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Geyer Rental8/15/2000
Geyer Rental, Inc., and Serenity Development appeal from partial summary judgment limiting Landwehr Construction, Inc.'s, contribution liability on a wrongful-death judgment to the amount of workers' compensation benefits Landwehr's compensation insurer paid under a settlement with the trustee for Landwehr's employee's next of kin. We affirm.
FACTS
Kenneth Bergerson, an employee of Landwehr Construction, Inc., was killed while working on a building owned by Geyer Rental, Inc., and Serenity Development (collectively "Geyer"). Ellen Bergerson, as trustee for Kenneth Bergerson's next of kin, brought a wrongful-death action against Geyer. The jury returned a special verdict apportioning 10% of fault to Kenneth Bergerson, 35% to Geyer, and 55% to Landwehr, which was not a party to the action. The parties stipulated to damages of $950,000. After Geyer's posttrial motions and appeal failed, Geyer settled with Bergerson for $855,000.
Bergerson and State Fund Mutual Insurance Company, Landwehr's compensation insurer, later settled Bergerson's workers' compensation claim for $82,885.03, the amount of benefits State Fund had paid up to that point. The settlement released State Fund from the obligation to pay additional benefits. The workers' compensation judge approved the settlement.
Geyer then brought this action against Landwehr and State Fund, seeking contribution toward the wrongful-death settlement that followed the verdict. The parties stipulated that although Landwehr was not legally bound by the jury's apportionment of fault in the wrongful-death action, Landwehr was at fault and its percentage of fault was sufficient to create contribution liability to Geyer. Although they agreed that Geyer's liability was equal to the maximum amount permitted under the contribution formula the supreme court fashioned in Lambertson v. Cincinnati Corp., 312 Minn. 114, 257 N.W.2d 679 (1977), they disagreed on the maximum amount permitted under Lambertson.
As a result, Landwehr and State Fund moved for partial summary judgment, seeking to limit their contribution liability to $82,885.03, the amount of workers' compensation benefits State Fund had paid Bergerson under the settlement. Geyer opposed the motion, claiming that $82,885.03 represented only the amount of benefits paid and that it was entitled to $145,000 in additional benefits payable in the future. The district court granted Landwehr and State Fund's motion, reasoning that no additional benefits remained to be paid. This appeal followed.
DECISION
Contribution is the statutory remedy that secures the right of one who has discharged more than his fair share of a common liability to recover from another who is also liable. Lambertson v. Cincinnati Corp., 312 Minn. 114, 123-24, 257 N.W.2d 679, 685-86 (1977). A third-party tortfeasor is entitled to contribution from a negligent employer. Johnson v. Raske Bldg. Sys., Inc., 276 N.W.2d 79, 80 (Minn. 1979). But the right to recover contribution is not absolute. Peterson v. Little-Giant Glencoe Portable Elevator Div. of Dynamics Corp. of Am., 366 N.W.2d 111, 116 (Minn. 1985). An employer is liable for contribution "in an amount proportional to its percentage of negligence, but not to exceed its total workers' compensation liability." Lambertson, 312 Minn. at 130, 257 N.W.2d at 689. The employer's workers' compensation liability includes benefits the employer has paid and benefits payable in the future. Peterson, 366 N.W.2d at 116-17. "This approach allows the third party to obtain limited contribution, but substantially preserves the employer's interest in not paying more than workers' compensation liability." Lambertson, 312 Minn. at
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