Rust Int'l v. Greystone Power Corp. ( 1998 )


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  •                                                           [PUBLISH]
    IN THE UNITED STATES COURT OF APPEALS
    FOR THE ELEVENTH CIRCUIT
    ________________________
    No. 97-8074
    ________________________
    D. C. Docket No. 1:94-CV-2193-CC
    RUST INTERNATIONAL CORPORATION,
    Plaintiff-Third Party Defendant,
    FARID HABEISHI,
    Plaintiff-Third Party Defendant, Appellee,
    versus
    GREYSTONE POWER CORPORATION, an
    Electric Membership Corporation,
    Defendant-Third Party Plaintiff, Appellant,
    JAMES CURTIS TERRY,
    Third Party Defendant-Appellee.
    ________________________
    Appeal from the United States District Court
    for the Northern District of Georgia
    _________________________
    (January 26, 1998)
    Before ANDERSON and BLACK, Circuit Judges, and MOORE*, Senior
    District Judge.
    PER CURIAM:
    *
    Honorable John H. Moore, II, Senior U.S. District Judge for
    the Middle District of Florida, sitting by designation.
    This case arises from a motor vehicle accident in which a vehicle driven by
    Appellee James Curtis Terry (Terry) and a vehicle driven by Appellee Farid
    Habeishi (Habeishi) collided in an intersection where the traffic signal was
    inoperative. Terry and Habeishi each suffered personal injuries, and Terry’s spouse
    and Habeishi’s spouse both died as a result of the collision. Appellant Greystone
    Power Corporation (Greystone) had contracted with Fulton County, Georgia, to
    provide power to the traffic signals at the intersection. The jury returned a verdict
    finding Greystone 75% liable for the accident. We address two issues raised by
    Greystone on appeal: (1) whether Greystone had a duty of care to Terry, Habeishi,
    and their respective spouses under Georgia law, and therefore can be held liable in
    tort; and (2) whether the district court erred in apportioning liability for the
    wrongful death actions based on Greystone’s percentage of fault rather than holding
    each of the joint tortfeasors jointly and severally liable in equal proportions.1
    I. FACTUAL AND PROCEDURAL BACKGROUND2
    1
    Greystone also raised the following issues on appeal: (1) whether the district court erred
    in prohibiting Greystone from cross-examining Terry and Habeishi regarding the claims against each
    other they previously had settled; and (2) whether the district court erred in not admitting testimony
    from a law enforcement officer that the intersection had been navigated safely by vehicles passing
    through it for several hours prior to the accident. After considering the briefs and record, we hold
    that the district court did not err in either of these evidentiary rulings.
    2
    Because we are reviewing the denial of a renewed motion for judgment as a matter of law,
    we consider the evidence, and state the facts in this part of the opinion, in the light most favorable
    to Appellees Terry and Habeishi.
    2
    The traffic signals that controlled the intersection failed in the early morning
    hours of August 23, 1992. Fulton County was informed of the power outage and
    sent a technician to examine the intersection.         Fulton County’s technician
    determined that the problem was a lack of power flowing to the signals from
    Greystone’s side of the power line. Fulton County notified Greystone of the
    problem at 9:00 a.m. and Greystone immediately dispatched its own technicians.
    Greystone’s technicians arrived at the scene between 9:05 and 9:10 a.m. and
    inspected the connection between Greystone’s power wires and Fulton County’s
    wires, which carried the power directly to the signals. Greystone’s technicians
    erroneously concluded that the power failure occurred on Fulton County’s side of
    the line and notified Greystone’s dispatcher at 9:30-9:35 a.m. that Fulton County
    needed to make the repair.
    The collision between Terry’s vehicle and Habeishi’s vehicle occurred at
    10:00 a.m.    After witnessing the collision, the Greystone technicians again
    examined the connections and concluded that the problem was with the connector,
    which Greystone had exclusive authority to repair. The Greystone technicians
    repaired the connector, thereby restoring power to the signals. The repair effort
    took 5-10 minutes to complete.
    3
    The procedural history of this case is fairly complex. Several claims were
    settled. Four claims against Greystone were tried to the jury: (1) the claim of Terry
    for Terry’s personal injuries; (2) the claim of Terry for the wrongful death of his
    spouse; (3) the claim of Habeishi for Habeishi’s personal injuries; and (4) the claim
    of Habeishi for the wrongful death of his spouse. The jury concluded that
    Greystone was negligent and that Greystone’s negligence was a contributing
    proximate cause of the collision. The jury found Greystone 75% at fault, Terry
    15% at fault, and Habeishi 10% at fault.3 The district court denied Greystone’s
    motion for judgment as a matter of law and Greystone’s renewed motions for
    judgment as a matter of law.
    II. GREYSTONE’S DUTY OF CARE
    The parties dispute whether Greystone owed any duty of care to Terry and
    Habeishi. For a plaintiff to recover in tort, the defendant must owe a duty of care
    to the plaintiff. 
    Ga. Code Ann. §§ 51-1-1
    , 51-1-8; Robinson v. J. Smith Lanier &
    Co., 
    470 S.E.2d 272
    , 274 (Ga. 1996). Terry and Habeishi argue that Greystone
    owes the same duty of care to the general public that tort law imposes on all
    individuals in conducting their affairs, specifically that “a person owes to others a
    3
    The jury made the following valuations of the injuries suffered as a result of the accident:
    $2,181,000 for Terry’s personal injuries; $2,050,000 for the life of Terry’s wife; $1,517,000 for
    Habeishi’s personal injuries; and $3,000,000 for the life of Habeishi’s wife. Pursuant to the pretrial
    stipulation, the district court entered judgment against Greystone for 75% of each of these amounts.
    4
    duty not to subject them to an unreasonable risk of harm.” Sutter v. Hutchings, 
    327 S.E.2d 716
    , 718 (Ga. 1985).4 Greystone responds that a utility company does not
    owe a general duty of care to persons traveling through an intersection where the
    signals are powered by the utility company.5 Greystone cites Tollison v. Georgia
    Power Co., 
    187 S.E. 181
     (Ga. Ct. App. 1936), and Quinn v. Georgia Power Co., 
    180 S.E. 246
     (Ga. Ct. App. 1935), which stand for the proposition that a utility company
    owes no duty to the general public where an accident occurs due to the company’s
    failure to have a street lamp burning at the point of the accident. Quinn provides
    two rationales for its holding: (1) the absence of contractual privity between the
    power company and the general public; and (2) the absence of any duty upon the
    city to provide lighting at the point of the accident. 180 S.E. at 248. Tollison arose
    from the same accident as Quinn, and the Tollison court relied on both of Quinn’s
    rationales. 187 S.E. at 182.
    Terry and Habeishi argue in response that even if Greystone did not have a
    general duty to maintain power to the intersection, Greystone assumed a specific
    4
    Sutter has been abrogated on other grounds as recognized in Riley v. H&H Operations,
    Inc., 
    436 S.E.2d 659
    , 660-61 (Ga. 1993).
    5
    Greystone also asserts that its actions were not the proximate cause of the accident.
    Assuming that Greystone owed a duty of care to Terry and Habeishi, we hold that sufficient
    evidence was presented for the jury to determine that Greystone’s conduct was one of the proximate
    causes of the accident.
    5
    duty to travelers passing through this particular intersection by voluntarily
    undertaking to repair the connector. Georgia has adopted § 324A of the Restatement
    (Second) of Torts entitled “Liability to Third Person for Negligent Performance of
    Undertaking,” which establishes that:
    One who undertakes, gratuitously or for consideration, to render services
    to another which he should recognize as necessary for the protection of
    a third person or his things, is subject to liability to the third person for
    physical harm resulting from his failure to exercise reasonable care to
    protect his undertaking, if (a) his failure to exercise reasonable care
    increases the risk of such harm, or (b) he has undertaken to perform a
    duty owed by the other to the third person, or (c) the harm is suffered
    because of reliance of the other or the third person upon the undertaking.
    Huggins v. Aetna Cas. & Sur. Co., 
    264 S.E.2d 191
    , 192 (Ga. 1980). The parties
    contest whether any of the three alternative criteria for imposing liability has been
    satisfied. The evidence presented at trial supports the conclusion that Greystone
    undertook to perform Fulton County’s duty to maintain the operability of the traffic
    signals,6 or that Fulton County relied on Greystone to restore power to the intersection
    because Fulton County was contractually prohibited from repairing the connector
    itself.7 Accordingly, Greystone’s negligence occurred at the moment that its
    6
    
    Ga. Code Ann. § 32-6-50
     (c) provides that “counties and municipalities shall place and
    maintain upon the public roads of their respective public road systems such traffic-control devices
    as are necessary to regulate, warn, or guide traffic . . . .”
    7
    At oral argument, Appellees’ counsel conceded that Greystone would have no liability had
    it not undertaken the repair effort.
    6
    technician misdiagnosed the problem with the connector and therefore failed to
    exercise reasonable care in making the repair.
    The conclusion that Greystone voluntarily assumed a duty of care to Terry
    and Habeishi is not affected by the holdings in Tollison and Quinn.8                       The
    Restatement, which was adopted after Tollison and Quinn, provides three methods
    by which a party such as Greystone may assume a specific duty towards third
    persons to whom it would not otherwise owe any duty. Tollison and Quinn do not
    foreclose the possibility that a power company might assume a specific duty
    towards third persons and then perform that duty in a negligent manner.
    Accordingly, we hold that under Georgia law, Greystone assumed a duty of care
    towards Terry and Habeishi to restore power to the intersection.
    III. APPORTIONMENT OF LIABILITY
    Greystone argues that the district court erred by apportioning the judgment
    for the wrongful death claims among the three liable parties (Greystone, Terry, and
    Habeishi). Under Georgia law, liability may be apportioned among joint tortfeasors
    only if the plaintiff was negligent and was therefore partly responsible for the injury.
    8
    Although Appellees’ counsel have responded to the argument that Tollison and Quinn
    provide blanket immunity from a duty of care voluntarily assumed by a power company,
    Greystone has not made any argument in its briefs or at oral argument explaining why the
    rationales of Tollison and Quinn would override the standards for voluntarily assuming a duty of
    care pursuant to the Restatement.
    7
    
    Ga. Code Ann. § 51-12-33
    . If the plaintiff is not partly responsible for the injury,
    joint tortfeasors are equally liable for the judgment, regardless of their relative
    degree of responsibility. Gamble v. Reeves Transp. Co., 
    190 S.E.2d 95
    , 97 (Ga. Ct.
    App. 1972). After the jury determined that Greystone was 75% responsible and that
    Terry and Habeishi were collectively 25% responsible, the district court apportioned
    liability for damages by entering a judgment against Greystone for 75% of the
    damages on all four claims.
    Greystone does not dispute the district court’s apportionment for the personal
    injuries suffered by Terry and Habeishi. Greystone argues that in a wrongful death
    action, the relevant “plaintiff” is the deceased victim of the injury and not the
    beneficiary bringing the suit, i.e., the deceased spouses of Terry and Habeishi and
    not Terry and Habeishi themselves.9 Therefore, Greystone argues that the trial court
    erred in apportioning liability based on each party’s percentage of fault because the
    deceased spouses were not negligent.
    9
    Greystone’s theory is based on the derivative nature of a wrongful death action—it is not
    an independent tort, but a method of allowing survivors to recover for the injuries suffered by the
    decedent. Greystone contends that the plaintiff of each wrongful death claim is the deceased spouse
    (Mrs. Terry and Mrs. Habeishi, respectively) and that each claim has two tortfeasors, each of whom
    should be 50% liable: (1) Greystone; and (2) the non-spouse driver (i.e., Mr. Terry is the second
    defendant of Mrs. Habeishi’s action, and Mr. Habeishi is the second defendant of Mrs. Terry’s
    claim). Greystone suggests that Terry and Habeishi cannot be liable for the death of their own wives
    because of spousal immunity, meaning that only two defendants are liable in each action.
    8
    Greystone is correct that Georgia law does look to the behavior of the
    decedent in determining the relative liability of the defendant in a wrongful death
    action. Southland Butane Gas Co. v. Blackwell, 
    88 S.E.2d 6
    , 9 (Ga. 1955);10 Rainey
    v. City of East Point, 
    328 S.E.2d 567
    , 568-69 (Ga. Ct. App. 1985). However,
    Georgia law also looks to the negligence of the beneficiary of the action and applies
    the same principles of contributory and comparative negligence to the beneficiary
    as it applies to the decedent. Happy Valley Farms v. Wilson, 
    16 S.E.2d 720
    , 725
    (Ga. 1941) (establishing that when two beneficiaries bring a wrongful death action
    and one beneficiary is partly responsible for the death, contributory negligence
    principles are applied to the one-half of the judgment recovered by the negligent
    beneficiary); Matthews v. Douberly, 
    428 S.E.2d 588
    , 590-91 (Ga Ct. App. 1993)
    (finding that husband’s contributory negligence bars husband’s recovery in action for
    wrongful death of wife, but does not bar child’s recovery). We hold that Georgia law
    treats both the beneficiary and the decedent as plaintiffs when determining whether
    to apportion liability in a wrongful death action.
    IV. CONCLUSION
    The district court properly determined that under the facts of this case,
    Greystone owed a duty of care to Terry, Habeishi, and their respective spouses.
    10
    Blackwell was modified on other grounds by statute as recognized in Fountain v.
    Thompson, 
    312 S.E.2d 788
    , 789 (Ga. 1984).
    9
    Furthermore, the district court did not err in apportioning the judgment among the
    liable parties.
    AFFIRMED.
    10