Opinion ID: 1962322
Heading Depth: 1
Heading Rank: 9

Heading: Factoring the settlement into the judgment

Text: Because the Dongos settled with the Bankses prior to trial for $15,000, it was necessary to reduce plaintiffs' award by that amount: plaintiffs could not recover more than they suffered in damages, after reduction for their own contributing fault. The situation is governed by 14 M.R.S.A. § 163 (1980), authorizing the trial judge to reduce the verdict by the amount of the settlement in an action against joint tortfeasors. [8] In the case at bar, the justice made a reduction pursuant to section 163, attempting to effectuate the jury's determination that fault rested 60% with the Bankses and 40% with Holcomb. The Dongos urge that the justice erred in his mathematics. We agree. The jury determined that the total damages recoverable by the Dongos were $135,000. It is readily apparent how that total of $135,000 of damages recoverable from the co-defendants should be shared between them. Packard v. Whitten, Me., 274 A.2d 169, 180 (1971). Holcomb should ultimately pay a 40% share, or $54,000. Absent the Dongo-Banks settlement agreement, the Bankses should pay a 60% share, or $81,000. Since the Bankses have already paid $15,000, their remaining liability released by the settlement is $66,000. The Superior Court justice used the following procedure. Before entering judgment on the docket, he reduced the aggregate award by the settlement payment of $15,000, from $135,000 to $120,000. The justice then entered judgments in that aggregate amount against Holcomb in favor of Robert and James. Finally, the judge entered judgment in the amount of $72,000 in favor of Holcomb on its cross-claim for contribution against the Bankses, the $72,000 figure representing 60% of the $120,000 in judgments obtained by the Dongos against Holcomb. That computation was in error. Since the Bankses had already paid $15,000 to the Dongos, they would by the judgments entered below have a total liability of $87,000 (not $81,000, as it should be), and Holcomb would pay a net of only $48,000 (not $54,000, as it should be). Holcomb has received the benefit of a settlement that it did not pay. The error is easily rectified by modifying the amount that Holcomb is permitted to recover from the Bankses on its cross-claim for contribution. The proper amount is derived by taking 60% of $135,000 and subtracting $15,000 from the amount so obtained, for a final figure of $66,000. This adjustment will apportion the Dongos' recoverable damages between the Bankses and Holcomb in the proper amounts of $81,000 and $54,000. [9] The entry is: Appeal denied. Cross-appeal of the Bankses denied. Cross-appeal of the Dongos denied in part and sustained in part. Judgment of the Superior Court on Holcomb's cross-claim for contribution against the Bankses modified to read as follows: Judgment in favor of J. I. Holcomb Mfg. Co. on its cross-claim against James and Cora Banks in the amount of $66,000. As so modified, judgments below affirmed. All concurring.