Court Opinion

ID: 9462453
Source: CourtListenerOpinion
Date Created: 2023-08-04 22:41:20.01735+00
Date Added: 2024-06-11T17:37:35.803664
License: Public Domain

LAY, Circuit Judge
(concurring and dissenting).
I agree that it was error for the district court to grant summary judgment to Valley on American’s right to pursue equitable subrogation. However, contrary to the majority opinion, whether American is precluded from equitable subrogation depends on whether the trier of fact finds American acted as a volunteer or whether it acted under compulsion. It is difficult for me to perceive how it may be said that that factual question is not in dispute when the case comes to us only on a summary judgment based on the pleadings. All the pleaded facts are in issue and still sub*926ject to proof. Whether one acts as a volunteer under the circumstances pled requires analysis of many factors, such as the likelihood of suit, the likelihood of attachment of the vessel and the difficulty of arranging release of the vessel in the event of attachment. See Crain Bros., Inc. v. Duquesne Slag Products Co., 273 F.2d 948, 953 (3rd Cir. 1959). Furthermore, whether a party acts as a volunteer under these circumstances depends as well on the “reasonable good faith belief” that its payment was required to protect its interest. This again is peculiarly a factual question. See Dampskibsaktieselskabet v. Bellingham Stevedoring Co., 457 F.2d 889, 892 (9th Cir.), cert. denied, 409 U.S. 1024, 93 S.Ct. 466, 34 L.Ed.2d 316 (1972).
I further agree with the district court that the written assignment given cannot serve as an alternative basis for American’s suit. Once the release was obtained and the terminal company was reimbursed for all of its damage, it had no property interest or chose in action to assign. Whether the assignment was embodied within the release or not is hardly relevant to the issue of whether at the time it still had an assignable interest. If the terminal company had wished merely to assign its chose in action to American it could have done so. However, it did more than that. It fully and without reservation released American for its damage “growing out of, related to, or concerning, whether directly or indirectly, proximately or remotely, the aforestated occurrence on or about March 19, 1971 wherein [the shore facility] claims to have suffered damage to its dock, floating machine shop and office barge.”
After releasing American, the terminal company had no interest left to assign. Perhaps the parties did not intend the legal effect of their contract. However, the law must accept their actions as manifested by the four corners of the instrument and not by what they now say they intended. As stated in Liberty v. J. A. Tobin Construction Co., 512 S.W.2d 886 (Mo.App.1974):
In determining whether a release is general and disposes of the whole matter, on the one hand, or limited, on the other hand, it seems that the deciding factor of interpretation is what is released not who is released by the document. The fact that only one tort-feasor is named in the release is not conclusive as to its character. Each tortfeasor is liable for the whole damage. ... If, therefore, the release by its terms disposes of the whole subject matter, or the cause of action involved, the matter is ended or “dead” even though only one tort-feasor is specifically named in the instrument of settlement.
512 S.W.2d at 890 (emphasis added).
APPENDIX
Agreement of Release and Assignment
Know All Men by these presents that this Agreement of Release and Assignment is made and entered into this 16th day of December, 1971, by American Commercial Lines, Inc., a corporation, hereinafter referred to as “American Commercial”, and Sioux City and New Orleans Terminal Corp., a corporation, hereinafter referred to as “Sioux City”;
Witnesseth:
Whereas, on the 19th day of March, 1971, American Commercial was the owner of the M/V R.W. Naye, a diesel towboat, Official No. 578412; and
Whereas, at all times material herein Sioux City was the owner of a certain dock facility, floating machine shop and office barge located on the Upper Mississippi River on the left, descending bank at Hartford, in the State of Illinois, at or near Mile 197.0; and
Whereas, Sioux City claims that on or about March 19, 1971, its aforesaid dock, floating machine shop and office barge was damaged when the M/V R.W. Naye, with a tow of 13 barges, landed against said dock, floating machine shop and office barge, all due to the negligence of American Commercial and its agents, servants and employees, and the M/V *927R.W. Naye, and the negligence of others, to wit, The Valley Line, Inc., its agents, servants and employees, and the M/V Frank C. Rand; and
Whereas, American Commercial denies that any damage to the dock facility, floating machine shop and office barge, owned by Sioux City, on March 19, 1971, was caused by any negligence on behalf of American Commercial, its agents, servants and employees, or any negligence on behalf of the M/V R.W. Naye and asserts that whatever damage was caused to said facility at said time was due to the negligence of The Valley Line, Inc., its agents, servants and employees, and the M/V Frank C. Rand; and
Whereas, Sioux City is threatening to bring litigation against American Commercial and the M/V R.W. Naye, and others; and
Whereas, Sioux City and American Commercial are desirous of settling and compromising their differences herein.
Now, Therefore, for the consideration of Twenty-One Thousand Four Hundred Eighty-Two and 09/100 Dollars ($21,-482.09), paid by or on behalf of American Commercial, Sioux City does for itself, its successors and assigns, including any underwriters at interest, hereby release, acquit and discharge American Commercial, and its subsidiary and affiliated companies, American Commercial Barge Line Company and Inland Tugs Co., their successors and assigns, and their agents, servants and employees and any and all vessels belonging to or operated by them, including, without limiting the generality of the foregoing, the M/V R.W. Naye and the charterers, agents, servants and employees and underwriters at interest of such vessels and of American Commercial and American Commercial Barge Line Company and Inland Tugs Co. from any and all claims, demands, dues, liens, liability or causes of action of any kind whatsoever, at law, in equity, or in admiralty, by contract, indemnity, contribution or otherwise, now or hereafter held, owned or possessed by Sioux City on account of, growing out of, related to, or concerning, whether directly or indirectly, proximately or remotely, the aforestated occurrence on or about March 19, 1971, wherein Sioux City claims to have suffered damage to its dock, floating machine shop and office barge located on the Upper Mississippi River at Mile 197.-0.
Further, Sioux City does for itself and any underwriters at interest, for good and valuable consideration, to wit: Twenty-One Thousand Four Hundred Eighty-Two and 09/100 ($21,482.09), hereby sell, transfer, assign and set over to American Commercial Lines, Inc., it successors or assigns, any claim it may have against The Valley Line, Inc., or the M/V Frank C. Rand, arising from the aforesaid accident and gives to American Commercial Lines, Inc., full power and authority for its own use and benefit, at its own cost and expense, to demand, collect, receive, compound and give acquittances for the above-mentioned claim and to prosecute and withdraw any suits or proceedings at law, in equity, or in admiralty against The Valley Line, Inc., and the M/V Frank C. Rand, as fully, to all intents and purposes as Sioux City might or could do if these presents were not made.
It is further understood and agreed that no admission of liability may be drawn from the terms of this Release and Assignment and that each of the parties to this release has denied and still denies liability for itself regarding the aforesaid accident described above and that the amount paid herein is in full compromise and settlement of all issues above described as between the parties to this release and only them.
Sioux City and New Orleans Terminal
[Seal] Corporation, a Corporation by
Attest E. THOMAS DRENNAN
■GERALD A. WEIMANN
Assistant Secretary
[Acknowledgement]