tag:blogger.com,1999:blog-191217173724621642024-03-13T13:14:08.980-07:00Hanks Brookes, LLCAnonymoushttp://www.blogger.com/profile/03327435168468940395noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-19121717372462164.post-69168646555369952062014-07-28T13:32:00.000-07:002015-07-08T09:45:41.163-07:00How Settlement Can Affect Contribution Claims and Apportionment in Multi-Party Cases<!--[if gte mso 9]><xml>
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<br />
<div class="MsoNormal" style="text-align: justify;">
<span style="color: windowtext;">by Craig Brookes </span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: windowtext;">Since
apportionment is a relatively new concept in Georgia, the cases have not fully
evolved to take into account all the potential interactions between
apportionment, contribution and indemnity among alleged joint
tortfeasors. However, in <b><u>Zurich Am. Ins. Co. v. Heard</u></b>, 321
Ga. App. 325 (2013) , a decision from last year, the Georgia Court of
Appeals “clarified” certain concepts surrounding these issues. Our
analysis of <b><u>Zurich</u></b>, prior contribution/indemnity cases and
subsequent cases lead us to the conclusions that follow:</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: windowtext;">As
an initial matter, if a defendant in a multi-party case resolves the case with
Plaintiff, the Court would then enter an order allowing the dismissal of the
settling defendant. Theoretically, the remaining defendant could object
to the dismissal, but it is unlikely any remaining defendant would want
additional defendants in the case or have any viable legal claim to avoid the
dismissal based on the settlement. It would also be unlikely for the
Court to deny a dismissal motion from the plaintiff and settling defendant,
even if the remaining defendant objected for some reason. As a
practical matter, we believe in most circumstances, the remaining defendant
would rather defend the case by blaming the settling defendant (i.e. the empty
chair defendant) and arguing apportionment to the jury, than deal with the
settling defendant as a potential adversary. In other words, in most
cases, there appear to be no viable legal claims that could be brought by the
remaining defendant against the settling defendant. Specifically, since a
jury is allowed to apportion damages at trial, the common law contribution
“cross claim” no longer exists in Georgia. Under the apportionment
statute, the apportionment by the jury defines the parties exposure, not a
subsequent action seeking pro rata contribution. As such, there would be
no “cross claim” for contribution. </span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: windowtext;">As
an aside, in determining whether or not claims may remain against a settling
defendant, indemnification claims must be considered. An indemnification
claim exists when one defendant has a non-delegable duty (such as a property
owner in a premises case) and the co-defendant caused the alleged injury (like
a cleaning company who created a hazardous condition that caused the Plaintiff
to fall). In this example, the property owner would have an
indemnification claim against the cleaning company, since the property owner
can be held liable to Plaintiff based on his non-delgable duty to keep his
premises safe. Before settling in a multi-party case, potential
indemnification claims should be evaluated separately from contribution
claims. </span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: windowtext;">Interestingly,
under <b><u>Zurich</u></b>, the settling defendant would have a contribution
claim against the remaining defendant. Specifically, any settlement by a
defendant would result in the ability to seek contribution on a pro-rata basis
from the remaining defendant(s). In a two defendant case with one
defendant settling, the settling defendant would have a contribution claim for
50% of the amount paid in the settlement. For example, if the settling
defendant paid $400,000 to resolve the case, it would have a potential
contribution claim for $200,000.00. Recent case law has confirmed that
the contribution claim will exist up through and including the time that
the jury apportions fault. So, if one defendant settles and the remaining
defendant goes to trial, the remaining defendant’s liability is fixed (assuming
any amount is awarded to Plaintiff) and the settling defendant’s contribution
claim no longer exists. Further, after apportionment, the remaining
defendant (who tried the case) would no longer have any potential contribution
claim against the settling defendant since its percentage of fault would have
been determined by the jury. </span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: windowtext;">Theoretically
speaking, if one defendant settles with Plaintiff and the remaining defendant
settles at a later date with Plaintiff, there is a scenario where the defendant
who settled last, could have a contribution claim against the defendant that
settled first. Specifically, this could happen if the defendant, who
settled last, paid more than the defendant who settled first. For
example, if the first defendant settled for $100,000, the second defendant (in
a two defendant case) would have to pay more than twice that amount to get any
contribution, as contribution is calculated on a pro rata basis. Assuming
the first settling defendant paid $100,000 to resolve the case and the second
defendant settled for $150,000, the first settling defendant’s pro rata share
would be $125,000. In that case, the first settling defendant is subject
to a contribution claim for $25,000.00 (the difference between the settlement
amount of $100,000 and its pro rata share of the $250,000 settlement (i.e. $125,000).
</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: windowtext;">The
interaction between contribution claims and apportionment is an important
consideration in the resolution of multi-defendant cases. If you have any
questions regarding these concepts, please feel free to contact Craig A.
Brookes or any of our other attorneys at 404-892-1991.</span></div>
Anonymoushttp://www.blogger.com/profile/03327435168468940395noreply@blogger.com2tag:blogger.com,1999:blog-19121717372462164.post-20105714464583813602014-04-23T13:04:00.001-07:002014-04-23T13:04:08.706-07:00Guest of a Nursing Home Resident: Licensee or Invitee? <div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">by Karen Lea Smiley</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></div>
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<span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">In Georgia, the duty owed to an individual
injured on someone else’s property is determined by the legal status of that
injured individual. The legal status can
either be one of “invitee,” “licensee,” or “trespasser.” Under O.C.G.A §51-3-2, the owner or
proprietor of the premises is liable only for willful or wanton injury to a
licensee, whereas he owes an invitee the duty to exercise ordinary care in
keeping the premises safe. <o:p></o:p></span></div>
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<span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">To determine whether an injured party is an “invitee”
or a mere “licensee,” the nature of his relationship or contact with the owner
or occupier of the premises must be determined. The test used to make this
determination is ‘whether the injured person <i>at the time of the injury </i>had <i>present</i>
business relations with the owner of the premises which would render his
presence of mutual aid to both, or whether his presence on the premises was for
his own convenience.” <u>Armstrong v. Sundance Entertainment</u>, 179 Ga. App.
635, 347 S.E.2d 292 (1986). <o:p></o:p></span></div>
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<span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The Georgia Court of Appeals has utilized
this test to determine the relationship of visitors to various facilities,
including nursing homes. In one
instance, the Court of Appeals used this test to determine whether an
individual visiting a family member in prison was an invitee or a licensee. In that instance, the court learned that the
prison used visitation rights as a tool to influence prisoner behavior, and
used the ability to have or not have visitors as a privilege and not a right. The court found that visitation between
inmates and their visitors benefited both the visitor and the prison creating a
mutual benefit. Thus, the visitor was
considered to be an invitee and the higher standard applied whereby the prison
was deemed to owe the visitor the duty to exercise ordinary care in keeping the
premises safe. <u>Freeman v. Eichholz</u>,
308 Ga.App 18, 705 S.E.2d 919 (2011). <o:p></o:p></span></div>
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<span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">In a nursing home, residents are authorized
to have visitors. In virtually all cases the ability to have visitors is a
right belonging to the resident, and not a privilege which can be taken away or
used as an incentive. Although it could be argued that visits from friends and
families have a positive effect on the resident which may benefit the nursing
home, when applying the test ascribed above the more likely result is a finding
that the visitor, is in fact, a licensee.
<i>Visitors</i> come to the nursing
home to <i>visit</i> the resident. The visit is not, in most instances, a
business exchange with the nursing home, and typically does not result in a
benefit to the nursing home. In fact,
the daily access of visitors to residents of the nursing home may be seen as
creating an additional burden upon the nursing home, which must conduct its
business with the residents around the guests and visitors. In most guest scenarios, the guest’s presence
at the nursing home is not for the mutual benefit of the guest and the nursing
home. Rather, it is for the benefit of
the guest and the resident. As such, nursing home residents should, in most
circumstances, be considered to be licensees for purposes of determining the
duty owed to them by the nursing home. <o:p></o:p></span></div>
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<span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">There are some factual scenarios, however,
where the analysis might result in a determination that the nursing home
visitor is an invitee. For example, in<i> </i><u>Jones v. Monroe Nursing Home</u>,
149 Ga.App 582 (1979), an 8 year old girl went to the nursing home with her
mother, who was an employee. The Court
of Appeals held that the nursing home did get some economic benefit from the
girl’s presence at the nursing home and, as such, she was determined to be an
invitee. In that case, the mother would
not have been able to work had she not been able to bring her child to the
nursing home. In addition, at the time
she was injured, the girl was running an errand for a resident (going to the
resident’s room to obtain paper and pen) which otherwise would have been run by
a nursing home employee. Although the Court of Appeals did not hold that the
girl was in fact an invitee, it held that there was sufficient evidence that a
jury could find her status was elevated from licensee to invitee based upon
these facts. The actual determination of her status was a question of fact left
to the jury for determination. In support of the determination that guests at a
nursing home are licensees and not invitees, the Court of Appeals has also
analyzed the status of a guest visiting a hospice resident and affirmatively
held that the plaintiff was a social guest of the resident, and that as a
social guest her status was that of a licensee.
<u>Davis v. Scott</u>, </span><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-style: italic; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;">232 Ga. App. 493,</span><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;"> 502 S.E.2d
332 (1998). <o:p></o:p></span></div>
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<span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-style: italic; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;">Unfortunately, the matter
is complicated by an old Court of Appeals decision wherein the legal status of
a guest of a hospital patient was analyzed.
In <u>Candler General Hospital, Inc. v. Purvis</u>, 123 Ga. App. 334,
181 S.E.2d 77 (1971), the Court of Appeals held that the mutuality of interest
required to make a guest an invitee does not require a commercial business
transaction. The <u>Purvis</u> Court
held that “the visitor is an invitee if the enterprise is mutual, each lawfully
interested therein or there being a common interest or mutual advantage
involved… When a hospital provides a viewing window for the display of new-born
babies, encourages relatives and friends to visit the sick and disabled, there
is created an issue as to whether or not these” visitors are invitees. <o:p></o:p></span></div>
<br />
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<span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-style: italic; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;">The answer to the
question of whether a guest of a nursing home resident is an invitee or a
licensee is not a black and white one, but rather depends on a review and
evaluation of the specific factual circumstances. Did the guest offer some mutual benefit to
the nursing home? Did the nursing home encourage or otherwise “invite” the
guest to the facility? Once these factual circumstances have been explored, the
nursing home can better understand whether the guest in question was an invitee
or a licensee, and with that knowledge it will glean the appropriate standard
of care to be applied. </span><u><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></u></div>
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