Court Opinion

ID: 9565287
Source: CourtListenerOpinion
Date Created: 2023-08-21 19:18:29.073666+00
Date Added: 2024-06-11T09:19:31.580591
License: Public Domain

BROWN, Justice,
dissenting, with whom ROONEY, Justice, joins.
I dissented in part to the court’s original opinion. My principal disagreement with the majority at this juncture is the manner in which it has disposed of the state’s petition for rehearing.
I
Ordinarily a petition for rehearing is disposed of in a short, simple order, unless, of course, there is something wrong with the opinion. In this case, however, the majority vehemently maintains that there is nothing wrong with the opinion, but then uses more words than contained in the original opinion to explain why there is nothing wrong with it. The majority is originating a most peculiar procedure. A more funda*1148mental irregularity, however, is the majority deciding an issue that was not appealed. The Befus estate appealed from the “Judgment entered * * * on September 21, 1983.” After recitations, the remaining portion of the judgment provided:
“THEREFORE, IT IS ORDERED, ADJUDGED AND DECREED that the Estate of Hamlin and the Estate of Befus recover nothing from defendant, Trans-con Lines and that defendant, Transcon Lines recover from the Estate of Hamlin and the Estate of Befus its costs incurred in this action.
“IT IS FURTHER ORDERED, ADJUDGED AND DECREED that the Estate of Hamlin recover from the Estate of Befus the sum of one hundred fifty thousand dollars ($150,000.00) along with its costs incurred.”
I emphasize that this judgment does not address the indemnity issue asserted by the Befus estate in its cross-claim against the state, nor do the recitations address indemnity. I suppose that this small technicality is of no consequence to the majority since its opinion and order denying rehearing, so far as the Befus indemnity claim is concerned, is entirely advisory. I will, nevertheless, proceed like the majority has, as if the indemnity issue was appealed and that there is a proper case before this court to act upon.
In my opinion, the order exacerbates and adds to the confusion of the original opinion; it injects new issues and expands the scope of the remand. The majority seems to have doubts about its original opinion. I say this because ofttimes a flawed notion will be defended with more vigor than a correct principle because a correct principle defends itself, but a faulty notion must be defended by its proponents — first, to convince themselves, and secondly, that they may appear right in the estimation of others.
The ratio decidendi in the original opinion, so far as the Befus claim against the state was concerned, was clear and uncomplicated, that is, the Befus claim against the state failed because it did not state nor prove a cause of action. However, the majority did not stop there; it went on to write an advisory opinion and set out instructions accordingly. The problems lie within the advisory portion of the majority opinion.
In the original opinion, the majority stated:
<< * * * |-j-jn case ^ere ⅛ absolutely no showing that the Befus estate has suffered any damage whatever by reason of the Hamlin verdict and judgment, and, absent proof of actual financial loss by the Befus estate, this opinion should not be read to mandate that the State of Wyoming make payment in any amount upon that verdict and judgment.
⅜ ⅝ ⅜ ⅝ * ⅜
“Accordingly, we affirm in part and reverse in part, and remand to the trial court for entry of judgment which is not inconsistent with this opinion.”
In the disposition indicated above, there was not the slightest hint that upon remand an evidentiary hearing was contemplated or required.
Comes now the prolix order denying petition for rehearing and completely changes the scope of the remand. The order says:
“Accordingly, the Court’s opinion remands this case to the district court to make factual and legal determinations as to the amount of loss sustained and sustainable by the defendant tortfeasor, from which loss or losses the indemnitor must save the indemnitee harmless under the law of indemnity. We cannot tell from the record what the Befus estate’s losses either are or might be, and this appeal is not postured in a way which asks or permits this Court to interpret the law of indemnity as regards judgment creditors versus judgment debtors who are indemnitees of third-party in-demnitors; hence remand is necessary. We might say parenthetically, however, that some, but by no means all, of the relevant factors affecting the extent of the State’s liability to the Befus estate include the assets in the estate subject to *1149execution, whether the litigants have settled for a sum less than the judgment, and what losses the indemnitee might suffer in the future from which the law of indemnity provides that the indemni-tee must be held harmless.”
The trial judge is now ordered to hold an evidentiary hearing to determine: 1) the amount of loss sustained or sustainable by the defendant tortfeasor; 2) assets in the Befus estate subject to execution; 3) whether there has been a settlement for less than the judgment; and 4) future losses that may be sustained by the Befus estate. The majority, however, does not advise who should be the trier of fact.
As a result of the order denying petition for rehearing, confusion is increased geometrically. Suppose the trial court finds the defendant tortfeasor sustained a loss and/or there are assets in the estate subject to execution and/or a settlement has been made and/or the Befus estate will sustain losses in the future. What is the trial judge supposed to do with the information he receives after the evidentiary hearing? One might infer that with fortuitous findings the state will have to reimburse the Befus estate. If that is not the intent of the evidentiary hearing ordered by the majority, I see no purpose in such a hearing.
If the majority intends that Befus be indemnified, contingent only upon certain findings, then the majority will need to modify the principle of res judicata. The Befus estate made a cross-claim in the original action for indemnity against the state and apparently lost because it did not state a cause of action.
It appears that the majority is now permitting Befus to retry its indemnity case. In its order the majority tells Befus what theory of recovery it must plead, that is, that it sustained “actual financial loss,” and how it can show that it is entitled to indemnity. The Befus estate failed in its first claim, but the majority seems to be allowing it a second chance to plead and prove what it should have pled and proved the first time around.
Since the original opinion and the order denying petition for rehearing are principally advisory, the court might just as well fully advise the Befus estate and those similarly situated. For example, what would be the effect of a promissory note from Befus to Hamlin in satisfaction of the judgment? What would be the effect of assigning Befus’ right of indemnity? Suppose Befus borrowed money at the bank to pay the judgment and Hamlin co-signed or guaranteed the note? There may be other possible ways that Befus could satisfy the actual financial loss requirement imposed in the court’s opinion. Why not tell Befus exactly what to do to satisfy this requirement? The court should not dole out its advice and instructions piecemeal. It might just as well go all the way in advising Befus rather than letting him guess.
II
The law in Wyoming, as a result of this case, is that a person situated in the same position as Befus has a right of indemnity against the state. Despite my dissent to the original opinion, I have a duty as a member of this court to help develop law in a reasonable, fair, logical and understandable manner. I, therefore, address the ramifications of the ratio decidendi of this case.
The original opinion of the court, according to the majority, required that the Befus estate show that it had suffered actual financial loss before the state was required to indemnify it. Section 1-39-104(b), W.S.1977, 1984 Cum.Supp., of the Governmental Claims Act, provides in part:
“ * * * A governmental entity shall save harmless, and indemnify its public employees against any tort claim or judgment arising out of an act or omission occurring within the scope of their duties.”
A more equitable, manageable and logical construction of § l-39-104(b) would be that once a state employee has a judgment rendered against him, the State of Wyoming must assume the judgment, and thus hold the employee harmless as the Govern*1150mental Claims Act provides. The state employee is not being held harmless if, before § l-39-104(b) is triggered and comes to his aid, he is wiped out financially by executions on property, attachments on wages and hauled into court numerous times for an examination regarding his assets, in accordance with § 1-17-402, W.S.1977.
“Contracts of indemnity are generally classified as those which indemnify against (1) loss or damage or (2) liability. A contract which simply indemnifies, and nothing more, is against loss or damage only, whereas a contract which binds the indemnitor to pay certain sums of money or perform other acts which will prevent harm or injury to the indemnitee is one of indemnity against liability. A single contract may, however, indemnify against both actual loss or damage and liability.” 41 Am.Jur.2d, Indemnity, § 1, p. 687 (1968). See also, 42 C.J.S. Indemnity § 2, pp. 565-566 (1944).
“ * * * Where, however, the contract is so expressed as to protect the obligee against any claim, suit, or demand, even the institution of a suit against the obli-gee has been held to entitle him to an action against his guarantor.” 41 Am. Jur.2d, Indemnity, § 31, p. 722 (1968).
In Trapp v. R-VEC Corporation, Minn. App., 359 N.W.2d 323, 327 (1984), it was said:
“Here the indemnity provision states appellants will ‘indemnify and hold R-Vec harmless against the claim for payment of any real estate commission due James Trapp.' * * * [Tjhis agreement is against a claim. The words ‘loss’ and ‘damage’ are not used. Thus, R-Vec is entitled to indemnity for liability and liability is established by a judgment. * * ”
If the indemnity instrument (§ 1-39-104(b)) obligates the indemnitor to pay money and the payment of money will prevent harm or injury to the indemnitee, it is an obligation of indemnity against liability. If the statute of indemnity is to save the indemnitee from liability, the indemnitee need not prove actual loss but only that he has become liable. Alberts v. American Casualty Co. of Reading, Pa., 88 Cal. App.2d 891, 200 P.2d 37 (1948). The payment of money in this case “will prevent harm or injury to the indemnitee [Befus].” See also, Hawaiian Insurance & Guaranty, Ltd. v. Higashi, Hawaii App., 672 P.2d 556 (1983); 489 P.2d 760 (1971); Sanchez v. Alonso, 96 Nev. 663, 615 P.2d 934 (1980); Esso Standard Oil Company v. Kelly, 145 W.Va. 43, 112 S.E.2d 461 (1960).
The statutory indemnity set out in § 1-39-104(b) is broad enough to include indemnity against liability. The statute does not simply indemnify against loss or damage, but additionally in the plain words of the statute requires the state to “save harmless, and indemnify its public employees against any tort claim or judgment.” (Emphasis added.) When a statute provides for indemnity against liability, as in this case, the state then effectively assumes the judgment and the state employee is truly saved harmless as contemplated.
The first opinion should be withdrawn and a new opinion substituted.