 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
Saranillio v. Silva2/7/1995
OPINION OF THE COURT BY NAKAYAMA, J.
These two appeals arise from the same underlying events, and their resolution depends on the same legal issues. We therefore consolidate them for decision.
In No. 17036, plaintiff-appellant Carellyn Saranillio brought an action against defendants-appellees William L. Silva, Jr. (Silva, Jr.), William L. Silva (Silva, Sr.) and GEICO Indemnity Insurance Co. (GEICO) for rescission of a general release agreement (the Release). The Release surrendered all claims Saranillio had against the Silvas and GEICO arising from a car accident involving her and Silva, Jr. In No. 17140, Saranillio filed a complaint against defendant-appellee Jolly Roger Hawaii, Inc. (Jolly Roger), alleging that it was vicariously liable for her injuries under the doctrine of respondeat superior because the accident occurred while Silva, Jr. was acting in the course and scope of his employment with Jolly Roger.
Saranillio's primary basis for seeking rescission of the Release was mutual mistake. She contended that when she signed the Release neither she nor the Silvas and GEICO were aware of the common law rule that the release of an employee automatically releases the employer from vicarious liability. She therefore claimed that their mistaken assumption that the release of Silva, Jr. would not bar a suit against Jolly Roger entitled her to rescind the Release.
Saranillio lost on summary judgment in both cases. In No. 17036, the circuit court ruled that the Release was not subject to rescission due to mutual mistake. In 17140, the circuit court ruled that the Release extended to Jolly Roger. Following the denial of motions for reconsideration in both cases, Saranillio appealed to this court.
For the reasons set forth below, we hold that the common law rule that the release of an employee automatically releases the employer from vicarious liability has been abrogated in Hawai'i by the adoption of our version of the Uniform Contribution Among Tortfeasors Act. See Hawai'i Revised Statutes (HRS) ยงยง 663-11 to 663-17 (1985 and Supp. 1992). Because the common law rule does not bar Saranillio's suit against Jolly Roger, there was no mistake as to the legal effect of the Release. We therefore affirm the circuit court's order granting summary judgment in favor of the Silvas and GEICO in No. 17036. We also hold that the Release does not extend to Jolly Roger. We therefore vacate the order granting summary judgment in favor of Jolly Roger in No. 17140.
I. BACKGROUND
On July 6, 1989, Saranillio and Silva, Jr. were involved in a motor vehicle accident in which Saranillio suffered serious injuries. Silva Jr. was driving his father's (Silva, Sr.) car. The car was insured by GEICO under a policy carrying a bodily injury liability limit of $35,000. GEICO assigned claims adjuster Charles Magda to the case. During the course of his investigation of the accident, Magda uncovered certain facts that led him to conclude that Saranillio could assert a claim against Jolly Roger, Silva, Jr.'s employer, based on the respondeat superior doctrine. Magda informed Saranillio's attorney of Jolly Roger's potential vicarious liability.
On May 11, 1990, Saranillio's attorney wrote to Magda, offering to settle for $35,000. The letter referred to Silva Sr.'s "major exposure and major liability in this case" but did not mention Jolly Roger's potential liability.
On May 31, 1990, Magda telephoned Saranillio's attorney and informed him that he was sending a settlement check for $35,000, along with a release of liability form.
Saranillio signed the Release before a notary public
Page 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Hawaii Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|