MEDICAL MUTUAL INSURANCE COMPANY OF NORTH CAROLINA,
Plaintiff,
v
.
GARY EUGENE MAULDIN, M.D. and SYLVA ANESTHESIOLOGY, P.A.,
Defendants.
Roberts & Stevens, P.A., by James W. Williams and Dennis L.
Martin, Jr., for plaintiff-appellant.
Wade E. Byrd and Van Winkle, Buck, Wall, Starnes & Davis,
P.A., by Stephen B. Williamson, for defendant-appellees.
HUDSON, Judge.
This case arises out of a wrongful death suit in which Mary E.
Houston, administratix of the Estate of Donald Gordon Houston,
alleged that Mr. Houston died as a result of the negligence of Dr.
John Erdman, Dr. Gary Mauldin, and Sylva Anesthesiology. After a
jury verdict in favor of the plaintiff, the court entered judgment
against all defendants as joint tortfeasors in the amount of
$725,000.00 in compensatory damages plus interest at the legal rate
of eight percent accruing from the date the lawsuit was filed. All
defendants appealed.
In August 1994, while the appeal was pending, St. Paul
Insurance Company (St. Paul), the professional liability
insurance carrier for Dr. Mauldin and Sylva Anesthesiology(hereafter appellees), entered into a settlement agreement with
the Houston estate. In that agreement, St. Paul agreed to pay
$225,000 to settle the estate's claims against the appellees, the
estate agreed not to enforce the judgment against the appellees,
and the estate agreed that payment constitutes a full release and
discharge of all monies owing or which might be owing . . . by
reason of the judgment. The settlement agreement was approved by
the trial court, apparently outside the district and without notice
to Dr. Erdman or his liability carrier, appellant Medical Mutual
Insurance Company of North Carolina (Medical Mutual). The
appellees withdrew their appeal shortly thereafter.
In October 1996, this Court rendered its decision in which it
found no error in the trial and remanded the case on the issue of
costs. Houston v. Douglas, 124 N.C. App. 230, 477 S.E.2d 97
(1996), disc. review denied, 345 N.C. 342, 483 S.E.2d 167 (1997).
Then, in April 1997, Medical Mutual, on behalf of its insured, Dr.
Erdman, paid $692,168.80 in full payment of the principal amount of
the judgment and accrued interest, less the amount previously paid
by St. Paul. Having become subrogated to Dr. Erdman's rights to
contribution, if any, Medical Mutual in June 1997 sued the
appellees for contribution to recover the amount paid in excess of
its pro rata share. The trial court granted summary judgment in
favor of the appellees, concluding that Medical Mutual was not
entitled to contribution because the appellees' post-judgment
settlement extinguished Medical Mutual's contribution rights.
Medical Mutual again appealed to this Court. This court reversed. Medical Mut. Ins. Co. v. Mauldin, 137
N.C. App. 690, 529 S.E.2d 697 (2000). We explained that the
purpose of the Uniform Contribution Among Tortfeasors Act, N.C.
Gen. Stat. § 1B-1 et seq., was to distribute the burden of
responsibility equitably among those who are jointly liable. Id.
at 697, 529 S.E.2d at 701. The Act
does not permit one of multiple torfeasors to
avoid liability for contribution to other
joint tortfeasors by a settlement, after
judgment, for less than his pro rata share of
the judgment. To hold otherwise would allow
an allocation of liability among joint
tortfeasors to be decided by the injured party
and permit a disproportionate share of the
injured party's recovery to be inequitably
borne by less than all of the parties equally
responsible under the law, the very dangers
the Uniform Contribution Among Tortfeasors Act
was designed to prevent.
Id. at 700, S.E.2d at 703.
The Supreme Court then heard the matter on discretionary
review. With one justice not participating, three members of the
Court voted to affirm the Court of Appeals decision, while three
voted to reverse. Medical Mut. Ins. Co. v. Mauldin, 353 N.C. 352,
543 S.E.2d 478 (2001). As a result, the Court of Appeals decision
was left undisturbed but without precedential value, id., and
remanded to the superior court for further proceedings.
In the superior court, all parties agreed that appellees owed
Medical Mutual $233,584.40, a sum that represented the rest of
appellees' pro rata share of the contribution award, including the
interest awarded thereon. Medical Mutual also argued, however,that it was entitled to prejudgment interest on the $233,584.40
from April 30, 1997, the date it satisfied the underlying judgment.
The court disagreed and, on February 14, 2002, denied Medical
Mutual's request for prejudgment interest, finding that an action
for contribution is derivative and based upon principles of equity
and falls within neither of the categories specified in N.C.G.S.
24-5 that allow for prejudgment interest.
Medical Mutual appeals, and, for the reasons set forth below,
we affirm.
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