort for the same liable (codi ming. Wyo.Sess. Laws ch. wrong person property or for the same Wyo.Stat. (1988)). fied as 1-1-109 The * * 1-1-110(a) Wyo.Stat. *.” ful death comparative provision, 1- Wyo.Stat. (1977) 1986). changes (repealed The includ 1-109(d), joint limited a tortfeasor’s individ attempting to language ed distin additional damage liability ual to a the proportion of guish from contribution. percent dollar “in amount of do through 1-1-110 1-1-113 not W.S. age of the amount fault attributed any right indemnity under ex- impair ” * * * to actor. (1) tortfeasor is isting law. Where one adoption fault was another, from entitled joint on the elimination indemnity obligee is for in- right of the legislature several ac- contribution, not and the demnity and complished the 1986 amendments.6 with indemnity obligor entitled to contri- is not 1-1-109; AN ACT to amend W.S. any portion obligee from bution repeal through 1-1-110 1-1-113 re- W.S. indemnity obligation.

of his lating procedure; providing that a civil 1-1-110(f) (1977) (repealed Wyo.Stat. § plaintiff in a action is entitled 1986). proportionate recovery to a of his dam- held This court the revised ages contributory negli- if plaintiffs 1986) 1—110(f) pre (repealed § 1 — gence fifty percent more than right indemnity Wyoming. served a fault; (50%) eliminating of the total v.Co. Northern Production Cities Service joint doctrine of and several (Wyo.1985). tortfeasors; among joint providing that Supreme also Court criti ex- each is liable to the defendant amendments to the contribution cized the percentage tent of of fault as com- his with lan statutes which “tinkered” pared to or not all other actors whether guage producing substantive without action; provi- parties repealing to the Builders, change. Phillips, Inc. v. ABC relating right sions contribution (Wyo.1981). 933-44 n. 7 among joint the effect to tortfeasors and (c) given release or covenant not Comparative Replaces Fault Contri- tortfeasors; joint sue one of several bution effective providing for an date. 1986, Wyoming Legislature State Wyo.Sess. ch. Laws 24. With comparative negligence again amended legislature changes, eliminated statutes. The amend- and contribution among joint tort- to contribution Wyoming to a so-called ments moved 50% by the had been assured state, contributory feasors which permitting fifty per- provisions the Uniform negligence was “not more than borrowed plaintiff pay to obtain contribution joint and several sors who 6. The elimination *9 Twerski, consequence legislative reform indemnity) of tort is the D. The Joint with Aaron Compare subject of criticism and debate. Rich- Legislative Re- Revolt: A Rational Tortfeasor Liability Among Wright, Allocating Multi- ard W. Critics, sponse Rev. 1125 to 22 U.C. Davis. L. the Responsible Principled ple Causes: A (1989) Defense (maintaining of tort did not that reform Liability Several Actual Harm and Joint and responding captive result lawmakers from (1988) Exposure, 21 Davis L. Rev. Risk U.C. industry lobbyists was the but rather insurance maintaining joint (arguing greater fairness choices). policy result of considered allowing then tortfea- and several abrogation joint Act that “the of and sev- Among Tortfeasors of view Contribution (1977) statutory (repealed rights eral of contri- 1-1-110 Wyo.Stat. 1955. availability the 1986). being that contribu- doеs not effect of hypothesis bution The comparative indemnity under on contractual or common law required is tion not only responsible grounds.” is fault if actor each per- the and limited damages equal to the agree We with United States attributed to that actor. centage fault of Wyoming District Court for the District of Keeton, 50. See “indemnity held is still available Wyoming despite repeal the C(2). Indemnity After Contribution Re- of contribution Remembering in 1986.” that statutes peal preempting rights common law must be the Also with 1986 amendments repealed construed, strictly Ins. v. Reliance Co. the stat of contribution provision 766, 713 P.2d Chevron U.S.A. indemnity right of ute which assured (Wyo.1986), logically it is inconsistent 1—110(f) Wyo.Stat. existing under law. § 1 — argue repeal statutory that of authori 1986). (1977) The effect of this (repealed preserve ty designed specifically “indem exploration of whether requires action an nity existing under law” eliminate could legislature’s repeal of the contribution sought preserve. the doctrine the statute indemnity language or the simul statute’s 1—110(f)(1977) Wyo.Stat. (repealed § 1 — adoption comparative of fault al taneous 1986). availability, in of in Wyoming, tered the 1—110(f) repeal demnity premised on tort liabilit The of for actions § 1— 1986) (repealed adoption of y-7 comparative fault cannot be seen as Rissler both assert that in- Holland and rather, implicit prohibition indemnity; on it legisla- did not survive the actions by the must be viewed as a realization adoption comparative fault tive system compa- legislature that under a its on the supports Holland view based fault, longer rative no served contribution joint liability. and several elimination purpose. Nylen Dayton, v. See comparative adoption of Rissler claims the 1112, (Wyo.1989). shar- The burden indemnity. negligence principles reject ing produced by contribution was unneces- challenges repeal Schneider sary comparative system under allo- fault alter provisions did not contribution cating damage upon based right, Wyoming, Schneid- percentage negligence to each attributed indemnity er contribution and asserts that actor. a creature Indemnity are distinctive. law, only exist- The reason for the of the lan- common while contribution inclusion statutory indemnity Wyoming guage regarding ed in because of au- in the contribu- thority. Lawyers Trial tion statute stated As- Commission- sociation, curiae, supports the Uniform as amicus er’s Comments to Contribution passive indemnity is Illinois While Schneider seeks from Hol abolished in upon adoption land and based alternative theories comparative Rissler fault and contribu- obligation, underlying Atchison, tion). Ry. T. v. Lan But see & S.F. between and Schneider from which Horowitz Franco, Cal.App.2d Cal.Rptr. solely Schneider seeks the fore, (1968) (discussing applicabili- 665-66 the lack of negligence attributed to Schneider. There ty principles comparative negligence when adoption legislative comparative determining ex- whether comparative principles abol fault ists). preclusion basis for this theoretical indemnity, ished Schneider would be foreclosed comparative would be under See, proceeding e.g., with this action. Bro principles, negligent Co., chner Western Ins. damages responsible at- actor is for those (Colo. 1986) (holding adoption Colorado's culpability. See tributed to that actor's relative comparative negligence and Uniform Contribu Industries, Inc., N.W.2d Tolbert v. Gerber Among tion Tortfeasors Act abolished Therefore, (Minn.1977). tortfeasors); joint between shifting actor is another Allison Oil 113 Ill.2d 99 Ill.Dec. v. Shell necessary. (1986) (holding that active- 495 N.E.2d 496

571 comparative fault in the Wyoming, present Act of The Com Among Tortfeasors indemnity that the lan explain indemnity missioners common law status of its and statute, in the guage, as used legal in a applicability vapor is shrouded in clarify that merely attempted to the produced by more dense than smoke permit indemnity, should not the courts burning the forests of Yellowstone.9 We pay obligated to in who becomes person indemnity’s Wyo- now consider status in per the from demnity to seek contribution ming implicit and consider whether theoret- obtaining indemnity. Unif. Contribu son modifications, necessarily ical which result- 1,12 1955 Among Act of tion Tortfeasors § adoption comparative negli- ed from of (1975)(Commissioner’s 66 Comment U.L.A. gence comparative principles, and fault Akron, (f)); v. City Lattea 9 Subsection ability have or altered limited the to claim 458 App.3d N.E.2d 878 Ohio an indemnity exposed when actor has been example, the (1982). As an Commissioners paid damages, possibly to tort and master, vicariously explain that a liable for damages for including negligent the or tor- tort, indemnity could seek from a servant’s liability resulting tious others or acts of However, the has servant. servant “no the product. from the use of defective claim” to contribution from the possible Among Unif. Contribution Tort master. recognize Initially, indemnity we 1, 12 Act of 1955 U.L.A. feasors § roots principles its in of restitu- (Commissioner’s (f)). Comment Subsection unjust George tion and enrichment. E. Therefore, statute, Wyo.Stat. repealed Palmer, 10.6(c) The Law Restitution § 1-1-110(f) 1986), (1977) (repealed limited (1978). person “A unjustly who has been adopted as operation of contribution expense enriched another re- is no Wyoming and had effect quired make to the restitution other.” repeal statute not The did abolish (1937). Restatement Restitution § indemnity existed in any right indemnity, basis for from traditional Indemnity law. Wyoming at common and unequal liability, tort relied on based represent mutually exclusive contribution Palmer, 10.6(c). actors. Munsterman, v. A.F. remedies. Frazer However, one useful text notes: as 123 Ill.2d Ill.Dec. 473, 476, Ill.Dec. 527 N.E.2d [A]ny attempt to reconcile numerous However, right (1988). holding that a particularly sweeping and decisions preserved, saying we are not them, pronouncements often found right form that the exists same as it frustrating utility. an exercise adoption comparative prior to did tortfeasors, among law toas comparative particularly them, among like of contribution remaining task define fault. Our is to development, in a flux state of and evolu- indemnity.8 availability of present tion, two, aspects, ap- in some pear merge[.] C(3). Indemnity —Overview Speiser, F. Krause & Stuart M. Charles indemnity princiрles survived the While Gans, Alfred The American Law adoption W. presented implied nature the case limits contractual 8. The our involving applied proper to in- discussion demnity issues action. causes of corporation individual or ex- required pay damages posed to dur- The forest fires that burned uncontrolled negligent or tortious acts either because of ing portion of the summer of 1988 latter others, Indemnity see C.J.S. Ecosystem produced Yellowstone Greater liability incurred from the because of claims for which, according to news accounts of smoke product. See 42 C.J.S. use of defective Indem- period, across much of the western lofted nity Claims relief portions States. of the United mid-western arising express relationships, contractual Throughout Wyoming, dis- smoke-filled skies relationships, are dis- contractual orange presence closed of an obscured purposes background or cussed for contextual orange-yellow sun. only. This does alter or limit the decision availability, Wyoming, express contractual *11 572 requiring (1983)(footnotes “Joint care” cases are those both 3:26, omit- at 479

Torts § achieving optimal injurers to take care thus ted). Posner, avoidance. Landes & su- accident Indemnity (a) Role Economic key at 190. Posner believes pra, inquiry must be of our The foundation understanding when is allowed indemnity’s understanding of on an built is the economic dif- and when it is denied coupled present circumstances origins and “joint care” and “alterna- ference between relief it was de- knowledge of the with care” circumstances. Id. at 205. tive general, the action signed provide. on the desir- (b) Availability In- Limitations on party liability from a who shifting of able not have who should paid but has alone. 6 the entire burden had to bear of Restitution 76 The Restatement § Nates, Minzer, D. H. Clark Marilyn Jerome indemnity: general states a rule of Axelrod, Damages in Diana T. & Kimball who, part, or in person A whole (1989). Wyoming ac- 50.21 Actions Tort duty is owed him discharged a which shifting indemnity doctrine’s cepted the himself and anoth- but which as between case of Miller v. damages in the seminal discharged by the er should have been 272, 283-84, Co., Wyo. 34 York New Oil other, indemnity from the is entitled to P. other, payor unless the is barred provides an economic ex Judge Posner wrongful nature of his conduct. shifting indemnity’s role planation of concerning trend While the “modern provides Indemnity, explains, he damages. principles is to look to “alterna socially appropriate solution for Logging Ma equity,” Stuck v. Pioneer Richard A. Pos joint-tort” cases. tive-care Inc., chinery, 279 S.C. 301 S.E.2d (3rd ner, 6.8 Analysis Law Economic law utilized a familiar common 1986). care” inci In the “alternative ed. limiting the identifying maxim avail requires “optimal accident avoidance dent “ springs ability ‘Indemnity injurer take care.” potential one contract, expressed Posner, A. Landes & Richard William M. ” * * *.’ Bank and Trust Co. Tort Law 191 Economic Structure (Wyo. 730 n. 3 Waugh, v. (1987).10 in alterna The rationale is that 1980) (quoting Chicago and Northwestern matters “we do not want both tive care 98, 101 Rissler, F.Supp. Railway Co. precautions; to take we want tortfeasors departure point, the (D.Wyo.1960)). As a accident avoider to do so.” the lower cost indepen need for an maxim discloses the Therefore, Posner, the actor 6.8. legal relationship dent between higher prevention cost from incurring the party from seeking indemnity and the indemnity from the the accident obtains Frazer, sought. whom distinguished the actor. Id. Posner other 1251; N.E.2d at Na Ill.Dec. at un no contribution or contribution rules of Fire Ins. v. A.A.R. West tional Union Co. fault” allocation “pro rata” or “relative der (Okl. 54-55 Skyways, efficient ern producing as doctrines systems 1989). relationship independent legal applied “joint safety incentives when “ ‘under which the indemnitor owes involving “joint care.” Id. is one cases tort” Judge including by Judge transaction costs and what Pos- Posner economic theories used 10. The costs, slight upon "margin" introduced into tort a foundation increases build ner terms Judge Hand. In United States gain produce law Learned safety yield no social (2d Towing F.2d loss, v. Carroll utility of the social limit the functional Cir.1947), Judge expressed Hand his famous formula, approach provides use- its basic Hand neg- Judge Hand described formula. Posner, policy guidance. supra, at 6.1. ful occurring ligent the cost of conduct as when approach, Judge expansive Posner's more (B) product precautions less than the modeling, a ratio- demonstrates mathematical (P) magni- probability and the of occurrence precise policy tort law choices which nale for (L). expres- of loss Id. The mathematical tude persuasive. other factors B PL. While various sion is < C(4). Implied Indemnity Equitable the indem- or tort to duty either in contract *12 they owe joint duty Culpability apart from the nitee ” Union Fire injured party.’ National (a) ‍​‌​​‌​​‌‌‌​‌​‌​​‌​​​‌‌‌​‌​​‌‌​​‌‌‌‌‌​‌​‌​‌​‌‌‌​​‍The Active/Passive Distinction Co., (quoting P.2d at 55 Peak 784 Ins. Halliburton Oil Well Ce

Drilling Co. v. Equitable implied indemnity’s growth (10th 368, Co., F.2d 370 menting 215 Cir. may directly be traced to a reaction to the 1954)). Restitution au The Restatement of prohibition common law of contribution. pay indemni explain duty thors Frazer, 477, at 123 Ill.Dec. 527 N.E.2d at contractual obli ty be created struggled equity 1252. Courts to do obligation or tort. quasi-contractual gation, would situations which otherwise con cmt. 76 b of Restitution Restatement implied strained since contractual indemni (1937). ty actions limited to circumstances were v. Associates Lincoln- Richardson indemnity, party seeking “with where Devore, Inc., (Wyo.1991), this 806 P.2d 790 exposed part,” out fault on his was active acknowledged classifications three court pay damages. and forced to the pri- which reflect indemnity for Johnson, Inc., 662 P.2d at 102 frame relationship parties, or (quoting Exp., Barkley, v. 441 Eazor Inc. parties duties between nature 429, 893, (1971)); Pa. 272 A.2d accord 895 availability Ex limit the Lines, Truck Miles Motor Southeastern specific from the indemnity is derived press (1943); Ky. 156, 295 173 S.W.2d 990 Hans Wyoming John language of a contract. 605, Md.App. 542 A.2d Perry, come v. 75 Inc., son, Industries, 662 P.2d Stag Inc. v. C.J.S., 421, (1988); supra, 427 and 42 at 96, (Wyo.1983); Supply Fuel 99 Mountain 32. 1351, Emerson, (Wyo. 1358 578 P.2d v.Co. indemnity action implied contractual indemnity, 1978). also Implied contractual premised on the breach of contract indemnity, in fact stems implied known indemnity party seeking between the relationship, legal, contractual from indemnity is party sought. from whom parties. implied Pan Ameri between “ The rationale is that ‘a contract under Corp. v. Maddux Well Ser can Petroleum do vice, 1220, 1226 undertook to work (Wyo.1978); Vick which the indemnitor 488, Co., implied necessarily an perform Elec. 703 F.2d 491 or services ery v. Reliable law). (10th Cir.1983) (applying Wyoming obligation do the involved work implied indemnity, also Finally, equitable discharge proper manner and foresee indemnity in law or common implied resulting improper termed per able relationship indemnity, is created law by the participation formance absent seeking implied person law between precluding act wrongful indemnitee in the ” indemnity person from whom in recovery.’ Planning Bear Creek Com negligent sought for tor- Co., 164 & Trust Cal. mittee v. Title Ins. Miller, 283-95, Wyo. act. 34 at tious See 178 Cal.Rptr. 211 App.3d C.J.S., 42 at P. 36. 243 Furniture (quoting Great Western Corp., 238 Cal. v. Porter Oakland Equitable implied in law (1965)). 502, 517, Cal.Rptr. 76 App.2d of Schneider’s forms basis Shadle, Co., Inc. v. See also Considine against the claims Rissler and claim Cal.App.3d Hagar, Hunt & premised on theories of against Holland result, As a dis Cal.Rptr. recovery liability. and strict negli passive active or tinctions between Holland, prem- claims Schneider’s implied con appropriate gence are not require warranty, evalua- ised on breach of Bear actions. Creek tractual equitable action tion as an both Committee, Cal.Rptr. at Planning implied an as an problem required the result, The solution to indemnity. As a we contractual implied in application indemnity broad availability of shall consider the individually. demnity. instances in each of these tenant of the estate of a former indemnity considered ministrator

Equitable Miller, Wyo. at allowing apartment. parties in Miller’s fault of relative 276-77, indemnity by. a who at 119. The tenant was 243 P. “constructively” negli- dioxide fumes from only “passively” asphyxiated carbon Frazer, Ill.Dec. gent. gas water heater. improperly installed C.J.S., 1252; supra, at N.E.2d Miller sued New York Oil purposes negligence, Typically, passive company nеgligently had alleging that the failure, of consisted indemnity, Miller and New the water heater. installed *13 indemnity, “to discover seeking party the relationship a contractual York Oil did have or misconduct negligence prevent the or heater, so, of the water for the installation prudent person ordinarily an another when action as have treated the the court could Tolbert Gerber done so.” have would indemnity and implied contractual one for 362, 367 Industries, Inc., N.W.2d guilty Miller since he was denied precluding negligence, (Minn.1977). Active failing in to discover a wrongful conduct indemnity, “is found availability of failing pipe possibly or ventilation blocked participated personally indemnitee an However, rule to his tenants. warn negligence, act in an affirmative permitting applied by the court acts or omissions negligent with connected implied indemnity. equitable on was based acquiescence, or has knowledge or acting together, parties, “When two precise duty which perform a failed to act, illegal wrongful or commit perform.” agreed had indemnitee responsible in party who is held Sanitation, Pylon, Inc. v. Rossmoor indemnity or the act cannot have 453, 449, 622, Cal.Rptr. 13 Cal.3d other, from the because contribution fault ori- (1975). The relative P.2d culpable, particeps or equally are both indemnity created implied gins criminis, damage results from burdensome, and often inconsistent This rule does not joint their offense. “pas- of “active” nomenclature criticized or creates apply one does the act where negligence. sive” nuisance, join other does not and the negli- phrasing, in ingenuity little With a therein, thereby exposed to liabili- but is either “active” can made to be gence be may damage. He recover ty and suffers For the writer. “passive” as suits wrongful act has whose with “driving an automobile example, par- exposed him. In such case the thus “running through the brakes” or bad as to each pari are not in delicto ties “using defective crane” sign” or stop other, though persons third either as to nеgligence, “active” might be said held liable.” may be “omitting maintenance brake while apply the “neglecting to fluid level” or (quot- Miller, Wyo. at 243 P. at “failing inspect the crane brakes” Co., 114 ing Gray Light v. Boston Gas its defectiveness” to discover in order (Mass.1873)). New York Oil Mass. “passive” negligence might be —these could not recover indemni- contended Miller omissions, acts or but are the same joint tortfeasors ty both were because facts, upon the but depends not outcome wrongdoing. court refused guilty of This to character- someone chooses upon how recognize preventing the rule ize them. finding joint recovery among tortfeasors & Ka R. v. Whitehead general Missouri Pac. Co. exceptions to the many existed (Mo.1978). 566 S.W.2d les no indem- claimed rule. New York Oil also Mil- since nity recovery should be allowed useful illustration provides a Miller negligence” “adjudged guilty of ler was of indem- the varied forms operation However, the wrongful death action. the “ac- vague applicability of nity and the “con- negligence was Miller’s court said description. negligence “passive” tive” Miller, 34 than actual.” structive rather Wyoming Casper, was a landlord Miller Miller, 121. accord- trial, 243 P. at settlement, Wyo. at after paid a who court, right ing had brought by the ad- wrongful death improper “joint care” ter heater with ventilation. formulations of Posner such, Posner, directly Landes & at 206. As ap care” can be and “alternative Miller, awarded Miller based case plied another higher first, relative fault New York Oil contradictory at seem Miller, Wyo. then Miller, would be available. the court Convoy, 359 243 P. at that indemni recognize the rule refused to joint tortfea ty available is not between The Miller court’s determination that the However, in the court seem Convoy, sors. party seeking indemnity parties “if saying both ingly turned-about rather ac- was “constructive than actual” pari delicto, are joint tort-feasors or are eq- cepted the relative fault distinctions of parties contributes to each where indemnity Wyoming. uitable indemnity ex injury, nо cause an linguistic While the references to “con- 11 Convoy, 359 P.2d party.” ists in either “actual” have structive” and distinctions, in a Posner’s 887. Under commonly replaced by been more “active” are, as where two actors Miller *14 situation “passive” negligence, their use to de- it, “equally culpable,” or as Con described availability indemnity termine is tortfeasors,” described, “joint they voy C.J.S., supra same. See 42 at 37. of Posner’s function under constraints difficulty application with the “joint Indemnity is not available care.” the lack applied evidenced care” “joint actors obli where both have following development concept Landes & Pos gation injury. to avoid the implied indemnity Equitable Miller. ner, supra, at presented appeal issue been as an See, e.g., Associ- some cases. Richardson operation of this Convoy illustrates the However, ates, 806 P.2d at 812-14. In the court ruled the principle. Convoy, difficulty with, of, explanatory and lack a truck two failed brake owner of with by the certi- case law need for is evidenced systems get not from a could questions by fication of these the United damages paid shop owner for to a repair Appeals for Tenth States Court of Cir- injured when a mechanic moved man is needed. cuit. We clarification believe “joint negli- The court ruled truck. gence” repair truck and the of the owner (b) Indemnity’s The New Standard — injuries. Convoy, 359 shop caused Availability terms, “optimal Posner’s P.2d at starting point considers required both the The obvious accident avoidance” equitable implied indemnity is avail take care. when truck owner and the mechanic See, Posner, e.g., Rees v. at 210. between tortfeasors. Landes & Howev- able (Iowa varies, N.W.2d er, they County, 372 culpability the actors’ Dallas when 1985) v. delicto,” Ins. Co. & Lam pari “in and the situation Home Jones are not Farrell, 144 Mich. Waterbury Div. care” under Posner’s de- son “alternative Miller, rev’d App. N.W.2d Applied Posner’s theo- scription. 424 Mich. 381 N.W.2d ry that the “lower-cost avoider of on other basis projects accident,” adopt the We views the fact-finder’s determi- (Second) 886B Oil, of Torts nation, have New York would been Restatement (1979): installed negligently that the wa- company situations, “joint also Convoy In other tortfeasor” Miller defined term

11. Neither nor “ tortfeasors, "joint as a term ‘all cases tortfeasors.” Joint used sense to include be in a broader art, persons jointly tort, “two refers to or more joint liability whether where there is injury severally concerted, liable in tort for the same jointly the acts of those liable were Dictionary property.” Law person Black’s concurrent, point merely or even successive Hickman, 1990); (6th ed. see Garner Tolbert, n. 1 N.W.2d at 366 of time.’” standard, (Wyo.1985). Under this Leflar, and In- (iquoting Contribution A. Robert concert, act in as in an “alternative failure to Tortfeasors, U.Pa.L.Rev. Between situation, a tortfeasor from the removes care” (1932)). 131 n. 9 Convoy preclusion of indemni joint ty by a tortfeasor. persons in tort to a two or more are (1) persons are liable who liable to If two person and one It person for the same harm same same harm. third both, necessary discharges they is not act in concert of them pursuance design, from the other he is entitled to of a common nor unjustly enriched at necessary they joined be if the other would is it discharge of the liabil- expense by applies his The rule stated defendants. torts, ity. including only negligence all defamation, misrepresentation, also but in which Instances falsehood, injurious nuisance or oth- principle include the granted under this liability. er of tort basis following: (a) indemnitee was liable (Second), supra, of Torts Restatement conduct of the in- vicariously for the 886A cmt. b. demnitor; (2) details a Subsection number (b) pursuant acted The indemnitee “general recog instances where there is a the indemnitor and rea- directions of granted.” nition that should be sonably the directions to be believed (Second), supra, Restatement of Torts lawful; cmt. d. These are situations when 886B (c) induced to The indemnitee was obligations among “alternative care” exist by misrеpresentation part on the act formulations, these the actors. Under indemnitor, upon justi- which he allegations Schneider’s state claims for re relied; fiably covery against supplying Holland for a de *15 (d) supplied a defec- The indemnitor fective chattel which Schneider failed to performed chattel or defective tive discover, (Second), Restatement of Torts buildings upon land or as a result work 886B(2)(d), supra, against at Rissler § were to the third of which both liable creating dangerous a condition which innocently person, and the indemnitee discover, failed to Restatement Schneider negligently failed to discover the (Second), 886B(2)(d). supra, of Torts at § defect; Equitable implied indemnity actions under (e) danger- The indemnitor created a (Second), supra, Restatement of Torts at condition of land or chattels as a ous may premised negligence, 886B § were liable to the result which both warranty. or breach of The person, the indemnitee inno- third indemnity nature of the relief available will cently negligently failed to discover depending upon theory differ of liabili defect; ty expressed. (f) duty The indemnitor under a was protect the indemnitee to him (c) Comparative Indemnity Partial For person. against the to the third Negligence Actions Premised On general a states “broad Subsection Traditionally, indemnity shifted the en- indemnity availability. Re- principle” of tire loss the indemnitee sustained to the (Second), supra, of Torts at statement Schwartz, supra, at 16.9. indemnitor.12 § adopts cmt. c. The Restatement 886B However, (Second), § Restatement of Torts tortfeasor,” “joint definition of Restate- supra recognizes at 886B cmt. m that § (Second), supra ment of Torts at 886B courts, influential state interest b, making a tortfeasor for in- cmt. liable attaining justice, developed have a doctrine “ demnity even when no action has been ‘partial indemnity,’ proportion with the against by injured that actor brought responsibility parties depending original plaintiff: percentages upon the relative of fault.” (1) applies policy in believe sound choices and the

The rule stated Subsection We tortfeasors,” legislative acceptance comparative “joint in the sense of to all (Second), seeking party to be Torts indemnitee is the who is 12. As framed in Restatement of (Second), 886B(2), supra, indemnified." Restatement of Torts at indemnitor is "[t]he sought. cmt. b. whom 886B modifying squandered tor argue favor of last clear chance * * *. Wyoming equitable implied all-or-nothing rule for on a 26, Co., v. Ill.2d Allison Shell Oil modification we theory recovery. 496, Ill.Dec. 495 N.E.2d confusing separa- adopt also eliminates (1986). The traditional doc negligence from passive tion of active shifting trine’s of the entire loss from one fault determination. the relative example actor to another be another accepted partial previously legal “has pre of a rule that continued to In in one context. recoveries country vail this sheer inertia rather 328-30, Co., Service 705 P.2d Cities than reason of intrinsic merit.” that, holding under court reaffirmed Co., United v. Reliable States Transfer (1983), express in 30-1-131 397, 410, 421 U.S. 95 S.Ct. in gas oil and agreements (1975)(holding 44 L.Ed.2d 251 the admiral not, dustry public as matter of could ty rule of divided should be re “ loss policy, ‘relieve the indemnitee from placed by allocating damages propor a rule ” Id. negligence.’ his own fault). tionately based on original). Emer (emphasis at 329 See jurisdictions have Other witnessed con- However, son, 578 the court P.2d availability development siderable al partial held would be partial Kemper, indemnity. See J.R. Anno- agree the extent that it lowed “to [the tation, Comment Note—Contribution indemnifies [the indemnitee] ment] Indemnity Between Joint On Tortfeasors negli damage may suffer it because Fault, A.L.R.3d Basis Relative Of in its gence perfor indemnitor] [the (1973 cases). Supp.1992) (collecting & One agreement, mance it valid and under of the earliest and most influential deci- enforceable.” Cities Service Motorcycle sions American Ass’n Su- public policy at .329. The furthered perior Angeles County, Los Court of allowing recovery partial indemnity Cal.Rptr. Cal.3d place. “The safety increased in the work case, boy paralyzed in a *16 in holding of court each this results motorcycle multiple parties, in- race sued being for responsible its own activities sponsor cluding sponsor. a The race race damage by its liable for loss and caused equitable implied indemnity sought from reasonable care own failure exercise parents boy’s premised negli- on their operations its and furthers beneficial gence permitting boy participate In public policy.” Id. at 330. an economic dangerous sport. in a The California Su- analysis, party’s po each the court found preme that traditional Court determined consid liability tential would contribute “a from the suffers 100% erable incentive to avoid industrial acci “ ‘all-or-nothing’deficiency as the same dis- injuries.” dents and Id. contributory doctrine negligence carded merely part Indemnity actions of “a are considerably fulfilling of and falls short expositional principle rich refinement contributory negligence doctrine’s] [the promise each all of fairness” which “we goal system ‘a under which for damage will be others that we liable negli- damage will be those whose borne negligence in the our undertak- which own gence proportion caused it in direct their ing Pac. has caused.” Missouri R. ” Cal.Rptr. Id. at respective fault.’ 468-69, n. 4. at 566 S.W.2d 190, v. (quoting P.2d at 907 Li Yellow Analyzed regard without the title 804, 119 California, 13 Cal.3d Cab. Co. of damages, and nature of suits 858, 864, 532 P.2d Cal.Rptr. reality are in active-passive for (1975)). ordinary negligence to recov- actions for origi- equitable indemnity doctrine indemnitor; and damages er from the [T]he proposition nated the common sense “pas- is considered indemnitee’s conduct responsible when individuals are that two sive” if the indemnitee was contribu- ** * loss, two is more if the a one torily negligent indemni- for but other, light legislature’s In only it fair P.2d at 1192. culpable than culpable party apportion damages negligence should bear the more desire to for course, the loss. Of greater actions, share of requiring еquitable implied a indem- developed, doctrine com- the time the at negligence per- nity actions any attempt precluded precepts mon law theory petuate a one fault; comparative as a con- ascertain person ultimately responsible indemnity, like the equitable sequence, example contrarian injury would be doctrine, devel- contributory philosophy. Kennedy City Saw- proposition. all-or-nothing oped as an 228 Kan. yer, Ass’n, Cal.Rptr. Motorcycle American Court, Supreme the Kansas while com- 191-92, Noting the P.2d at 908-09. at menting Supreme on the Minnesota Court’s “passive” cul vagueness in the “active” or Tolbert, decision in 255 N.W.2d stated standards, princi the court held the pability position adopt applied to a which we all-or-nothing difficulty traditional pal with prem- equitable implied its effect doctrine been negligence: ised on “reaching just preventing courts [A]ny indemnity having claim as its basis majority of cases in great solution culpable conduct disproportion be- appor equity and fairness call for an inequitable comes and unfair when wrongdoers of loss between tionment exists comparative mechanism culpability, proportion to their relative precise degrees determination of loss imposition than the of the entire rather responsibility. causal There is no reason the other tortfeasor.” Id. 146 upon one or comparative liability jurisdiction in a Finding Cal.Rptr. P.2d at 910. defendant, proposed hold a indemni- partial system in a proper balance tor, disproportion liable indemnity, the court held indem Similarly, to his causal fault. there is no con nity permitting modified “a would be defendant, deny reason to another partial indem tortfeasor to obtain current indemnitee, proposed tortfeasors on a nity from other concurrent 13 Id., fault, 146 Cal. mini- although fault basis.” reduction his when Rptr. involvement, 578 P.2d at 912. mal in terms of causal “ac- nevertheless characterized as b[e] con Wyoming’s statutory modification of tive.” implicit incorpo tributоry negligence and the doctrine ‍​‌​​‌​​‌‌‌​‌​‌​​‌​​​‌‌‌​‌​​‌‌​​‌‌‌‌‌​‌​‌​‌​‌‌‌​​‍of last clear chance ration of indemnity liability hold that is to We percentage determi into the among parties proportion allocated of the for replaced

nation the harshness ately comparative degree to their of fault *17 1-1-109; system. Wyo.Stat. Riden mer implied indemnity equitable in actions for our, in Specifically P.2d at 1179-80. 623 negligent duty premised on the breach of a corporated jury’s into the determination of the indemnitor and the indemnitee. between parties’ comparative negligence the various See, Ass’n, e.g., Motorcycle 146 American comparative fault is a consideration of 182, 899; Tolbert, Cal.Rptr. 578 P.2d 255 negligent conduct. the nature of Co., 362; Missouri Pac. R. 566 N.W.2d taken when care should be “[Particular Co., 466; Dole v. Dow 30 S.W.2d Chemical multiple plaintiffs present or claims are so 143, 382, 282 N.E.2d N.Y.2d 331 N.Y.S.2d proximately that that partial or 288 Under this modified any particular injury is considered causes implied indemnity, the form of fault as to jury apportioning when negli “passive” of “active” and distinctions and active injury. Passive Ridenour, longer determinative of the gence, while no distinguished.” must be proper Wyoming Supreme previously preme of California reached the has Court 13. The Court approval system equitable expressed developing of the rule in American its in a conclusion Motorcycle Chrysler Corp. Ass’n. In v. Todoro indemnity the common or contribution under vich, (Wyo.1978), Justice law.” Thomas, writing majority, said "the Su- sequent Against are factors to Action Parties Not Sued indemnity,14 ability to seek Action, assessing Original A.L.R.5th 753 jury weighed be Therefore, Typical- (collecting cases). plaintiff in parties. fault of the percentage of instructed, Wyoming, subject join- to the a third- limitations ly, jury would parties 19, may third-party stated action, if defen- der W.R.C.P. party actions, bring choose to individual tort performed certain dant is found have constituting negligence jurisdictional or tactical reasons. See also acts or omissions example, under the permitted as a mat- F.R.C.P. 19. As for which facts, (Second), present Horowitz law, of Torts sued Schneider ter Restatement original 886B(2), proceeding. federal and those acts or omis- court supra at § injuries Horowitz could have chosen to sue Rissler to cause the contributed sions court, original simultaneously then in a state or at some plaintiff, damage to the time, negligence.15 An action par- alleging later plaintiff should be awarded third-party Co., also Horowitz Holland have Pac. R. tial Missouri conceivable, upon products lia- partial based 472. The been S.W.2d at Holland, bility Either paid the total sum theories.16 Rissler proportion is a award incurred, could chosen to third-party plaintiff original to the have by the in these degree seek from Schneider plaintiff corresponding to the possible later actions. third-party defendant. Id. fault of represent rea a second Settlements (d) Procedural Issues proceedings. son for additional circumstances, equitable im Under ideal who is free to While tortfeasor settles plied indemnity claims will be determined equita any non-settling sue tortfeasor cross-claims, third-party as W.R.C.P. implied indemnity, Bolamperti v. Larco ble origi proceedings, W.R.C.P. while Cal.Rptr. Cal.App.3d Mfg., damages from all causal plaintiff nal seeks in settling tortfeasor proceeding. ly single actors in a responsible party special curs some burdens as However, F.R.C.P. and 14. See also seeking in seeking indemnity. single proceeding always is not ideal aof establish that the settlement must Wyoming, reasons are two achieved. discharge faith good was made in apparent pro additional immediately liability. Ameri potential actual Pan ceedings. at 1225 Corp., 586 P.2d can Petroleum (holding reasonableness settlement reason for additional The first shown and if indemnitor ac- amount must be proceedings is that assume adopted by approve declined to settlement or cepted “one action rule” defense, prove required plaintiffs to limit indemnitee some states otherwise, opportu parties liability; if no responsible potential causally sue additional in- Annotation, given, defend Polin, nity approve Compa- in tort. David liability to the actual demnitee must show Judgment Allocating Negligence: rative Assur. original plaintiff); American Home Against Than All Action Less Fault F.2d Precluding Co. Cessna Potential Sub- Aircraft Defendants *18 against parties. 1-3-105 "passive” dis- these the former "active” Under tinctions, formality (1988). pleading in could have been indemnity proceedings. The in determinative original alleging plaintiffs complaint "active” deciding, Horowitz we since 16.Without note pre- negligence would have been sufficient prod- purchaser user of Holland’s was uct, seeking third-party plaintiff from indem- vent subject dispute, have been could See, e.g., jurisdictions. Beck v. nity some liability. P.G. Reit- particularly See under strict Mich.App. Westphal, 366 N.W.2d 217 141 er, Annotation, Liability: Extension Products Of (1984). Recovery By A Liability Tort To Permit Strict Nor Who Was Neither a Purchaser Third Person present argument, parties to the At oral (1970) (collect- Product, 33 A.L.R.3d 415 User any appeal did not file indicated Horowitz Of cases). ing applicable statute of actions further attempts at barred further relief limitations Cir.1977)(determining nity premised negligence, actions on (10th that it is is “YES.” party seeking answer fact whether the question of making a fair justified in indemnity was C(5). Liability Strict prior jury ver settlement and reasonable dict). judicial determination of Without a “ii” question “C” subsection Certified seeking indemnity also party liability, the availability indemnity inquires about the wrongful conduct of prove premised product actions on the two sought party theories, from whom liability in tort and liability strict against the indemnitee. Keeton, claim created the warranty. See Corp. v. E.I. duPont Motor Parts Central At issue are Schneider’s theo- 97-98. §§ N.J.Super. 5, recovery against deNemours & Holland based ries (1991). See Fairbanks upon alleged A.2d the sale of the defective hitch. Const., v. Kandik Borough separately, shall consider each action North Star We Associates, P.2d 636 beginning availability with the Inc. and 1991) (Alaska (explaining implied indemnity distinctions on be action and strict tort. tween causation cаusation in contractual Wyoming’s acceptance of strict action). independent as an cause of action intro- analysis to tort wrongful component conduct can duced economic law: prove especially difficult. In Hamilton v. a defective article enters the When America, Inc., 125 N.H. Volkswagen per- stream of commerce and an innocent 561, 484 A.2d Justice hurt, it is better that the loss fall son Souter, writing Supreme the time for the manufacturer, on the distributor or seller Hampshire, a third- of New denied Court than on the innocent victim. This is true indemnity premised claim for produc- if the in the chain of even entities liability, negligence warranty. strict tion and distribution exercise due care negligence by his Hamilton was sued for product’s the defective manufacture and he of their car on a wife after lost control delivery. simply in the They are best highway Hampshire New snow-covered position to either insure the loss Hamilton filed a and hit another vehicle. among spread the loss all the consum- third-party seeking product. ers of the failing “to Volkswagen and a dealer for P.2d at 342. The risk allocation Ogle, 716 capable a car of with- manufacture and sell theory Ogle may stated in also be termed a standing low-speed collision without seri- criterion for strict “cheapest cost-avoider” Id., damages.” 484 A.2d at 1117-18. ous Gilles, liability. Stephen Negligence, G. Applying the limitations of the Cheapest Liability, and the Cost- Strict law, indemnity present Hampshire in New Avoider, 78 Va.L.Rev. 1291 Under Souter determined the Justice “cheapest cost-avoider” is theory, underly- claims could not stand because accident at person who could avoid the any liability against ing action did not claim at 1306. Landes the lowest cost. Id. See upon Hamilton based the fault of Volks- Posner, supra, at 54-84. & Id., wagen. at 1118. 484 A.2d concept allocation means that The risk “fault.” is not based on question “C” subsection Certified Corp., 778 v. Michelin Tire specifically inquires Wyoming McLaughlin “i” whether (Wyo.1989); Koehring Mfg. failure in Co. permits law an actor whose P.2d Fairbanks, Inc., spеct party’s injuries a third v. Earthmovers contributed to (Alaska 1988). Instead of to obtain from those who “creat considering actor’s directly responsible each ed or were otherwise *19 fault, acci- person most able to avoid caused the the for the conditions that third dents, manufac- usually the assembler or injuries.” by the dis party’s As modified component, is product or compara turer of the failed opinion, adopting cussion in this cost of the accident. held indemnity equitable implied indem- liable tive

581 indemnity a well set from a distributor or manufac- Keeton, 98. “It is supra, at § turer, person is higher up manufacturer under a the principle that a distribution tled product See, Texaco, a non-delegable duty make Inc. e.g., a chain. v. McGrew safe; may 351, not dele reasonably Co., it Ill.App.2d that is 117 N.E.2d Lumber 254 dealer, pur duty the user gate 584, (1969) (affirming right to 588 seller’s product.” Simpson v. the Gen distributor) chaser of indemnity and T. from Debra 479, Ill.App.3d 74 118 Corp., eral Motors Annotation, Landis, Liability: Products 107, 111, 137, 455 N.E.2d 141 Ill.Dec. Right Indemnity To Manu- Seller’s From 146, 854, Ill.Dec. (1983), 108 Ill.2d 90 (1990) (collect- facturer, 79 A.L.R.4th 278 aff'd Therefore, (1985). 1 under 483 N.E.2d cases). ing liability, parties in the chain of strict all the loss indemnity shifting The doctrine’s despite ex are held liable their distribution is not limited to those in the distribution Ogle, 716 P.2d at 342. ercise of due care. Annotation, Alperin, J. chain. Howard implied pro Equitable Liability: Right Products of Manufactur shifting for a vides the basis Indemnity er or Seller to Contribution Angelus theories. product under Causing Injury Product From User of Corp. Neonex Leisure Prod Associates v. Versa, Person, and Damage Third Vice 532, ucts, Inc., Cal.App.3d 167 213 Cal. cases). (1969) (collecting 28 A.L.R.3d 943 403, (1985). express no Rptr. 404 Where leading Wagner case of v. Beech the par exists between the contract 203, Wash.App. 37 680 Corp., “ Aircraft ties, upon right the ‘based II), (Wagner the rec P.2d 425 court concept noncon- product and ognized a user * * * Id., 213 Cal. tractual indemnity premised on to recover owner n. Air Rptr. (quoting 404 4 Davis v. and liability from a manufacturer strict Inc., Industries, 1, Cal.3d Technical seeking indemnity repairer. parties The 419, 1, 1010, 582 P.2d Cal.Rptr. 420 n. pilot and the owners were the estate (1978)) original). (emрhasis n. single engine aircraft that crashed of a equitable implied in- availability killing pilot injuring occupants. two premised on lia- demnity for actions strict Wagner Flightcraft, 31 Wash. See bility governed Restatement of in tort 906, (1982)(Wagner App. (Second), Torts 886B. Under facts). I) A (summarizing defective carbu (d), indemnity available from subsection design repair work and defective retor product defective when supplier Id., 643 P.2d at 909. caused the crash. product makes the indem- failure both I found the carbu jury Wagner After a nitee liable to third indemnitor repairer liable retor manufacturer innocently person and indemnitee accident, the court injuries negligently the defect. failed to discover II whether Wagner considered lia permitted premised on strict liability, permits be Indemnity, would under II, P.2d at 429. bility. Wagner among risk of an allocation loss appro indemnification was held that constituting the chain of distribu- court parties liability even when priate under strict able to control loss party tion to the best indemnity might consid party seeking Promaulayko v. it. Johns distribute See, e.g., negligent. Id. actively Corp., 116 N.J. 562 ered Sales Manville (holding pur Stuck, truck 301 S.E.2d A.2d As head 204-05 seller) chain, indemnity from may recover product the manu- chaser distribution Co., Ill.2d Motor likely v. White most indemni- and Suvada facturer is overruled 210 N.E.2d 182 the cost of fy as it is best able “bear Chicago Dixon v. grounds cost products and distribute that other defective Co., 151 Ill.2d Transp. throughout society.” North Western equitably most (1992)(prod N.E.2d Typi- 176 Ill.Dec. Mfg. 763 P.2d at Koehring brake user entitled cally, a seller of defective uct a retailer or failure). system product paid judgment seeks who *20 recognized voluntarily II Wagner unreasonably proceeding court and liability prem is under strict danger, to encounter a known and com- “passive” any theory ised on of “active” or monly passes assump- under the name of public negligence, but reflects a “sound risk, tion of is a defense under this Sec- policy consideration that the manufacturer tion as in other cases of liability. places product in the stream of who If the user or consumer discovеrs the general by public commerce for use is danger, defect and is aware of the and resulting of loss best able to bear the risk proceeds unreasonably nevertheless II, product.” Wagner from the defective product injured make use of the and is Supreme 680 P.2d at 429. The Court of it, by he is recovery. barred from developed concept Illinois further (Second) Restatement of Torts 402A cmt. Liberty Mut Ins. v. Williams Mach. Co. & n Recovery equitable implied Co., Tool 62 Ill.2d 338 N.E.2d 857 indemnity premised liability on strict is (1975). The court considered whether an by assumption barred of the risk. Liberty adjustable platform had a work assembler Co., 860; Mut. Ins. 338 N.E.2d at see also from the manufacturer II, Wagner (holding 680 P.2d at 430 as- damages paid of a defective valve for risk, sumption of the such discovery as platform collapsed. settle claims after a product appreciation the defective of its Considering purpose liability of strict it, danger continuing and pre- to use would allocation, risk as the court determined that indemnity recovery). vent Misuse of a negligence is irrelevant for determining product by using it for an unintended or Id., liability. (citing 338 N.E.2d at 860 purpose unforeseeable would also bar in- cases). While “active” would demnity recovery as it bars under strict indemnification, not bar the court deter liability. Liberty Mut. Ins. 338 N.E.2d “primary” mined that distinctions of at 860. The Restatement authors indicate “secondary” liability inappropriate were a “seller is not liable when he delivers the Id., liability. for strict 338 N.E.2d at 861. condition, product in a safe subsequent “[Pjerpetuation ordinary negligence mishandling or other causes make it harm- indemnity concepts in the context of strict ful the time it is consumed.” Restate- liability recognize actions does not (Second), ment of supra, Torts 402A unique nature of such the fun g. Simpson, cmt. also See 74 Ill.Dec. at underlying damental differences strict lia (finding 455 N.E.2d at 141 no evidence bility law.” Id. assumption product of the risk or misuse in Liberty The court Mut. Ins. Co. indemnity). distributor which would bar equitable implied determined that indemni product The failure of a user to ty premised liability on strict un would be inspect product and discover a defective commonly availаble in the same instances Id., does not bar applied liability to strict Under Restate tort. (Second), risk, ment of Assumption N.E.2d at 860. Torts 886B(d), distinguished seeking contributory negli gence, “innocently negligently” bar to under Section not barred liability: failing Stuck, 402A strict defect. discover buyer sought 301 S.E.2d in a truck Since with which this Section under strict upon negligence ‍​‌​​‌​​‌‌‌​‌​‌​​‌​​​‌‌‌​‌​​‌‌​​‌‌‌‌‌​‌​‌​‌​‌‌‌​​‍deals not based warranty seller, theories from the seller. The liability, ap- but is strict the rule buyer purchased haul (see the truck to timber. plied 524) to strict cases site, being As it was moved to a work applies. Contributory negligence of the causing rear plaintiff axle shifted a loss of control neg- is not a defense when such passing and a with a ligence merely consists in a head-on collision car. failure to buyer resulting wrongful product, discover the defect in the settled the guard against possibility sought of its death suit him and indemni exis- trial, the other hand ty tence. On the form of from the truck seller. At contributory negligence buyer’s expert which consists in axle testified *21 against spread among the unexperienced person an loss or the loss and defective product.” all the consumers of the Ogle, the defects. The not have detected could 716 P.2d at 342. Restatement of Resti- to discover and See held the user’s failure court (1937).18 tution the defeats would not bar correct latent ability recovery.17 The of a indemnity C(6). Breach Warranty of indemnity, if recover even product user to inspect failed to and negligently user the product liability action breach of defects, example an of strict is discover warranty, polite society, may be termed It is also liability’s allocation. consis risk illegitimate child of and the tort contract obligation. care tent with an alternative It is a form of law. misunderstood strict Casualty Corp. Allied v. Gen See Mutual liability product liability inclusion in whose (10th 279 F.2d 455 Cir. Corp., Motors eral is often matter of Kee cases a form. See 1960) ton, be available (holding present would Its 97. use involving case, care theory in an alternative situation as both a of recov automobile). action, ery in an We and a cause defective brakes direct unfortu to nately, that the failure discover reflects the confusion and uncer therefore hold tainty does of this area of and correct a latent defect not bar law.

indemnity recovery in an third-party complaint alleges Schneider’s liability. strict on following: the Further, Third-Party Defendant indemnity principles Comparative and expressly impliedly Holland warrant- applicable not to reduce the amount of are safe, ed that said fifth wheel was mer- recovery equitable implied indemnity chantable, ordinary and fit for and in- liability. premised on strict This use; said tended fifth wheel was apply comparative court has refused to safe, nor fit merchantable was it damage principles to reduce recover purpose intended that it was defective liability. in cases Phillips, ies of strict unsafe; and that as a direct and Eclavea, P. P.2d at 835-37. Romualdo See Third- proximate result Defendant Annotation, Comparative Applicability Of express Party Holland’s breach of Negligence Doctrine to Actions Based on warranties, the fifth wheel failed Tort, Liability in 9 A.L.R.4th 633 Strict hook-up of permit proper to and safe cases). (1981)(collecting logically con It in the accident the trailer and resulted permit indemnity actions under sistent Complaint forth in the and the dam- set liability strict to shift 100% ages against therein Defen- asserted “cheapest policy cost avoider.” Third-Party Plaintiffs. dants the risk loss to the actor choice allocates “in the best position either insure ¡fc [*] [*] [*] [*] sjs products jurisdictions recognize have defective which makes allocation We that other policy under when the barred strict choice: negligent party seeking is considered (1) supplied person Where a has another causing injury. otherwise at fault in Dix negli- supplier’s because a chattel which Transp. Chicago and Western on v. North dangerously gence or other fault defective 6, 601 N.E.2d 704 151 Ill.2d 176 Ill.Dec. supplied it and both for the use for which Frazer, (1992); 123 Ill.Dec. at 527 N.E.2d person a third have becоme liable tort to 1257; Tolbert, at 363. These courts 255 N.W.2d use, injured supplier is under such permit indemnity because of refuse expenditures duty indemnify the other for obligations joint care found the facts discharge properly of the claim made cases. the Restatement formulation Under person, disposed used or the third other adopt, indemnity premised we upon supplier's the chattel in reliance "If has discov [the indemnitee] is unavailable: two, if, such reliance as between the care product and sold used] ered defect [or justifiable. anyway, indemnity.” Re he is not entitled to (1) applies The rule stated Subsection (Second), supra, at § statement of Torts 886B person negligently repairs made where cmt. h. upon improvements land or chattels whereby both liable in tort another become states a 18. The Restatement Restitution person. general suppliers third rule for Third-Party against Third-Party 14. Defendants Defendants Hol- deny allegations negli- McMurry land and Rissler all Plaintiffs & Co. for against gence adjudged them in Com- that may asserted sums *22 assert, however, them, them, plaint, that any but or of on the of basis them, they, any or should event that of together with costs and ex- Plaintiff, neg- their suit, fees, become including liable of penses attorney’s liability, ligence any, if was sec- and/or and event that such passive; ondary that Defendant and/or court, full should be an refused negligent Third-Party Holland was assessment of to the extent of neg- and/or liable and that otherwise Third-Party negligence, Defendants Third-Party of ligence and fault, liability, together and/or with costs primary and/or Defendant Holland including expenses suit attorney’s of and design and manufacture of active in the fees, and for such further and other re- Third-Party them, them. Defendant the fifth wheel might [*] to full be entered Holland [*] Plaintiffs, entitling against [*] any judgment from [*] or Defendants them, any Third-Party $ or one [*] and of Schneider Schneider express19 direct this action lief language. cause of for the court reads two and argues implied warranties20 and a In action it has stated a cause its may based briefing warranty deem on a Holland for proper. claims into this court, WHEREFORE, express Third- Defendants and a breach and Party pray judgment implied Plaintiffs warranties under the Uniform Com- Wyo.Stat. (1991) provides: sale if is a § 34.1-2-313 their the seller merchant with respect goods of that kind. Under (a) Express warranties are creat- seller servicing for value or section of food ed as follows: (i) premises Any promise drink to be consumed either on the of fact made affirmation or buyer to the or elsewhere is a sale. seller to which relates goods part (b) and of the becomes of the basis Goods to be must merchantable be at least warranty bargain express an that the creates as: such goods (i) to the or shall conform affirmation objection Pass without in the trade un- promise; description; der contract and (ii) description Any goods of the which is (ii) fungible goods, In the case of are of fair part bargain made the basis of the creates average quality description; within and warranty express goods an that the shall con- (iii) ordinary purposes Are fit for the description; form to the used; goods such are and (iii) Any sample or is model which made Run, (iv) permitted by within the variations part bargain of the basis of the creates an kind, agreement, quality even warranty express goods that the whole of quantity among within each unit and all units sample shall to the conform or model. involved; and (b) necessary It is not to the creation of an (v) contained, adequately packaged, Are express warranty that the seller use formal may agreement require; and labeled as the “guarantee” words such as "warrant" or specific that he have a to make a intention (vi) promises Conform to the or affirma- merely warranty, an affirmation but of fact tions made on the container or label goods purporting value or a statement any. opinion merely to be the seller’s or commen- (c) (section Unless excluded modified goods dation of the does not a warran- create 34.1-2-316) implied other warranties ty. dealing usage from course of arise trade. implied warranty particular of fitness for a implied commonly 20. Thеre are two warranties actions, purpose is stated in product § 34.1-2-315 used in the most im- (1991): warranty portant implied of which is the contracting merchantability. time See 1 James J. White & Rob- Where seller at the Summers, Code, any particular purpose ert S. Commercial reason to know Uniform (3d 1988). Wyo.Stat. goods required 9-7 ed. 34.1-2-314 § (1991) which the are that the implied warranty states merchant- buyer relying judg- seller’s skill ability: goods, to select or suitable ment furnish there (a) (section unless excluded or modified under the next Unless excluded or modified implied warranty goods 34.1-2-316), warranty goods section that the that the shall implied purpose. be fit for such be merchantable is in a contract for shall (UCC).21 Corp. Bldg. this court v. Centric Drake mercial Code Corp., (Wyo.1986) 726 P.2d indemnity under this asserts Schneider Sawyer, 600 P.2d Cline by principles of governed cause of appeal (Wyo. remand 618 Holland contractual after 1980). An availabili- examination of these challenges the basis of two cases that Schneider ty specifically denies no reveals actual conflict. for direct and conse-

has stated claim Cline, the court ruled damages for a breach of UCC quential predecessor Wyo.Stat. that the 1-1- warranty provisions.22 required a determination of “the *23 general accep- Developed prior to the damages percentage amount of and the of (Second), Torts of tance of Restatement negligence party” each in attributable to an 402A, warranty of ac- supra, at breach § to prem- action which the court found be liability principles to applied tions strict warranty sounding ised on a breach of both effect, seller, in an insurer of his make the in in negligence specific and contract. The Keeton, supra, safety. at 97. product’s § warranty implied involved was the warran- allocation, im- form of risk an Under this performed skillful, ty that work will in a warranty safety product of plied a careful, diligent and workmanlike manner. strict for the manufacturer created plumber A in entered an oral contract with See, e.g., Henningsen and distributors. the builders of a trailer court to do the Motors, Inc., N.J. Bloomfield plumbing work installation. When the A.2d 69 defective, proved a lawsuit was instituted. has product The action suffered complaint The stated cause builder’s a of understanding lack of the dis- from the of plumber’s action in contract. The answer contract and tort recov- tinctions between negligence to a stated defenses action. ery. challenges that example, For Holland court, distinguishing, The trial without adopted previous decisions of this court combined the actions and found that the comparative rule in breach warran- plumber properly failed to install the ty Phillips. which conflicts with In actions in a plumbing resulting of contract “breach Phillips, principles this ruled that court negligence.” and Id. at 731. The court comparative negligence first the held case stated causes of Wyo.Stat. in 1-1-109 were fault stated § in This negligence and contract. court inapplicable to actions under specific negligence at found the issue was (Second), supra, Restatement of Torts recovery damages injury for to the the warranty premised on 402A and § by plumber. property the Re- builder’s implied mer- warranty the breach of the case, manding Wyo.Stat. this court held chantability, implied of an war- (1977) (amended 1986) required 1-1-109 ranty purpose particular of fitness for a findings specific court make trial express warranty. Phil- and the breach of percentage party’s each lips, P.2d at 837. Holland finds holding this conflicts with views stated that action. Id. 732. noted, recoveries, warranty Wyo.Stat. sufficiency previously As of the 34.1-2-725

21. complaint Ogle, precludes recovery. is not at issue before court. The 716 P.2d at Appeals statute, United States Court of the Tenth warranty a breach of 341. Under the determine, Circuit will based on F.R.C.P. 8 and made, delivery except when occurs “tender provisions, whether Schneider other relevant warranty explicitly extends fu- where warranty the two claims. We in fact stated discovery goods performance ture necessаry only extent address the issue perfor- await the time such breach must warranty questions answer the presented when the mance the cause of action accrues order to this court the certification been discovered.” breach is should have accompanying discus- Tenth Circuit’s 34.1-2-725(b). Holland contends questions. those sion of showing discovery produced evidence hitch prior January Holland, 1984. was manufactured 22. an affirmative defense which action, complaint third-party was not filed until may dispositive prove of this cause of July has answered that the statute of limitations ruling of the court’s re- The contract such case is mere induce- The correctness ment, understanding creating things the state of quires an of distinctions be- tort, confu- furnishes the actions and unfortunate occasion and in tween language. remedy The Cline court all such cases the is an action sion created ex action, delicto, and contributory that in not an action ex noted a contract contractu. damage negligence may reduce recov- Am.Jur.2d, 17A supra, at Cline, specific ery. 600 P.2d at 732. Corp., The court’s statement Centric today con- paraphrased rule court us, to which Holland directs Am.Jur.2d tained 17A Contracts § support. noting offers little After that a added) (footnote omitted): (emphasis purchas- number of courts have held that a comply duty with this Failure to er’s is not a defense to breach perform in skillful and workmanlike contract, warranty sounding claim may recovery defeat but manner be, speculated: may court “It well howev- other entitle the er, consequential that the dam- resulting from unskillful un- ages by demonstrating negli- bewill limited performance. workmanlike action gence part purchaser.” Id. at damages for to recover the breach aof merely rephrases *24 1053. This dictum the contract, however, contributory neg- the previously rule in does cited Cline and not plaintiff ordinarily ligence of the does support adopting comparative or com- preclude recovery. negli- not his Such parative negligence principles strict for lia- gence rarely releases the defendant from bility warranty actions. obligation perform contract, to his the focus, pursuing The in a of theory strict always fixing is to be in but considered liability warranty, for breach of is on the is, the damages the amount of so —that product McLaughlin, itself. P.2d much the as is attributable warranty the While is often stated or plaintiffs negligence the to be —should contract, implied in the cause of action the recovery. excluded from breach its is not limited to contract appeal, and After remand another the sales, warranty law. In commercial cre upheld court restated the rule and the trial promise ates both that certain facts are finding plumber the court that was 100% duty true and a to insure that facts the are negligent and the builder not was contribu- represented. Menzies, as Bell Ga. torily negligent. Sawyer, Cline v. 731, App. 138 S.E.2d The (Wyo.1980). P.2d warranty, breach such a whether ex press implied, creates causes of action: The Cline court’s decision is contract, contractu, in ex for the breach of pres correct and does not our conflict with promise; tort, delicto, in and ex ent liability warranty. views strict in Cline, duty. breach of 600 P.2d at 732. First, damages sought the were economic party seeking The relief is free select damages which are not recoverable under one or both actions. Id. in liability warranty. tort theories of strict Page personal prod Continental Ins. v. The rule for Engineering injury basic Co., liability 783 P.2d uct (Wyo.1989), premised 647-50 on a breach court refused product liability warranty Traynor to extend was stated Justice recovery in Supreme tort to the loss suf the economic California Court in Green Products, fered from the product. failure of a Sec man v. Yuba Power ond, tort, 697, 700-01, negligence, upon the based Cal.Rptr. Cal.2d (1963): property. the destruction of the builder’s 900-01 complained strictly Where transaction of has A manufacturer liable tort origin places market, its a contract places when an artiсle he on the parties attempt such a relation knowing that that it to be used without defects, ing perform promised inspection proves service the for to have a committed, tort was injury breach con defect that causes to a human gravamen tract is not the being. Recognized action. first in case products, product liability such liabili- The food for breach of unwholesome warranty is action in liability, an strict variety has been extended to ty now fault, allocating based on a risk of loss products great that create other * ** policy cheapest reasons to cost avoider. greater if hazards defective. See, Keeton, 97; Gilles, supra, at liability Although these cases supra, at rules 1306. The we have an theory of on the usually been based opinion nounced in this recov running warranty express implied ery liability apply equal under strict tort plaintiff, from the manufacturer to ly implied actions for indemni requirement of a abandonment ty warranty. on a them, recognition contract between culpability former distinctions of “active” liability by agree- not assumed that “passive” negligence or the distinc * * * imposed by but law ment “primary” tions “secondary” negli permit refusal manufacturer gence commonly applied in which were scope responsibility its define the own warranty under strict * * * products make clear for defective abrogated. are Mut. Liberty Ins. governed by is not one alleged existence, N.E.2d at 861. by the the law of contract warranties but proven, express warranty of an According- liability in law of strict tort. duty would establish a owed Holland to defining governing rules ly, warran- If Schneider manufacture safe hitch. developed to meet the ties were req successfully Schneider establishes the of commercial transactions cannot needs causation, see, e.g., Jeep uisite v.Wells govern properly invoked to the manu- Corp., (Wyo.1975), 597-98 injured by facturer’s to those duty supports prem a claim for *25 those products their defective unless liability warranty. ised on strict in Blaсk purposes for which rules also serve the (U.S.) Group, Decker Inc. v. & Essex liability imposed. such (1989). 105 Nev. prem defenses to an com- of commercial law most rifles warranty assump ised on a breach are: monly applied to for a breach of product. tion of the risk and misuse of the warranty in the are those stated Uniform (Second), supra Restatement Torts See adopted Wyoming. in Commercial Code as at n. 402A cmt. § through 34.1-2-101 34.1-2- §§ McLaughlin, 778 P.2d at See equitable Successful actions for (stating requirements express im- implied indemnity premised on a warranties) plied Ogle, 716 P.2d at and warranty liability to the shift 100% limitations). (applying 338-41 statute holding with our indemnitor. Consistent liability for under Restatement of strict by The claim stated Schneider is 402A, (Second),supra, principles Torts at § tort; therefore, equita- in product liability comparative indemnity apply. will not govern the implied ble rules holding uniformity This retains a in dam right Corp., Huizar v. Abex recovery age principles with the announced Cal.Rptr Cal.App.3d in Phillips, 806 P.2d 834. (1984); Hanover Ltd. Cessna Aircraft (Utah App.1988); by opinion, As modified the answer C.J.S., supra, previously question not- subsection “ii” is 48. As to certified “C” ed, (Second), implied indemnity is avail- of Torts su- Restatement premised on a breach of able for actions right to in- pra, at 886B establishes the product involving warranty a defective demnity for actions a breach personal injury. which caused warranty. The Restatement formula- permits indemnity tion from a III. CONCLUSION supplied a who defective manufacturer 886B(2)(b). Indemnity indemnity principles product. Equitable Id. “innocently right tort by negligently” to shift not barred state the circum- proper in the failing defect. one actor another discover the Id. reveals, uncertainty it is a confusion in stances. As this case com- and the law than law, plex complex anything ago even more area of made since centuries when a for- litigation gotten in English sitting which King’s extensive those Lord on the engage. seeking indemnity squinted through Ultimate- Bench yellow often dense ly, permit indemnity cloud burning the decisions to are from a fire then in Yellow- said, risk simply negligence alloсation. It is stone and “let the matters of trial begin.” that Wyoming within this in- framework fairness. law strives A summary helpful brief factual to an questions presented dynamics understanding

We answer the of this liti- gation. follows: A being operated certification as tractor-trailer National, a driver for Schneider Inc. Wyoming’s compara- A. Does current (Schneider) separated, the trailer statute, crossing negligence tive W.S. 1-1-109 lane, oncoming colliding into the with the requires damages car, killing Horowitz persons. three neg- an action “to recover Suit against was filed Schneider to recover ligence” according be allocated to the wrongful damages. Schneider, death “percentage attributable perceptive, knowledgeable defendant, did actor,” permit each just turnip fall off a truck. It recog- warranty to breach of be considered nized likely the lawsuit as one result weighed same manner as large began help verdict and to look for determining ‍​‌​​‌​​‌‌‌​‌​‌​​‌​​​‌‌‌​‌​​‌‌​​‌‌‌‌‌​‌​‌​‌​‌‌‌​​‍each actor’s so, paying the And commonly loss. “percentage plain- of fault” for the occurs, it party asserted third claims their injuries corresponding tiffs contractor, the road Rissler- plaintiff’s damages? McMurry (Rissler), and the trailer hitch Answer: No. manufacturer, (Holland), Hitch Holland nei- question B. The second is rendered ther of anything whom had to do with negative moot ques- answer to hooking up the These party trailer. third tion A. defendants, all, being incensed at sued at C. If current Wyoming’s refused to to a contribute settlement. So negate does not statute Schneider, days after five of trial and un- in all of the above able frighten the third defendants situations, absence of an weakened, into contributing, decided discre- *26 express indemnity: contract part valor, tion was the better and set- i. Wyoming permit “pas- Does law a tled, paying the amount necessary total to sively” “secondarily” negligent or ac- against cause Horowitz to dismiss the cáse inspect to tor whose failure contribut- prejudice. Schneider with pay- Neither the injuries ed party’s to a third to obtain ment Schneider nor the dismissal of the “actively” “pri- or prejudice discharged case with liability, marily” negligent actors who created if any, of Rissler Holland. or directly responsible or were otherwise l-l-109(d), agree We all W.S. that for the conditions that caused the third provides: party’s injuries? Each defendant is liable for that Answer: Yes. proportion total dollar amount de- grant ii. law Does either damages termined under paragraph as “actively” negligent “passively” or ac- (b)(i) (ii) percent- or section in the of this right indemnity against tors a an- age of of fault the amount attributed to other actor was liable for the who third (ii) (b)(i) him paragraph under or of this party’s injuries liability on strict or section[,] warranty grounds? having never pay results a defendant to Answer: Yes. more percentage than his of fault of the CARDINE, Justice, dissenting. damages. total may produce litigation, proceeded jury This case more If the trial had a ver lawyers, dict, have, pursuant more business for more costs and Schneider would legal expenses system, 1—109(d), to the paid “percentage and more W.S. his 1 — may pursue partial a claim for to him” and tortfeasor fault attributed amount of paid indemnity, must that have it first be established more. he would not no Since paid by an- a sum that payment should have been there was should that amount of anoth- discharged obligation paid been the indemnitee and that other have contribution er, be no payment extinguished there would such partial It clear in case that the indemnitee. this paid what it determined neces- Schneider plaintiff’s claim But Schneider settled plain- extinguish liability to sary to its own indemnity from seeks against it and now It paid nothing tiff—no more. par- even To recover Holland. Rissler and alleged tortfeasor. other clear that indemnity, it must be tial proportionate than its paid more Schneider Question per A yes, my I would answer damages. It must be of Schneider’s share in Phillips Roofing, dissent v. Duro-Last paid Rissler’s obli- clear that Schneider (Wyo.1991). Refusal first won- and that Holland. One gation acknowledge this court that substantial damage why pay would Schneider ders justice requires respond a defendant And then one and Holland. Rissler owed damages only to the extent of that defen- pay if did the obli- why, Schneider wonders fault, the claim is in dant’s whether war- Holland, it Rissler and did gation of ranty, liability, negligence, strict will all for Ris- a release from obtain this court and cause con- continue haunt sler and Holland. administering applying fusion that Rissler and majority concedes justice logic is there allow- law. What still liable Horowitz. Holland are plaintiff, percent for mis- ing a then, case after the present posture product, percent of a recover 100 use decision, pro- can majority is that Schneider alleges product he his because partial indemnity ceed with a claim? and, successful, re- Holland Rissler and I would answer: partial indemnity money as cover sum Question yes; A: Then after payment its to Horowitz. no; Question B: partial indem- sues and recovers Schneider Question no. C: nity, can sue Rissler Holland Horowitz damages. Query more and recover —could settle this Horowitz Rissler and Holland partial indemnity then assert a

claim and against Schneider? claim First, hold that if a defendant I would child, CONTRERAS, By percentage than his total pays more minor James volunteer, damages, payment Through his next friend moth CONTRERAS; than required pay er, he more *27 cannot Brenda Brenda Contreras, I percentage ask what benefi- Contreras; Ap his share. and Odorico allowing promoted by Schneid- policy (Plaintiffs), cial pellants pay to, example, Ris- assume and er then sue perceived obligation and sler’s DISTRICT SCHOOL CARBON COUNTY payment it never had to recover Rissler Shamion; 1; Wells; Kathleen # Belinda pay? And what is pay but volunteered (De Johnson, Appellees and Robert V. Why should to Rissler? the benefit fendants). in mat- to fool around be allowed Schneider Rissler, concerning Holland and Horo- No. 91-251. ters that Rissler’s majority concedes witz? Wyoming. Supreme Court extinguished still be is not —it 10, 1992. Dec. required pay by Horowitz and sued again.

Second, a volun- if not because barred settling teer, I hold that before would

Case Details

Case Name: Schneider National, Inc. v. Holland Hitch Co.
Court Name: Wyoming Supreme Court
Date Published: Dec 9, 1992
Citation: 843 P.2d 561
Docket Number: 91-44
Court Abbreviation: Wyo.
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