Maloney v. Valley Medical Facilities, Inc.

984 A. 2d 478 (2009)

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Nature of the Case

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Facts

P commenced the present medical malpractice action grounded for Ds failure to timely diagnose and treat osteosarcoma in P's wife. P alleged medical negligence on the part of Prendergast, M.D. (D) and Brennan, M.D. (D, as well as vicarious liability on the part of the institutional defendants associated with these physicians. P entered into a settlement with Brennan (D), funded by Brennan's primary liability insurer and the Medical Care Availability and Reduction of Error Fund in its capacity, effectively, as an excess insurer. P executed a joint tortfeasor release surrendering all claims 'in any way connected with all medical professional health care services rendered by the above named Health Care Providers.' The release included the institutional defendants associated with Prendergast (D), but not Prendergast (D) himself. The release expressly reflected a reservation of rights against Prendergast (D). P also agreed to limit a potential recovery against Prendergast (D). Ds then filed motions for summary judgment, claiming that the release discharged all direct and derivative claims based on the common-law rule governing releases. Ds invoked the rule that a release of an agent operates to release the principal from vicarious liability claims, regardless of any attempted reservation of rights. The court rules for Ds and P appealed. The Superior Court agreed that the release encompassed all claims against Employers but applied traditional contract principles to the signed releases. The Superior Court vacated the judgment as to Prendergast (D) and remanded for further proceedings. Ds appealed. Ds relied on the rule of law that a claim of vicarious liability is inseparable from the claim against the agent since any cause of action is based on the acts of only one tortfeasor. P relied on contract law and that the case does not involve the release of an agent in a single-tort case, but rather, involves multiple separate acts of negligence and multiple tortfeasors. P claims the circle-of-indemnity does not apply where the written release is of the principal rather than the agent.