400 Pa. Super. 493 583 A.2d 1223

583 A.2d 1223

Marcia OVIATT v. AUTOMATED ENTRANCE SYSTEM COMPANY, INC., Appellant, v. ST. MARGARET MEMORIAL HOSPITAL and Gyro Tech., Inc.

Superior Court of Pennsylvania.

Submitted Sept. 19, 1990.

Filed Dec. 19, 1990.

*494W. Alan Torrance, Jr., Pittsburgh, for appellant.

Arnold D. Wilner, Pittsburgh, for Oviatt, appellee.

David M. McQuiston, Pittsburgh, for St. Margaret, appellee.

David A. Presser, Pittsburgh, for Gyro Tech., appellee.

Before CIRILLO, President Judge, and TAMILIA and HOFFMAN, JJ.

CIRILLO, President Judge.

This is an appeal from an order of the Court of Common Pleas of Allegheny County granting the motions for summary judgment of additional defendant-appellees, St. Margaret Memorial Hospital and Gyro Tech., Inc. We reverse.

This case arises from a personal injury claim filed by Marcia Oviatt against Automated Entrance Systems Compa*495ny, Inc. (hereinafter “Automated”) for injuries that she received on August 21» 1986 while walking through automatic glass doors at St Margaret Memorial Hospital.1 Oviatt claimed that the doors closed on her before she was through them, and that this was the result of Automated’s negligent installation.

On November 28, 1988, Automated joined St. Margaret Memorial Hospital and Gyro Tech., Inc. (hereinafter “additional defendants”) as additional defendants. Gyro Tech., Inc. is the manufacturer of the electronic device that is designed to keep the automatic doors open until the individuals pass through them. St. Margaret Memorial Hospital controlled the facility where Oviatt was injured and allegedly failed to notify Automated of prior similar problems.

After the additional defendants were joined, Oviatt executed a release in favor of all defendants in the amount of $27,500.00.2 Automated paid this sum to Oviatt. The release, which had the effect of discharging the liability of all parties who could have contributed to Oviatt’s injury, has been defined under Pennsylvania law as a general release. See Brosius v. Lewisburg Craft Fair, 383 Pa.Super. 454, 557 A.2d 27 (1989). After executing the release, Oviatt could no longer proceed against the additional defendants as joint tortfeasors. Brosius, 388 Pa.Super. at 457, 557 A.2d at 29; see also 42 Pa.C.S. § 8826 (“A release by the injured person of one joint tort-feasor, whether before or after judgment, does not discharge the other tort-feasors unless the release so provides....”).

*496The Honorable Maurice Louik, by his opinion and order of February 9, 1990, granted the additional defendants’ motions for summary judgment. The court reasoned that under the Uniform Contribution Among Tort-Feasors Act, 42 Pa.C.S. §§ 8321-8327 (hereinafter “UCATA”), the liability of these parties to Oviatt was not extinguished by the settlement agreement between Automated and Oviatt, as section 8324(c) requires, because the additional defendants had already been relieved of liability to Oviatt by reason of the statute of limitations. 42 Pa.C.S. § 5524(2). Additionally, the trial court reasoned that because Automated voluntarily settled with Oviatt, it was therefore not entitled to contribution from the additional defendants.

In this action, Automated asks us to decide whether it is entitled to contribution from the additional defendants under the UCATA, where Oviatt’s claims against the non-settling additional defendants were barred by the statute of limitations before settlement. A proper interpretation of the UCATA and related case law compels a holding that Automated is entitled to pursue a contribution claim against the additional defendants.

When reviewing an order granting a motion for summary judgment, our function is to determine whether there are any genuine issues of material fact, and additionally, whether the moving party is entitled to judgment as a matter of law. Bobb v. Kraybill, 354 Pa.Super. 361, 511 A.2d 1379, allocatur denied, 513 Pa. 633, 520 A.2d 1384 (1986); Ciafrani v. Johns-Manville Corp., 334 Pa.Super. 1, 482 A.2d 1049 (1984); Husak v. Berkel, Inc., 234 Pa.Super. 452, 341 A.2d 174 (1975); Pa.R.C.P. 1035. We have previously stated that “[t]o determine the absence of a genuine issue of material fact, we must view the evidence in the light most favorable to the non-moving party and any doubts must be resolved against the entry of judgment.” Bobb, 354 Pa.Super. at 364, 511 A.2d at 1380. Moreover, we must “accept as true all well-pleaded facts in appellant’s pleadings and give appellant the benefit of all reasonable inferences to be drawn therefrom.” Bobb, 354 Pa.Super. at 364, 511 A.2d at *4971380 (citing Spain v. Vincente, 315 Pa.Super. 135, 461 A.2d 833 (1983)).

In Pennsylvania, the right of contribution among joint tortfeasors is provided by statute. The UCATA defines joint tortfeasors as “two or more persons jointly or severally liable in tort for the same injury to persons or property, whether or not judgment has been recovered against all or some of them.” 42 Pa.C.S. § 8322. Two parties may be jointly liable for an injury if their conduct “causes a single harm which cannot be apportioned ... even though [the actors] may have acted independently.” Mattia v. Sears, Roebuck & Co., 366 Pa.Super. 504, 507, 581 A.2d 789, 791 (1987) (quoting Capone v. Donovan, 882 Pa.Super. 185, 189, 480 A.2d 1249, 1251 (1984)).

Under the UCATA, joint tortfeasors are not entitled to contribution unless they have discharged the common liability by payment or paid more than their pro rata share of common liability. 42 Pa.C.S. § 8824(b). The UCATA also provides that a joint tortfeasor who settles with the original plaintiff is not entitled to seek contribution from another joint tortfeasor whose liability to the original plaintiff is not extinguished by the settlement. 42 Pa.C.S. § 8824(c).

We point out initially that the case law does not require that judgment be entered before the defendant may seek contribution from other joint tortfeasors. Rather, the only requirement is that one tortfeasor discharge the common liability of all joint tortfeasors by payment to the plaintiff. In the ease of Swartz v. Sunderland, 403 Pa. 222, 169 A.2d 289 (1961), our supreme court expressly permitted an original defendant to seek contribution from an additional defendant after the original defendant had settled the claim with the injured party by securing a release of all claims against the original and additional defendants.

In Swartz, the court stated that the entry of judgment is not a prerequisite to or an “absolute foundation of the right to seek contribution.” Swartz, 403 Pa. at 224, 169 A.2d at *498290-91. Sections one and two of the Uniform Contribution Among Tort-Feasors Act, 12 P.S. § 2082 et seq. (repealed 1976) (hereinafter “Act”), are the legislative predecessors to, and are essentially the same as, sections 8322 and 8324 of the UCATA. The court noted that sections one and two of the Act make it clear that only two conditions must be met in order for a contribution claim to arise. According to the court, contribution arises where “one joint tort-feasor has discharged the common liability or paid more than his pro rata share ... [and] the liability of the other joint tort-feasor to the injured persons has been extinguished by the settlement.” 403 Pa. at 224, 169 A.2d at 291. Justice Eagan, writing for a unanimous court, emphasized that the Act was “designed to effectuate a just result for all of the parties involved and to stimulate and permit settlements of valid claims without expensive and time consuming litigation.” Id., 403 Pa. at 225, 169 A.2d at 291. The court bolstered its interpretation of the Act by citing a comment by the Commissioners of the Act:

Nobody would deny that payment of an injured person’s claim by one of the tort-feasors, pursuant to a settlement instead of after judgment in a lawsuit, should entitle the paying tort-feasor to recover contribution to his payment from other joint-tortfeasors.

Id., 403 Pa. at 225, 169 A.2d at 291 (citing Comment in section 2(3) by the Commissioners of the Act, (Note, 9 ULA 236) (emphasis in original)). Moreover, the court emphasized that the non-settling parties that are called upon to discharge their responsibilities will not be prejudiced because no court judgment has been entered in favor of the injured party. Id., 403 Pa. at 225, 169 A.2d at 291. “They [non-settling parties] will still have their day in court with full opportunity to defend against liability and the reasonableness of the amount paid in settlement of the existing claim.” Id., 403 Pa. at 226, 169 A.2d at 291 (emphasis in original).

In the present case, the additional defendants argue that because settlement did not discharge their liability to Oviatt and because settlement was effected prior to the entry of *499any judgment, no contribution rights arise in favor of Automated. We disagree.

The right of contribution may be asserted during the original proceeding, as Automated has done in the present case, via joinder of the additional defendants, see Pa.R.C.P. 2252, or it may be pursued in a separate action by an original defendant who has previously been held liable to the original plaintiff. National Liberty Life Ins. Co. v. Kling Partnership, 350 Pa.Super. 524, 504 A.2d 1273 (1986). “In the latter instance, the party seeking contribution must stand in the shoes of that original plaintiff and prove that the new defendant was a joint tortfeasor in that his tortious conduct also caused the harm at issue.” Mattia, 366 Pa.Super. at 508, 531 A.2d at 791.

Automated may assert a contribution claim since it has satisfied the two statutory conditions that our supreme court outlined in Swartz, supra. Automated has discharged the common liability of itself and the potential liability of the additional defendants, and has also extinguished their potential liability to Oviatt by securing a general release from Oviatt. 42 Pa.C.S. § 8324(b), (c). Under the UCATA, Automated will be required to show that these additional defendants are joint tortfeasors. 42 Pa. C.S. § 8324(a).

Our reading of Swartz leads us to conclude that Automated is entitled to pursue its contribution claim against the additional defendants even though no judgment has been entered by the trial court. Swartz made it clear that joint-tortfeasors who voluntarily settle with the injured party retain contribution rights against other non-settling joint tortfeasors. Here, as in Swartz, the non-settling additional defendants will have the opportunity to defend against liability and the reasonableness of the amount which Automated paid to Oviatt in consideration of the general release. Swartz, 403 Pa. at 225, 169 A.2d at 291.3

*500We also agree with Automated’s assertion that the statute of limitations applicable to Oviatt’s underlying claim against the additional defendants has no effect on Automated’s ability to enforce a contribution claim against them. It is well settled that a joint tort-feasor’s right to contribution is distinct from the original action. Pa. Nat. Mut. Ins. v. Nicholson Const., 374 Pa.Super. 13, 542 A.2d 123, alloc. denied, 521 Pa. 605, 555 A.2d 116 (1988); Svetz For Svetz v. Land Tool Co., 355 Pa.Super. 230, 513 A.2d 403 (1986); Hughes v. Pron, 286 Pa.Super. 419, 429 A.2d 9 (1983).

In Svetz, we discussed the rights and obligations of defendants and the basic rationale underlying the UCATA. We noted that “contribution is not a recovery for the tort [committed against the plaintiff,] but the enforcement of an equitable duty to share liability for the wrong done.” Id., 355 Pa.Superior Ct. at 238, 513 A.2d at 407. Of particular significance to this action is our observation that “[a] claim *501for contribution is separate and distinct from [the] underlying tort; the rights and obligations of the defendants flow not from the tort, but from the judgment or settlement itself” Id., 355 Pa.Superior Ct. at 238, 513 A.2d at 407 (emphasis added) (citing Coniaris v. Vail Associates, Inc., 196 Colo. 392, 586 P.2d 224 (1978)). It follows, therefore, that the running of the statute of limitations on the underlying tort claim does not preclude a defendant from pursuing a contribution action. Shaw v. Megargee, 307 Pa. 447, 161 A. 546 (1932) (recognizing rule).

In the case of Hughes v. Pron, 286 Pa.Super. 419, 429 A.2d 9 (1981), this court made it clear that the statute of limitations in the underlying tort action has no effect upon a defendant’s contribution rights. Hughes involved a contribution claim against a developer for negligent construction of a home. Mr. and Mrs. Hughes, who were joint owners of a piece of property, brought suit against the Prons, because the Prons had mistakenly erected a house on the Hughes’ property. The Prons joined Yamulla Trucking and Excavating Co., (“Yamulla”) a developer, as an additional defendant, alleging that the house was mistakenly built upon the Hughes’ property because of Yamulla’s negligence.4 We held that the trial court had improperly refused Yamulla’s motion to amend its answer to include the statute of limitations as a defense to the Prons’ complaint.5 Nonetheless, we noted that even if Yamulla had been permitted to assert the statute of limitations as a defense, this would not have prevented the Prons from asserting a contribution claim. Yamulla, one of the additional defendants, theorized that its negligence occurred, if at all, when the Prons first discovered that their house was erected on the wrong lot. There*502fore, Yamulla argued, it could not be liable because the statute of limitations had expired by the time the suit was filed. We rejected Yamulla’s theory and stated:

Appellant, [Yamulla], however, has misconstrued his status as an additional defendant in this litigation. While the plaintiffs herein, Robert and Anne Hughes, may have been barred by the statute from bringing suit against appellant, this had no effect upon the Prons’ ability to join appellant as an additional defendant: “The fact that the statute of limitations will bar the plaintiff from a direct recovery against the additional defendant can have no effect on the defendant’s right to enforce his claim of contribution or indemnity ...”

286 Pa.Super. at 426, 429 A.2d at 12 (citing Goodrich-Am-ram Rules of Civil Procedure, Comments on Rule 2252(a)-9) (quotation marks and additional citations omitted).

Here, the trial court reasoned that because the statute of limitations in Oviatt’s claim against the additional defendants had expired, this had the effect of precluding Automated from asserting a contribution claim under the UCA-TA. According to the trial court’s rationale, the additional defendants’ liability to Oviatt could not have been extinguished by the general release, as section 8324(c) requires, because it had already been extinguished by expiration of the statute of limitations in Oviatt’s direct claim against the additional defendants. 42 Pa.C.S. § 5524(2). This construction of the UCATA, however, does not comport with the principle that a tortfeasor’s right to contribution is distinct from the underlying tort action. See Nicholson, Svetz, Hughes, supra.

In this action, as in Svetz, the rights and obligations of the defendants [Automated, Gyro and St. Margaret] flow not from the tort, but from the general release that Oviatt executed in favor of Automated and “all other persons, firms, partnerships, and corporations which ... [may be] liable to [Oviatt].” General Release, supra, note 2. Since the rights and obligations of defendants in a contribution action “do not flow from the tort,” it necessarily follows *503that the statute of limitations applicable to the plaintiffs underlying tort claim cannot relieve additional defendants from contribution claims. Shaw, Hughes, Svetz, supra.6

*504This court has also stated that the IJCATA must be read with equity in mind. Mattia, 366 Pa.Super. at 507, 531 A.2d at 791. Automated’s right to assert a contribution claim against the additional defendants derives from the equitable principle that it would be unfair to impose the burden of Oviatt’s loss on Automated to the exclusion of the additional defendants. Svetz, supra. Of course, as we have stated in the above discussion, the additional defendants will have the opportunity to prove that they did not contribute to Oviatt’s injuries. Swartz, 403 Pa. at 225, 169 A.2d at 291. If successful, Automated’s contribution claim will fail.

For the above reasons, we conclude that the additional defendants, the moving parties in this action, are not entitled to judgment as a matter of law.

Summary judgment in favor of the additional defendants is reversed and the case is remanded for further proceedings. Jurisdiction relinquished.

Oviatt v. Automated Entrance System Co.
400 Pa. Super. 493 583 A.2d 1223

Case Details

Name
Oviatt v. Automated Entrance System Co.
Decision Date
Dec 19, 1990
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400 Pa. Super. 493

583 A.2d 1223

Jurisdiction
Pennsylvania

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