Opinion ID: 1655775
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Heading: Is This a Claim Under Section 633.410?

Text: It is true, as Southland points out, an action for indemnity or contribution accrues or becomes enforceable only when the indemnitee's legal liability becomes fixed or certain as in the entry of judgment or a settlement. See Vermeer v. Sneller, 190 N.W.2d 389, 392 (Iowa 1971); Archibald v. West Paper Stock Co., 176 N.W.2d 761, 763-64 (Iowa 1970); Kroblin Transfer, et al. v. Birmingham Fire Insurance Co., 239 Iowa 15, 18, 30 N.W.2d 325, 327 (1948); Duke v. Tyler, 209 Iowa 1345, 1349, 230 N.W. 319, 320-21 (1930); Samuelson v. Chicago, R.I. & Pac. R.R., 287 Minn. 264, 268, 178 N.W.2d 620, 624 (1970); Furnish, Distributing Tort Liability: Contribution and Indemnity in Iowa, 52 Iowa L.Rev. 31, 53 (1966); 42 C.J.S. Indemnity § 21, at 596 (1944) (an implied contract of indemnity arises in favor of a person who without fault on his part is exposed to liability and compelled to pay damages on account of the negligence or tortious act of another....). Under these principles, Southland could not have enforced an indemnity or contribution claim during the six-month claims period, because it had not yet been subjected to liability. There is a difference, however, between the accrual of the cause of action sufficient to allow suit and a contingent claim for purposes of Iowa Code section 633.410. We have previously discussed, in another context, the distinction between a right of contribution in the inchoate stage and one which is accrued so as to provide a basis for a cause of action. It is important to note ... the distinction between the accrual of the right to recover contribution and the inchoate right to contribution before payment or discharge of the common liability. Even though a cause of action for contribution does not become complete until the claimant's act of payment or discharge of more than his equitable share of the common liability, generally a right to be protected against an unfair exactionan incidental or inchoate right to compel contributioncomes into being and becomes the property right or interest of a tortfeasor the instant the joint or concurring acts of himself and other tortfeasors give to the injured person a cause of action against themin other words, when the common liability arises. Such right is in a sense an incident which follows the principal event out of which the injured person's cause of action arises, and once in being, although contingent, subordinate, or inchoate, it is nonetheless real and subsisting, and has an existence in contemplation of law until it is no longer needed as a resource to which the joint tortfeasor may look for relief from an imposition upon him of an inequitable share of the burden on account of the joint tort, provided he does not in the meantime waive or give up such right. This inchoate right arises as soon as the acts of the joint wrongdoers raise the injured person's cause of action against them; it does not depend upon an action against them being commenced. It is held that even death of a joint tortfeasor after the negligent act has fixed the right of contribution upon the common liability does not destroy such right nor interfere with its legal growth into an accrued cause of action. 18 Am.Jur.2d Contributions § 46 (1965). Because section 633.410 does not require a claim to be enforceable in order to be barred, we look to the test of reasonable foreseeability suggested by Nichols. What facts was Southland aware during the claims period which would make it reasonably foreseeable that it would have a claim for indemnity or contribution? The letter to Southland from Evjen's attorney said Pauly had died. It did not mention that an estate had been opened for him, but there is no dispute that notice of administration was properly given, and we believe Southland is charged with that information. We will presume, therefore, that Southland was aware of the six-month claims limitation of section 633.410. See Millwright v. Romer, 322 N.W.2d 30, 33 (Iowa 1982). Southland was also advised by Evjen's letter that decedent Pauly was the driver of the car, that there was a claim of intoxication on the part of the driver, and that Southland, or its employee, had provided the liquor. We believe these facts were sufficient to create a reasonable foreseeability that Southland would have a claim against the Pauly estate for indemnity or contribution. This is sufficient, under the test previously discussed, to bring the claim within the coverage of section 633.410. Analogous Iowa cases support this view. See, e.g., St. Paul Mercury Indemnity Co. v. Nyce, 241 Iowa 550, 41 N.W.2d 682 (1950) (surety company required to file a claim, as bank's subrogee, in estate of absconding bank employee, even though surety had not yet been required to reimburse bank); Nichols v. Harsh, 202 Iowa 117, 209 N.W. 297 (1926) (guaranty on note is contingent claim required to be filed, even though no default yet by primary debtor). In view of the broad scope of our nonclaims statute and the undisputed facts in this case evidencing reasonable foreseeability, we believe the cross-claim for indemnity or contribution was a claim within the meaning of section 633.410. The question remains, however, whether peculiar circumstances existed.