Opinion ID: 1748237
Heading Depth: 1
Heading Rank: 4

Heading: Credit Against the Judgment

Text: As pointed out earlier in this opinion, prior to the beginning of trial, the Plaintiff released her claims against Saint Joseph Hospital in exchange for the payment of $40,000. After a judgment was rendered against Dr. Patterson in the amount of $78,498, Dr. Patterson moved the trial court to credit the $40,000 Saint Joseph settlement against the judgment. The trial court denied the motion, and the Court of Appeals failed to address this issue on appeal. T.C.A. § 29-11-105(a) and (b) states that: (a) When a release or covenant not to sue or not to enforce judgment is given in good faith to one (1) or two (2) or more persons liable in tort for the same injury or the same wrongful death: (1) It does not discharge any of the other tort-feasors from liability for the injury or wrongful death unless its terms so provide; but it reduces the claim against the others to the extent of any amount stipulated by the release or the covenant, or in the amount of the consideration paid for it, whichever is the greater; and (2) It discharges the tort-feasor to whom it is given from all liability for contribution to any other tort-feasor. (b) No evidence of a release or covenant not to sue received by another tort-feasor or payment therefor may be introduced by a defendant at the trial of an action by a claimant for injury or wrongful death, but may be introduced upon motion after judgment to reduce a judgment by the amount stipulated by the release or the covenant or by the amount of the consideration paid for it, whichever is greater. In the Court of Appeals the Plaintiff argued that Dr. Patterson was not entitled to a credit for the Saint Joseph Hospital settlement because there was evidence presented that indicated that any negligence of the hospital did not cause the same injury as was caused by the negligence of the Defendant. Accordingly, Plaintiff argues that the hospital and Dr. Patterson are not liable in tort for the same injury. The pleadings indicate that Ms. Tutton sued Saint Joseph Hospital and Dr. Patterson for their concurrent negligence which resulted in the sponge being left in her abdomen. The fact that Dr. Patterson committed malpractice in his post-operative care of Ms. Tutton would not excuse Saint Joseph from being liable for the injuries which Plaintiff sustained. See Rudeck v. Wright, supra . Saint Joseph Hospital and Dr. Patterson were liable for the same injury sustained by the Plaintiff as a result of a sponge being left in her abdomen. Plaintiff is entitled to one recovery. In this Court, Plaintiff candidly admits that if Rosenbaum v. First American National Bank, 690 S.W.2d 873 (Tenn. App. 1985), is the law, then the Defendant is entitled to a credit. In Rosenbaum , the Court of Appeals rejected the argument being asserted by Ms. Tutton in the case at bar. In Rosenbaum , plaintiff was shot by a robber while making a deposit at defendant Bank's night depository. Plaintiff sued the Bank, Murray Guard Company, which had a guard on the premises on the night of the shooting, and Earl Swenson Associates [ESA], the architects who designed the drive-through building which contained the night depository in question. Prior to trial, Plaintiff settled with Murray Guard Company and ESA for a total payment of $24,000. The case against the Bank was tried. A judgment was recovered against the Bank in the amount of $75,000 for Richard Rosenbaum and $15,000 for his wife. Rosenbaum argued that the Bank was not entitled to a credit for the $24,000 settlement because the proof at trial demonstrated that the Bank alone was liable. Thus, Murray Guard and ESA were not liable in tort for the same injury as required by T.C.A. § 29-11-105. After carefully reviewing various authorities, Judge Lewis, writing for the Court of Appeals, rejected plaintiff Rosenbaum's argument, holding that: In this case we do not think that plaintiffs Rosenbaum would seriously contend that Murray and ESA, out of the goodness of their hearts, made a gift of $24,000 to them. Murray and ESA paid $24,000 to the plaintiffs in order to `buy their peace.' This $24,000 was paid because plaintiffs had sued Murray and ESA and alleged that both Murray's and ESA's negligence was a direct and proximate cause of the injuries which plaintiffs received as a result of the robbery and shooting of plaintiff Richard Rosenbaum. To hold as plaintiffs would have us do would in most every case require a hearing as to the liability of the defendant to whom a covenant not to sue or release had been given. One of the purposes of Tenn. Code Ann. § 29-11-101 et seq. is to encourage extra-judicial settlements and promote judicial economy. The statute would be thwarted if we should adopt plaintiff's theory. We are of the opinion that the test in a case such as this is whether the settling defendant was sued as a tortfeasor. If so, whether the defendant discharged by release or covenant not to sue is liable to the plaintiffs is immaterial. A judgment against the remaining defendant or defendants will be reduced by the amount paid by the defendant or defendants to whom the release or covenant not to sue is given. 690 S.W.2d at 878-879. Other jurisdictions which have statutes identical to T.C.A. § 29-11-105 have similarly construed those statutes as allowing a credit for settlements of co-defendants who were sued as tort-feasors for the same injury without requiring proof of actual liability in tort. See, Layne v. United States, 460 F.2d 409 (9th Cir.1972); Levi v. Montgomery, 120 N.W.2d 383 (N.D. 1963); Degen v. Bayman, 90 S.D. 400, 241 N.W.2d 703 (1976). While there is authority to the contrary, most other jurisdictions which have considered the precise question have held that, even though the settling defendant is later exonerated, the plaintiff is entitled to only one recovery, necessitating a credit against the judgment [for the settlement]. Riexinger v. Ashton Co., 9 Ariz. App. 406, 453 P.2d 235 (1969). Rosenbaum is the law in this State and Dr. Patterson is entitled to a credit for the Saint Joseph settlement against the judgment rendered in this cause. The trial court was in error in failing to grant Defendant's motion for a credit against the judgment. The judgment entered in the trial court on behalf of the Plaintiff shall be reinstated and the Defendant, Dr. Patterson, shall be given a credit in the amount of the Saint Joseph Hospital settlement against that judgment, and the cause remanded to the trial court. The costs of this appeal shall be taxed equally between the parties. BROCK, C.J., and FONES, HARBISON and COOPER, JJ., concur.