Nuveen Quality Income Municipal Fund Inc. v. Prudential Equity Group, LLC

MEMORANDUM **

The City of Spokane appeals from, inter alia, the district court’s determination of the maximum amount it could recover in contribution. The City also moves this court to certify two questions to the Supreme Court of Washington, and Prudential Equity Group, LLC, protectively cross-appeals. We affirm the district court and deny the motion to certify.

The City’s primary contention on appeal is that the “district court’s reductions of the City’s recoverable contribution damages at the reasonableness hearing were erroneous and unsupported by the record.” In settling with the original plaintiffs, the City agreed to pay “the principal of all of the Bonds outstanding and *824 the interest accrued thereon.” But not every bondholder actually maintained claims against Prudential at the time of the settlement. Because Washington law authorizes contribution from only liable parties and because Prudential could not be held liable in this lawsuit to nonparty bondholders or for claims that were not actually presented in the pending action (such as the claim for AGIO’S future damages), the district court properly eliminated from the City’s contribution claim amounts paid to those…