Opinion ID: 344513
Heading Depth: 1
Heading Rank: 3

Heading: Thorson's Appeal.

Text: 34 At the time of trial and during post-trial consideration of motions in this case, the trial judge, Judge Heaney, recognized that Minnesota law relating to contribution between the negligent defendant and an employer of an injured plaintiff was in a state of flux. 2 As we have already noted, the district court and the parties anticipated that the Minnesota Supreme Court would clarify the status of the law in the then-ending Halvorson decision, but the Minnesota court did not reach the contribution-indemnity issue in Halvorson. In the trial court's memorandum decision, Judge Heaney wrote: 35 After that decision (Halvorson ) was filed, Universal Engineering Corporation moved this Court for an order entering judgment in favor of the Universal Engineering Corporation or, in the alternative, to change the jury's answers to certain interrogatories and to prepare findings of fact and conclusions of law and judgment to correspond with those changes. The Court denies that motion. 36 It had been hoped that the Minnesota Supreme Court would decide whether indemnity or contribution would be available to a defendant in the position of Universal Engineering Corporation. As it turned out, the Court did not reach that question. While the issue is not free from doubt, this Court believes that if the Minnesota Supreme Court were faced with the situation presented here, i. e., where the manufacturer's negligence is minimal when compared to that of the employer, that it would disregard its earlier decisions and would require that there be contribution. It seems to this Court that this follows if the doctrine of comparative fault is to be permitted in cases of this type, and it seems rather clear that such is the case. 37 However, while this appeal was pending, the Minnesota Supreme Court reached and resolved the contribution-indemnity issues in Lambertson v. Cincinnati Corp., Nos. 45790 and 45810 (filed Feb. 4, 1977). That court has determined that a plaintiff's negligent employer owes contribution to a third-party defendant in an amount proportional to the employer's negligence, but not to exceed the employer's total workmen's compensation liability to the plaintiff. The Minnesota Supreme Court made the following pronouncement: 38 The equitable merit in (defendant) Cincinnati's claim is plain: It has been forced to bear the entire burden of plaintiff's recovery despite the fact that it was only 25-percent negligent and has a 60-percent-negligent employer joined in the action and available for contribution. In contrast, granting contribution would result in substantial employer participation in its employee's common-law recovery despite the exclusive-remedy clause. This problem is, in large part, a legislative one which demands a comprehensive solution in statutory form.    The problem is discussed in Larson, Workmen's Compensation: Third Party's Action Over Against Employer, 65 Nw.U.L.Rev. 351, 419(.) 39 While the opinions of other jurisdictions must be read with caution on this issue because of different statutes and concepts of recovery in negligence cases, we have found direction in the approach taken by the Pennsylvania Supreme Court. That court has allowed contribution from the employer up to the amount of the workers' compensation benefits. Maio v. Fahs, 339 Pa. 180, 14 A.2d 105 (1940); Brown v. Dickey, 397 Pa. 454, 155 A.2d 836 (1959). See, also, Stark v. Posh Construction Co., 192 Pa.Super. 409, 162 A.2d 9 (1960). This approach allows the third party to obtain limited contribution, but substantially preserves the employer's interest in not paying more than workers' compensation liability. While this approach may not allow full contribution recovery to the third party in all cases, it is the solution we consider most consistent with fairness and the various statutory schemes before us. If further reform is to be accomplished, it must be effected by legislative changes in workers'-compensation-third-party law. 40 For the reasons expressed above, the judgment is reversed and the case is remanded with instructions to grant contribution against Hutchinson (employer) in an amount proportional to its percentage of negligence, but not to exceed its total workers' compensation liability to plaintiff. (Slip op. at 13-14.) 41 We are bound to apply this decision to the remedy of contribution afforded in this case. In accordance with the Lambertson decision, we remand this case to the district court with instructions to grant contribution against Thorson, Inc. in an amount proportional to its percentage of negligence, as has already been done, but to provide in the judgment that such contribution shall not exceed the total workmen's compensation liability of Thorson, Inc. to the plaintiff. 42 We affirm in part, reverse in part, and remand for further proceedings consistent with this opinion. We authorize Thorson, Inc. to tax 50 percent of its costs on appeal.