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Oct 3, 2014

Eighth Circuit Reviews Strode and Missouri's "One Recovery Rule"

ABSTRACT: Missouri's "one recovery rule" prevents decedent's widow and children from recovering for the same wrongs when decedent, during his lifetime, fully and fairly settled or adjudicated his claims for the same wrong.

On July 30, 2014, the U.S. Court of Appeals for the Eighth Circuit analyzed Missouri law and held that Missouri’s “one recovery rule” barred decedent’s widow and children from recovering for the death of the decedent because the decedent recovered for the same wrong during his lifetime.

Michael Thompson, a 28-year smoker, developed lung cancer in 1997. At that time, Michael and his wife, Christi Thompson, sued cigarette manufacturers, distributors, and sellers.The Thompsons alleged that Michael Thompson’s throat cancer was a result of smoking cigarettes and that the manufacturers, distributors, and sellers were liable for concealment, negligence, product defect, and failure to warn.   A jury found the cigarette manufacturers liable for product defect and negligence. The Thompsons recovered $1,046,754.00 and the state appellate court affirmed.

When Michael Thompson passed away in 2009, his wife and children brought suit against the same cigarette manufacturers, distributors, and sellers. They alleged that Michael Thompson died of injuries caused by cigarettes manufactured, distributed, and sold by the same defendants named in the Thompson’s earlier personal injury action. The case was removed to federal court following the dismissal of fraudulently joined defendants. The remaining defendants moved to dismiss plaintiffs claims, arguing that the claims were barred by Missouri Statutes § 537.080 and § 537.085 because Michael Thompson had fully and fairly litigated the issues and received full satisfaction during his lifetime. 

Under Missouri’s wrongful death statute, a decedent’s spouse or child may sue for damages when the death of the decedent results from any act, conduct, occurrence, transaction, or circumstance which, if death had not ensued, would have entitled such person to recover damages in respect thereof. Mo. Rev. Stat. § 537.080.1.

The Eighth Circuit reviewed the century-old Missouri Supreme Court decision of Strode v. St. Louis Transit Co., 95 S.W. 851, 853 (Mo. banc 1906), which directly addressed the question of whether a widow or child could maintain an action for a death and accrued damage in the situation where a person is injured through the negligence of another, and before death, made a settlement with the wrongdoer. The Strode Court held that “the gist and foundation of the right in all cases is the wrongful act, and that for such wrongful act but one recovery should be had…”. Strode, 95 S.W. at 856. If a decedent received satisfaction in his or her lifetime, either by settlement, adjustment, or adjudication, no further right of action existed in the courts. 

The Eighth Circuit swiftly dismissed Plaintiffs’ argument that the statute creates a wholly distinct and independent cause of action in a decedent’s survivors, finding that that argument simply ignored the plain language of Strode. Again, “the gist and foundation of the right in all cases is the wrongful act, and that for such wrongful act but one recovery should be had.” Id.

Thus, the Eighth Circuit held that Missouri’s “one recovery” rule prohibits a wrongful death claim under § 537.080 if the decedent received satisfaction for the same wrongful conduct – whether by adjudication, adjustment, or settlement – during his or her lifetime.