Opinion ID: 303517
Heading Depth: 2
Heading Rank: 2

Heading: Correction of amount awarded for damages.

Text: 12
13 The Uniform Contribution Among Tortfeasors Act, which became effective in Alaska on April 22, 1970 (Alas.Stats., Title 9, ch. 16, 1971 Cum.Supp.) provides: When a release . . . is given in good faith to one of two or more persons liable in tort for the same injury . . ., . . . it reduces the claim against the [other tortfeasors] . . . in the amount of the consideration paid for it. Alaska Code of Civil Procedure Sec. 09.16.040, Sec. 4 of the Uniform Act. Layne settled his claim against Kirk Wickersham on September 30, 1970, for $50,000, and the trial court dismissed Wickersham as a defendant in this action. The United States, as the remaining defendant against whom the court granted judgment, now seeks reduction by $50,000 of the damages awarded Layne by the court, claiming that Section 09.16.040 of the Alaska Code of Civil Procedure requires it. 14 Although the causes of action against Wickersham and the United States arose at the time of the accident in 1966, before the effective date of the Alaska Uniform Contribution Among Tortfeasors Act, Section 09.16.040 is applicable here because the settlement was made after the statute became effective. See Smith v. Fenner, 1960, 399 Pa. 633, 161 A.2d 150, 154-155. 15 Layne admits the applicability of the Act, but claims that the United States cannot rely on Section 09.16.040 because it failed to raise the issue during the trial by placing the settlement in evidence and showing that the released defendant Wickersham, was in fact a joint tortfeasor. That Wickersham was not one of two or more persons liable in tort for the same injury, Layne contends, is demonstrated by the court's specific finding that the accident and Layne's resulting injuries were caused solely by, and were the direct and proximate result of, the negligence of the . . . United States of America. 16 Layne misapprehends the purpose and effect of Sec. 4 of the Uniform Act. While Sec. 4 changed the common law in one respect (i. e., by providing that release of one joint tortfeasor does not automatically release the other joint tortfeasors), it retained that part of the common law rule embodying the sound public policy of permitting a plaintiff to receive only the amount of his adjudged damages and no more, regardless of the source of the recovery. Since the principle is that there can be but one satisfaction for the same injury, whether or not the released party is in fact jointly liable with the defendant against whom a judgment is rendered is not relevant. In either case, to prevent recovery by plaintiff of more than his legitimate damages, the amount paid for the release or covenant not to sue must reduce pro tanto the injured person's judgment against another. Prosser, Law of Torts, 2nd Ed., Sec. 46, p. 246; 109 Pa.L.R. 311, 313; Holland v. Southern Public Utilities Co., 208 N.C. 289, 180 S.E. 592, and cases cited; Jacobsen v. Woerner, supra, 149 Kan. 598, 89 P.2d 24, and cases cited. Steger v. Egyud, 1959, 219 Md. 331, 149 A. 2d 762, 767-768. (applying New Jersey law). 1 17 To require the United States to prove at trial that the released party was in fact a joint tortfeasor before Sec. 4 of the Uniform Act can operate to cause a pro tanto reduction in the award equal to the amount recovered in the settlement would effectively thwart the major policy justifications for encouraging extrajudicial settlements-the disposition of claims without litigation, and the reduction and simplification of the issues requiring judicial determination. We do not think the language or intent of the Uniform Act requires such a result. 18 The settlement between Layne and Wickersham was part of the record before the trial court in this case. The trial judge discussed the settlement with attorneys for all parties at length, in open court. In such circumstances it would have served no useful purpose for the United States to formally offer the settlement into evidence and we do not require that it be done. Layne's award of damages against the United States should therefore be adjusted downward by $50,000, pursuant to Section 09.16.040 of the Alaska Code of Civil Procedure. 19
20 The United States argues for the first time on appeal that the amount awarded to compensate for loss of future earnings and future medical expenses should be discounted to present value. Otherwise, it says, the award will violate the statute's limitation of damages to compensatory damages only. 28 U.S.C. Sec. 2674. O'Connor v. United States, 2 Cir., 1959, 269 F.2d 578, 585. Layne argues that whether particular damages are compensatory or punitive is determined by applicable state law (United States v. Hayashi, 9 Cir., 1960, 282 F.2d 599, 605), and that Alaska law is clear that awards of undiscounted future losses are compensatory. Beaulieu v. Elliot, Alaska, 1967, 434 P.2d 665, 670-672. 21 The United States did not present this claim to the trial court. Having failed to raise this point before the trial court, it cannot urge it before this court on appeal, and we do not decide it. 22
23 The trial court granted interest at 6% per annum on the award (except pain and suffering damages) from the date judgment was entered until the judgment is paid. 28 U.S.C. Sec. 2411(b) limits the interest rate on judgments rendered against the United States under the Federal Tort Claims Act to 4% per annum from the date the judgment was entered. Accordingly, the judgment must be amended to provide 4% interest instead of the 6% granted. 24