Opinion ID: 659721
Heading Depth: 1
Heading Rank: 8

Heading: allstate's cross-appeal

Text: 31 Finally, Allstate argues that the district court erred in reducing its recovery from Leco by the amount received from Pioneer. We agree. 32 After the liability trial, Allstate and Leco negotiated damages and ultimately agreed to a settlement of $119,000. A letter from Leco's counsel to Allstate indicates that at the time of these negotiations, counsel was aware that Allstate had settled with Pioneer. On May 5, 1992, Leco's attorney wrote and signed a stipulated agreement that Allstate was entitled to recover $119,000. 33 After sending this document to Allstate's attorney, Leco's attorney learned that Allstate had settled with Pioneer Lumber for $7,000. (Affidavit of Michael C. Hayden). He then contacted Allstate's attorneys and stated that Leco was entitled to reduce the $119,000 figure by the $7,000 Allstate had received from Pioneer. Id. Allstate's attorneys would not agree to reduce the settlement. 7 34 Allstate moved the court for an order enforcing the stipulated order. Leco opposed this motion, arguing that the Uniform Contribution Among Joint Tortfeasor's Act, RCA Sec. 4.22.060(2) entitled it to an offset for amounts already paid by Pioneer. The district court agreed and entered a $12,000 judgment in Allstate's favor on July 13, 1992. 35 This decision was incorrect. Leco and the district court cite case law and statutes entitling a codefendant to offset its liability against any amounts plaintiffs have received from codefendants. Leco's Reply Brief & District Court Order (citing RCA Sec. 4.22.060(2), Scott v. Cascade Structures, 673 P.2d 179 (1983) (involving a jury award)). However, Allstate correctly argues that this case law applies to contested judgments, where the failure to award such an offset would enable a plaintiff to receive a double recovery. Interpreting a similar Alaska contribution statute, the Alaska Supreme Court found that the statute did not apply to stipulated settlements where the settling parties were both aware of the earlier judgment. Continental Ins. Co. v. Bayless & Roberts, Inc., 608 P.2d 281 (Ala.1980). Rather, courts should assume that the negotiating parties have already taken the previous settlement into account. Id. Since their ultimate figure represents a compromise, [n]either the law ... nor common sense requires that one settlement be reduced by the amount of a prior settlement. Id. at 296. 36 Leco was aware Allstate had received a settlement from Pioneer long before it entered into settlement negotiations with Allstate. A letter from Leco's counsel at the beginning of these negotiations indicates that he was aware of the settlement. Leco's counsel was present in court when the court approved this settlement as reasonable and received a copy of the settlement agreement and order approving it. Leco does not argue that Allstate deliberately concealed the Pioneer settlement during settlement negotiations and, at most, Leco's counsel was unaware of the precise amount of Allstate's recovery. 37 Thus, contract law applies. Leco's signed stipulation agreement constitutes an offer, which Leco's counsel then attempted to revoke. Whether he could still revoke at this time depends on whether Allstate had accepted the offer before counsel's phone call. Leco's counsel contends that he contacted Allstate's lawyers before they signed the agreement but presents no evidence supporting this contention. The trial court did not make findings on this issue. Thus, we REVERSE and REMAND to allow the court to determine whether a contract existed. If the stipulated order was enforceable, Allstate is entitled to $119,000. If not, Allstate is entitled to litigate damages or re-enter into settlement negotiations with Leco.