CHUBB PRESENTATION ON RISK ASSESSMENT
INSURANCE CLAIMS EVALUATION
April 6, 2004
LIABILITY EXPOSURE ANALYSIS
DAMAGE ASSESSMENT
PREPARED BY:
JEFFREY R. SCHMIELER, ESQUIRE
LAW OFFICES OF
SAUNDERS & SCHMIELER, P.C.
PRESENTED BY:
JEFFREY R. SCHMIELER, ESQUIRE
LAW OFFICES OF
SAUNDERS & SCHMIELER, P.C.
www.sslawfirm.com
8737 Colesville Road, Suite L-200
Silver Spring, Maryland 20910
(301) 588-7717
Suite 600
1050 17th Street, N.W.
Washington, D.C. 20036
Suite 2700,
111 South Calvert Street
Baltimore, Maryland 21202
Suite 700
2111 Wilson Boulevard
Arlington, Virginia 22201
4900 Cutshaw Avenue
Richmond, Virginia 23230
TABLE OF CONTENTS
| |
LIABILITY EXPOSURE ANALYSIS |
1 |
| I. | OVERVIEW OF THE DEVELOPMENT OF THE LAW | 1 |
| | Legal Principles | 1 |
| | A. Negligence - Reasonable Man Standard. A Theory of Liability Predicated Upon Fault | 1 |
| | B. The Collateral Development of Liability Without Fault - Strict Liability in Tort | 2 |
| | | |
| II. | LEGAL THEORIES OF LIABILITY | 4 |
| | Negligence | 4 |
| | Contributory and Comparative Negligence | 5 |
| | Products Liability/Strict Liability | 8 |
| | Joint & Several Liability | 13 |
| | Indemnification | 17 |
| | Contribution | 19 |
| | Vicarious Liability | 23 |
| | Minors | 25 |
| | Dram Shop Liability | 28 |
| | Professional Liability | 31 |
| | Directors & Officers Liability | 32 |
| | Intellectual Property Liability | 33 |
| | Trade Mark Infringement - The Lanham Act | 33 |
| | Patent Infringement | 34 |
| | Copyright Infringement | 35 |
| | Misappropriation of a Trade Secret | 35 |
| | Unfair Competition | 37 |
| | Discrimination Claims | 39 |
| | Loss of Consortium/Solatium Claims | 39 |
| | Compensatory Damages | 41 |
| | Punitive Damages | 43 |
| | Wrongful Death/Survival Claims | 47 |
| | Consideration of Statutory Liability and Standards | 52 |
| | A. Liability of Owners, Managers & Occupants Under CERCLA | 52 |
| | B. The Americans with Disability Act (ADA) | 53 |
| | C. Occupational Safety and Health Act (OSHA) | 53 |
| | State Statutory Liability | 54 |
| | Bad Faith | 57 |
| | | |
| III. | NEGLIGENCE CLAIMS - PREMISES LIABILITY | 61 |
| | General Concept - Negligence/Premises Liability Nature and Types
of Claims | 61 |
| | A. Historical Basis - Premises Liability/Business Premises | 62 |
| | B. Liability for the Criminal Acts of Third Persons | 63 |
| | Landlord Liability for the Criminal Acts of Third Persons | 71 |
| | Review of Measures Taken by the Insured to Reduce Liability Exposure | 76 |
| | | |
| IV. | DAMAGE ASSESSMENT | 78 |
| | Compensatory Damages for Bodily Injury | 78 |
| | Susceptibility to Injury | 79 |
| | Present Value Qualification - Personal Injury | 79 |
| | Punitive Damages | 79 |
| | Damages - Spouse of Deceased | 80 |
| | Damages - Parent of Deceased Child | 80 |
| | Damages - Minor Child of Deceased Parent | 80 |
| | Damages - Action by Estate | 81 |
| | Present Value Qualification - Wrongful Death | 81 |
| | Mortality Table - Life Expectancy | 81 |
| | | |
| V. | CLAIM EVALUATION | 82 |
| | Risk Factors Presented by the Claim | 82 |
| | Jury Verdict Range(s) | 82 |
| | | |
| VI. | CASE STUDIES AND ACTUAL CASE EXEMPLARS | 83 |
LIABILITY EXPOSURE ANALYSIS
I. OVERVIEW
OF THE DEVELOPMENT OF THE LAW
Legal Principles
A. Negligence - Reasonable
man standard. A theory ofliability predicated upon fault.
The most fundamental concept of American
Jurisprudence is the principle of liability founded on fault. It is a concept
deeply imbedded in the heritage and precedent of the law and is the cornerstone
of all liability predicated upon negligence.
In order to validly state a cause of action
sounding in negligence, four (4) elements must co-exist:
(1) A duty owed to another;
(2) A breach of that duty;
(3) Damages or injury; and
(4) A causal connection between the breach
and the injury and damages.
Liability founded on
negligence therefore depends primarily upon the existence of:
(1) A legally recognized duty; and
(2) A breach of that duty.
The basic concept of negligence is therefore
liability premised upon a fault basis of liability, i.e., a duty and breach
thereof. This basic fault concept
is the gravamen of all tort liability based upon negligence.
Such a concept, i.e., liability predicated upon
fault, is submitted to be a fundamentally fair concept.While the basic concept of liability
predicated on fault is fundamentally fair, why then are the results of the
application of the concept by the modern day jurisprudence system seen as
largely unfair by the public? The
answer to the question lies in the basic predicate itself i.e. duty and
breach of duty, in that the Courts have
defined tort duty in a manner which is not co-extensive with a moral
duty.
In the case of the Village of Cross-Keys v. U.S.
Gypsum, 315 Md. 741, 751, 556 A.2d
1126 (1989), the Maryland Court of Appeals stated that:
A tort duty... is an
expression of the sum total of those considerations of policy which lead the
law to say that the Plaintiff is entitled to protection, and that a tort duty
is not necessarily co-extensive with a moral duty.
The Court further stated:
Among the factors to be
considered in determining whether tort duty should be recognized are:
(1) The foreseeability of harm to the Plaintiff;
(2) The degree of certainty
that Plaintiff suffered injury;
(3) The closeness of the connection between
the
Defendant’s conduct and the
injury suffered;
(4) The moral blame attached to the
Defendant’s conduct;
(5) The policy of preventing future harm;
(6) The extent of the burden of the
Defendant;
(7) The consequences to the community of
imposing a duty to exercise care with resulting liability for a breach; and
(8) The availability, cost and prevalence
of insurance for the risk involved.
While the basic concept of negligence predicated on
fault is a fundamentally fair concept, the incongruous and logically
inconsistent application of the concept together with social engineering and
legislation by the Court system, has resulted in the basic unfairness of the
law of negligence as it exists and as it is applied today by the American
judicial system. In the present day
litigation of a premises liability case, as a general rule questions of whether
or not an owner breached his duty of care to invitees and whether an invitee
exercised reasonable care for his or her own safety are normally determined to
be jury questions except in rare instances and undisputed cases where
reasonable minds cannot differ as to the conclusion to be reached.
This tendency to present cases to a jury for a
liability determination rather than a judicial determination has the effect
of expanding liability and the associated risks of liability in an ever
increasing fashion rather than confining liability to an established standard
which the law defines as constituting a clearly defined duty and breach
thereof. It injects uncertainty in the
law in an area where a clearly defined standard of care would not only assist
businesses, owners/occupiers in establishing reasonable maintenance and
operational policies and procedures but also obviate needless litigation.It breeds uncertainty in an area of the law
which cries out for certainty.
B. The Collateral
Development of Liability Without Fault - Strict Liability in Tort
In the past fifty (50) years, separate and apart
from the developing law of negligence, the concept of liability without
fault, i.e., strict liability in tort developed,
principally in the area of products liability which imposed liability on
product manufacturers even in those instances where there was no negligence
under the public policy theory that public policy demanded that responsibility
be fixed wherever it will most effectively reduce the hazards to life and
health inherent in defective products that reach the marketplace.The theory underpinning strict liability is
that the product manufacturer is more able to bear the risk of loss
by protecting itself with insurance coverage than an injured party.
Strict liability imputes liability on the
commercial supplier of “unreasonably dangerous” products without the need to
show any negligence on the part of the defendant. The general rule is stated in Restatement of Torts 2d, § 402A.
(1) One who sells any product in a defective
condition unreasonably dangerous to the user or consumer or to his physical
property is subject to liability for physical harm thereby caused to the
ultimate user or consumer, or to his property, if
(a) The seller is engaged in the business
selling such a product, and
(b) It is expected to and does reach the user
or consumer without substantial change in the condition in which it is sold.
(2) The rule stated in Subsection (1)
applies although
(a) The seller has exercised all possible
care in the preparation and sale of his product, and
(b) The user or consumer has not bought the
product from or entered into any contractual relation with the Seller.
Strict liability is also imposed for inherently
dangerous activity, as well as in certain legislative enactments inclusive of:
(1) ADA (Americans With Disabilities Act);
(2) OSHA (Occupational Safety and Hazard Act);
(3) CERCLA (Comprehensive Environment
Response, Compensation
and Liability Act of 1980);
(4) Industrial Safety Act of
the District of Columbian (Safe work Place); and
(5) Workers Compensation.
II. LEGAL THEORIES OF LIABILITY
NEGLIGENCE
A. MARYLAND
Negligence has four (4) basic elements under
Maryland Jurisprudence. They are as
follows: (1) the defendant owed a duty to the plaintiff to protect the
plaintiff from injury; (2) the defendant breached that duty; (3) the plaintiff
suffered actual injuries; and (4) those injuries were proximately caused by the
defendant’s breach of duty.
If any one of these elements is lacking, the action
will not lie.
B. DISTRICT OF COLUMBIA
Negligence actions in the District of Columbia
require a showing: 1) that the defendant owed a duty to the plaintiff; 2) that
the defendant breached the duty; 3) that the breach was proximate cause of; and
4) plaintiff’s damages.
The existence of a legal duty is ordinarily a
question of law for the Court to decide. That duty is usually held to be the
reasonable care that is expected of others in the same field or situation.A person has the right to assume that others
will exercise reasonable care. A person
has the right to assume that others have normal sight, hearing and intelligence,
and are exercising ordinary care when using these senses or abilities.
C. VIRGINIA
In Virginia,
in order to recover for negligence, the plaintiff must establish: 1) that the
defendant was under a duty to use care not to injure the plaintiff; 2) that the
defendant breached this duty; 3) that this breach of duty was a legally
recognized cause of and 4) actual injury to the plaintiff.In other words, to constitute actionable
negligence, there must be a duty, a violation thereof, and a consequent injury.
D. NEW JERSEY
According to Endre v. Arnold, 300 N.J. Super
136, 142, 692 A.2d 97, 100, ““Three elements are essential for the existence
of a cause of action in negligence: (1) a duty of care owed by defendant to
plaintiff; (2) a breach of that duty by defendant; and (3) an injury to
plaintiff proximately caused by defendant's breach. Whether a duty exists is solely a question of law to be decided
by a court and not by submission to a jury.”” citing Anderson v.
Sammy Redd and Assoc., 278 N.J.Super. 50, 56, 650 A.2d 376 (App.Div.), cert.
denied, 139 N.J. 441, 655 A.2d 444 (1995); Wang v. Allstate Ins. Co.,
125 N.J. 2, 15, 592 A.2d 527 (1991).
E. DELAWARE
Negligence is the lack of ordinary care; that is,
the absence of the kind of care a reasonably prudent and careful person would
exercise in similar circumstances. If a
person's conduct in a given circumstance doesn't measure up to the conduct of
an ordinarily prudent and careful person, then that person was negligent. On
the other hand, if the person's conduct does measure up to the conduct of a
reasonably prudent and careful person, the person wasn't negligent.The mere fact that an accident occurred
isn't enough to establish negligence. Duphily
v. Delaware Elec. Coop., Inc., Del. Supr., 662 A.2d 821, 828(1995); Culver v. Bennett, Del.
Supr., 588 A.2d 1094, 1096-97 (1991); Robelen Piano Co. v. Di Fonzo,
Del. Supr., 169 A.2d 240 (1961); Rabar v. E.I. duPont de Nemours & Co.,
Del. Super., 415 A.2d 499, 506 (1980); DeAngelis v. U.S.A.C. Transport,
Del. Super., 105 A.2d 458 (1954); Kane v. Reed, Del. Super., 101 A.2d
800 (1954).
F. PENNSYLVANIA
Pennsylvania defines negligence elements as duty or
obligation recognized by law, breach of that duty, causal connection between
conduct and resulting injury, and actual damages.Duty is determined by an examination of
conduct of reasonable man under the circumstances.
G. WEST VIRGINIA
In order to establish a prima facie case of
negligence in West Virginia, it must be shown that the defendant has been
guilty of some act or omission in violation of a duty owed to the
plaintiff. Aikens v. Debow, 208
W.Va. 486, 541 S.E.2d 576 (2000); Jack v. Fritts, 193 W.Va. 494, 457
S.E.2d 431 (1995); Parsley v. General Motors Acceptance Corp., 167 W.Va
866, 280 S.E.2d 703 (1981).
CONTRIBUTORY AND
COMPARATIVE NEGLIGENCE
A. MARYLAND
The State of Maryland is a contributory negligence
state. Contributory negligence is the
failure to observe ordinary care for one’s own safety; it is the doing of
something that a person of ordinary prudence would not do, or the failure to do
something that a person of ordinary prudence would do, under the circumstances.
Union Mem. Hosp., 125 Md. App. 275, 724 A.2d 1272 (1999). A
person is deemed contributorily negligent if he fails to observe ordinary care
for his own safety. Schweitzer v. Brewer, 280 Md. 430, 374 A.2d
347 (1977). Contributory negligence is
a complete defense if such negligence directly contributes to plaintiff’s
injury. Baltimore County v. Keenan, 232 Md. 350, 193 A.2d 30
(1963). The defendant has burden of
establishing plaintiff’s contributory negligence. Atlantic Mut. Ins. Co. v.
Kenney, 323 Md. 116, 591 A.2d 507 (1991). The critical distinction
between contributory negligence and assumption of risk is that, in the latter,
by virtue of plaintiff’s voluntary actions, any duty defendant owed plaintiff
to act reasonably for plaintiff’s safety is superseded by plaintiff’s
willingness to take chance. Schroyer v. McNeal, 323 Md. 275, 592
A.2d 1119 (1991). Further, where
Plaintiff is guilty of contributory negligence, the Defendant’s negligence is
immaterial. Miller v. Mullenix,
227 Md. 229, 176 A.2d 203 (1962).
A child of tender years held only to that measure
of care which children of same age and intelligence would be expected to
exercise under similar circumstances. Stein v. Overlook Joint Ven-ture,
246 Md. 75, 227 A.2d 226 (1967). As matter of law, a child aged 4 cannot be
held contributorily negligent. Miller v. Graff, 196 Md. 609, 78
A.2d 220 (1951). A child aged 5 or over may be contributorily negligent, but is
only bound to exercise that degree of care of reasonable person of like age,
intelligence, and experience under like circumstances.Taylor v. Armiger, 277 Md.
638, 358 A.2d 883 (1976).
B. DISTRICT OF COLUMBIA
The District of Columbia is a contributory
negligence jurisdiction. Generally,
contributory negligence is a good defense to action based on negligence. Karma
Constr. Co., Inc. v. King, 296 A.2d 604 (D.C. 1972).Under the doctrine of contributory negligence,
the plaintiff is barred from recovery if his negligence was a substantial
factor in causing his injury, even if the defendant was also negligent.Sinai v. Polinger Co., 498
A.2d 520 (D.C. 1985). In determining whether a minor is contributorily negligent,
the jury must consider his age, education, training and experience.Stevens v. Hall, 391 A.2d 792
(D.C. 1978). The District of Columbia
law does not recognize the doctrine of comparative negligence. District of
Columbia v. C.F. & B., Inc., 442 F. Supp. 251 (D.D.C. 1977); National
Health Lab. v. Ahmadi, 596 A.2d 555 (D.C. App. 1991) (Medical
Malpractice). Only exception to this rule is in actions by employee against
common carrier. D.C. Code §44-402 (1998).
C. VIRGINIA
Contributory negligence is a complete defense in
Virginia. Morris v. Dame’s Ex’r, 161 Va. 545, 171 S.E. 662
(1933). Contributory negligence shall not constitute a defense unless pleaded
or shown by plaintiff’s evidence. Rule 3:16 (d) Rules of Supreme Court of
Virginia. Contributory negligence and
assumption of the risk are concepts which occasionally overlap but are
generally distinguishable; “contributory negligence” connotes carelessness;
“assumption of the risk” connotes venturousness voluntarily incurring risk,
nature and extent of which are fully appreciated. VEPCO v. Winesett, 225
Va. 459, 303 S.E.2d 868 (1983).
Under seven years of age, a child is conclusively
presumed incapable of contributory negligence. Between seven and fourteen years of age, there is a rebuttable presumption
of incapacity. At ages fourteen and
over, children lose the presumption of incapacity and are presumed to have
adult capacity as to contributory negligence but the standard of conduct is of
children of the same age, experience and maturity. Grant v. Mays, 204
Va. 41, 129 S.E.2d 10 (1963); Norfolk & Portsmouth R.R. v. Barker,
221 Va. 924, 275 S.E.2d 613 (1981).
D. NEW JERSEY
Contributory negligence shall not bar recovery in
New Jersey unless the negligence of the plaintiff is greater than that of defendant
or greater than the combined negligence of multiple defendants. N.J. Stat. Ann.
§2A:15-5.1. The judge shall mold judgment by the percentage of each party’s
negligence or fault. N.J. Stat. Ann. §2A:15-5.2. The trier of fact must make
findings in negligence actions as to the percentage of each party’s negligence
or fault. N.J. Stat. Ann. §2A:15-5.2. The total percentage of negligence or
fault of all parties is to be 100%. N.J. Stat. Ann. §2A:15-5.2.
Historically, and prior to December 18, 1987 “Joint
and Several Liability” in New Jersey meant that a plaintiff could collect the
total award from any liable defendant irrespective of that defendant’s
percentage of negligence and the “paying” defendant could then seek the other
defendants to pay their proportional share of award. N.J. Stat. Ann. §2A:15-5.3
applies to all non-environmental tort actions and states: 1) defendant 60% or
more responsible can be compelled to pay entire award; 2) defendant less than
60% responsible can be compelled to pay only percentage of non-economic loss
attributable to his negligence. The party paying more than his share may seek
contribution from other joint tort-feasors under N.J. Stat. Ann. §2A:15-5.3. In
environmental tort actions involving the manufacture, use, disposal, handling,
storage or treatment of hazardous or toxic substances successful plaintiff may
compel any liable defendant to pay entire award.
Where one defendant settled with the plaintiff
prior to trial and at trial, the non-settling defendant was found 100%
negligent, non-settling defendant was not entitled to pro tanto reduction of
judgment under Comparative Negligence Act but rather joint tort-feasors share
on the basis of percentage of negligence. Rogers v. Spady, 147
N.J. Super. 274, 371 A.2d 285 (App. Div. 1977); Cartel Capital Corp. v.
Fireco, 81 N.J. 548, 410 A.2d 674 (1980); Lee’s Hawaiian v.
Safety First, 195 N.J. Super. 493, 480 A.2d 927 (App. Div.), cert.
denied, 99 N.J. 205, 491 A.2d 703 (1984). See Ryan v.
KDI Sylvan Pools, 121 N.J. 276, 579 A.2d 1241 (1990) for
apportionment of damages between strictly liable defendant, negligent defendant
and contributorily negligent plaintiff. Where one or more defendants settle, any verdict recovered by plaintiff
against non-settling defendants will be reduced by percentage of negligence
attributable to settling defendants. Cartel Capital Corp., supra;
Young v. Latta, 233 N.J. Super. 520, 559 A.2d 465 (App. Div.
1989), aff’d, 123 N.J. 584, 589 A.2d 1020 (1991). New Jersey courts
permit “high-low agreements” in which defendant agrees to pay plaintiff
mini-mum recovery in return for plaintiff’s agreement to accept maximum sum
regardless of outcome. Benz v. Pires, 269 N.J. Super. 574, 636
A.2d 101 (App. Div. 1994). Failure of
non-settling defendant to assert cross-claim against settling defendant will
not bar jury from assessing proportionate liability of settling defendant but
non settling defendant must give timely notice as to alleged liability of
settling defendant. If no fact issue is
presented to trier regarding settling defendant liability then trier cannot
assess proportionate liability against settling party.Young, supra.
E. DELAWARE
The doctrine of comparative negligence has been
adopted by statute, replacing contributory negligence, and applies to all
actions for wrongful death or injury to person or property.10 Del. Code §8132
(effective July 17, 1984). The fact that a plaintiff may have been
contributorily negligent will not bar recovery where such negligence was not
greater than the negligence of the defendant or combined negligence of multiple
defendants. Damages shall be diminished by the court in proportion to the
amount of negligence attributed to the plaintiff. Passive assumption of risk is an aspect of comparative
negligence, not a complete bar to recovery. No duty exists to anticipate the negligence of another. Levine v. Lam,
Del. Supr., 226 A.2d 925 (1967). The defense is not available to a
defendant whose conduct is wanton or willful. Gushen v. Penn Central Transp. Co., Del. Supr., 280 A.2d
708 (1971). However, “contributory
wantonness” is a defense to a defendant’s willful or reckless misconduct.Wagner v. Shanks, Del. Supr.,
194 A.2d 701 (1963).
F. PENNSYLVANIA
The comparative negligence doctrine was adopted by
the Pennsylvania legislature in Act 152 of 1976, 42 Pa. Cons. Stat. §7102 (a)
and applies to negligence resulting in the death or injury to persons on
property, not purely financial loss. Wescoat v. Northwest Sav. Ass’n,
378 Pa. Super. 295, 548 A.2d 619 (1988). The section only applies to
negligence actions, not strict liability. McMeekin v. Harry M. Stevens Inc., 365 Pa. Super. 580, 530
A.2d 462 (1987). Contributory negligence bars recovery only where a plaintiff’s
negligence is greater than a defendant’s negligence. 42 Pa. Cons. Stat. §7102
(a).
G. WEST VIRGINIA
West Virginia abolished the contributory negligence
doctrine. In West Virginia, a party is
not barred from recovering damages in a tort action so long as his negligence
or fault does not exceed or equal the combined negligence or fault of other
parties involved in the accident. Bradley v. Appalachian Power Co., 163
W. Va. 332, 256 S.E.2d 879 (1979). Accord, Adkins v. Whitten, 171
W. Va. 106, 297 S.E.2d 881 (1982); Everly v. Columbia Gas, 171 W.
Va. 534, 301 S.E.2d 165 (1982). The principles of comparative fault or
negligence apply not only to actions in tort involving personal injury or
property damages, but also to actions in tort involving pecuniary damage
alone. Brammer v. Taylor, 175
W. Va. 728, 338 S.E.2d 207 (1985) (applying comparative negligence to actions
based on bank’s alleged unauthorized practice of law and negligence in
assisting with will preparation). The comparative negligence doctrine is fully
retroactive. Sullivan v. Billey, 163 W. Va. 445, 256 S.E.2d 591
(1979). The apportionment of negligence is a question for the jury.Raines v. Lindsey, 188 W. Va.
137, 423 S.E.2d 376 (1992).
PRODUCTS
LIABILITY/STRICT LIABILITY
A. MARYLAND
The State of Maryland adopted strict liability in
tort in the landmark case of Phipps v. General Motors Corp., 278 Md.
337, 363 A.2d 955 (1976). The Maryland
Court of Appeals in Phipps specifically adopted strict liability in tort
predicated upon Section 402A of the Restatement (Second) of Torts.Under the Restatement, in order to recover
under a theory of strict liability in tort, a Plaintiff must show:
1. that the product was in
a defective condition at the time it left the possession or control of
the seller;
2. that it was unreasonably
dangerous to the user or consumer;
3. defect was a cause
of the injuries; and
4. that the product was
expected to and did reach the consumer without substantial change in its
condition.
Section 402A on its face, subjects a seller of a
defective product to strict liability without regard to the knowledge of the
defect and “even though (the seller) has exercised all possible care in the
preparation and sale of the product.” [Restatement Second] of Torts at 402A
comment (a) 1965.
In an action founded on strict liability in tort,
as opposed to a traditional negligence action, the plaintiff need not prove any
specific act of negligence on the part of the seller. The relevant inquiry
in a strict liability action focuses not on the conduct of the manufacturer but
rather on the product itself.
A products liability action may be based on the
failure to warn. When a product is
alleged to be defective because of a failure to give an adequate warning, the
Court has held that the seller is not
strictly liable for failure to warn unless the seller had “knowledge, or by the
application of reasonable, developed human skill and foresight should have
knowledge, of the presence of . . . . of the . . . . danger.”The Court adopted comment (j) of Section
402A of the Restatement which is applicable to a strict liability cause of
action where the alleged defect is a failure to give adequate warning(s) in so
holding the Court adopted the “state of the art” theory of liability as
espoused in comment (j), the Court held that a manufacturer of a product is
held to the knowledge of an expert in the field and that the knowledge or state
of the art component is an element to be proven by the Plaintiff.In a strict liability failure to warn case,
the alleged defect is the failure of the seller to give an adequate
warning. The seller, however, need not
give any warning if the requisite state of the art or knowledge does not
require it. Owens-Illinois v.
Zenobia, 325 Md. 420, 601 A.2d 623 (1992).
Under Maryland law, contributory negligence
is not a defense to a strict liability claim. However, misuse of a product may bar recovery where the misuse is
the sole proximate cause of damage, or where it is the intervening or
superseding cause. For example,a high speed electric drill may be defective
because a manufacturing defect causes it to short circuit and produce a shock
during normal usage. A plaintiff who attaches a brush to that drill and in attempting
to clean his teeth suffers injury to his mouth from the high speed of the brush
will lose because his misuse is the sole cause of his misfortune, and the
defect in the drill is not in any way related to the harm Ellsworth v.
Sherne Lingerie, Inc., 303 Md. 581 495 A.2d 348 (1985).
In Maryland, in determining whether a manufacturer
should be held strictly liable for injuries sustained by the design of a
particular product is a decision that involves the consideration of important
policy issues. Lundgren v.
Ferno-Washington Company, Inc., 80 Md. App. 522 (1989). For the most
part, the strict liability doctrine does not apply to cases where liability is
depended upon an existence of a design defect. Frericks v. General Motors Corp., 274 Md. 288, 336 A.2d 118
(1975). It is when the product involves
an inherently unreasonable risk when the court examines the issue of strict
liability.
Under the doctrine of strict liability, the defect
of a product can be of manufacture or of design but for the most part, the
question of whether a particular design is defective depends upon a balancing
of the utility of the design verses the magnitude of the risk.Anthony Pools v. Shehan, 295 Md. 285,
455 A.2d 434 (1983). Under such test, a
product is defective as to design if the risk or danger of the product
outweighs the product's utility. Simpson
v. Standard Container Company, 72 Md. App. 199, 527 A.2d 1337 (1987). In some instances, where risks in the
design are inherently unreasonable, no balancing test is necessary in strict
liability actions. Troja v. Black
and Decker Manufacturing Company, 62 Md. App. 101, 488 A.2d 516 (1985).
B. DISTRICT OF COLUMBIA
The District of Columbia recognizes strict
liability in tort. D.C. has adopted a
strict liability standard in products liability cases.Product misuse and assumption of the risk
are defenses to strict liability, whereas contributory negligence is not."Product Misuse" is defined as the
use of a product in a manner that could not reasonably be foreseen by the
Defendant.
In some situations, a Plaintiff's failure to read a warning may be a
manufacturer's defense in a products liability action.This defense may be overcome; however, by
evidence that a properly worded warning would have been verbally communicated
to Plaintiff in, for example, his or her work place. An injured party has a cause of action
against all parties who participated in placing the defective product into the
stream of commerce. The Plaintiff need not be a purchasers of
the product, but can be an intended user of the consumer.
C. VIRGINIA
Virginia does not recognize a cause of action for
strict liability arising out of a design defect. Sensenbrenner v. Rust, Orling & Neale, Architects, Inc.,
236 Va. 419 (1988). A products
liability action brought in Virginia must be based either on negligence, or be
based on a breach of an implied or expressed warranty.These would include warranties of merchantability
and fitness for a particular purpose. If a product is unreasonably dangerous, then the courts would generally
find that there is a breach of warranty. The main difference between a breach of warranty claim for strict
liability and a Restatement of Tort Section 401 (a) claim for strict liability,
is that, in Virginia, it is still possible to, under the appropriate
circumstances, disclaim warranties. Lack of privity of contract is not a defense for a breach of warranty
claim.
D. NEW JERSEY
Products liability law in New Jersey is governed by
statute N.J.S.A. 2A:58C-1 et seq. Punitive Damages in New Jersey are also governed by statute
N.J.S.A.2A:15-5.9 et seq. The
following excerpts from the statute describe fully the extent of the law in New
Jersey:
Liability
A manufacturer or seller of
a product shall be liable in a product shall be liable in a product liability
action only if the claimant proves by a preponderance of the evidence that the
product causing the harm was not reasonably fit, suitable or safe for its
intended purpose because if: a. deviated from the design specification,
formula, or performance standards or the manufacturer or from otherwise identical
units manufactured to the same manufacturing specifications or formulae, or b.
failed to contained adequate warnings or instructions, or c. was designed in a
defective manner.
Defenses
a. In any product liability action against
a manufacturer or seller for harm allegedly caused by a product that was
designed in a defective manner, the manufacture or seller shall not be liable
if:
(1) At the time the product left the control
of the manufacturer, there was not a practical and technically feasible
alternative design that would have prevented the harm without substantially
impairing the reasonably anticipated or intended function of the product; or
(2) The characteristics of the product are
known to the ordinary consumer or user, and the harm was caused by an unsafe
aspect of the product that in an inherent characteristic of the product that
consumes the product with the ordinary knowledge common to the class of persons
for whom the product is intended, except that this paragraph shall not apply to
industrial machinery or other equipment used in the workplace and it is not
intended to apply to dangers posed by products such as machinery or equipment
that can feasibly be eliminated without impairing the usefulness of the
product; or
(3) The harm was caused by an unavoidably
unsafe aspect of the product and the product was accompanied by an adequate
warning or instruction as defined in section 4 of this act.
b. The provisions of paragraph (1) of
subsection a. of this section shall not apply if the court, on the basis of
clear and convincing evidence, makes all of the following determinations:
(1)
The product is egregiously unsafe
or ultra hazardous;
(2)
The ordinary user or consumer of
the product cannot reasonably be expected to have knowledge of the product’s
risks, or the product poses a risk of serious injury to persons other than the
user or consumer; and
(3)
The product has little or no
usefulness.
c. No
provision of subsection a. of this section is intended to establish any rule,
or alter any existing rule, with respect to the burden of proof.
Adequate
product warning or instruction;
rebuttable presumption
of adequacy after approval
In any product liability
action the manufacturer or seller shall not be liable for harm caused by a
failure to warn if the product contains an adequate warning or instruction or,
in the case of dangers a manufacturer or seller discovers or reasonably should
discover after the product leaves its control, if the manufacturer or seller
provides an adequate warning or instruction. An adequate product warning or
instruction is one that a reasonably prudent person in the same or similar
circumstances would have provided with respect to the danger and that
communicates adequate information on the dangers and safe use of the product,
taking into account the characteristics of, and the ordinary knowledge common
to, the persons by whom the product is intended to be used, or in the case of
prescription drugs, taking into account the characteristics of, and the
ordinary knowledge common to, the prescribing physician. If the warning or
instruction given in connection with a drug or device or food or food additive
has been approved or prescribed by the federal Food and Drug Administration
under the "Federal Food, Drug, and Cosmetic Act," 52 Stat. 1040, 21
U.S.C. § 301 et seq. or the "Public Health Service Act," 58 Stat.
682, 42 U.S.C. § 201 et seq., a rebuttable presumption shall arise that the
warning or instruction is adequate. For purposes of this section, the terms
"drug", "device", "food", and "food
additive" have the meanings defined in the "Federal Food, Drug, and
Cosmetic Act."
Punitive
Damages
Punitive damages may be
awarded to the plaintiff only if the plaintiff proves, by clear and convincing
evidence, that the harm suffered was the result of the defendant's acts or
omissions, and such acts or omissions were actuated by actual malice or
accompanied by a wanton and willful disregard of persons who foreseeably might
be harmed by those acts or omissions. This burden of proof may not be satisfied
by proof of any degree of negligence including gross negligence.
In determining whether
punitive damages are to be awarded, the trier of fact shall consider all
relevant evidence, including but not limited to, the following:
(1) The likelihood, at the relevant time,
that serious harm would arise from the defendant's conduct;
(2) The defendant's awareness of reckless
disregard of the likelihood that the serious harm at issue would arise from the
defendant's conduct;
(3) The conduct of the defendant upon
learning that its initial conduct would likely cause harm; and
(4) The duration of the conduct or any
concealment of it by the defendant.
If the trier of fact
determines that punitive damages should be awarded, the trier of fact shall
then determine the amount of those damages. In making that determination, the
trier of fact shall consider all relevant evidence, including, but not limited
to, the following:
(1) All relevant evidence
relating to the factors set forth in this section
(2) The profitability of the
misconduct to the defendant;
(3) When the misconduct was
terminated; and
(4) The financial condition
of the defendant.
Punitive damages shall not
be awarded if a drug or device or food or food additive which caused the
claimant's harm was subject to pre-market approval or licensure by the federal
Food and Drug Administration under the "Federal Food, Drug, and Cosmetic
Act," 52 Stat. 1040, 21 U.S.C. § 301 et seq. or the "Public Health
Service Act," 58 Stat. 682, 42 U.S.C. § 201 et seq. and was approved or
licensed; or is generally recognized as safe and effective pursuant to
conditions established by the federal Food and Drug Administration and
applicable regulations, including packaging and labeling regulations. However,
where the product manufacturer knowingly withheld or misrepresented information
required to be submitted under the agency's regulations, which information was
material and relevant to the harm in question, punitive damages may be awarded.
For purposes of this subsection, the terms "drug",
"device", "food", and "food additive" have the
meanings defined in the "Federal Food, Drug, and Cosmetic Act."
While there are some
exceptions, punitive damages are capped at five times the liability of that
defendant for compensatory damages or $350,000, whichever is greater.
Environmental tort
action; inapplicability of act:
The provisions of this act
shall not apply to any environmental tort action.
Burden of
proof in product liability action; establishment or alteration of existing
rule:
Except as otherwise
expressly provided in this act, no provisions of this act is intended to
establish any rule, or alter any existing rule, with respect to the burden of
proof in a product liability action.
Medical
devices; liability of provider
In any product liability
action against a health care provider for harm allegedly caused by a medical
device that was manufactured or designed in a defective manner, or for harm
caused by a failure to warn of a danger related to the use of a medical device,
the provider shall not be liable unless: (1) the provider has exercised some
significant control over the design, manufacture, packaging or labeling of the
medical device relative to the alleged defect in the device which caused the
injury, death or damage; or (2) the provider knew or should have known of the
defect in the medical device which caused the injury, death or damage, or the
plaintiff can affirmatively demonstrate that the provider was in possession of
facts from which a reasonable person would conclude that the provider had or
should have had knowledge of the alleged defect in the medical device which
caused the injury, death or damage; or (3) the provider created the defect in
the medical device which caused the injury, death or damage.
E. DELAWARE
The Delaware Courts recognize products liability
actions, but they do not recognize products liability actions based on the
theory of strict liability. The Supreme
Court of Delaware held that the theory of strict liability is precluded by the
Uniform Commercial Code. Cline v.
Prowler Indus. of Maryland, Inc., 418 A. 2d 968 (Del. 1980).
F. PENNSYLVANIA
In Webb v. Zern, 422 Pa. 424, 220 A.2d 853
(1966), the Courts accepted that a manufacturer or supplier should be liable
for sale or distribution of a product "in a defective condition
unreasonably dangerous" to the user or consumer or his property.Webb also extended the rule of strict
liability to defective products by adopting the Restatement of the Law of Torts
2d. § 402A.
G. WEST VIRGINIA
West Virginia has adopted strict liability in
products liability cases to recover for property damage when a defective
product damages property only. Star
Furniture v. Pulaski, 171 W.Va. 79, 84, 297 S.E.2d 854, 859 (1982).However the defense of assumption of the
risk is available against the Plaintiff in a products liability case, King
v. Kayak Mgt. Corp., 387 S.E. 2d 511 (1989), and the W. Va. Courts have
held generally that "the doctrine that conditions or activities which are
intrinsically dangerous will result in liability without proof of negligence
will not be adopted into the state’s tort products liability law."Morning Star v. Black and Decker,
253 S.E. 2d 666 (1979).
JOINT & SEVERAL
LIABILITY
A. MARYLAND
Maryland has codified its rules regarding joint
tort-feasors in its Courts & Judicial Proceedings Volume, Title 3, Subtitle
14. According to the Uniform
Contribution Among Tort-feasors Act (UCATA), a release by an injured
person of one tort-feasor does not release additional tort-feasors unless they
are released by the injured party. However, any amount paid by a single tort-feasor reduces the total
consideration available to the injured party by the amount paid.Section 3-1404 titled"Effective Release on Injured Person
Claim":
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; but reduces
the claim against the other tort-feasors in the amount the consideration
paid for the release, or in any amount or proportion by which
the release provides that the total claim shall be reduced, if greater than the
consideration paid.
According to § 3-1405, titled "Effect of
release on right of contribution":
a release by the injured
person of one joint tort-feasor does not relieve him from liability to make
contribution to another joint tort-feasor unless the release is given before
the right of the other tort-feasor to secure a money judgment for contribution
has accrued, and provides for a reduction, to the extent of the pro rata share
of the released tort-feasor, of the injured person's damages are recoverable
against all other tort-feasors.
The Court of Appeals of Maryland first considered
the application of these sections, previously codified as §19 and §20 of the
Maryland UCATA, in Swigert v. Welk, 133 A.2d 428 (1957).The Maryland Court, posing a hypothetical
situation, indicated that if a plaintiff received a consideration from one
joint tort-feasor for a pro rata release, then the amount of consideration, if
greater than the released tort-feasors' pro rata share, will reduce the
judgment entered against the remaining tort-feasor by the amount that
consideration paid exceeded the pro-rata share.
In a
subsequent case, Chilcote v. Von Der Ahe Van Lines, 476 A.2d 204 (1984),
the Court held that where a released joint tort-feasor paid a settlement amount
less than his ultimate pro rata share of the subsequent judgment, then the
subsequent judgment would be set-off by the released Defendant's pro rata share
rather than the consideration paid by him in settlement.
Another important case which interpreted §19 and
§20 of the Act is Martinez v. Lopez, 476 A.2d 197 (1984).The Martinez Court held that where
the amounts paid by the settling joint tort-feasor is more than the ultimate
judgment, the pro rata reduction produces a negative result which fully
satisfies the judgment and the plaintiff may not recover anything from the
defendant against whom the judgment was entered. The rationale for this theory is that an injured party is
entitled to only one satisfaction for an injury. It is clear that under the facts of Martinez, the
non-settling defendant enjoys a windfall since the settling defendant pays the
entire judgment. The following
hypotheticals will provide clarification.
Example No. 1: Plaintiff v.
Defendants I and 2.
Plaintiff enters into a valid joint tort-feasor
release with Defendant 1 for the consideration of $60.The plaintiff proceeds against Defendant 2
and obtains a judgment in the amount of $100. Pursuant to Swigert, plaintiff may only recover $40 from
defendant 2 since the amount paid by the settling defendant exceeds the pro
rata share ($50).
Example No. 2: Plaintiff V.
Defendants 1 and 2.
Plaintiff enters into a valid joint tort-feasor
release with Defendant 1 in the amount of $20 and obtains a judgment against
Defendant 2 in the amount of $100. Pursuant to Chilcote, Plaintiff may only recover $50 from
defendant 2 since the judgment is reduced by the pro rata share ($50)
notwithstanding that the Plaintiff recovered less than the pro rata share from
the settling tort-feasor.
Example No. 3: Plaintiff v.
Defendants 1 and 2.
Plaintiff enters in a joint tort-feasor release
with Defendant 1 in the amount $150 and obtains a judgment against Defendant 2
in the amount of $100. Pursuant to Martinez,
Plaintiff may recover nothing from Defendant 2 since the amount of the
consideration paid by the settling tort-feasor, $150, exceeds the amount of the
judgment.
Further, according to Chilcote, in a
situation involving a master-servant relationship, and the liability of the
master is vicarious, the master-servant represent but one pro rata share. For example, a driver of an automobile and an owner who is not the pro
rata share. Moreover, Martinez
(Example No. 3) held that the settling tort-feasor had no right of contribution
from the nonsettling tort-feasor even though he paid in excess of the judgment
subsequently obtained against the non-settling tort-feasor.
However, one should not conclude from the mere
existence of two or more tort-feasors that they are necessarily deemed to be
"joint tort-feasors," a judicially crafted term of art.Generally, two or more tort-feasors are
considered joint tort-feasors when they act in concert or concurrently to cause
one harm. Morgan v. Cohen, 523
A.2d 1003 (1987). In Cohen the claimant
who was injured in a car accident settled her case against the other
driver and executed a general release
whereby for consideration she released all of mankind.Subsequently, the claimant instituted a
malpractice action Dr. Cohen. The Court
held that the action against Dr. Cohen was not barred as a matter of law even
though the plaintiff executed a general release since the injuries inflicted by
the doctor were not caused by the accident. The Court reasoned that Dr. Cohen caused separate and additional harms
for which he could be held independently liable. This is so despite the fact that the original tort-feasor could
be held jointly liable for the harms allegedly caused by Dr. Cohen.This case has been widely criticized and has
caused considerable confusion within the legal community.Nevertheless, it serves as an example, albeit
a contentious one, where two concurrent or successor tort-feasors have been
held not to have caused the same harm and the latter tort-feasor not
necessarily subject to the terms of a general release.
B. DISTRICT OF COLUMBIA
D.C. has not adopted the Uniform Tort-Feasor
Act. In cases where the Plaintiff has
settled the claim prior to trial with I or 2 or more joint tort-feasors, the
Defendant remaining at trial is entitled to a set-off from the judgment based
on the settlement. If the trier of fact
has found the settling Defendant liable, a pro rata (based on the number
of tort-feasors) reduction may be ordered.The credit may be limited in a low verdict
situation such that a Defendant found liable at trial at least will have to pay
his or her pro rata share of the verdict.
C. VIRGINIA
The law in Virginia was stated in Maroulis v.
Elliott, 207 Va. 503 (1966). "Where separate and independent acts of
negligence of two parties are the direct cause of a single injury to a third
person and it is impossible to determined in what proportion each contributed
to the injury, either or both are responsible for the whole injury." Maroulis,
207 Va. at 511. The negligence of those two parties need not occur
simultaneously, as long as they concur in proximately causing a single
indivisible injury for joint and several liability for the entire damage
claimed. The question of whether there is such concurring negligence that
proximately causes a single indivisible injury is a question for the jury to
decide. Dickenson v. Tabb, 208 Va. 184, 193 (1967).
Virginia has adopted the rule that allowed for one
joint tort-feasor to enter into a release with the Plaintiff without releasing
any other tort-feasor. Under Virginia
Code Section 8.01-35.1., a Plaintiff may settle with one joint tort-feasor,
without releasing any other joint tort-feasor.
Va. Code Ann. § 8.01‑35.1 states:
A. When a release or a
covenant not to sue is given in good faith to one of two or more persons liable
in tort for the same injury, or the same property damage or the same wrongful
death:
1. It shall not discharge
any of the other tort-feasors from liability for the injury, property damage or
wrongful death unless its terms so provide; but any amount recovered against
the other tort-feasors or any one of them shall be reduced by any amount
stipulated by the covenant or the release, or in the amount of the consideration
paid for it, whichever is the greater. In determining the amount of
consideration given for a covenant not to sue or release for a settlement which
consists in whole or in part of future payment or payments, the court shall
consider expert or other evidence as to the present value of the settlement
consisting in whole or in part of future payment or payments. A release or
covenant not to sue given pursuant to this section shall not be admitted into
evidence in the trial of the matter but shall be considered by the court in
determining the amount for which judgment shall be entered; and
2. It shall discharge the
tort-feasor to whom it is given from all liability for contribution to any
other tort-feasor.
B. A tort-feasor who enters
into a release or covenant not to sue with a claimant is not entitled to
recover by way of contribution from another tort-feasor whose liability for the
injury, property damage or wrongful death is not extinguished by the release or
covenant not to sue, nor in respect to any amount paid by the tort-feasor which
is in excess of what was reasonable.
C. For the purposes of this
section, a covenant not to sue shall include any "high‑low"
agreement whereby a party seeking damages in tort agrees to accept as full
satisfaction for any judgment no more than one sum certain and the party or
parties from whom the damages are sought agree to pay no less than another sum
certain regardless of whether any judgment rendered at trial is higher or lower
than the respective sums certain set forth in the agreement and whereby such
party provides notice to all of the other tort-feasors of the terms of such
"high‑low" agreement immediately after such agreement is
reached.
D. A release or covenant
not to sue given pursuant to this section shall be subject to the provisions of
§§ 8.01‑55 and 8.01‑424.
E. This section shall apply
to all such covenants not to sue executed on or after July 1, 1979, and to all
releases executed on or after July 1, 1980. This section shall also apply to
all oral covenants not to sue and oral releases agreed to on or after July 1,
1989, provided that any cause of action affected thereby accrues on or after July
1, 1989. A release or covenant not to sue need not be in writing where parties
to a pending action state in open court that they have agreed to enter into
such release or covenant not to sue and have agreed further to subsequently
memorialize the same in writing.
D. NEW JERSEY
New Jersey recognizes the theory of joint and
several liability, in which two or more people who owe a duty, which each
performs negligently, are held jointly liable. This remains true even though their duties may have been diverse or
disconnected, as long as the acts caused an injury to the plaintiff.Melone v. Jersey Cent.Power & Light Co., 18 N.J. 163, 113
A.2d 13 (1955). New Jersey also adheres
to the alternative liability theory, in which the plaintiff is unable to determine
which tort-feasor is actually liable for the injury, or what share the
tort-feasors are liable. Lyons v.
Premo Pharmaceutical Labs, Inc., 170 N.J. Super. 183, 406 A.2d 185 (1979).
E. DELAWARE
Delaware recognizes joint and several
liability. See 10 C.A. 6301 et esq."Joint tort-feasors' means two (2) or
more persons jointly or severally liability in tort for the same injury to
person or property, whether or not judgment has been recovered against all or
some of them." Id.Neither the basis of liability nor the
relationship among the joint tort-feasors is relevant.Blackshear v. Clark, 391 A.2d 747
(Del. Supr. 978).Joint tort-feasors do have the right to
recover amongst themselves under the theories of contribution and
indemnification.
F. PENNSYLVANIA
Pennsylvania law holds joint tort-feasors jointly
and severally liable to a plaintiff for the injury caused by their negligence. Rau
v. Marko, 17 A.2d 422, 341 Pa. 17 (1941). Under Pennsylvania statutory law, recovery is allowed against each defendant
for that portion of the total dollar amount of their causal negligence to the
amount of causal negligence attributed to all defendants against whom recovery
is allowed.
G. WEST VIRGINIA
Joint tort-feasors are jointly and severally
liable, and if sued jointly both are liable to the extent proved. Kvdom v.
Frazier, 412 S.E. 2d 219 (1991). A
judgment against one tort-feasor is not necessarily an acquittal of the
other. Plaintiff may only obtain
satisfaction against one joint tort-feasor and that will bar recovery against
the remaining tort-feasor, however, payment of a judgment by a party who is
secondarily liable confers upon that party a right to reimbursement by the
party which is primarily liable.
INDEMNIFICATION
A. MARYLAND
It is first important to note that the Uniform
Contribution Among Tort-Feasors Act previously set forth under the topic of
Joint Several Liability, does not impair any right of indemnity under existing
laws. In Maryland, indemnity requires
that when one of the wrongdoers is primary liable, that wrongdoer must bear the
whole loss.Under this analysis, a party is only entitled
to indemnification when the parties actions, although negligent, are considered
to be passive or secondary to those of the primary tort-feasor.According to Hanscome v. Perry,
the right of indemnification may arise by express agreement or
implication. Thus, assuming a valid
indemnity agreement exists, the court would then apply the active passive test
to determine whether or not one of the defendants is entitled to be indemnified
by the other.
B. DISTRICT OF COLUMBIA
In D.C., indemnity is a common-law remedy which
shifts the monetary loss from one compelled to pay it to another whom equity
dictates should bear it instead.Implied indemnity is essentially an
equitable remedy that arises without agreement, and by operation of law to
prevent result which is regarded as unjust or unsatisfactory.In D.C., where the language of an
indemnification agreement is broad and sweeping, the Court will construe the
agreement liberally so as to encompass losses incurred in whole or part by the
negligence of the indemnitee.A cause of action for indemnity accrues on
the date payment is made by the party seeking indemnity, which is three (3)
years in D.C. for indemnification and contribution.
C. VIRGINIA
Virginia Code section 8.01-249 (5) provides that an
action for indemnity is deemed to accrue when the indemnitee has paid or
discharged a legal obligation. A third
party claim for indemnity cannot be asserted
before the cause of action is deemed to have accrued.Absent a contract, equitable principles may
allow an innocent party to recover from the negligent act for the amounts paid
and the discharge of liability. For active/passive negligence it is not the
form of the act or omission that defines the character of negligence as active
or passive, for indemnity purposes, it is the relationships between the parties
involved and the nature of the legal obligation violated by the negligence that
decides the issue.
D. NEW JERSEY
In New Jersey, common law indemnification shifts
cost of liability from one who is constructively or vicariously liable to
tort-feasor who is primarily liable.The party seeking indemnification must be
free from fault.
E. DELAWARE
Delaware recognizes a cause of action for equitable
indemnification.In order for a party to recover under
equitable indemnity that party's negligence must be passive and seek
indemnification from the active party.
F. PENNSYLVANIA
Indemnity is an equitable remedy founded in the
common-law that shifts loss from one defendant to another.In Pennsylvania, an indemnification
relationship may be formed in three (3) ways: implied contract, expressed
contract, or by operation of law, or other circumstances which justify this
equitable relief. If an indemnitee made
a good faith settlement and notice is given to the indemnitor, the indemnitee
still assumes the risk of proving liability and the reasonableness of the
settlement in any subsequent litigation.
G. WEST VIRGINIA
Under West Virginia law, implied indemnification is
an equitable remedy whereby:
[O]ne defendant, who has
committed no independent wrong, is held liable for the entire loss of a
plaintiff while another entity, which may or may not be named as a defendant in
the plaintiff's suit to establish liability, would be allowed to escape liability
even though it actually caused or was responsible for causing the wrongdoing.
Implied indemnity prevents the party who is
primarily liable from being unjustly enriched and allows the party that is
without fault restitution.A party can be indemnified only if that
party is without fault.
CONTRIBUTION
A. MARYLAND
Under Maryland statutory law, the right of
contribution exists among joint tort-feasors. The issue of contribution depends on joint tort-feasors' liability to
third parties. Under the Maryland Uniform Contribution
Among Joint Tort-Feasors Act, the amount recoverable from the non-settling
defendant when added to the amount recoverable from the settling defendant
cannot exceed the plaintiff's verdict.The Act defines "joint
tort-feasors" as "two or more persons jointly or severally liable in
tort for the same injury to person or property, whether or not judgment has
been recovered against all or some of them."
According to § 3-1402 of the Maryland Uniform
Contribution Among Tort-Feasors Act:
(a) The right of contribution exists among joint tort-feasors.
(b)
A joint tort-feasor is not entitled
to a money judgment for contribution until the joint tort-feasor has by payment
discharged the common liability or has paid more than a pro rata share of the
common liability.
(c)
A joint tort-feasor who enters into
a settlement with the injured person is not entitled to recover contribution
from another joint tort-feasor whose liability to the injured person is not
extinguished by the settlement.
According to § 3-1405 of the Maryland Uniform
Contribution Among Tort-Feasors Act, a release by the injured person of one
joint tort-feasor does not relieve the joint tort-feasor from liability to make
contribution to another joint tort-feasor unless the release:
(1) Is given before the right of the other
tort-feasor to secure a money judgment for contribution has accrued; and
(2) Provides for a reduction, to the extent
of the pro rata share of the released tort-feasor, of the injured person's
damages recoverable against all other tort-feasors.
B. DISTRICT OF COLUMBIA
Both contribution and indemnification are available
under D.C. law.However, neither contribution nor indemnity
can be awarded to a party who is not a joint tort-feasor.
In other words, the District of Columbia permits a party to enforce contribution
against one who shares common liability to the original Plaintiff.Under the principal of contribution a
tort-feasor against whom a judgment is rendered is entitled to recover
proportional shares of a judgment from the other joint tort-feasor(s) whose
negligence contributed to the injury and who were also liable to the Plaintiff.For contribution to be available, two (2) or
more Defendants must have acted in concert, or independently, causing a single
injury in an indivisible manner. Just
because the acts are not simultaneous but successive doesn't mean that
contribution is improper where acts concur in causing injury.The contribution among joint tort-feasors is
pro-rata in the District of Columbia. The fact that the
negligence of one tort-feasor may be greater than that of another does not
change the method of equally apportioning contribution, since D.C. law does not
recognize degrees of negligence.
C. VIRGINIA
By statute in Virginia, one joint tort-feasor can
seek contribution of another joint tort-feasor as a result of payment of a
judgment.
According to Va. Code. Ann. § 8.01-35.1:
A.When a release or a covenant not to sue is given
in good faith to one of two or more persons liable in tort for the same injury,
or the same property damage or the same wrongful death:
1.It shall not discharge any of the other
tort-feasors from liability for the injury, property damage or wrongful death
unless its terms so provide; but any amount recovered against the other
tort-feasors or any one of them shall be reduced by any amount stipulated by
the covenant or the release, or in the amount of the consideration paid for it,
whichever is the greater. In determining the amount of consideration given for
a covenant not to sue or release for a settlement which consists in whole or in
part of future payment or payments, the court shall consider expert or other
evidence as to the present value of the settlement consisting in whole or in
part of future payment or payments. A release or covenant not to sue given
pursuant to this section shall not be admitted into evidence in the trial of
the matter but shall be considered by the court in determining the amount for
which judgment shall be entered; and
2. It shall discharge the tort-feasor to whom
it is given from all liability for contribution to any other tort-feasor.
B.A tort-feasor who enters into a release or
covenant not to sue with a claimant is not entitled to recover by way of
contribution from another tort-feasor whose liability for the injury, property
damage or wrongful death is not extinguished by the release or covenant not to
sue, nor in respect to any amount paid by the tort-feasor which is in excess of
what was reasonable.
D. NEW JERSEY
By statute in New Jersey, a joint tort-feasor can
seek contribution against another joint tort-feasor.New Jersey is a comparative negligence
state, therefore each defendant is only liable for the pro rata share equaling
the percentage of his negligence.
According to the New Jersey Joint Tort-Feasors
Contribution Law: “Where injury or damage is suffered by any person as a result
of the wrongful act, neglect or default of joint tort-feasors, and the person
so suffering injury or damage recovers a money judgment or judgments for such
injury or damage against one or more of the joint tort-feasors, either in one
action or in separate actions, and any one of the joint tort-feasors pays such
judgment in whole or in part, he shall be entitled to recover contribution from
the other joint tort-feasor or joint tort-feasors for the excess so paid over
his pro rata share; but no person shall be entitled to recover contribution
under this act from any person entitled to be indemnified by him in respect to
the liability for which the contribution is sought.”
E. DELAWARE
Delaware recognizes the right of contribution in 10
Del.C.A. § 6302, which states the following:
(a) The right of contributions exists among joint tort-feasors.
(b) A joint tort-feasor is
not entitled to a money judgment for contribution until he has by payment
discharged the common liability or has paid more than his pro rata share
thereof.
(c) A joint tort-feasor who
enters into a settlement with the injured person is not entitled to recover
contribution from another joint tort-feasor whose liability to the injured
person is not extinguished by the settlement.
(d) When there is such a
disproportion of fault among joint tort-feasors as to render inequitable an
equal distributor among them of common liability by contribution, the relative
degree of fault of the joint tort-feasors shall be considered in determining
their pro-rata share.
F. PENNSYLVANIA
Pennsylvania is a comparative negligence state and
adheres to the Uniform Contribution Among Tort-Feasors Act. 42 Pa.C.S.A. § 8321 et seq.According to § 8324 of the Act:
(a) General rule.--The
right of contribution exists among joint tort-feasors.
(b) Payment required.--A
joint tort-feasor is not entitled to a money judgment for contribution until he
has by payment discharged the common liability or has paid more than his pro
rata share thereof.
(c) Effect of
settlement.--A joint tort-feasor who enters into a settlement with the injured
person is not entitled to recover contribution from another joint tort-feasor
whose liability to the injured person is not extinguished by the settlement.
According to § 7102(b.1):
(1) Where recovery is
allowed against more than one person, including actions for strict liability,
and where liability is attributed to more than one defendant, each defendant
shall be liable for that proportion of the total dollar amount awarded as
damages in the ratio of the amount of that defendant's liability to the amount
of liability attributed to all defendants and other persons to whom liability
is apportioned under subsection (b.2).
(2) Except as set forth in
paragraph (3), a defendant's liability shall be several and not joint, and the
court shall enter a separate and several judgment in favor of the plaintiff and
against each defendant for the apportioned amount of that defendant's
liability.
(3) A defendant's liability
in any of the following actions shall be joint and several, and the court shall
enter a joint and several judgment in favor of the plaintiff and against the
defendant for the total dollar amount awarded as damages:
(i) Intentional
misrepresentation.
(ii) An intentional tort.
(iii) Where a defendant has
been held liable for not less than 60% of the total liability apportioned to
all parties.
(iv) A release or
threatened release of a hazardous substance under section 702 of the act of
October 18, 1988 (P.L. 756, No. 108), known as the Hazardous Sites Cleanup Act.
(v) A civil action in which
a defendant has violated section 497 of the act of April 12, 1951 (P.L. 90, No.
21), known as the Liquor Code.
(4) Where a defendant has
been held jointly and severally liable under this subsection and discharges by
payment more than that defendant's proportionate share of the total liability,
that defendant is entitled to recover contribution from defendants who have
paid less than their proportionate share. Further, in any case, any defendant
may recover from any other person all or a portion of the damages assessed that
defendant pursuant to the terms of a contractual agreement.
(b.2) Apportionment of
responsibility among certain nonparties and effect. For purposes of
apportioning liability only, the question of liability of any defendant or
other person who has entered into a release with the plaintiff with respect to
the action and who is not a party shall be transmitted to the trier of fact
upon appropriate requests and proofs by any party.
G. WEST VIRGINIA
The West Virginia courts
have recognized both an inchoate right of contribution, as well as a statutory
right of contribution. W.Va. Code
§55-7-13 holds, “Where a judgment is rendered in an action ex delicto against
several persons jointly, and satisfaction of such judgment is made by any one
or more of such persons, the others shall be liable to contribution to the same
extent as if the judgment were upon an action ex contractual. ”Comparative
contribution between joint tort-feasors is based upon relative degrees of
negligence. Sitzes v. Anchor Motor Freight, 289 S.E. 2d 679
(1982) . The right of inchoate contribution arises under any theory of
liability which results in a common obligation to the Plaintiff, Board of
Education v. Zando, 390 S.E. 2d 796 (1990). If there is no allocation of negligence, apportionment is made on
a pro-rata basis. "Mary
Carter" agreements are enforceable and not per se contrary to public
policy, however such agreements must be promptly disclosed to both the court
and opposing parties.
VICARIOUS
LIABILITY
A. MARYLAND
Under Maryland law, the tortious
conduct of one person may equate to the civil culpability of another.Generally speaking, however, there must
exist some relationship between the two (2) such as employer and employee, or
principal and agent. Most often, this
situation arises in the context of an employer and employee, under the doctrine
of respondeat superior.
It is well settled under
the law of Maryland, that the acts for which the employer is being held liable
must be those which the employee committed within the scope of their
employment.The scope of employment factor is generally
the most litigated issue presented by a respondeat superior claim.An employee’s tortious conduct is considered
to be within the scope of his employment when the conduct is in furtherance of
the business of the employer and/or is authorized by the employer.An employee’s tortious conduct is not
considered within the scope of employment when the employee’s actions are personal.
The Sawyer decision
was also instructive in that it set forth a host of factors that apply to
ascertain whether the conduct of the employee at issue was so similar or
incidental to the conduct authorized by the employer to be considered within
the scope of employment. These factors are as follows:
(a) whether the act is one commonly done by such servants;
(b) the time, place and purpose of the act;
(c) the previous relations between the master and the servant;
(d) the extent to which the business of the master is apportioned
between different servants;
(e) whether the act is outside the enterprise of the master or,
of within the enterprise, has not been entrusted to any servant;
(f) whether the master has reason to expect that such an act
will be done;
(g) the similarity in quality of the act done to the act
authorized;
(h) whether the instrumentality by which the harm is done had
been furnished by the master to the servant;
(i) the extent of departure from the normal method of accomplishing
an authorized result; and
(j) whether the act is seriously criminal.”
If the answer to these
questions indicates that the employee’s conduct at the time of the tort are in
fact in furtherance of the employment relationship or to the benefit of the
employer, than the employee will be deemed to have been acting within the
scope. The natural consequences of such
a determination will be the liability of the employer for the actions of the
employee. Additionally, it is worth
noting that the party wishing to invoke the doctrine bears the burden of
establishing the existence of the relationship.
As to principal and agent
relationship, the principal will be liable for the tortious acts of an agent if
that agent was acting within the scope of the principal-agent relationship or
with the authority of the principal.
B. DISTRICT OF COLUMBIA
In order to recover under
this doctrine, a plaintiff must first establish that an employee/ employer
relationship does indeed exist.To decide whether an employee is employed by
the Defendant, the fact finder determines if the defendant had the right to
control
the employee’s conduct in the performance of his job.
Once the relationship has
been established, the fact finder must then determine whether the acts or
wrongs were committed in furtherance of the business of the employer.If the employee does an act in furtherance of
the business of the employer and his actions are at least partly motivated by a
desire to further the employer’s interest, then the doctrine can be
applied. Thus, making the employer
responsible for the employee’s actions.
For the intentional use of
force, the fact finder must find that:
a) the employee’s conduct
was of the same general nature as that conduct which the employer has
authorized, or that it was incidental to authorized conduct; and b) that the
employee’s use of force was foreseeable by the employer.
C. VIRGINIA
Vicarious liability is the
situation created when a person or entity is held liable for the injuries
caused by another even though that person or entity itself was not actually at
fault or committed any wrong. When a
person or entity is held vicariously liable that person or entity is being held
liable despite the fact that he/it is not guilty of any wrongdoing; he/it is
being held liable for what someone else did. A finding of vicarious liability depends upon the existence of some
relationship between the actual wrongdoer and the person or entity being deemed
vicariously liable.
MINORS
A. MARYLAND
Maryland follows the common
law standard regarding the liability of children which holds that a child is
not to be held to the same standard/degree of care that an adult would have
used. He is to be held to that
standard/degree of care which ordinary prudent children of his age,
intelligence, experience and development would have used under the same
circumstances.Children under the age of five (5) are as a
matter of law, incapable of contributory negligence.According to article one statute §24 of the
Maryland Annotated Code, a person of 18 years of age or more is an adult for
all purposes whatsoever and has the same legal capacity rights, powers,
privileges, duties, liabilities, and responsibilities.The term minor refers to persons who has not
attained the age of 18 years.
B. DISTRICT OF COLUMBIA
The age of majority in D.C.
is eighteen (18).The District of Columbia adopts the tender
years doctrine, not the common law, wherein a child of tender years, depending
on his age and knowledge, may not be charged with contributory negligence.
In the District of
Columbia, a child is liable for his torts as if he were an adult except where
his tender years preclude him from framing the mental attitudes
necessary to complete the tort in question.In cases of tort requiring malice as an
essential element, a very young child may be considered as a matter of law
incapable of determining the requisite evil intent and no liability would
attach to his act.Lastly, with respect to negligent torts, the
age of a child may prove to be a mitigating factor, since he is held liable
only where he has failed to exercise a degree of care equal to that governing
the ordinary child of comparable age, knowledge and experience.
C. VIRGINIA
The age majority in
Virginia is eighteen (18).
Virginia follows the common law
rule concerning negligence by a minor. A minor under the age of seven (7) cannot be responsible for negligence.Between the ages of seven (7) and fourteen
(14), there is a rebuttable presumption that a minor cannot be responsible for
negligence. A
minor over the age of fourteen (14), can be responsible for negligence.For a minor to be determined negligent,
"The evidence must show that the plaintiff's conduct did not conform to
the standard of what a reasonable person of like age, intelligence, and
experience would do under the circumstances for his own safety and
protection."
While an individual is a
minor, the statute of limitations does not run against that minor, except in
medical malpractice cases. In medical
malpractice cases, the injured minor has two (2) years after reaching the age
of ten (10) within which to bring a claim.
D. NEW JERSEY
New Jersey holds the age of
majority to be 18 years old.Minors are liable for intentional torts
(acts of violence).Minors in New Jersey are held to the
standard of care applicable to reasonable persons of like age, intelligence and
experience under like circumstances.Certain activities performed by minors are
so hazardous that the courts will hold them to adult standards (driving car or
boat).
E. DELAWARE
In Delaware the age of
majority is eighteen (18).Delaware provides statutory authority to
recover up to $5,000.00 from the parents or guardian of a minor who
intentionally or recklessly destroys personal or real property.Delaware statutory law also holds the owner
of a car jointly and severally liable with a minor who is permitted to use that
car and does so in a negligent manner, causing injury and/or damage.
Under Delaware law, a
child's negligence is to be determined by a standard of care which "is
based upon an individualized assessment of the child's age, intelligence,
maturity, and other factors relevant to the conduct involved."Although Delaware has adopted a comparative
negligence standard rather than a contributory negligence, a minor's negligence
is determined by the same common law standard.
F. PENNSYLVANIA
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