Coleman Powermate, Inc., et al. v. Rheem Mfg. Co.


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Docket Number: 2002-IA-02117-SCT
Linked Case(s): 2002-TS-02117

Supreme Court: Opinion Link
Opinion Date: 08-19-2004
Opinion Author: Cobb, P.J.
Holding: Reversed and Rendered

Additional Case Information: Topic: Contract - Assignability of wrongful death claims - Joint tortfeasor as assignee - Section 11-7-13 - Section 85-5-7
Judge(s) Concurring: Smith, C.J., Waller, P.J., Easley, Carlson and Randolph, JJ.
Non Participating Judge(s): Diaz, Graves and Dickinson, JJ.
Procedural History: Interlocutory Appeal
Nature of the Case: CIVIL - CONTRACT

Trial Court: Date of Trial Judgment: 11-06-2002
Appealed from: Jefferson County Circuit Court
Judge: Lamar Pickard
Disposition: Denied a motion for summary judgment.
Case Number: 97-0020

  Party Name: Attorney Name:  
Appellant: Coleman Powermate, Inc., Briggs & Stratton Corporation and Wal-Mart Stores, Inc.




ROBERT H. PEDERSEN JAMES A. BECKER, JR. ALLEN LAMAR BURRELL ROY A. SMITH, JR. KENNETH R. LANG AMY M. DECKER



 

Appellee: Rheem Manufacturing Company as Assignee of the Estate and Wrongful Death Beneficiaries of Sarah Jane King, Deceased GREGORY K. DAVIS GEORGE E. CAIN DEBORAH McDONALD EDWARD F. KOHNKE  

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Topic: Contract - Assignability of wrongful death claims - Joint tortfeasor as assignee - Section 11-7-13 - Section 85-5-7

Summary of the Facts: Sarah King died from injuries she received when King or one of her family members was filling a generator made by Coleman Powermate and driven by a Briggs & Stratton engine with gasoline, and the gasoline was spilled onto the floor of the utility room where the generator was located. Initially, in April, 1997, Mrs. King’s son and administrator of her estate, Ellis King, filed a wrongful death action on behalf of Mrs. King’s wrongful death beneficiaries against Rheem Manufacturing Company, maker of the gas water heater that was also situated in the utility room, alleging that the heater’s gas pilot light ignited the gasoline vapors and that the water heater was defective. The suit also named as defendants Southern Pipe & Supply Company, the seller of the Rheem water heater, and Syn Inc. and Herring Gas Co, suppliers of natural gas to the King residence. Southern Pipe & Supply, Syn, Inc. and Herring Gas agreed to a settlement totaling $150,000 and were dismissed with prejudice from the suit. During settlement negotiations, Rheem suggested to King that Coleman Powermate Inc., Briggs & Stratton Corporation, and Wal-Mart Stores, Inc. (collectively “Coleman”), as makers and sellers of the generator, should be joined as additional defendants in the suit because the design of the gas tank may have contributed to the fuel spill. Because King’s attorney thought this would weaken the case against Rheem, a decision was made not to join Coleman. However, King’s attorney suggested that any additional claims against Coleman might be assigned to Rheem as part of the settlement agreement. Rheem agreed to settle with King for $7.6 million. As part of the settlement agreement, King and the other wrongful death beneficiaries released Rheem from liability and assigned to Rheem all rights they might have against other parties concerning this incident. Rather than dismissing the action against Rheem, King, along with Rheem as assignee, filed an amended complaint in January, 1999, against Rheem and Coleman, raising negligence and strict liability claims, and requesting all damages that could have been awarded to the estate of Mrs King and to the wrongful death beneficiaries of Mrs. King, including compensatory and punitive damages. Rheem then answered its own complaint, admitting all the substantive allegations made against it and Coleman. Included in Rheem’s answer was a cross-claim for indemnity, contribution and reimbursement against Coleman. Coleman moved for and was granted partial summary judgment dismissing King because he had no real interest in the claims in the amended complaint, and realigning Rheem as the plaintiff and real party in interest. Coleman then moved for summary judgment on all claims which the court denied. The Supreme Court granted an interlocutory appeal.

Summary of Opinion Analysis: The issue in this case which is one of first impression is whether Mississippi’s assignment statute together with Mississippi’s wrongful death statute allow a defendant tortfeasor to settle with plaintiffs on a wrongful death claim, then bring an action, as assignee of the plaintiffs’ wrongful death claim, against what would have been a joint tortfeasor had the action been brought initially by the plaintiffs against both tortfeasors. The assignability of personal injury claims does not automatically extend to wrongful death claims, which are governed by the Mississippi wrongful death statute, section 11-7-13. Mississippi’s wrongful death statute specifies certain individuals who may bring an action for wrongful death and certain other individuals who may benefit from the proceeds of the claim. The defendants argue that because the wrongful death statute limits the authority to bring an action to specified individuals, and because it does not specifically allow assignment of actions, assignment of a wrongful death claim is not allowed. It is hard to envision that the Legislature intended that a tortfeasor should be able to settle with a wrongful death plaintiff, then turn around and sue putative joint tortfeasors using the plaintiffs’ cause of action. To allow this would allow circumvention of section 85-5-7 controlling the right of contribution and allocation of fault. There may be a situation in which a wrongful death claim would be assignable, but this is not it. No jurisdiction has yet authorized one tortfeasor to bring an action against a joint tortfeasor as assignee of the wrongful death beneficiaries.


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