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Keywords

settlementtortdamagesnegligenceliabilityindemnityappealtrialpleasummary judgmentleasegood faithbad faith
settlementtortdamagesdepositionliabilityappealtrialpleamotionsummary judgmentleasegood faithmotion for summary judgment

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Slocum v. Donahue, 44 Mass.App.Ct. 937, 693 N.E.2d 179

Facts

The Slocums filed a civil action against Robert Donahue after he pleaded guilty to motor vehicle homicide in the death of their eighteen-month-old son. Donahue filed a third-party complaint against Ford, alleging negligence and breach of warranties, claiming that a defective floor mat caused his vehicle to accelerate uncontrollably. Prior to trial, the Slocums settled with Ford for $150,000, releasing all claims against the manufacturer.

Prior to trial, the Slocums and Ford signed a settlement agreement providing that Ford would pay $150,000 to the Slocums in exchange for a release of any claim.

Issue

Whether the settlement between the Slocums and Ford was made in good faith, thereby extinguishing the Donahues' claims for contribution and indemnity against Ford.

The Donahues argue on appeal that the settlement between Ford and the Slocums was not made in good faith and was collusive both because the amount of the settlement was for less than the value of the case and because Ford allegedly told the Slocums that Ford would allow them to use its experts so that the Donahues' attempt to attribute liability to Ford at trial would be unsuccessful.

Rule

Under G.L. c. 231B, § 4, a release given in good faith to one of two or more persons liable in tort for the same injury discharges that tortfeasor from all liability for contribution to any other tortfeasor.

Under G.L. c. 231B, § 4, as inserted by St.1962, c. 730, § 1, “When a release … is given in good faith to one of two or more persons liable in tort for the same injury: … (b) It shall discharge the tortfeasor to whom it is given from all liability for contribution to any other tortfeasor.”

Analysis

The court found that the settlement between Ford and the Slocums was fair and reasonable, considering the circumstances, including the likelihood of high damages and the potential liability of Robert Donahue. The court noted that the Donahues' claims of collusion were not substantiated, and the settlement did not indicate bad faith. The court also clarified that the right to indemnity is limited to cases where the would-be indemnitee is held derivatively or vicariously liable, which was not applicable here.

As in Noyes, there were facts before the judge showing that the settlement between Ford and the Slocums was fair and reasonable. It was reasonably predictable that damages would be high and that a jury would find liability on the part of Robert Donahue, in view of the fact that he pleaded guilty in the criminal case and on the basis of his admission in his deposition that, prior to the accident, he was drinking from a bottle of vodka that he kept under the driver's seat in a brown bag.

Conclusion

The Appeals Court affirmed the summary judgment in favor of Ford, concluding that the settlement was made in good faith and that the Donahues were not entitled to indemnity.

The motion for summary judgment was properly allowed.

Who won?

Ford Motor Company prevailed in the case because the court found that the settlement with the Slocums was made in good faith, extinguishing the Donahues' claims.

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