Lead Opinion
We deal here with the problem of third party impleader sought by a defendant tort-feasor against another tortfeasor, Complicating what is otherwise a simple application of a rule simply stated, F.R.Civ.P. 14, 28 U.S.C.A., is the fact that this is a diversity case. Both the enabling Act, 28 U.S.C.A. § 2072, and Erie combine to forbid the accidental creation of a substantive right through the operation of this procedural device.
As with so much of the business of the Federal District Courts in Louisiana, this started as a suit under the Direct Action Statute to transport a purely local controversy from its civil law surroundings to a common law oasis with its appealing jury trial. LSA-R.S. 22:655. Lumbermen’s Mutual Casualty Co. v. Elbert, 1954,
It simplifies matters to talk of the parties as they actually are. The plaintiff, Numa Schomaker, was an employee of Busy Electric Company.
In its answer HANO, the defendant, after the usual denial, alleged that the injuries were caused by the contributory negligence of Schomaker, the plaintiff, in exposing himself to risks, failing to take precautions for his safety or to ascertain the condition of the wood pole before he climbed it. It also charged separately that Schomaker assumed the risk of using a pole which he knew to be unsound. As a further separate Sixth Defense, HANO alleged that it had contracted with Busy Electric to do repairs to its electrical distribution system and that the work being performed was under the sole control of Busy Electric. Consequently, it asserted, the injuries to Schomaker were “caused solely by the negligence of Busy Electric Company, its agents and employees * * * ” for various reasons.
To all of this Busy Electric, third party defendant, filed without supporting affidavits, depositions or facts of any kind a motion for “summary judgment * * on the ground that Third-Party Complainant [HANO] * * * has no basis in law or in fact for its Third-Party Complaint against * * * Busy Electrie * * With no more illumination the Court, without stated reason, memorandum, or opinion, granted the motion for summary judgment and thereafter entered a formal decree “that judgment * * * is hereby entered * * * in favor of Busy Electric * * * dismissing the third party complaint * Simultaneously the Court made an express finding that there “is no just reason for delay and directs the entry of judgment as to the 3rd party defendants, Busy Electric * * * " as permitted under F.R.Civ.P. 54(b).
At the outset we must determine ^be qUesti0n raised by the Court as to 0ur jurisdiction to hear the appeal. Considering the nature of this decree as one on flUmmary judgment with an order of dismissal whieh earries with it (in the abgence of tbe language negativing sucb purpose) the idea that it is with prejudice F.R.Civ.P. 41(b), we think that with tbe § 54(b) certificate, the -ud t became ñnal and appeaiable ag such.
,, , . First, it fits the words of the Rule since ... the total pleadings present more than . . % v * * * * , daim> counter-claim, cross claim, or -fchfi'd party claim * * *." F.R.Civ.P 54(b). It should be emphasized that this is not the mere refusal of the trial court in the exercise of its discretion to permit the filing of a third party complaint.
On the merits we are equally clear that the dismissal was erroneous. Much of the difficulty comes from a failure to reckon with the basic nature of a complaint under the Rules. Busy Electric apparently persuaded the Court to read the pleadings as though that was all there was to the ease. Of course, as we have so many times pointed out, this is not the test. Millet v. Godchaux Sugars, 5 Cir., 1957,
This approach is most spectacular in its application and consequences when we assay the theory which Busy Electric asserts here, and presumably did below, why the claim on the written indemnity agreement was insufficient to permit relief. Here is an express contract, note 4, supra, by which Busy Electric indemnifies HANO against personal injury claims asserted by third persons against HANO. Schomaker’s suit is such a claim. By an adroit use of precise words and phrases out of HANO’s Sixth Defense and third party complaint, Busy Electric erects a logical structure proving that under no circumstances could it be liable. First, it asserts, if HANO is not negligent, it will have no liability to Schomaker, and the indemnity will be unneeded and inconsequential. Next, if Schomaker was contributorily negligent, as HANO expressly alleges, there can be no liability, and indemnity is again useless. Third, if Busy Electric is solely at fault, HANO cannot be east. Finally, if HANO is negligent along with Busy Electric, then it can have no indemnity since Busy Electric undertakes to indemnify only against its own negligence, and not that of HANO, or the joint negligence of both.
But this is too fine and too fast. Whether this contract is broad enough, or too broad, or specific enough or too specific to encompass within the promise of indemnity this particular occurrence will depend on what the facts ultimately show.
Concededly, the matter is or may be more involved when it comes to the claim based on general principles of contribution or indemnity unaided by the contractual hold-harmless agreement. The trouble arises from the substantive Louisiana law. The right of impleader, broad and flexible as it is, still speaks in terms of impleading “a person * * * who is or may be liable * * * for all or a part of the plaintiff’s claim against” the impleader. F.R.Civ.P. 14(a). If Louisiana allows contribution, then this facility is available to effectuate it. If Louisiana does not allow contribution, then there is no contingent liability to be asserted, and to allow an impleader would be to create, through Federal Rules, a right which Louisiana denies. At the same time if, by operation of Louisiana’s procedural reforms, the substantive law has effectually been altered, no impediment exists to achieve a like result through giving full range to F.R. Civ.P. 14. Otherwise we might witness a reversal of the usual outcome-determinative test. See Monarch Insurance Co. of Ohio v. Spach, 5 Cir., 1960,
Whatever the difficulties as to contribution, the Louisiana law recognizes the substantive right of indemnity among those who may be characterized as joint tort-feasors at least in the sense that action by each has constituted a breach of some legal duty with resulting harm. The principle is voiced in these terms in the leading case of Appalachian Corporation, Inc. v. Brooklyn Cooperage Co., Inc., 1922,
This substantive right has existed at least since 1922. The recent Louisiana Third Party Practice Act of 1954
Busy Electric does not really challenge this. It overcomes this by again emphasizing the literal words of Sehomaker’s complaint which charges negligence of HANO “through their agents or employees, in failing to maintain the * * pole m safe condition * * *.” This, it asserts, demonstrates positively that the plaintiff’s demand is not, as in Appalachian, based upon constructive or techmcal fault. But until the facts are established, how do we know whether this amounts to “affirmative” or ‘active fault or, as contended by HANO, merely the assertion oi a liability based on the landowner’s pervasive duty to keep the premises in good repair?
There are no other obstacles to the use of F.R.Civ.P. 14 which are beyond the capacity of a trial judge to control. See Cargill, Inc. v. Compagnie Generale Transatlantique, 5 Cir., 1956,
There are, without a doubt, serious complications when we come to the matter of contribution, as distinguished from indemnity. This Court in Linkenhoger v. Owens; 5 Cir., 1950;
If this remains the substantive law of Louisiana, then, of course, impleader under F.R.Civ.P. 14 may not be used by the one tort-feasor sued in order to bring in another not sued but who, had they been jointly pursued, would have had a liability to contribute. F.R.Civ.P. 14 “creates no substantive rights. Thus unless there is some substantive basis for the third-party plaintiff’s claim he cannot utilize the procedure of Rule 14. The Rule does not establish a right of reimbursement, indemnity, nor contribution; but where there is a basis for such right Rule 14 expedites the presentation, and in some cases accelerates the accrual, of such right.” 3 Moore, Federal Practice § 14.-03 at 409-10, and see § 14.11 at 427.
This has brought us to an extended consideration — both on argument and by supplemental briefs requested by the Court — of the Louisiana Third Party Practice Act of 1954, see notes 7, supra and 12, infra. That has not been done to find, and then perhaps utilize, a procedural device over and beyond those prescribed in the Federal Rules. There is no need of that, even assuming the propriety of doing so. Rather, the inquiry is to determine whether through modifications in its procedural mechanisms, Louisiana has modified the rigors of this substantive rule which confessedly seems to have little to offer in its support and which, as Linkenhoger, supra, reflects, often brings about harsh results with no compensating benefits.
Undoubtedly there were many who thought that that was precisely one of the major purposes and effects of the 1954 Third Party Practice Act. Designed as it was to extricate the law from the deficiencies in the old system of Calls
The first was Automotive Finance Co. v. Daigle, La.App.1955,
But whatever optimistic expectations there were, they were shattered by Kahn v. Urania Lumber Co., La.App.1958,
There is much to indicate that perhaps the Court was influenced in this conclusion by an uncritical reliance on one phase of Linkenhoger. The opinion points out “In the Linkenhoger case it was recognized that no substantive rights were conferred by the procedural statute.”
That introduces a further and most interesting complication. For by Art. No. 30, § 1, 1960, the Legislature amended Art. 2103, see note 10, supra. This amendment permits such impleader
We do not undertake to decide that neat and delicate question. Nor do we question at this stage the binding effect of Kahn as the latest and most authoritative expression of Louisiana Courts under Erie. See National Surety Corp. v. Bellah, 5 Cir., 1957,
In any event, as to either one or both of the claims based on contractual indemnity and tort indemnity the underlying evidentiary facts will be identical. Moreover, such facts will be identical on a theory of contribution. All that will vary will be the operative legal effect of such facts when and as found. Under some theories HANO might recover in whole or in part. On others it might recover nothing from Busy Electric. But that will depend upon the applicable principles of law to be applied to those facts as found. By the time this case is tried upon its merits, it may well be that Louisiana Courts will have spoken further as to this problem. Consequently this case is an ideal one for the use of the flexible mechanism of special interrogatories with appropriate instructions under F.R. Civ.P. 49(b). We have often suggested their use to accommodate the final, legal judgment to contingent developments in the undulating, underlying substantive law. See Warren Petroleum Co. v. Thomasson, 5 Cir., 1959,
With the evidence on all the issues— those clearly in the case under existing substantive Louisiana law as well as those perhaps contingently in the case
Reversed and remanded.
. The defendant was, of course, Travelers Insurance Company, the liability insurer of Hano.
. The negligence charged against Busy Electric was the failure to inspect the polo, to warn the plaintiff of the condition of the pole when its condition should have been known, to provide plaintiff with
. The contract provided:
“28. Care of the Work:
“a. The Contractor shall be responsible for all damages to persons * * * that occur as a result of Ms fault or negligence in connection with the prosecution of the work and shall be responsible for the proper care and protection of all materials delivered and work performed until completion and final acceptance :‘= *
. Cf. Sechrist v. Dyke, 4 Cir., 1948,
. See Batson-Cook Co. v. Industrial Steel Erectors, 5 Cir., 1958,
. This is now found in Art. 1111, LSA-Code of Oivil Procedure:
“The defendant in a principal action by petition may bring in any person, including a codefendant, who is his warrantor, or who is or may be liable to him for all or part of the principal demand. * * * »>
This was enacted as Act 433 of 1954, L.S.A.-K.S. 13:3381.
. HANO refers to Arts. 670 and 2322, La. Civ.Code of 1870; 4 Tulane L.Rev. 611 (1930).
. Judge Porterie was persistent. See Gray v. Hartford Accident & Indemnity Co., D.C.W.D.La.1940,
. Art. 2103 of the LSA-Civil Code expressly provides: “The obligation contracted in solido towards the creditor, is of right divided amongst the debtors, who, amongst themselves, are liable each only for his part and portion.”
Of this one commentator stated: “The right to contribution among solidary obligors has been litigated chiefly in a context of joint tortfeasors. Common law accessions to that area have completely altered the rule of Article 2103. From the relatively simple rule of the Article it has been anomalously developed into one of limitless complexities. The subject defies presentation in this restricted article, but has been adequately covered elsewhere. Note, 1 Louisiana Law Review 235 (1938); Note, 4 Louisiana Law Review 451 (1943); Malone, Comparative Negligence — Louisiana’s Forgotten Heritage, 6 Louisiana Law Review 125 (1945); Note, 7 Louisiana Law Review 592 (1947); Note, 9 Tulane L. Rev. 125 (1934) ; Holloman, Contribution between Tort-Feasors: Treatment by the Courts of Louisiana, 19 Tulane L. Rev. 254 (1944).” Substantive and Procedural Aspects of Joint Several, and Joint and Several Obligations, 14 La. Law Rev. 828 at 850 (1954).
. In Kahn v. Urania Lumber Co., La.App. 1958,
. By Act 335 of 1948, the Louisiana State Law Institute was directed to make a complete revision of the Code of Practice. After years of hard labor culminating in the preparation and submission to the Legislature on July 1, 1959, of the Projet of the Louisiana Code of Civil Procedure, such a Code was adopted by Act No. 15 of 1960, effective January 1, 1961, LSA-C.C.P. art. 1 et seq. See, McMahon, The Louisiana Code of Civil Procedure, 21 La.L.Rev. 1,
During all of these labors, a demand was stimulated for the enactment of some changes without awaiting completion of the entire proposed Code. This was true of the Third-Party Practice Act. Based upon the recommendation of the Louisiana State Law Institute, the Legislature enacted Act No. 433, La.Acts 1954, LSA-R.S. 13:3381-3386, see note 7, supra. This subject is now found in the complete Louisiana Code of Civil Procedure in Arts. 1111 to 1116. See McMahon, Courts and Judicial Procedure, 15 La.L. Rev. 38 at 46-49 (1954). Although based in large part upon F.R.Civ.P. 14 the “specific purpose” of these recommended proposals “was to enact an even broader third-party practice than is contemplated by the Federal Rules.” Automotive Finance Co. v. Daigle, La.App.1955,
The comment to the Project points out further than “Through inadvertence the Legislature in 1954 failed to adopt the provisions of Arts. 1031 through 1040, supra, intended to apply generally to all incidental actions, including the third party action. * * * As a consequence, the rules on the subject in this Code are more complete than those embodied in the 1954 legislation.”
In the interim reports leading to the 1954 enactment the Institute pointed out that the rule was “considerably broader than the third party action” of F.R.Civ.P. 14 and said this of its intended use: “The principal use of such a procedural device in Louisiana would be to pass on to a co-defendant all or a part of the judgment recovered against the defendant by the plaintiff, and by permitting the defendant to call in such third person under the demand against third parties * * Footnote 3,
. “Art. 2103. When two or more debtors are liable in solido, whether the obligation arises from a contract, a quasi contract, an offense, or a quasi offense, it
“A defendant who is sued on an obligation which, if it exists, is solidary may seek to enforce contribution, if he is cast against his solidary co-debtor by making him a third party defendant in the suit, as provided in Article 1111 through 1116 of the Code of Civil Procedure, whether or not the third party defendant was sued by the plaintiff initially, and whether the defendant seeking to enforce contribution if he is cast admits or denies liability on the obligation sued on by the plaintiff. (As amended Acts 1960, No. 30, § 1.).” The amendment became effective January 1, 1961.
. The explanatory note by Henry G. McMahon in West’s LSA-Civil Code 1960 states: “Amended on the recommendation of the Louisiana State Law Institute to provide a substantive law base for the enforcement of contribution among join tort feasors through the third party demand. This article, as amended, implements Art. 1111-1116, LSA-Code of Civil Procedure, and overrules legislatively Kahn v. Urania Lumber Co., La.App. 1958,
Dissenting Opinion
(dissenting).
If I felt that this Court had jurisdiction of this appeal, I would be constrained to concur in the result reached in the able and lucid opinion of the majority. But I do not think that the judgment before us is one from which appeal should lie. It is important to keep in mind that final judgments are appealable only if made so by statute. Basically, judgments of district courts are appealable to this Court only if they dispose of all of the issues as they relate to all of the parties.
The judgment here before us disposes of only one issue as to which the plaintiff, who brought the action and ought to have major control over the route it takes, is, so far, an uninterested bystander. Unless the third party practice vests those who participate in it with a stature superior to that of the party whose action this is, — and I do not understand that the majority opinion so infers — I think prior decisions of this Court have decided the issue before us in a way with which this decision is at war.
Meadows et al. v. Greyhound Corporation, 5 Cir., 1956,
I think that the appellate courts have too much important work to do to warrant displacing it by consideration of piecemeal appeals such as I consider this one to be, upon which the majority has manifestly done a large amount of work. I therefore respectfully dissent.
