Opinion ID: 290004
Heading Depth: 1
Heading Rank: 3

Heading: The Single Satisfaction Issue

Text: 37 Having announced one firm basis for decision we would ordinarily refrain from a discussion of the alternative ground for summary judgment advanced by Ocean Transport in the district court. But the parties, other litigants, and a reviewing court, if review should eventuate, are entitled to an explanation for deciding on the collateral estoppel ground in preference to the single satisfaction issue. 38 We pointed out above that the reason does not appear for the New Jersey district court's first ordering the judgment marked satisfied and then vacating that part of its order. If full payment into court is a way of satisfying a claimant and thereby foreclosing further litigation respecting the same injury, we would not turn our decision on the fact that fourteen days' interest had accrued and remained unpaid when the $90,000 payment was made. It is reasonable to assume that before the mandate reached the district court following a reversal on that ground that deficiency would be cured. 39 But the question of the preclusionary effect of full payment into a federal court by one joint tort-feasor of the amount of a judgment against him is not an easy one. No provision in Title 28 of the United States Code deals with the manner of satisfaction of federal court judgments. 28 U.S.C. § 1962 (1964) borrows to some extent the state law on the lien of judgments of the place where the federal court sits, but that statute does not, at least specifically, borrow state methods of satisfaction. 40 Here, as with collateral estoppel, choices of law confront the second court, but the reasons for making the choice are different. The one satisfaction rule applies to settlements as well as to satisfaction of judgments. Restatement of Torts § 885 (1939). Thus, the policy behind the one satisfaction rule will be found in the substantive law of torts rather than in the desire to afford full faith and credit to earlier judgments or to prevent unfairly vexatious relitigation. 41 This being the case, the second federal court considering the effect of payment into court of the amount of a judgment in a diversity case should, perhaps, look to the law applicable in that first case. That route in this case presents difficulties. 42 New Jersey follows the general rule that an unsatisfied claimant may pursue a second joint tort-feasor even after judgment against a first. It also follows the general rule that a claimant is entitled to only one satisfaction, and that a satisfaction of a judgment against one tort-feasor bars suit against another. Theobald v. Kenney's Suburban House, Inc., supra; Pennsylvania Greyhound Lines v. Rosenthal, supra. A New Jersey statute provides: 43 When a judgment is satisfied or the court in which a judgment is rendered or finally docketed allows moneys to be paid into court in satisfaction of a judgment, the court may direct the clerk to enter satisfaction on the record. 44 N.J.Stat. § 2A:16-45 (1952). A New Jersey practice rule provides: 45 If a judgment or order for the payment of money is rendered or docketed,    the court shall on motion order the clerk of the court to accept payment of the amount thereof,   and, upon receiving payment, to enter satisfaction thereof on the record, if it shall appear upon the motion that: (1) A tender of the amount due thereon, with interest and costs, has been made to the holder thereof, but he refuses to accept the tender or to execute a satisfaction or warrant in satisfaction therefor   . 46 N.J.R.Civ.Proc. 4:48-3(a) (1969). 47 The circumstances under which a New Jersey court will follow the above statute or the literal command of the above rule, and make such a direction to the clerk are not disclosed in any New Jersey case which has come to our attention. 48 In Theobald v. Kenney's Suburban House, Inc., supra, 48 N.J. at 206, n. 1, 225 A.2d 10, the Supreme Court of New Jersey in a footnote made note of the divided authorities on the issue of whether or not the plaintiff may be compelled to accept payment of a judgment against one tort-feasor and thus be barred from pressing a claim against another tort-feasor. The court did not pass on the question and it mentioned neither N.J. Stat. § 2A:16-45 (1952), nor N.J.R.Civ. Proc. 4:48-3(a) (1969). 49 Thus, if we were to look to New Jersey law to decide the effect of the $90,000 payment into court as a satisfaction of the first judgment, as we probably should, we would be forced to decide a question of New Jersey law of novel impression expressly reserved by that State's highest court. 50 The judgment of the district court will be affirmed.