Opinion ID: 1864115
Heading Depth: 1
Heading Rank: 1

Heading: facts and judgment

Text: The summary judgment granted by the lower court adequately sets forth the facts of the case upon which the court arrived at its conclusions. The judgment follows: The record on the motion for summary judgment reveals that in October 1975, James A. Brewer and James M. Brewer entered into a lease contract with Edgar H. Overstreet, Denver Northrip and Royce Delaney, as lessees, for the construction and leasing of a 120 bed nursing home to be constructed by the Brewers, as lessors, which lease was for an initial term of ten years, and which provided, inter alia, that the lessees should maintain the property for which lessees would have complete maintenance responsibility after twelve months. The lease agreement further provided that lessees would carry liability insurance which would protect both lessees and lessors. By addendum dated January 4, 1979, and after the construction had been completed and accepted by the owners (lessors) and The Federal Housing Administration and the Department of Housing and Urban Development, the ten year lease term was caused to commence as of May 1, 1978, and imposed upon the lessees responsibility for all maintenance in and about the demised premises. The record further reflects that Jesco, Inc. defendant, entered into a contract with the owners-lessors for construction of the Senatobia Convalescent Center, performing work thereon during the years 1977 and 1978, with final inspection of the project by the architect and the United States Department of Housing and Urban Development occurring on July 20, 1978. Thereafter, on or about July 18, 1981, Hattie V. Raggett, while on the premises of the Senatobia Convalescent Center visiting her sister, stumbled and fell on the sidewalk resulting in certain personal injuries. On August 24, 1982, Ms. Raggett filed suit against both lessors and lessees claiming that the defendants knew or should have known about the dangerous condition existing in the sidewalk for a substantial period of time prior to her fall of July 18, 1981, without taking corrective action to repair the defect, without warning pedestrians  of the defective condition, and by otherwise allowing the sidewalk to become or remain in a dangerously defective condition resulting in substantial injuries. Defendants in that lawsuit by and through their underwriter, Empire Fire & Marine Insurance Company, liability insurer, negotiated a settlement, and entered into a settlement agreement and covenant not to sue with Ms. Raggett for the sum of $75,000.00 with certain conditions attached. This agreement was executed on September 14, 1983, and contemplated that Ms. Raggett might bring additional action against Jesco, Inc. with a portion of the proceeds of any recovery to be returned to Empire Fire & Marine Insurance Company, to her attorneys, and to Ms. Raggett herself. Shortly thereafter, Ms. Raggett through the same counsel filed an action in the United States District Court for the Northern District of Mississippi, Delta Division, against Jesco alleging negligence on the part of Jesco in the construction of the premises. Ultimately, on June 21, 1985, a settlement was effected between Ms. Raggett and Jesco for the sum of $25,000.00 releasing all claims of Ms. Raggett against Jesco, and the suit against Jesco was dismissed with prejudice. The lessees next brought an action in the Circuit Court of Tate County, Mississippi, against Jesco, Inc., being the cause at bar. Empire Fire & Marine Insurance Company, pursuant to the provisions of Rule 17, Mississippi Rules of Civil Procedure, and upon a showing that it is the real party in interest, has been made a party plaintiff and is before the court. The action is one for indemnity for all sums paid by the underwriter plus attorneys' fees and expenses. The court is convinced that Empire Fire & Marine Insurance Company paid the sum of $75,000.00 to Ms. Raggett in behalf of the lessees-defendants in the original action based upon the record on this motion which reflects knowledge of the existence of the condition about which Ms. Raggett complained for a substantial period of time prior to her fall in July 1981. Mr. Northrip's investigation conducted after the accident and Mr. Manning's testimony demonstrate to this court that the lessees were aware of a condition in the sidewalk which was exacerbated by hot weather, and which caused tar to rise above the level of the sidewalk during the hot summertime. Even if the facts in this record could be construed otherwise, the payment of $75,000.00 to Ms. Raggett made by Empire Fire & Marine Insurance Company was made in recognition of the liability exposure of its insureds and the lessees of the premises. If the condition in the sidewalk was latent, and the lessees had no notice of any dangerous condition, then payment in behalf of the lessees would not have been payment under compulsion of law. Waller v. Dixieland Food Stores, Inc., 492 So.2d 283 (Miss. 1986); Southwest Mississippi Electric Power Association v. Harragill, [254 Miss. 460] 182 So.2d 220 (Miss. 1966); Home Ins. Co. v. Atlas Tank Manufacturing Co., 230 So.2d [549] 550 (Miss. 1970); Alabama Great So. Railroad Company v. Allied Chemical Corp., 501 F.2d 94 (5th Cir.1974). If the payment was not voluntary, then it was based upon a failure to remedy or warn concerning a patent defect in the sidewalk which is clearly active negligence. There is no contribution permitted among joint tortfeasors. Granquist v. Crystal Springs Lumber Company, [190 Miss. 572] 1 So.2d 216 (Miss. 1941). Empire's insureds were either actively negligent or not negligent at all. Empire Fire & Marine Insurance Company by settlement with Ms. Raggett clearly discharged the liability of its own insureds or the liability of Jesco, but not the liability of both. The release documents reveal that the right of action against Jesco was preserved by Ms. Raggett when the settlement was effected in 1983, and that Ms. Raggett in fact instituted an action and effected a recovery from Jesco. Therefore, Empire does not fall within the rule of the Restatement of Torts 2d, Section 886(B), which provides for indemnity where one party of two liable parties discharges the liability of  both, and is by virtue of unjust enrichment entitled to indemnity. It is therefore ORDERED AND ADJUDGED that the Complaint filed in this action be and it is hereby dismissed with prejudice with all costs to be taxed to the plaintiff for which let execution issue.