Opinion ID: 1744499
Heading Depth: 1
Heading Rank: 4

Heading: election of theory of recovery, perversity of verdict, and combined fault assessment

Text: Cass and World next assert three intertwined arguments. They assert that: (1) the trial court should have required Butz to elect one theory of recovery before submission to the jury, rather than submitting negligence, strict liability, and breach of warranty; (2) the jury verdict, which assessed different percentages of fault to each party under the separate negligence and strict liability theories, was illogical, perverse, and irreconcilable; and (3) if multiple theories were submitted, the trial court should have submitted them to the jury on a combined fault assessment form, rather than with separate fault assessments for the differing theories.
Cass and World assert that it was error to allow the case to go to the jury on multiple theories, and that the trial court should have required Butz to elect one theory of recovery. Rules 8(a) and 18(a), N.D.R.Civ.P., generally allow a party to plead multiple claims against another party. In the specific context of a failure-to-warn case premised on both negligence and strict liability, we have held: Although the authorities disagree over this issue, we believe that recovery sought under a negligent failure-to-warn theory and recovery sought under a products-liability theory of marketing a product which is defective and unreasonably dangerous because it is not accompanied by adequate warnings are two separate and distinct theories of recovery. Thus the trial court must instruct on each where there is evidence to support both theories. Mauch, supra, 345 N.W.2d at 345. The trial court did not err in refusing to require Butz to elect one theory of recovery.
Cass and World assert that the verdict is illogical, perverse, and irreconcilable because the jury assessed different percentages of fault under the negligence theory and the strict liability theory. The jury assessed fault as follows: STRICT LIABILITY NEGLIGENCE World 37½% World 25% Cass 37½% Cass 25% Werner 0% Werner 15% Butz 25% Butz 35% ____ ____ 100% 100% Cass and World assert that fault is fault, and the percentages should not vary under the differing theories. Cass and World, however, are analyzing the issue from a purely factual perspective. There may be a distinction between factual fault and legal fault, depending upon the legal theory imposed. In Mauch, supra, we held that ordinary contributory negligence is not a defense in a strict liability action: We believe the better rationale, and the one we choose to follow in this case, is that the plaintiff's conduct should not be scrutinized in ordinary `contributory negligence' terminology as a defense to a products-liability claim. The focus of a products-liability action is on whether or not the product is defective and unreasonably dangerous, and thus the reasonableness of the defendant's conduct under negligence concepts is not relevant to this action. The defenses which we have previously recognized in [ Olson v. A.W. Chesterton Co., 256 N.W.2d 530 (N.D. 1977) ] of assumption of risk and unforeseeable misuse are, in our opinion, adequate to protect a seller or manufacturer from unjust liability in a case of this type. Mauch, supra, 345 N.W.2d at 347. We explained the rationale of our holding: The defenses of assumption of the risk and product misuse focus, as does the products-liability claim itself, upon the nature of the product and its use. We believe that the interjection of ordinary contributory negligence principles would only serve as a diversion from the proper focus on the product and its use in such a case without providing any needed additional protection to the defendant seller or manufacturer which the defenses of assumption of risk and unforeseeable misuse of the product do not already provide. Mauch, supra, 345 N.W.2d at 347. Thus, ordinary negligence of the plaintiff or a third party [3] which does not constitute assumption of risk or unforeseeable misuse is irrelevant in a strict liability action, and cannot be compared with the manufacturer or seller's strict liability in assessing fault. In light of Mauch, it is easily understandable how the jury in this case assessed different percentages of fault under the different legal theories. The ordinary negligence of Butz and Werner is considered for purposes of assessing fault under the negligence theory, but is wholly irrelevant in the strict liability action. This ordinary negligence, although clearly a factual fault of the accident, is not a legal fault under the strict liability theory. Thus, in the negligence action, the jury considered Butz and Werner's ordinary negligence and assessed Butz thirty-five percent fault and Werner fifteen percent fault. Under the strict liability theory Butz and Werner's conduct was relevant only to the extent it constituted assumption of risk or unforeseeable misuse. The jury assessed Butz twenty-five percent fault, apparently concluding that Butz's conduct constituted assumption of the risk. The jury assessed Werner no fault under the strict liability theory, apparently concluding that Werner's conduct did not rise to the level of unforeseeable misuse. We conclude that the verdict is not illogical, perverse, and irreconcilable. Instead, the verdict demonstrates that the jury carefully followed the trial court's instructions, which clearly and explicitly spelled out the differing considerations and defenses available under the negligence and strict liability theories.
Cass and World assert that the trial court erred in refusing their request that the case be submitted on a combined fault assessment form. We expressly reserved resolution of this question in Hoerr v. Northfield Foundry and Machine Co., 376 N.W.2d 323, 327 (N.D.1985), because the defendant had failed to preserve the issue in the trial court. Our resolution of the issue, however, follows by implication from our analysis in Mauch. As previously discussed, ordinary negligence is not a defense in a strict liability action, and the ordinary negligence of the plaintiff or a third party is not to be considered in assessing fault. Thus, the ordinary negligence of the plaintiff or a third party cannot be employed to diminish the percentage of fault attributable to the defective nature of the product. Cass and World have not offered a plausible verdict form which would combine fault assessment for the negligence and strict liability theories, yet isolate the determination of strict liability percentages from the ordinary contributory negligence considerations applicable to the negligence cause of action. Nor can we envision a verdict form which would combine fault assessment of the two theories without eviscerating Mauch. Using any combined assessment form, an increase or decrease in the percentage of negligence attributed to Butz or Werner would have a corresponding effect on the percentage of fault left available to assess against Cass and World on the strict liability claim. Mauch clearly prohibits such a result. Strict products liability and negligence are separate and distinct theories of recovery. Mauch, supra, 345 N.W.2d at 345. Strict liability focuses upon the product and its use, whereas negligence focuses on the conduct of the parties. Different defenses are available under the two theories. Our analysis leads to the conclusion that there is no logical method to combine fault assessment under the two theories without effectively blending them to the point of destroying their functions as separate theories of recovery. Our conclusion today is bolstered by our holding in Hoerr, supra, where the appropriateness of using separate fault assessment forms was questioned on appeal, but the defendant had failed to object to the special verdict form in the trial court. We were, however, required to determine the effect of the combined fault assessment form. The defendant argued that the fairest compromise would be to average the strict liability and negligence fault assessments, rather than allow Hoerr to choose to have judgment entered on the theory which provided the greater amount of recovery. We rejected the defendant's contention, and expressly agreed with the following rationale of the Supreme Court of New Jersey in a similar case: `We perceive of no reason to disavow th[e strict liability] verdict merely because the plaintiff was also found entitled to recover due to Fireco's negligence. Where a defendant is found liable on the theory of strict liability, plaintiff's entitlement to recovery should not be diminished or altered because defendant is also liable on another theory of wrongdoing.... When a jury verdict sustains several alternative theories of recovery advanced by a plaintiff, the trial court must [unless plaintiff chooses otherwise] render judgment on the theory which affords the greatest recovery. Mowery v. Fantastic Homes, Inc., 568 S.W.2d 171, 173 (Tex.Civ.App.1978).' Hoerr, supra, 376 N.W.2d at 328 (quoting Cartel Capital Corp. v. Fireco of New Jersey, 81 N.J. 548, 564-565, 410 A.2d 674, 682-683 (1980)). This rationale supports our conclusion that separate fault assessment forms are proper. We believe that if a combined fault assessment form were used, in many cases a plaintiff's recovery would be diminished or altered because defendant is also liable on another theory of wrongdoing. A combined fault assessment form would effectively require comparison of the defendant's strict liability with the plaintiff's ordinary negligence, which is a factual fault of the accident but is not legal fault under a strict products liability claim. The result could be to improperly diminish or alter the recovery which the plaintiff would have been entitled to under separate fault assessments. We can discern no reason why a plaintiff who can prove two separate causes of action, and thus two separate wrongs by the defendant, should be required to risk diminution of his recovery because he prevails on both theories. If the plaintiff can prove two separate theories he is entitled to have the jury instructed on the separate theories, to have fault assessed separately on each theory, and to have judgment entered on the theory which provides the greater recovery. See Hoerr, supra, 376 N.W.2d at 327-328. Cass and World suggest that a recently enacted statute, Chapter 32-03.2, N.D.C.C., requires that combined fault assessment forms be used in cases such as this. Initially we note that Chapter 32-03.2 applies only to claims accruing after July 8, 1987. Cass and World assert that they do not seek retroactive application of the statute, but rather suggest that the statute is indicative of the state's public policy and should be used to fill the void left from our prior decisions. Cass and World rely upon Davis v. Auto-Owners Insurance Co., 420 N.W.2d 347 (N.D.1988), to support their argument. In Davis we noted that a later-enacted statute may be indicative of earlier public policy [a]bsent anything contrary. Davis, supra, 420 N.W.2d at 349. As previously discussed, however, Mauch is contrary to Cass and World's interpretation of the public policy expressed in the statute, and adoption of their argument would not merely fill the void but would seriously erode the holding of Mauch. We will not apply the statute retroactively, and we will not adopt the alleged public policy basis of the statute in resolving this case. [4] We conclude that the trial court did not err in refusing to submit a combined fault assessment form.