Background
Cedrick Clark, a bricklayer employed by Garth Masonry Corporation, was injured at O’Hare International Airport on December 31, 2018. He sued Milhouse Engineering & Construction, Inc. and other defendants. Milhouse brought a third-party contribution claim against Garth under the Illinois Joint Tortfeasor Contribution Act.
Milhouse settled with Clark for $1.8 million, purported to preserve and assign its contribution rights against Garth to Clark, and allocated $674,796.75 of the payment to extinguish Garth’s third-party liability. After the circuit court found the settlement was in good faith, Clark tried the assigned contribution claim. The jury assigned 75% responsibility to Garth and 25% to Milhouse, and the circuit court entered a money judgment against Garth for $674,796.75.
The Court’s Holding
The appellate court reversed. Section 2(e) of the Contribution Act bars a settling tortfeasor from obtaining contribution from another tortfeasor unless the settlement extinguishes that other tortfeasor’s liability.
The agreement expressly released Milhouse, but did not expressly name Garth as a released party. References to allocating funds to extinguish Garth’s third-party liability and to dismissing claims against Milhouse and Garth did not satisfy the requirement that the nonsettling tortfeasor be specifically named in the release. Because Garth’s liability was not extinguished, Clark, as Milhouse’s assignee, could not recover contribution from Garth. The court also reversed the denial of Garth’s motion for judgment notwithstanding the verdict and did not reach Garth’s remaining arguments.
Key Takeaways
- A settling tortfeasor may seek contribution only from tortfeasors whose liability the same settlement extinguishes.
- A release must expressly name a nonsettling tortfeasor as a released party to extinguish that party’s liability.
- Language referring to third-party liability or dismissal of claims does not substitute for an express release.
Why It Matters
The decision applies Illinois’ bright-line rule for contribution settlements: parties seeking to preserve contribution rights must expressly release the intended contribution defendant by name. An allocation provision alone will not establish the extinguishment required by section 2(e).