AMUL R. THAPAR, District Judge.
The Bluegrass Area Development District ("BADD") is one of fifteen area development districts in the state of Kentucky. Area development districts are inter-county bodies, created by state law, that work with the local governments in their respective regions on a broad range of policy
The Court will deny the motion in part and grant it in part. BADD's motion for summary judgment on state sovereign immunity grounds fails because BADD does not perform a function integral to state government. But BADD's alternative argument has some merit. Both the United States and the crossclaimants fail to allege the kind of facts necessary to make out an indemnity claim under Kentucky law. But the United States and the crossclaimants do bring claims for contribution, which is a separate cause of action in Kentucky and also supports their claims for apportionment. The Court will therefore grant judgment for BADD on the indemnity claims, but not the apportionment claims.
This case arises out of a terrible accident at the Harold L. Disney Training Center ("Training Center"), a federal military training ground in Knox County, Kentucky. R. 1 at 2 ¶¶ 10-11. Matthew Stanford, the plaintiff in this case, visited the training center as part of his summer job working as an instructor for the U.S. Army Cadet Corps, Inc. ("Cadet Corps"). Id. at 3 ¶¶ 13-18. The Cadet Corps is a private corporation with no official ties to the military. R. 23 at 7, 9 ¶¶ 22, 30-32. Stanford worked as an instructor in the summer program, leading youths between ages twelve and eighteen through training exercises and other activities. R. 1 at 3 ¶¶ 15-16. As part of the summer program, the Cadet Corps visited the Training Center for three days. Id. at 3 ¶ 17. On the final day of the visit, July 23, 2009, Stanford and other instructors led a group of youths through the Training Center's obstacle course. Id. at 4 ¶ 23. The fifteenth obstacle required participants to slide down a long zip line, suspended eighteen feet above the ground with no safety net. Id. at 4 ¶¶ 27-30. Unbeknownst to Stanford, the zip line was not ready for use. Id. at 5 ¶ 42. While several youths successfully completed the zip line before Stanford, he did not. Id. at 4 ¶¶ 32-34. Stanford fell to the rocky ground below,
Stanford sued the United States under the Federal Tort Claims Act. R. 1; R. 3.
The United States was quick to disavow any fault in Stanford's accident. See R.
What role did BADD play in the accident? After Stanford volunteered to be a Cadet Corps instructor, he applied to BADD's "By Learning U Earn" Program ("BLUE Program"). See R. 23 at 8 ¶ 24; R. 70-1 at 3. The BLUE Program is a summer job program that provides "work experience for low-income and disadvantaged individuals ages sixteen through twenty-four." Uninsured Employers' Fund v. Stanford, 399 S.W.3d 26, 29-29 (Ky. Mar. 21, 2013); see also R. 23 at 8 ¶ 24 (alleging same).
Shortly after the United States filed its third-party complaint, the third-party defendants responded. The Cadet Corps and two of its members (collectively "Crossclaimants") filed counterclaims against the United States and crossclaims against BADD. See R. 43 (Cadet Corps); R. 44 (Land); R. 45 (Gorman).
BADD now moves for judgment on those claims against it on state-law sovereign immunity grounds. R. 70 at 4-10. In the alternative, BADD argues that the United States and the Crossclaimants fail to state a valid claim for indemnity or apportionment. Id. at 11-15.
Since the original action was brought under the Federal Tort Claims Act
Summary judgment is appropriate if there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. Fed. R.Civ.P. 56(c); see Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Since BADD brought the motion, the Court must view the evidence in the light most favorable to the United States and the Crossclaimants, drawing all justifiable inferences in their favor. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). That presumption does not mean, however, that the United States and the Crossclaimants have no burden. To survive summary judgment, they must identify sufficient evidence in the record for a reasonable jury to return a verdict for them on their claims. Id. The Court assesses the legal sufficiency of the evidence, not its credibility or weight. Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 150-51, 120 S.Ct. 2097, 147 L.Ed.2d 105 (2000) (collecting cases applying Rule 56(c) and Rule 50).
Stanford sued the United States under the FTCA, so his claims are analyzed under Kentucky law. See R. 3. Under the FTCA, individuals may sue the United States in federal district court for negligent or wrongful acts or omissions. 28 U.S.C. § 1346(b)(1). The FTCA simply applies the state law of the jurisdiction. Id.; see also Premo v. United States, 599 F.3d 540, 545 (6th Cir.2010) ("First the district court applies local law to determine liability and to assess damages." (quotation omitted)). In that way, the FTCA puts the United States in the position of a private person by allowing plaintiffs to bring the same state-law tort claims they would bring against a private defendant. Id. So Stanford's suit against the United States is, in effect, a suit under Kentucky law.
The claims between the United States and the third-party defendants are also based on Kentucky law. Where, as here, the United States brings a third-party complaint under the FTCA, that complaint is treated like a state-law claim brought by a private person. See Hill v. United States, 453 F.2d 839, 842 (6th Cir. 1972) (treating the United States' contribution claim against Tennessee as "derivative" of Tennessee's liability to the individual plaintiffs involved in the case). Similarly, the crossclaims the third-party defendants brought against each other are state-law claims. See Premo, 599 F.3d at 545. So all the claims against BADD — whether brought by the United States or by the Cadet Corps and its members — are analyzed under Kentucky law. Thus, the parties may also raise state-law defenses, such as the state sovereign immunity defense that BADD raises here. See R. 70. Since state law controls under the FTCA, state sovereign immunity plays a role that it would not if this claim were brought under substantive federal law. Compare Hill, 453 F.2d at 840-41 (applying Tennessee's sovereign immunity doctrine to the United States' claim for third-party contribution against Tennessee), with
To determine whether governmental and quasi-governmental entities that do not fall into the conventional categories of city, county, and state-level government enjoy state sovereign immunity, Kentucky courts apply a two-step test. See Comair, Inc. v. Lexington-Fayette Urban Cnty. Airport Corp., 295 S.W.3d 91, 94-95, 99 (Ky.2009). The test applies to BADD because, as an area development district, BADD does not fall into an established level of government. Instead, it works with the municipal and county governments in its intercounty region on various projects and issues within their respective region. See R. 70-4 at 12.
Under the Comair test, Kentucky courts ask two questions to determine whether an entity such as BADD qualifies for sovereign immunity. First, they examine the entity's origin, whether it "is an agency (or alter ego) of a clearly immune entity." Comair, 295 S.W.3d at 99. Next, courts assess whether the entity performs "a function integral to state government." Id. (internal quotation marks omitted). Courts make that assessment by looking at the balance of an entity's functions, not just the particular action at issue in the case. See id. at 98 (explaining that the entity must be "viewed as a whole" (quotation omitted)); N. Kentucky Area Planning Comm'n v. Cloyd, 332 S.W.3d 91, 95-96 (Ky.Ct.App.2010) (assessing the balance of an area planning commission's activities).
If the answer to both questions is "Yes," then the entity is totally immune from tort liability. If not, then the entity is subject to suit. Sanitation Dist. No. 1 v. McCord Plaintiffs, ___ S.W.3d ___, 2013 WL 275602, at *2 (Ky.Ct.App. Jan. 25, 2013) ("[I]f either is absent, the entity enjoys no immunity."). BADD passes the first step, but not the second.
The parties agree that BADD satisfies the first step of the sovereign immunity analysis. See R. 74 at 7-8 (focusing solely on the functional analysis); R. 76 at 4 (same). An entity will satisfy the first step if its "parent" entity — the governmental body that created it — is fully immune. Comair, 295 S.W.3d at 99. BADD was created by the Kentucky legislature and is designated as a "public agency" under state law. See Ky.Rev.Stat. §§ 147A.050(15), 147A.080(10). Thus, BADD is a political subdivision of the state. See id. § 65.230. And since the state enjoys total immunity, BADD satisfies the first step. See Comair, 295 S.W.3d at 99.
To show that it performs "a function integral to state government," BADD must establish two elements. Comair, 295 S.W.3d at 99 (internal quotation marks omitted). First, BADD must show that it addresses "state level government concerns that are common to all citizens of th[e] state." Id. Serving "purely local" concerns does not count. Id. Examples of state-level government concerns include "police, public education, corrections, tax collection, and public highways." Id. Second, BADD must demonstrate that it serves a function that is itself "integral" to addressing that state-level government
Based on the evidence it presents, BADD does not meet either element. First, BADD's evidence does not establish that BADD predominantly serves state-level concerns. If anything, the evidence suggests that BADD's primary focus is on local concerns. Second, BADD's evidence shows that its activities are not integral to state government. BADD may help those that are actually performing state-level government functions, but BADD is not a necessary part of those functions.
BADD's evidence shows that it serves a mix of state- and local-level concerns, but provides no way for the Court to tell where the ultimate balance lies. Take the list of activities in the affidavit from BADD's Executive Director, Leonard Stoltz.
When the Court draws reasonable inferences in the nonmoving parties' favor, as it must at the summary judgment stage, the evidence suggests that BADD's primary function is to serve local concerns. See Anderson, 477 U.S. at 255, 106 S.Ct. 2505 (requiring courts to draw all reasonable inferences in favor of nonmoving parties). Stoltz explains that BADD's mission statement "is to: Enhance the economy of our communities through planning, to maximize resources, [to establish] projects to promote development, [and to establish] programs to improve the quality of life for the citizens of the regions." Id. at 2 ¶ 3 (alterations in original). Those are not state-level government concerns. Enhancing the local economy certainly is not. See Berns, 801 S.W.2d at 331 (holding that promoting the "economic welfare" of two counties was not a state-level government concern); Cloyd, 332 S.W.3d at 96 (holding that an entity serves a "local interest" where its actions primarily benefit that locality's businesses and residents). Promoting local development and establishing local programs are both "quintessentially the type of local concern that simply is not common to all citizens of the state." Cloyd, 332 S.W.3d at 96.
The mission statement included in Stoltz's affidavit turns BADD's own evidence against it. A mission statement crystallizes an organization's activities, defining its core values and primary focus. Since BADD's mission statement places local interests at the top of BADD's agenda, the reasonable inference to draw from Stoltz's affidavit is that BADD primarily serves local interests, not state-level concerns.
BADD, on the other hand, is not integral to a state-level function. Stoltz's affidavit explains that BADD assists, consults, and advises local governments and governmental agencies on various issues. See R. 70-4 at 2 ¶ 3. Similarly, BADD asserts that it "assist[s] local governments on economic development, transportation, security, public utilities planning, infrastructure planning, management of fire and law enforcement departments, and administration of federal funding." R. 70-1 at 6. But BADD does not develop transportation infrastructure, or maintain water and sewer infrastructure, or carry out law enforcement activities. It merely gives advice about how to perform those functions. Providing nonessential assistance or advice to those who are actually carrying out government functions is not the same as carrying out a government function. And the latter is what the doctrine requires. After all, the animating principle of the sovereign immunity doctrine is that "it is not a tort for government to govern." Comair, 295 S.W.3d at 94 (quoting Dalehite v. United States, 346 U.S. 15, 57, 73 S.Ct. 956, 97 L.Ed. 1427 (1953) (Jackson, J., dissenting)). If an entity is not actually governing, then it should not receive sovereign immunity. And none of BADD's evidence suggests that it is actually governing. Simply put, BADD does not demonstrate that its assistance, consultation, or advice is an integral part of addressing state-level governmental concerns in the way that the airport board in Comair or the sanitation district in McCord were.
BADD relies heavily on the Kentucky Court of Appeals' decision in Northern Area Planning Commission v. Cloyd. See R. 70-1 at 7-8; R. 77 at 4-5.
BADD seizes on Cloyd's determination that the planning commission's "recommendations to cities and counties in creating local zoning ordinances" were an integral state government function. R. 77 at 4. If a planning commission's recommendations to city and county legislators qualified as an integral state government function, BADD argues, so should BADD's advice to local governments on various legislative issues. Id. But BADD overlooks two crucial aspects of Cloyd that distinguish it from this case. First, the primary reason the planning commission received immunity was that it served another integral function — building licensing and inspection. The planning commission's role advising local governments on land-use and zoning issues hindered its immunity claim more than it helped. Second, the planning commission's advice was, by operation of state law, an essential component of the process of zoning and land use legislation.
Cloyd was very clear that the planning commission's licensing and inspection activities "weigh[ed] strongly in favor of granting governmental immunity." 332 S.W.3d at 96. Indeed, the planning commission's licensing and inspection services were an essential part of serving the state-level concern of protecting the public safety. Id. Without the planning commission ensuring that local buildings complied with governing regulations, no governmental entity would ensure that buildings were not a threat to public safety. If anything, Cloyd granted the planning commission immunity despite its advising role in local land-use planning and zoning. See id. ("To a substantial degree, land use planning is quintessentially the type of local concern that simply is not common to all citizens of the state."); see also id.
What's more, the advising role BADD plays is nothing like the state-mandated advising role the planning commission played in Cloyd. State law mandates that legislators consider a planning commission's recommendations when drafting or amending zoning laws. See Cloyd, 332 S.W.3d at 95-96 (citing, inter alia, City of Lakeside Park v. Quinn, 672 S.W.2d 666 (Ky.1984) (explaining that state law mandates that cities and counties consider and address planning commission recommendations before legislating on land use or zoning issues)). So cities and counties cannot enact or amend zoning laws until they have received a recommendation from the planning commission. For example, a city or county cannot amend its zoning map until the planning commission has held a hearing, made findings of fact, and prepared a recommendation on the proposed amendment. See Ky.Rev.Stat. § 100.211(1). That recommendation will be final and effective unless the legislative body or fiscal court
There is no such requirement for BADD's recommendations. While state statute does authorize area development districts to develop plans for various issues within their respective areas, it does not integrate those proposals into any governing processes. See id. § 147A.090. Thus, BADD is not integral to the legislative process or any other government function.
Accordingly, BADD has not satisfied the integral-to-state-government element of Comair's second step and is not entitled to sovereign immunity.
A statutory provision authorizing a governmental entity to pursue sources of funding for carrying out its projects — without more — does not entitle that entity to sovereign immunity. What matters most is the ultimate function an entity's funding power serves. For example, in Berns the state legislature authorized the Kentucky Center for the Arts to issue revenue bonds to help finance its projects. See Berns, 801 S.W.2d at 330. Yet the Berns court still held that the Center was
So, BADD is essentially an autonomous entity that pursues federal funding when it determines that doing so will serve local needs. Conversely, in Comair the airport board's funding power was expressly limited to its specific functions that addressed a state-level concern: establishing, maintaining, operating, and expanding suitable airport and air navigation facilities. See 295 S.W.3d at 101; see also id. (explaining that a state statute authorized the board to issue bonds in order to construct, maintain, expand, finance, or improve airport or air navigation facilities). Since BADD's power to pursue federal funding is not similarly tied to any such state-level concerns, that power does not justify granting BADD sovereign immunity.
An examination of the BLUE Program itself shows why BADD cannot receive state sovereign immunity simply because it is authorized to administer federal funding. The purpose of the BLUE Program is to give low-income and disadvantaged youths in the Bluegrass District the chance to gain work experience. See Stanford, 399 S.W.3d at 28-29. Under Kentucky precedent, creating local economic opportunities is not a state-level government concern. See Berns, 801 S.W.2d at 331 (holding that "promoting tourism and thus the economic welfare" within two counties is not a state-level government concern); Cloyd, 332 S.W.3d at 96 (holding that an entity serves a "local interest" where its actions primarily benefit that locality's businesses and residents). So the BLUE Program itself does not qualify for sovereign immunity under Comair. See 295 S.W.3d at 98-99 (holding that "purely local" concerns do not qualify for sovereign immunity). Thus, BADD's argument based on its funding powers fails to address the question at the heart of the Comair analysis: whether the entity at issue carries out state-level governmental functions.
Finally, BADD asserts that if a conventional state agency (such as the Cabinet for Economic Development) were running the BLUE Program, "it could not be disputed that such agency would enjoy sovereign immunity." R. 70-1 at 6. That might well be so. But the point is irrelevant. A bona fide state government agency is entitled to sovereign immunity simply because it is part of the state government — there is no need to apply a functional analysis. See Comair, 295 S.W.3d at 94; see also Calvert Invs., Inc. v. Louisville & Jefferson Cnty. Metro. Sewer Dist., 805 S.W.2d 133, 139 (Ky.1991) (holding that the Natural Resources Environmental Protection Cabinet was protected by sovereign immunity because it "is an arm of state government"). Comair's two-step analysis comes into play only "when dealing with governmental and quasi-governmental entities and departments below the level of the Commonwealth itself." 295 S.W.3d at 94 (emphasis added). Because BADD falls outside the "taxonomy of city versus state and county," it must satisfy Comair's two-step test.
Since BADD is not entitled to sovereign immunity, it is susceptible to the claims brought by the United States and the Crossclaimants. But BADD has a fallback strategy. In the alternative, BADD asks for a judgment on the pleadings, claiming that neither the United States nor the Crossclaimants have alleged cognizable claims for indemnity or apportionment. See R. 70-1 at 11-15. The Court will grant judgment for BADD on the indemnity claims, but not the apportionment claims. None of the parties have a valid indemnity claim because none allege facts that make BADD predominantly liable for the plaintiff's injury. Both the United States and the Crossclaimants do, however, have viable contribution and apportionment claims against BADD.
The Court reviews BADD's motion for judgment on the pleadings
Indemnity, contribution, and apportionment are three related yet distinct concepts in Kentucky law. Distinguishing the three doctrines before examining the parties' claims helps explain why BADD deserves judgment on some claims but not others. All three doctrines distribute responsibility for damages among various defendants based on their relative fault. But the doctrines stem from different sources of law, function in different ways,
Apportionment is the most modern of the three doctrines, codified by the legislature in 1988. Ky.Rev.Stat. § 411.182; see also Degener v. Hall Contracting Corp., 27 S.W.3d 775, 779 (Ky. 2000) (explaining that apportionment grew out of the doctrine of contribution and was eventually codified by the legislature). As its name implies, apportionment spreads the liability for a plaintiffs claims among the tortfeasors based on their relative fault. See Degener, 27 S.W.3d at 779. Liability under § 411.182 is several only, so one tortfeasor is never on the hook for the entire amount unless the jury apportions the entire fault to that tortfeasor. See id. Since the statute requires the factfinder to assign a "percentage of fault" to all the parties to a claim, codefendants do not need to raise crossclaims for apportionment. Ky.Rev.Stat. § 411.182(1)(b); see Sommerkamp v. Linton, 114 S.W.3d 811, 817 (Ky.2003) ("This statute renders a cross-claim for contribution, as well as a counterclaim for contributory or comparative negligence, needless.").
Contribution is also a statutory right, originally enacted in 1926, long before Kentucky had adopted the doctrines of comparative negligence or joint and several liability. Ky.Rev.Stat. § 412.030; Degener, 27 S.W.3d at 778-79. The right applies "among wrongdoers [and] may be enforced where the wrong is a mere act of negligence and involves no moral turpitude." Degener, 27 S.W.3d at 779 (quotation omitted). Contribution allows Tortfeasor A to bring a contribution action against Tortfeasor B as either a complaint in a separate action, a crossclaim, or a third-party complaint. Id. The contribution remedy is limited, allowing Tortfeasor A to seek payment from joint tortfeasors for a proportional share of the amount of the plaintiff's judgment against Tortfeasor A. See id. If Tortfeasor B is the only other joint tortfeasor, then Tortfeasor B will owe Tortfeasor A half the amount of the judgment. Id. If Tortfeasor B and Tortfeasor C are both joint tortfeasors, they will each owe Tortfeasor A one-third the amount of the judgment. And so on.
Contribution applies only where the parties share "equal fault" for the plaintiff's injury. See Brown Hotel Co. v. Pittsburgh Fuel Co., 311 Ky. 396, 224 S.W.2d 165, 166 (1949). The Latin phrase Kentucky courts use as shorthand to refer to equal fault is in pari delicto. See id.; see also Black's Law Dictionary (9th ed. 2009) (Westlaw) (explaining that the Latin phrase translates to "in equal fault"). The doctrine does not require that tortfeasors be literal 50/50 partners in the plaintiff's injury. Parties are in pari delicto where they are "guilty of concurrent negligence of substantially the same character, which converges to cause the plaintiff's damages." Degener, 27 S.W.3d at 778.
Indemnity is the oldest of the three doctrines, and the only cause of action based on a common-law right. See
Neither the United States nor the Crossclaimants assert proper indemnity claims against BADD. An indemnity claim must allege one tortfeasor's negligence is different in kind — categorically worse — than the other tortfeasor's. Neither the third-party complaint nor the crossclaims make that kind of allegation.
There are two recognized general categories of indemnity claims under Kentucky law. The first alleges that Tortfeasor A was only constructively or technically liable, while Tortfeasor B was the active wrongdoer. Degener, 27 S.W.3d at 780. The most common example would be an employer who is liable for an employee's action under respondeat superior. See id. The second category alleges that Tortfeasor A was only secondarily liable, while Tortfeasor B was the "primary and efficient cause of the injury." Id. (quotation omitted). This category usually arises where the primary tortfeasor created the hazard, while the secondary tortfeasor simply failed to perform some legal duty, such as inspection or remedying a hazard. Brown Hotel, 224 S.W.2d at 167. In the most famous Kentucky case, a pedestrian was injured when he fell into a manhole. Id. at 166. He fell because the manhole had not been properly secured after a fuel company had made a coal delivery to the hotel. Id. at 167. The court held that the hotel, which was liable for failing to check that the manhole lid had been properly secured after the delivery, had a claim for total indemnity against the coal company, whose employee had failed to replace the manhole lid property. Id. The court stressed that it was the coal employee's negligence that exposed the hotel to liability. Id. Thus, a proper indemnity claim must allege that one tortfeasor deserves all or nearly all the blame for the plaintiff's injury.
Neither the United States nor the Crossclaimants allege facts that would make BADD's fault for Stanford's injury categorically greater than their own liability. To be sure, the United States claims that BADD's negligence was "a direct and proximate cause" of Stanford's injury. R. 23 at 9 ¶ 29. But a conclusory allegation is not enough. Iqbal, 556 U.S. at 678, 129 S.Ct. 1937 ("Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice."). And none of the facts in the third-party complaint support an inference that BADD's negligence was the primary source of Stanford's injury. They might support a conclusion that BADD has a greater degree of fault than the United States, but that is not enough for an indemnity claim. See ISP Chems., LLC v.
The United States warns the Court against focusing too much on placing claims into categories such as "active/passive" or "primary/secondary." R. 74 at 12 (quoting Crime Fighters Patrol v. Hiles, 740 S.W.2d 936, 938 (Ky.1987)). The Court's decision does not rest on any particular labels; instead, it rests on the substantive distinction between indemnity and contribution claims. Kentucky law is very clear that indemnity claims are qualitatively different than contribution claims. Because indemnity assigns complete liability for the judgment to one tortfeasor, indemnity claims must go beyond claiming that the other tortfeasor shares some of the fault. An indemnity claim must allege that the other tortfeasor's fault is so great that the parties are not in pari delicto. See Crime Fighters Patrol, 740 S.W.2d at 939-40; see also Degener, 27 S.W.3d at 780-81 (stressing that indemnity claims totally indemnify one party and thus must meaningfully distinguish the tortfeasor's respectively liabilities).
Thus, the Court will grant judgment for BADD on the indemnity claims in the United States' third-party complaint and the Crossclaimants' crossclaims.
BADD apparently overlooked the fact that both the United States and the Cross-claimants have brought contribution claims against BADD. See R. 23 at 13-14 ¶ 52 (claiming "entitle[ment] to apportionment and/or contribution"); R. 43 at 10; R. 44 at 9-10; R. 45 at 11. Contribution remains
Stanford did not assert any claims against BADD in his underlying complaint; the United States impleaded BADD into this action. BADD jumps on this fact. BADD argues that the United States and the Crossclaimants cannot maintain their apportionment claims against BADD because there is no substantive cause of action for apportionment under Kentucky law. While there is no independent cause of action for apportionment, both the United States and the Crossclaimants are still entitled to have fault apportioned among themselves and BADD.
First, BADD's argument wrongly presumes that the United States and the Crossclaimants have no other substantive cause of action. The decision that BADD relies on addressed a third-party complaint seeking only apportionment under Kentucky Revised Statute § 411.182, not contribution under § 412.030. See Texas Capital Bank, N.A. v. First Am. Title Ins. Co., No. 3:09-cv-661-JGH, 2012 WL 443460, at *1 (W.D.Ky. Feb. 10, 2012) (addressing a "third-party complaint plead[ing] a single cause of action for allocation of fault under Ky.Rev.Stat. § 411.182"); see also R. 70 at 14-15 (citing Texas Capital Bank). But since the contribution claims are still viable, they provide a substantive cause of action to support the United States' third-party complaint and the Crossclaimants' crossclaims regardless of whether apportionment is itself a cause of action. Thus, the apportionment claims still have a legal leg to stand on.
Second, fault should still be apportioned to BADD because the United States' thirdparty complaint made BADD a "party to the action" under Kentucky Revised Statute § 411.182. Section 411.182 applies to tort cases and requires the jury to apportion fault in cases where there is "more than one (1) party to the action, including third party defendants." Ky.Rev.Stat. § 411.182(1). The Sixth Circuit has held that third-party defendants are parties to the action under § 411.182 once a defendant impleads them through a third-party complaint. See Adam v. J.B. Hunt Transp., Inc., 130 F.3d 219, 228 (1997), abrogated on other grounds by Ortiz v. Jordan, ___ U.S. ___, ___, 131 S.Ct. 884, 889, 178 L.Ed.2d 703 (2011). In Adam, the defendants impleaded various third-party defendants through a third-party complaint. Id. at 222. The Court of Appeals declared that the third-party defendants "clearly had been sued" when they were impleaded by the defendants. Id. at 228. The Sixth Circuit went on to hold that third-party defendants who are impleaded by defendants are "just as much `part[ies] to the action,' within the meaning of Ky.Rev.Stat. 411.182 as any original party was." Id. Thus, fault must be apportioned to BADD should this case proceed to trial.
Finally, BADD argues that apportionment is improper because BADD was not in pari delicto with the United States or the Crossclaimants. See R. 70-1 at 14. Not so. First, the doctrine of apportionment does not require the parties to be in pari delicto. See Degener, 27 S.W.3d at 779. In fact, the concept of assigning tortfeasors varying percentages of fault necessarily embraces the possibility that the tortfeasor's respective liability could be something other than 50/50. So BADD's argument is irrelevant.
Second, BADD's argument misunderstands the principle of in pari delicto. BADD asserts that it was not in pari delicto because it was not "acting jointly with the United States, the Cadet Corps, or any of its officers of employees at the time of the Plaintiffs injury." R. 70-1 at 15. The principle of in pari delicto, however, does not require parties to act in cooperation with each other. See, e.g., Campbellsville Lumber Co. v. Lawrence, 268 S.W.2d 655, 656 (Ky.1954) (affirming a contribution claim where the complaint alleged that both drivers' negligence contributed to the accident). All the United States and the Crossclaimants need to allege is that BADD is "guilty of concurrent negligence of substantially the same character which converges to cause the plaintiffs damages." Degener, 27 S.W.3d at 778. And they do.
As BADD itself admits, the factual allegations in the third-party complaint and the crossclaims could support a finding that BADD is liable for its "passive negligence." R. 70-1 at 13. That alleged "passive negligence" is substantially similar to the negligence the United States and the Crossclaimants stand accused of here — especially given that that there has not yet been any discovery in this case. See Crime Fighters Patrol, 740 S.W.2d at 940 (warning that the particular factual circumstances of the case will often determine whether the parties are in pari delicto). For example, the United States alleges that BADD failed to take the proper steps to train or supervise Stanford. See R. 23 at 8-9 ¶¶ 26-29. That alleged "passive negligence" is substantially similar to Stanford's allegations that the United States failed to take certain steps to warn that the zip line was not ready for use. See R. 1 at 5-8 ¶¶ 39-70. Depending on the details that come out in discovery, a jury could very well find that the United States and BADD are in pari delicto. See Crime Fighters Patrol, 740 S.W.2d at 940. Thus, BADD's argument that the third-party complaint and the crossclaims fail to allege that the parties are in pari delicto fails. At this stage of the case, the United States and the Crossclaimants have stated facially plausible claims for relief. See Iqbal, 556 U.S. at 678, 129 S.Ct. 1937.
Accordingly, it is