Aetna Casualty & Surety Co. v. Board of Administration of Public Employees' Retirement System

[768]Opinion

CALDECOTT, P. J. This is an appeal from an order granting disbursement of funds in favor of respondent Henry G. Cole, a retired California Highway Patrolman (hereinafter Cole), and against the appellant, Board of Administration, Public Employees’ Retirement System (hereinafter the System).

On February 22, 1969, an automobile, alleged to have been owned by Curtola, was left on the premises of a restaurant in Vallejo, with the ignition key hidden under some papers on the dashboard.

The vehicle was stolen by Schreindl and Jones. Shortly thereafter, the theft was reported to the California Highway Patrol. There ensued a high speed chase eastbound on Highway 80, involving three CHP vehicles which were attempting to surround the stolen vehicle. Cole was the highway patrol officer driving the vehicle immediately to the left of the stolen vehicle when the stolen vehicle swerved, causing it and Cole’s vehicle to lose control. Cole was injured.

Thereafter, Cole brought an action against a variety of defendants, including Curtola, Schreindl and Jones.

On the first day of trial, Cole settled with Curtola for the sum of $47,500. A release was given by Cole, his employer and workers’ compensation carrier which provided that $40,000 of the settlement was to be paid to Cole and $7,500 was to be deposited in a trust account at American Savings and Loan Association to meet possible subrogation claims of the System subjecting Curtola to further liability.

The case proceeded against the two juveniles and a verdict was entered in the approximate amount of $152,000. The juveniles are apparently judgment-proof.

On May 25, 1974, Cole retired due to injuries incurred in the accident.

On July 7, 1975, the System filed a complaint in the Solano County Superior Court to recover from Michael Coakley, Terry Curtola, Jr., Richard Curtola, and the Curtola Company (hereinafter Curtola) and Michael Schreindl and George Wesley Jones, one-half of the actuarial equivalent of the benefits for which the System is liable to Cole because [769]