DocketNumber: 94525-0
Judges: González, Stephens
Filed Date: 7/19/2018
Status: Precedential
Modified Date: 10/19/2024
¶ 1 Brandon Afoa was severely injured in an accident while working at the Port of Seattle (Port) for a cargo company. He sued the Port on the theory that it had retained sufficient control over his work to have a duty to provide him a safe place to work. Among other things, the Port argued that several airlines that were not parties to the lawsuit were at fault. A jury found that Afoa suffered $40 million in damages and apportioned fault between him, the Port, and the airlines. In Washington, tortfeasors are usually liable only for their proportionate share of the damages they cause. Afoa argues that the Port is liable for both its portion and the airlines' portion. The primary question for review is whether the jury's verdict warrants finding the Port is vicariously liable for the airlines' negligence, justifying the imposition of joint and several liability on the Port. We hold that RCW 4.22.070(1)(a) does preserve joint and several liability when a defendant is vicariously liable for another's fault. Whether vicarious liability exists, however, is a factual question. Here, the jury's findings do not support the conclusion that the Port is vicariously liable for the airlines' fault.
¶ 2 Afoa's suit was initially dismissed on summary judgment, but in Afoa v. Port of Seattle,
¶ 3 We granted review to consider issues of allocation of fault to a nonparty and the assertion of an empty chair defense.
¶ 4 Afoa now argues that the Port and the airlines are jointly and severally liable because the Port's duty was nondelegable and the airlines were the Port's agents under RCW 4.22.070, even though the jury was not explicitly asked to make that finding. While the Port concedes that its duty to provide a safe workplace was nondelegable, it urges us to uphold the judgment because it contends it is not responsible for the airlines' fault. The airlines also had a duty to provide a safe work site, and we assume, without deciding, that duty was also nondelegable. See, e.g., Clerk's Papers (CP) at 4811 (jury instruction explaining airlines have "a duty to ensure compliance with applicable safety regulations"); see also AfoaI ,
BACKGROUND
¶ 5 Afoa worked as a baggage handler at the Seattle-Tacoma International Airport (Airport). Afoa was employed by Evergreen Aviation Ground Logistics Enterprise Inc. (EAGLE), which contracted with four airlines to provide ground services, such as loading and unloading cargo.
¶ 6 After the accident, Afoa sued the Port. He alleged that the Port retained control over EAGLE and was responsible for his injuries because the Port violated its nondelegable duties under the Washington Industrial Safety and Health Act of 1973 (WISHA), chapter 49.17 RCW, and the common law. The trial court granted summary judgment for the Port on the ground that Afoa was not the Port's employee. Afoa appealed and also brought a separate lawsuit against the four airlines that had contracted with EAGLE under the same theory he pursued against the Port in the original case. The separate action was removed to federal court and stayed pending Afoa's appeal in this court. We reversed summary judgment, holding "that a jobsite owner who exercises pervasive control over a work site should keep that work site safe for all workers." Afoa I ,
¶ 7 After we decided AfoaI , Afoa moved to amend his complaint in federal court against the airlines to add the Port as a defendant. His motion was denied. Subsequently, the federal court granted the airlines' motions for summary judgment because Afoa failed to cite WISHA regulations applicable to the airlines and to provide factual allegations sufficient to conclude the airlines retained control over Afoa's work.
¶ 8 On remand and over objection, the Port moved to amend its answer and assert an empty chair defense that the airlines that contracted with Afoa's employer shared fault for Afoa's injuries. A jury found that the Port retained control over the independent contractor EAGLE's work, which gave rise to a duty of care to Afoa.
¶ 9 The jury found Afoa suffered $40 million in damages and apportioned fault to the *908parties: 25.0 percent to the Port, 0.2 percent to Afoa, and equally divided the remaining 74.8 percent among the four airlines. The trial court, pursuant to the jury's allocation, entered judgment against the Port for $10 million.
¶ 10 On review, Afoa raised three arguments to the Court of Appeals: first, that the Port had a nondelegable duty to provide a safe workplace, and thus no fault allocation was permitted, and the Port was jointly and severally liable for the judgment minus Afoa's 0.2 percent of fault; second, that the trial court abused its discretion in allowing the Port to assert an empty chair defense; and third, that the dismissal of Afoa's claims prevented the Port from claiming the air carriers were responsible for the accident on a res judicata theory.
¶ 11 The Court of Appeals held that the Port had a nondelegable duty and was therefore vicariously liable for the airlines' fault. The Court of Appeals remanded for the trial court to enter judgment against the Port for 99.8 percent of Afoa's damages. Afoa v. Port of Seattle,
ANALYSIS
I. Allocation of Fault and Nondelegable Duties
¶ 12 The first question this court must answer is whether the trial court erred in permitting the jury to allocate fault to the nonparty airlines. Whether this was error is a question of law. We review issues of statutory interpretation and alleged errors of law de novo. Jongeward v. BNSF Ry. Co.,
¶ 13 In the 1986 tort reform act, the legislature generally abrogated the common law rule of joint and several liability. See generally LAWS of 1986, ch. 305; RCW 4.22.030. The legislature left no doubt as to its intent-proportionate liability "has now become the rule." Kottler v. State,
¶ 14 Under the rule of proportionate liability, fact finders assign percentages of "fault" attributable to each party and relevant nonparty, including plaintiffs, whose negligence or certain other categories of culpable conduct constitutes a legal cause of a plaintiff's injury. See RCW 4.22.015 (defining "fault"). In cases where a nonparty is allegedly at fault, the jury may be asked to allocate fault to the empty chair at the trial court's discretion. CR 12(i). The burden of proving an empty chair's fault is on the party asserting the nonparty's fault. Mailloux v. State Farm Mut. Auto. Ins. Co.,
¶ 15 Allocation of fault is an "inherently factual" question for the jury. Edgar v. City of Tacoma,
¶ 16 Afoa argues that the Port should be responsible for the airlines' apportioned damages because the Port, "as the entity best able to control safety" at the Airport, "cannot shift any part of its nondelegable duty to the airlines." Supp'l Br. of Resp't at 16 n.43. When an exception to the general rule of proportionate liability applies, joint and several liability is retained. Kottler ,
¶ 17 RCW 4.22.070 is clear and unambiguous. Clark v. Pacificorp,
A. The Port's Nondelegable Duty Did Not Give Rise to Joint and Several Liability
¶ 18 Under some circumstances, jobsite owners may have a duty of care analogous to that of an employer or general contractor. See Kamla v. Space Needle Corp.,
¶ 19 Afoa argues the Port's nondelegable duty to provide a safe workplace under WISHA and common law made it vicariously liable for the airlines' fault. We disagree. The jury found that Afoa's injuries were the result of both the Port and the airlines' failure to ensure a safe workplace.
¶ 20 WISHA does not expressly provide for vicarious liability when employers are concurrently negligent. In contrast, even though RCW 4.22.070 requires proportionate liability, the legislature has expressly provided that a product seller may have the liability of a manufacturer under certain circumstances. RCW 7.72.040.
¶ 21 At the same time, liability for breach of a nondelegable duty does not undermine the fault allocation under RCW 4.22.070. Lawmakers did not intend to minimize the responsibility of the nonparty airlines that had a concurrent nondelegable duty.
¶ 22 Principles of common law survive RCW 4.22.070, but there is no clearly established common law right to hold tortfeasors with a nondelegable duty vicariously liable for another entity's breach of the same duty.
¶ 23 The dissent correctly recognizes an exception to this independent contractor rule: a nondelegable duty may result in vicarious liability.
¶ 24 RCW 4.22.070 is consistent with the principle that a defendant with a nondelegable duty cannot discharge its primary responsibility to ensure compliance. In Millican, the Court of Appeals reversed a trial court's decision to admit a contract delegating the defendant's responsibility under WISHA because the defendant argued another party had sole responsibility for work site safety under the contract.
¶ 25 The Port can still be vicariously liable for the airlines' negligence if the jury makes the necessary finding of control because RCW 4.22.070(1)(a)"explicitly retains principles of common law vicarious liability" within its exceptions. Johnson v. Recreational Equip., Inc.,
B. The Nonparty Airlines Do Not Fall within the Agency Exception to RCW 4.22.070 without the Required Factual Finding
¶ 26 Afoa did not ask the jury to find that the Port retained control over the airlines or make any agency arguments until after the verdict. The Port contends that raising RCW 4.22.070 's agency exception now is too late. We agree. Agency presents a question of fact that Afoa should have presented to the jury. Travelers Cas. & Sur. Co. v. Wash. Tr. Bank,
¶ 27 There is a long-standing common law duty to provide a safe workplace in Washington, and the Port is directly liable in this case as a result; while the Port could be vicariously liable for the airlines' breach of their concurrent nondelegable duties if a jury found that the Port retained control over the airlines, the jury was not presented with the opportunity to do so. AfoaI ,
¶ 28 Notably, in Johnson, the Court of Appeals could apply the agency principles retained in RCW 4.22.070 's exceptions only because it was undisputed that the product seller held itself out as the manufacturer by placing its brand on the defective product.
¶ 29 In this case, Afoa now argues the agency exception applies despite his failure to ask the jury to address the disputed facts. For RCW 4.22.070 's agency exception to apply, either the facts necessary to establish the agency exception had to be undisputed or the jury was required to make a factual finding.
*912Hewson Constr., Inc. v. Reintree Corp.,
¶ 30 In the context of the WISHA specific and common law duty to provide a safe work site, control exists where "there is a retention of the right to direct the manner in which the work is performed." See Kamla,
¶ 31 The jury found only that the Port retained control over EAGLE. CP at 4839 ("[d]id the defendant [the Port] retain a right to control the manner in which the plaintiff's employer, [EAGLE], ... performed its work or maintained its equipment used to provide ground support").
¶ 32 Finally, the dissent minimizes the airlines' responsibility under our system of comparative fault and makes up for Afoa's unsuccessful litigation tactics. That the Port retained control of EAGLE did not change the airlines' status to subcontractor or make the airlines' duty subordinate (or vicariously liable) to the Port's duty. Furthermore, special verdict or not, we cannot assume that the airlines had no control over EAGLE given the jury's apportionment of 74.8 percent of the fault for Afoa's injuries to the airlines.
¶ 33 The trial court did not err because a nondelegable duty does not supersede fault allocation under RCW 4.22.070 and the jury did not find facts that would justify applying RCW 4.22.070 's agency exception. Since Afoa did not raise the factual question of agency until after trial, he waived his opportunity to prove it.
II. Empty Chair Defense and Issue Preclusion
¶ 34 The trial court permitted the Port to make an empty chair defense under CR 12(i). Afoa contends the trial court abused its discretion because he was unfairly surprised. The trial court's decision is reviewed for manifest abuse of discretion. Herron v. Tribune Publ'g Co.,
¶ 35 Afoa argues that the Port had a "full and fair opportunity ... to litigate airline liability" in federal court and successfully obtained a federal judgment finding no airline liability. Supp'l Br. of Resp't at 20. The Port, on the other hand, argues that "[d]istilled to its essence, [Afoa] seeks to use his strategic error in splitting his claims into two separate suits and his failure to prove his case in federal court, as a sword against the Port to prevent it from receiving its day in court." Supp'l Br. of Pet'r at 19.
¶ 36 Nonparty fault must be affirmatively pleaded. CR 12(i). The party claiming another nonparty entity is at fault must also affirmatively plead the identity of that nonparty.
¶ 37 In the suit removed to federal court, Afoa asserted essentially the same claims against the airlines as he levied against the Port. The Port was not a party in that suit. It is undisputed that the Port and the airlines retained the same counsel to defend the respective suits. It is also undisputed that the Port moved to amend its answer early enough to allow Afoa to prepare his defense in this case. The Port and Afoa dispute three issues: (1) whether the Port's representations prejudiced Afoa, (2) whether the Port and the airlines were in privity, and (3) whether collateral estoppel would work an injustice. Afoa is not entitled to relief because the trial court did not abuse its discretion and the Port was not equitably barred from allocating fault to the nonparty airlines.
A. The Trial Court Applied the Correct Legal Standard
¶ 38 Afoa argues that the Port's late amendment prejudiced him because it delayed identification of the airlines as empty chairs until the statute of limitations, res judicata, and collateral estoppel prevented Afoa from recovering against them. Thereby, the Port deprived him the opportunity to decide all liability in a single proceeding and full compensation for his injuries. But Afoa initiated the separate proceeding and failed to ask the jury to find the Port vicariously liable for the airlines' fault by finding agency.
¶ 39 None of Afoa's arguments explain why the Port's actions justified his separate suit against the airlines. By the time the Port amended its answer, Afoa had already asserted the airlines were at fault in the federal suit. The Port told Afoa that it was asserting the affirmative defense due to his claims against the airlines in the federal suit. Afoa argues that the Port was playing both sides and that he was misled because the Port said it would make "a sole proximate cause defense." See, e.g., CP at 5198. The Port did assert EAGLE and the vehicle's manufacturer were the sole proximate cause for Afoa's injuries, but the Port also put Afoa on notice that other entities were responsible for the accident. Afoa learned about the specific nonparty airlines when the Port provided him with its agreements with the airlines. And Afoa was also able to sue the airlines in this suit from the time of the accident until two years later when he filed his first appeal.
¶ 40 In denying Afoa's motion to strike the affirmative defense, Judge Allred reasoned that if Afoa was barred from recovering full *914compensation, it was "the consequence of [his] litigation choices (including the decision to sue the Port and the Airlines separately)." Id. at 9240. Similarly, in reaffirming that decision, Judge Ramseyer said, "[T]he decision of who to sue and when to sue them was [Afoa's]." Id. at 9199. We agree.
¶ 41 In his separate suit, Afoa alleged the airlines were liable for his injuries on the same basis as the jury heard in the underlying personal injury action. In that separate suit, the airlines were granted summary judgment. It would be unjust to hold the Port responsible for the negligence of the airlines in light of Afoa's separate suit.
¶ 42 Leave to amend a pleading "shall be freely given when justice so requires." CR 15 ; Caruso v. Local Union No. 690,
B. Afoa's Federal Suit Did Not Bar the Port from Arguing the Airlines Were at Fault
¶ 43 Finally, Afoa argues that the equitable doctrines of res judicata and collateral estoppel apply because the airlines cannot be at fault. Res judicata prevents relitigation of the same claim where a subsequent claim involves the same subject matter, cause of action, persons and parties, and quality of persons for or against whom the claim is made. Loveridge v. Fred Meyer, Inc.,
¶ 44 Afoa argues that privity is established because the Port controlled the defense of the airlines in federal court, port agents testified against airline liability in the federal case, and the Port and the airlines have a common insurer. He specifically points to a proposed stipulation that was rejected. Afoa attempted to have the Port stipulate to the dismissal of the airlines case in federal court, to which the Port was not a party, if the Port would agree that no fault shall be apportioned to the airlines. As the Port indicates, it had no reason to sign and the airlines could not sign because the airlines had no authority to waive the Port's defense. " 'Privity does not arise from the mere fact that persons as litigants are interested in the same question or in proving or disproving the same state [or set] of facts.' " United States v. Deaconess Med. Ctr.,
¶ 45 "A person who is not a party to an action but who controls or substantially participates in the control of the presentation on behalf of a party is bound by the determination of issues decided as though he were a party." RESTATEMENT ( SECOND ) JUDGMENTS § 39 ( AM. LAW INST. 1982) ; see also Loveridge,
¶ 46 Collateral estoppel is inapplicable where it would work an injustice on the party being estopped.
*915Christensen,
CONCLUSION
¶ 47 Under RCW 4.22.070, the liability of defendants concurrently owing a nondelegable duty with another entity is several unless an exception is found. That is, in this case, "[a] party shall be responsible for the fault of another person or for payment of the proportionate share of another party where both were acting in concert or when a person was acting as an agent or servant of the party." RCW 4.22.070(1)(a). Here, the Port was not vicariously liable for the airlines' negligence because the jury was not asked to find if the Port retained control of the airlines. Further, the trial court did not abuse its discretion by permitting a CR 12(i) empty chair defense because Afoa was not unfairly surprised when the Port named the airlines in its amended complaint. Similarly, the federal court's summary judgment did not preclude the Port from making its empty chair defense because the Port was not a party in the federal suit. We reverse the Court of Appeals and reinstate the trial court's apportioned award.
WE CONCUR:
Fairhurst, C.J.
Madsen, J.
Gordon McCloud, J.
Yu, J.
EAGLE contracted with China Airlines LTD, Hawaiian Airlines Inc., EVA Airways Corporation, and British Airways PLC, The relationship between the Port and the airlines is highly regulated under federal law, which makes these relationships different from most work sites in the state. In fact, the Port is prohibited from controlling certain aspects of airline operations. See, e.g., 14 C.F.R. pts. 139, 121.
Employers who are immune from liability under Washington's Industrial Insurance Act are not considered "at fault" for purposes of apportioning liability. RCW 4.22.070(1) ("except entities immune from liability to the claimant under Title 51 RCW").
Nonparty at Fault. Whenever a defendant ... intends to claim for purposes of RCW 4.22.070(1) that a nonparty is at fault, such claim is an affirmative defense which shall be affirmatively pleaded by the party making the claim. The identity of any nonparty claimed to be at fault, if known to the party making the claim, shall also be affirmatively pleaded.
CR 12(i) (boldface omitted).
We did not grant review of issues related to federal preemption and the jury instructions' statements of the law. AfoaII ,
Afoa has abandoned his argument that the Port and airlines were "acting in concert" under RCW 4.22.070. Chapter 4,22 RCW does not define "acting in concert," but we have held that the legislature intended the term to mean two or more people consciously acting together in an unlawful manner. Kottler,
The statute excludes from its reach three causes of action not involved here. RCW 4.22.070(3).
As a threshold matter, the Port urges us to reject Afoa's arguments because they were not preserved. We disagree. When the trial court interpreted RCW 4.22.070, it considered the exceptions to proportionate liability that it contains. See Washburn v. Beatt Equip. Co.,
The products liability act, under RCW 7.72.040(2), specifically states, "A product seller, other than a manufacturer, shall have the liability of a manufacturer to the claimant."
Joint and several liability applied to concurrently negligent defendants between 1973 and 1986; by operation of statute, the jury was not required to determine the fault of individual defendants, Edgar,
See dissent at 916-17 & 918 n.2 (citing Kelley,
Afoa relied on Yong Tao in his initial briefing to the Court of Appeals in 2010, which led to Afoa I , to argue that summary judgment should be reversed because the Port and airlines were jointly and severally liable. See Br. of Appellant, Afoa v. Port of Seattle , No. 64545-5-1, at 33-34 ("Reasonable inferences from the record support fact questions ...." (citing RCW 4.22.070(a) ) ).
While the term "acting as" in RCW 4.22.070(1)(a) may give plaintiffs leeway to argue that a third-party was an ostensible agent or performing a task on the defendant's behalf, it cannot be inferred to mean that agency is established per se for all entities when a party retains control of a specific entity. See generally Matsumura v. Eilert,
We did not grant review of the Port's contention that the verdict form was based on an incorrect statement of the law; the Court of Appeals held that the verdict form permitted the Port to argue its theory of the case. AfoaII ,
There is no other reasonable explanation for the jury's allocation of fault. See Spokane & Inland Empire R.R. Co. v. Campbell,
We will not disturb the trial court's apportioned judgment award at this late stage for additional fact-finding, Cf. Hogan v. Sacred Heart Med. Ctr.,
Judge Allred explained that "it would be a misuse of the collateral estoppel and res judicata doctrines to allow Afoa to vehemently assert Airline liability in the Airlines lawsuit, lose that lawsuit, and then use that loss to obtain a ruling in this case-as a matter of law-that the Airlines bear no fault under RCW 4.22.070(1)." CP at 3179.