Opinion ID: 1446685
Heading Depth: 3
Heading Rank: 2

Heading: The Fellows Can Recover One-Half of $343,237 Under Their Contribution Assignment if Sitka is Found Liable.

Text: AS 09.16.010 establishes THREA's right of recovery against Sitka and thus determines the parameters of the Fellows' assignment. This section provides in pertinent part: (a) Except as otherwise provided in this chapter, where two or more persons become jointly or severally liable in tort for the same injury to person or property or for the same wrongful death, there is a right of contribution among them even though judgment has not been recovered against all or any of them. (b) The right of contribution exists only in favor of a tortfeasor who has paid more than that tortfeasor's pro rata share of the common liability, and the total recovery of that tortfeasor is limited to the amount paid in excess of the pro rata share. No tortfeasor is compelled to make contribution beyond the tortfeasor's pro rata share of the entire liability. [Emphasis added.] THREA agreed to pay the Fellows $343,237 in their settlement agreement. As mentioned previously, of this total, THREA paid $143,237, and Island/Gildersleeve paid the balance of $200,000, apparently to satisfy its obligation to indemnify THREA under AS 18.60.685(b). [10] Sitka accordingly takes the position that its potential liability for contribution as a joint tortfeasor equals a pro rata share (one-half) of the $143,237 common liability paid to the Fellows by THREA, or $71,618.50. [11] In our view, the common liability for the underlying tort here is the full $343,237 settlement amount. Based on the settlement agreement, THREA owed the Fellows this sum; any right to indemnity from Island/Gildersleeve that THREA may have had existed independently of THREA's negligence liability. [12] There is no reason that Sitka should benefit from the happenstance that its co-tortfeasor may be entitled to indemnification from a third party. [13] AS 09.16.010(b) dictates that a settling tortfeasor can recover contribution in the amount it has paid in excess of its pro rata share of the common liability. [14] The purpose of the Uniform Contribution Act is to ensure that all joint tortfeasors pay their fair share of the damages. Criterion Ins. Co. v. Laitala, 658 P.2d 112, 115 (Alaska 1983). Contribution is an equitable doctrine adopted to remedy the unfairness of the common law rule allowing one of several tortfeasors to bear responsibility for the entire loss. [15] By virtue of its settlement agreement, THREA has borne the full amount of the tort liability here; Sitka must shoulder its share if it is ultimately found to be a tortfeasor. Since the Fellows as assignees stand in THREA's shoes, they can recover one-half of $343,237, or $171,618.50, if they establish Sitka's liability. [16] The decision of the superior court is therefore REVERSED.