Sperl v. Henry
Sperl v. Henry
Opinion
*428 ¶ 1 In this case, we consider whether a vicariously liable defendant has a right of contribution against another vicariously liable defendant when their common liability arises from the negligent conduct of the same agent. We hold that the Joint Tortfeasor Contribution Act (Contribution Act or Act) ( 740 ILCS 100/0.01 et seq. (West 2012) ) provides a right of contribution in the specific circumstances presented here. Accordingly, we reverse the appellate court's judgment.
¶ 2 I. BACKGROUND
¶ 3 This is a contribution action between two vicariously liable defendants, C.H. Robinson Company and other related corporations (CHR) and Toad L. Dragonfly Express, Inc. (Dragonfly), arising out of a multiple-vehicle accident. CHR is a logistics company and freight broker that contracts with licensed motor carriers to transport goods for its customers. CHR entered into a contract with Jewel Food Stores to purchase, store, and arrange for transportation of produce to Jewel stores. At that time, DeAn Henry owned a semi-tractor that she leased to Dragonfly, a federally licensed motor carrier.
*429 *939 ¶ 4 Henry was allowed to use Dragonfly's carrier authority to book and deliver loads. She, therefore, contacted CHR and agreed to deliver a load of potatoes from Idaho to CHR's Bolingbrook, Illinois, warehouse for repackaging and shipment to Jewel stores. In the course of delivering the potatoes, Henry was driving the tractor-trailer northbound on Interstate 55. As she approached Plainfield, Illinois, Henry noticed that the vehicles ahead of her were stopped, but she was unable to stop her tractor-trailer in time and ran over several vehicles. Joseph Sperl and Thomas Sanders died, and William Taluc was seriously injured in the collision.
¶ 5 Susan Sperl, individually and as executor of the estate of Joseph Sperl; Annette Sanders, individually and as administrator of the estate of Thomas Sanders; and William and Skye Taluc filed separate lawsuits against Henry, Dragonfly, and CHR for wrongful death, survival, and personal injuries based on Henry's negligent operation of the truck. The separate actions were later consolidated for trial. Henry admitted negligence and liability. Dragonfly admitted liability and a "united" negligence with Henry. CHR denied liability and filed a claim for contribution against Henry and Dragonfly.
¶ 6 At trial, CHR argued it could not be held vicariously liable for Henry's negligence under the doctrine of respondeat superior because the evidence was insufficient to establish an agency relationship. During the jury instruction conference, CHR's contribution claim was severed from the wrongful death, survival, and personal injury actions. CHR submitted a proposed verdict form asking the jury to allocate fault between Henry, Dragonfly, and CHR under section 2-1117 of the Code of Civil Procedure ( 735 ILCS 5/2-1117 (West 2008) ), but the trial court rejected that proposed verdict form.
¶ 7 The jury returned a verdict for each of the plaintiffs and specifically found that Henry was CHR's agent at the time of the accident. CHR was, therefore, vicariously liable for the plaintiffs' injuries under the doctrine of respondeat superior . The jury awarded damages in the three consolidated actions totaling $23,775,000, jointly and severally, against Henry, CHR, and Dragonfly.
¶ 8 On appeal, CHR contended that the evidence did not support the jury's finding of an agency relationship between CHR and Henry. CHR also argued that the trial court erred in refusing its proposed verdict form asking the jury to allocate fault between Henry, Dragonfly, and CHR. The appellate court held that several of the factors for determining whether an agency relationship exists, including the two most pivotal ones, indicated that Henry was acting as CHR's agent when the accident occurred. Accordingly, the jury's finding that CHR had an agency relationship with Henry was not against the manifest weight of the evidence.
Sperl v. C.H. Robinson Worldwide, Inc.
,
¶ 9 In rejecting CHR's claim that Henry and Dragonfly should have been included on the verdict form for allocating fault under section 2-1117 of the Code of Civil Procedure, the appellate court noted that section 2-1117 does not apply if liability among the tortfeasors cannot be apportioned. CHR's liability could not be apportioned between it and Henry because CHR's liability was based entirely upon the doctrine of
respondeat superior
rather than its own negligence. In those circumstances, a basis exists for indemnity but not for apportioning damages between the principal and the agent.
Sperl
,
¶ 10 CHR paid the judgments in full, totaling more than $28 million, including postjudgment interest. Each plaintiff executed a satisfaction of judgment stating that he or she had "received full satisfaction and payment from [CHR]," including accrued interest, and requested the clerk of court to "cancel and discharge the judgment."
¶ 11 CHR then obtained leave of the trial court to file the amended consolidated cross-claim for contribution against Dragonfly at issue in this appeal. In count I, CHR alleged it was not at fault but Dragonfly was negligent in several respects. CHR asserted that it had paid more than its pro rata share of the common liability and was entitled to contribution from Dragonfly under sections 2 and 3 of the Contribution Act. ( 740 ILCS 100/2, 3 (West 2010) ). CHR asked the trial court to award it contribution based on the court's determination of Dragonfly's fault. In count II, CHR alleged that Henry, Dragonfly, and CHR were found jointly and severally liable but Henry's share of the liability was "substantially uncollectable." CHR and Dragonfly later stipulated that "Henry has no personal assets, and never had personal assets, from which any judgment against her could have been collected." CHR alleged that it and Dragonfly were required to share Henry's uncollectable portion of the liability. CHR, therefore, asked the trial court to determine the uncollectable share of the judgments based on Henry's fault and to award CHR contribution against Dragonfly accordingly. In count III, CHR asserted that it had a right to contribution, even if Dragonfly's liability was vicarious, because the parties would be equally liable in those circumstances but CHR paid the entire amount of the judgments. CHR alleged that "[i]n the absence of requiring contribution by Dragonfly, a serious injustice will occur." CHR, therefore, asked the trial court to determine whether Dragonfly's liability was vicarious and to award contribution based on that finding.
¶ 12 After the trial court denied Dragonfly's motion to dismiss, CHR asked the court to re-empanel the original jury to resolve its cross-claim for contribution. The trial court denied that request, noting that CHR failed to object to dismissal of the jury following the trial or to alert the trial court of the need to keep the jury for consideration of the contribution claim. The trial court also observed that the jurors most likely would not have sufficient memory of the evidence to consider the contribution claim because the verdicts were entered over four years previously. Following that ruling, the parties agreed to submit trial briefs on the issues, including references to the trial record. The trial court agreed that a trial on the briefs using the record from the underlying trial "was the best of several imperfect alternatives."
¶ 13 Based on the parties' briefs and the record of the underlying trial, the trial court ruled that "CHR and Dragonfly engaged in conduct that equally contributed to the cause of the accident at issue." The *431 *941 court found that CHR exercised significant control over Henry and her operation of the truck and Henry was acting, at least in part, as Dragonfly's agent at the time of the accident. On count I of the cross-claim, the trial court, therefore, concluded that CHR and Dragonfly were "equally at fault * * * and should be equally responsible for damages awarded by the jury." Based on that ruling, the trial court found it was unnecessary to address counts II and III of the cross-claim. The trial court later entered judgment for CHR on count I of its cross-claim for contribution in the amount of $14,326,665.54, constituting one-half of the total amount paid by CHR to the three plaintiffs.
¶ 14 On appeal, Dragonfly argued that the Contribution Act applies only when there is a basis for comparing the fault of joint tortfeasors and one of them has paid more than its share of the judgment based on its relative culpability. Dragonfly contended there was no basis for comparing the relative fault of the parties in this case because CHR and Dragonfly were found liable only vicariously, meaning that neither party was "at fault." Further, CHR did not pay more than its
pro rata
share of liability because CHR and Dragonfly were each 100% liable for Henry's negligent operation of the truck.
¶ 15 The appellate court agreed, explaining that when a principal is held vicariously liable for the conduct of its agent, the principal is not " 'at fault in fact,' " but is considered " 'blameless.' "
¶ 16 Justice Schmidt dissented, asserting that "[t]he majority's hypertechnical construction of the Act leads to an absurd and unjust result certainly not intended by the legislature."
¶ 17 We allowed CHR's petition for leave to appeal ( Ill. S. Ct. R. 315 (eff. Nov. 1, 2017) ).
¶ 19 On appeal to this court, CHR contends that (1) a right of contribution exists between it and Dragonfly, as vicariously liable defendants, both under the Contribution Act and as a matter of equity; (2) it is entitled to contribution based on several judicial admissions of direct negligence by Dragonfly during the underlying trial; and (3) it is entitled to contribution based on a federal regulation supporting a finding that Dragonfly was negligent. We address CHR's arguments in turn.
¶ 20 A. Contribution Between Vicariously Liable Defendants
¶ 21 CHR contends the Contribution Act applies when, as here, a vicariously liable defendant has paid more than its share of a common liability relative to another vicariously liable defendant. CHR maintains that allowing contribution in these circumstances furthers the Contribution Act's purposes of encouraging settlements and equitably apportioning damages.
¶ 22 Dragonfly responds that the Contribution Act applies only to tortfeasors at fault in fact. A vicariously liable defendant is not at fault in fact but is considered blameless. Additionally, CHR is 100% liable for the judgments as a result of its principal-agent relationship with Henry, and therefore, it could never pay more than its pro rata share of the common liability. Dragonfly concludes that CHR does not have a right of contribution in this case under the plain language of the Contribution Act.
¶ 23 This case presents an issue of statutory construction. The fundamental objective of statutory construction is to ascertain and give effect to the intent of the legislature.
Moon v. Rhode
,
¶ 24 The Contribution Act codified this court's decision in
Skinner v. Reed-Prentice Division Package Machinery Co.
,
"§ 2. Right of Contribution. (a) Except as otherwise provided in this Act, where 2 or more persons are subject to liability in tort arising out of the same injury to person or property, or the same wrongful death, there is a right of contribution among them, even though judgment has not been entered against any or all of them.
(b) The right of contribution exists only in favor of a tortfeasor who has paid more than his pro rata share of the common liability, and his total recovery is limited to the amount paid by him in excess of his pro rata share. No tortfeasor is liable to make contribution beyond his own pro rata share of the common liability." 740 ILCS 100/2(a), (b) (West 2012).
*433 *943 "§ 3. Amount of Contribution. The pro rata share of each tortfeasor shall be determined in accordance with his relative culpability. However, no person shall be required to contribute to one seeking contribution an amount greater than his pro rata share unless the obligation of one or more of the joint tortfeasors is uncollectable. In that event, the remaining tortfeasors shall share the unpaid portions of the uncollectable obligation in accordance with their pro rata liability." 740 ILCS 100/3 (West 2012).
¶ 25 In this case, CHR and Dragonfly are "subject to liability in tort arising out of the same injury to person or property, or the same wrongful death." See 740 ILCS 100/2(a) (West 2012). The plain language of section 2(a) of the Contribution Act, therefore, appears to provide a right of contribution between CHR and Dragonfly in these circumstances. Dragonfly argues, however, that sections 2(b) and 3 of the Act, together with this court's case law, clarify that the Act applies only to tortfeasors at fault in fact. Dragonfly maintains that vicariously liable defendants are not at fault in fact and, therefore, it is not possible to assess their relative culpability as required by section 3 of the Act.
¶ 26 Dragonfly's argument relies heavily on this court's decision in
American National Bank
. There, this court considered whether the Contribution Act effectively abolished actions for common-law implied indemnity when a principal is vicariously liable for the conduct of an agent.
American National Bank
,
¶ 27 While we acknowledge that certain statements in
American National Bank
support Dragonfly's argument, the issue in that case involved consideration of the principal-agent relationship when the principal becomes vicariously liable as a result of the agent's conduct.
American National Bank
,
¶ 28 Prior to concluding the opinion in
American National Bank
, this court stated that "settlements between the principal and the plaintiff merit different consideration. [Citation.] Such a settlement has the effect of creating, in the blameless principal, an interest indistinguishable from the contribution interests of the 'other tortfeasors' at fault in fact. [Citation.] The Contribution Act should therefore apply."
American National Bank
,
¶ 29 We believe this is a case that merits different consideration for several reasons. As previously noted, the Act provides a right of contribution among two or more persons "subject to liability in tort arising out of the same injury to person or property, or the same wrongful death." 740 ILCS 100/2(a) (West 2012). The plain language of section 2(a) does not expressly exclude vicariously liable defendants from the scope of the Act. Although the Act refers to "tortfeasor[s]" in subsequent provisions, that term is defined for the purposes of the Contribution Act in section 2(a) as a person "subject to liability in tort arising out of the same injury to person or property, or the same wrongful death." 740 ILCS 100/2(a) (West 2012). Section 2(a) only requires the parties to the contribution action to "be potentially capable of being held liable to the plaintiff in a court of law or equity."
Vroegh v. J & M Forklift
,
¶ 30 Dragonfly's argument that the Contribution Act applies only to tortfeasors at fault in fact is based on the language in sections 2(b) and 3. Section 2(b) provides for a right of contribution when a defendant has paid more than its
pro rata
share of a common liability. 740 ILCS 100/2(b) (West 2012);
BHI Corp.
,
¶ 31 Dragonfly contends that fault cannot be apportioned in this case because both CHR and Dragonfly are blameless principals and are not at fault in fact. In this case, however, CHR and Dragonfly are both subject to liability in tort, and their relative culpability is equal. They are both principals of the same agent who caused the injuries. Dragonfly acknowledges the "share of each is identical." The trial court found CHR and Dragonfly were "equally at fault," and the appellate court agreed that the parties were both found
*435
*945
liable only vicariously and that they "stand[ ] in the identical position."
¶ 32 Although we conclude that CHR is entitled to contribution under the plain language of the Contribution Act, we further note that allowing contribution in these circumstances promotes the purposes of the Act. This court has frequently observed that " 'the Contribution Act seeks to promote two important public policies-the encouragement of settlements and the equitable apportionment of damages among tortfeasors.' "
Antonicelli v. Rodriguez
,
¶ 33 We, therefore, conclude that the Contribution Act applies to the specific circumstances of this case involving two principals vicariously liable for the negligence of a common agent. Here, the pro rata share of the common liability for both CHR and Dragonfly is 50%. Accordingly, the trial court did not err in awarding CHR contribution against Dragonfly for one-half of the total amount of the judgments.
¶ 34 B. Judicial Admissions
¶ 35 CHR also argues that Dragonfly admitted its own negligence during the underlying trial. Based on those judicial admissions, CHR contends it is entitled to a greater level of contribution given the difference in culpability between it as a vicariously liable defendant and Dragonfly as a negligent tortfeasor. In support of this argument, CHR lists the following statements made by Dragonfly's attorneys and owner at trial: (1) during opening statements, joint counsel for DeAn Henry and Dragonfly stated, "my clients have admitted their negligence"; (2) Dragonfly's owner agreed on cross-examination that she "conceded [her] negligence"; (3) joint counsel argued Henry and Dragonfly should be listed together on the verdict forms because they made "the same admission of negligence and liability" and "there's been a united negligence admission and liability"; (4) in response to a statement from the trial court, joint counsel agreed that he had "admitted all the negligence * * * as to plaintiffs' claim"; (5) during closing argument, joint counsel stated his clients wished they "could turn back the hands of time and correct their omissions, their mistakes, their actions"; and (6) counsel consented to jury instructions stating Henry and Dragonfly "admit[ted] that they were *436 *946 negligent and that their negligence was a proximate cause of injuries to the plaintiffs." According to CHR, those statements are judicial admissions of Dragonfly's own negligence rather than an acknowledgement of its vicarious liability for Henry's conduct.
¶ 36 We disagree. Dragonfly's statements admitting "negligence" do not constitute judicial admissions. "Judicial admissions are 'deliberate, clear, unequivocal statements by a party about a concrete fact within that party's knowledge.' "
JPMorgan Chase Bank, N.A. v. Earth Foods, Inc.
,
¶ 37 Further, Dragonfly did not admit to any independent act or omission that may have supported a direct negligence claim. Rather, it made only general statements that both Henry and Dragonfly "admitted their negligence" and shared a "united negligence." All but one of the statements identified by CHR were made by joint counsel representing both Henry and Dragonfly. Joint counsel's statement that Henry and Dragonfly shared a "united negligence" is consistent with an admission that Dragonfly was vicariously liable for Henry's negligent conduct in driving the truck. In vicarious liability actions, " 'the liability of the master and servant for the acts of the servant is deemed that of one tortfeasor and is a consolidated or unified one.' "
Downing v. Chicago Transit Authority
,
¶ 38 In its contribution order, the trial court found that "Henry, while acting as (at least in part) Dragonfly's agent, operated the truck in such a way that led to the death of two people and the catastrophic injury of another." Thus, as to Dragonfly, the trial court's contribution finding was based on its vicarious liability for Henry's conduct, not a finding of direct negligent conduct by Dragonfly. We conclude that Dragonfly's statements at trial only admitted vicarious liability based upon its agency relationship with Henry. Accordingly, we reject CHR's arguments assigning direct negligence to Dragonfly and the various levels of contribution CHR requests based on its argument that Dragonfly admitted its own negligence.
¶ 39 C. Federal Regulation
¶ 40 CHR also makes a separate argument that a federal regulation governing interstate motor carrier leases, "[w]hen combined with Dragonfly's admissions at the tort trial," supports a finding that Dragonfly *947 *437 was directly negligent rather than vicariously liable for Henry's negligence. CHR relies upon a federal regulation stating:
"The lease shall provide that the authorized carrier lessee shall have exclusive possession, control, and use of the equipment for the duration of the lease. The lease shall further provide that the authorized carrier lessee shall assume complete responsibility for the operation of the equipment for the duration of the lease."49 C.F.R. § 376.12 (c)(1) (2004).
¶ 41 The appellate court rejected CHR's argument based on the federal regulation, stating that that provision has been interpreted by courts as making a motor carrier lessee vicariously liable for injuries to a third party caused by the operation of the leased vehicle but that its "research ha[d] not uncovered any case holding or implying that a motor carrier lessee is
directly
liable for such injuries." ( Emphasis in original.)
¶ 42 In sum, we reject CHR's argument that it is entitled to a greater level of contribution based on a difference in relative culpability between CHR and Dragonfly. The parties to this contribution action, CHR and Dragonfly, were both only vicariously liable for Henry's negligent conduct. As we have held, the parties have equal relative culpability given the specific circumstances of this case, but CHR has paid the entire judgment. CHR is, therefore, entitled to contribution from Dragonfly under the Contribution Act. Accordingly, we affirm the trial court's judgment awarding CHR contribution against Dragonfly in the amount of $14,326,665.54, constituting one-half of the total amount of the judgments, including postjudgment interest.
¶ 43 III. CONCLUSION
¶ 44 For the reasons stated above, the judgment of the appellate court is reversed, and the circuit court's judgment is affirmed.
¶ 45 Appellate court judgment reversed.
¶ 46 Circuit court judgment affirmed.
Chief Justice Karmeier and Justices Thomas, Garman, Burke, Theis, and Neville concurred in the judgment and opinion.
Reference
- Full Case Name
- Susan D. SPERL v. DeAn HENRY Et Al. (C.H. Robinson Company Et Al., Appellants, v. Toad L. Dragonfly Express, Inc., Appellee).
- Cited By
- 9 cases
- Status
- Unpublished