Morga v. FedEx Ground Package Sys., Inc.
Morga v. FedEx Ground Package Sys., Inc.
Opinion
{1} This appeal is before us following a jury verdict for more than $165 million to Plaintiffs for wrongful death, personal injury, and loss of consortium claims that arose from a catastrophic automobile accident between a small pickup truck and a FedEx transport tractor-trailer. Defendants assert that the district court erred in denying their motion for a new trial or a remittitur of the damages awarded by the jury. Specifically, Defendants argue that (1) the verdict was not supported by substantial evidence; and (2) the jury's verdict was tainted by passion, prejudice, partiality, sympathy, undue influence, or a mistaken measure of damages. In addition, Defendants argue that the district court erred in awarding prejudgment interest. This case presents an opportunity to address important issues faced by the judicial system-how do appellate courts measure the outer limits of a jury's discretion to award compensatory damages and whether we should utilize mathematic ratios as an acceptable basis to reduce damage awards in large verdict cases. We decline to utilize mathematic ratios as the basis for establishing error by the district court. We affirm the district court's denial of Defendants' two post-trial motions, and accordingly, we affirm the jury's verdict. We also affirm the award of prejudgment interest.
BACKGROUND
{2} On June 22, 2011, at approximately 1:30 a.m., on the interstate between Las Cruces and Deming, New Mexico, a combination tractor-trailer vehicle (the FedEx truck) struck a small pickup truck driven by Marialy Ruby Venegas Morga (Ms. Morga). Accompanying Ms. Morga was her four-year-old daughter, Ylairam Morga (Ylairam), and nineteen-month-old son, Yahir Morga (Yahir). The FedEx truck was operated by FedEx Ground Package System, Inc. (FedEx) through independent FedEx contractors, and the actual driver for the FedEx contractors was Elizabeth Quintana (Quintana) (FedEx, the FedEx contractors, and Quintana are collectively referred to as Defendants). Ms. Morga was either stopped or barely moving on the right-hand side of her traffic lane when the FedEx truck struck her vehicle from behind at sixty-five miles per hour without slowing. The impact and its resulting injuries were severe, with multiple fatalities occurring. Ms. Morga and Ylairam died, and Yahir was seriously injured. Quintana also died as a result of the accident.
{3} Alfredo Morga, Ms. Morga's spouse, brought suit against Defendants, individually and as personal representative for his daughter, Ylairam, and as next friend for his son, Yahir. Mr. Morga also asserted claims against Defendants for personal injury and wrongful death. Ms. Morga's father, Rene Venegas Lopez, as her personal representative, brought suit against Defendants for wrongful death (Mr. Morga individually and in his representative capacity for both of his children, as well as Mr. Lopez in his capacity as personal representative for Ms. Morga are referred to in this opinion as Plaintiffs). Mr. Lopez and his wife, Georgina Leticia Venegas, also intervened in the lawsuit (Intervenors) and asserted personal claims for loss of consortium resulting from the death of their daughter Ms. Morga. Prior to trial, FedEx stipulated that it would "pay for any damages attributed to [FedEx] and the other named [D]efendants."
{4} At trial, Plaintiffs presented evidence of damages related to the wrongful death, personal injury claims by Plaintiffs and also the loss of consortium claims by Mr. Morga and Intervenors. Plaintiffs also asked the jury to award punitive damages against Defendants. The jury found all Defendants negligent and liable for Plaintiffs' claims. The jury apportioned fault for the accident as follows: FedEx (65 percent), the FedEx contractors and Quintana (10 percent each for a total of 30 percent), and Ms. Morga (5 percent). The jury awarded compensatory damages as follows:
For the wrongful death of Ylairam $61,000,000 For the wrongful death of Ms. Morga $32,000,000 For personal injury and the loss of consortium for his mother, to Yahir $32,000,000 For emotional distress, resulting from physical and psychological injury, and the loss of consortium for his spouse and child, to Mr. Morga $40,125,000 For the loss of consortium of his daughter, to Mr. Lopez $208,000 For the loss of consortium for her daughter, to Ms. Venegas $200,000
No punitive damages were awarded by the jury.
{5} After the verdict was entered on January 24, 2015, the district court judge presiding over the case was involved in an ex parte conversation with Plaintiffs' counsel regarding potential counsel on appeal. Recognizing that the ex parte conversation could be perceived as improper, the district court judge recused herself. The case was reassigned to Judge Mathew to preside over all the post-trial proceedings.
{6} Defendants moved for a new trial or remittitur of the damages award and argued that the verdict was excessive. The district court denied both motions. The court concluded that there was substantial evidence to support the verdict, that it was not the result of passion, prejudice, a mistaken measure of damages, or other improper factors, and that it would be inappropriate to substitute its judgment for that of the jury. Plaintiffs then proposed a form of judgment that included an award of prejudgment interest. The district court held an evidentiary hearing on the motion and subsequently ruled that, under NMSA 1978, Section 56-8-4(B) (2004), prejudgment interest was warranted at an annual rate of 5 percent. Defendants filed a timely appeal. While the appeal was pending before this Court, Intervenors settled their loss of consortium claims. As a result, we do not address any appellate arguments regarding Intervenors' damage awards and loss of consortium claims.
DISCUSSION
{7} On appeal, Defendants do not assert any issues related to the jury's determination of liability, but only contested the jury's award of compensatory damages and the district court's award of prejudgment interest.
I. Denial of Defendants' Motions for New Trial or Remittitur
A. Standard of Review
{8} We review the district court's denial of Defendants' motions for a new trial or remittitur for an abuse of discretion.
See
State v. Mann
,
{9} Our appellate courts defer to the jury in awarding damages and also to the trial court in its assessment of a motion for new trial or a motion to remit the amount of damages awarded by the jury.
See
Ennis v. Kmart Corp.
,
{10} Defendants argue that such deference to the district court should not be afforded in this particular case because Judge Mathew did not have the opportunity to observe the proceedings first hand. Defendants therefore contend that a de novo standard of review should apply. Defendants cite no authority to support their contention that a judge duly appointed to proceed with an ongoing case, pursuant to Rule 1-063 NMRA,
1
is not entitled to the same discretion given to other trial judges presiding over a case. We decline to deviate from this established precedent-recognizing an abuse of discretion standard of review-for four reasons. First, this Court will not consider propositions that are unsupported by citation to authority.
See
ITT Educ. Servs., Inc. v. N.M. Taxation & Revenue Dep't
,
{11} In reviewing the actual evidence presented at trial, "we review the sufficiency of the evidence to support the verdict by examining whether the verdict is supported by such relevant evidence that a reasonable mind would find adequate to support
a conclusion."
Jose Sandoval
,
B. Analysis of the Evidence to Support the Jury's Award
{12} "The purpose of compensatory damages is to make the injured party whole by compensating it for losses."
Cent. Sec. & Alarm Co. v. Mehler
,
{13} Although Defendants concede that the evidence at trial supported an award for compensatory damages, they argue that the amounts awarded to Plaintiffs were excessive for two reasons. 2 First, Defendants argue that the awards for wrongful death, bodily injury, and loss of consortium "far exceed any previous awards in this state" and the evidence was insufficient to support such an excessive award. Second, Defendants argue that because the awards for the economic injury make up such a small portion of the total award (between 1 and 3 percent), the damage awards are "grossly disproportionate to the injury" and constitute legal error requiring a new trial on the issue of damages. We recognize that Defendants' arguments are both primarily directed at whether the amount of the jury's award for non-economic damages "is so grossly out of proportion to the injury received as to shock the conscience" of this Court. Id. (internal quotation marks and citation omitted).
1. Substantial Evidence Was Presented to Support the Award of Economic and Non-Economic Damages to Plaintiffs
{14} In the present case, Defendants do not dispute that the jury was properly instructed regarding its duty to review the evidence and calculate Plaintiffs' damages. The jury was instructed as follows:
The guide for you to follow in determining fair and just damages is the enlightened conscience of impartial jurors acting under the sanctity of your oath to compensate the beneficiaries with fairness to all parties to this action. Your verdict must be based on evidence, not on speculation, guess or conjecture. You must not permit the amount of damages to be influenced by sympathy or prejudice, or by the grief or sorrow of the family, or the loss of the deceased's society to the family.
They were further instructed to consider neither the property or wealth of the beneficiaries nor that of Defendants in arriving at a verdict. We summarize the compensatory damages evidence related to each Plaintiff separately.
a. Alfredo Morga
{15} The jury awarded Mr. Morga $40.125 million for compensatory damages. The jury was instructed that if they should decide in favor of Mr. Morga, they must "fix the amount of money which will reasonably and fairly compensate him" for injuries related to the following elements of damages: past and future medical expenses; the "nature, extent[,] and duration of the injury[;]" pain and suffering experienced as a result of the injury; loss of enjoyment of life; aggravation of a pre-existing ailment or condition; and emotional distress resulting from the death of his wife, Marialy, his daughter, Ylairam, and the injuries to his son Yahir.
{16} The evidence established that, prior to the accident, Mr. Morga suffered from epilepsy which was controlled by medication. Mr. Morga's epilepsy intensified after the accident and became more frequent. Additionally, expert testimony established that Mr. Morga suffered from posttraumatic stress disorder, major depressive disorder, and that he would need at least a year of intensive psychotherapy and psychiatric care. Dr. Angelo Romagosa, a medical doctor specializing in physical medicine and rehabilitation, testified that Mr. Morga would need $250,068 in physician care, medications, and rehabilitation services in the future due to the injuries suffered as a result of the accident.
{17} With regard to the emotional distress of Mr. Morga due to the loss of society and companionship for the injuries and death of his family members, the jury heard substantial evidence about this close young family and the irreparable personal loss that resulted from the accident. Mr. Morga testified about meeting Ms. Morga as a freshman in high school. The Morgas began dating and had their daughter, Ylairam, during their senior year. Mr. Morga testified about the details of their early lives-high school, his work at various part-time jobs to support the family-as well as Ms. Morga's background in high school, youthful activities, and eventually taking care of the home and their new baby, Ylairam. In October 2009 they had their second child, Yahir. Mr. Morga also provided numerous details about their daily lives, close relationship, buying a home, advancements at work, and plans for the future after Yahir was born. Mr. Morga then testified to his recollection of when he went to the scene on the night of the accident. He was told not to approach the vehicle where his wife and daughter were still located. He then went to the hospital in El Paso, Texas, where his son was taken following the accident and where he stayed for several days. Mr. Morga testified that he was unable to return to work for months after the accident. Mr. Morga also described how the accident severely affected him emotionally.
b. Yahir Morga
{18} The jury compensated Yahir $32 million for past and future damages for injuries he suffered as a result of the accident. The jury was instructed that should they decide in favor of Yahir, they must "fix the amount of money which will reasonably and fairly compensate [him]" for injuries related to the following elements of damages: past and future medical expenses; the "nature, extent[,] and duration of the injury"; pain and suffering experienced; loss of enjoyment of life; and emotional distress resulting from the death of his mother, Ms. Morga.
{19} At trial, the evidence showed that Yahir suffered a distal tibial metaphyseal fracture, traumatic brain injury, a liver laceration, a right pulmonary contusion, and other traumatic injuries. Yahir incurred $58,444.68 in medical treatment. Dr. Romagosa testified that Yahir would need $417,926.47 in future medical care. Additionally, Dr. King testified that Yahir would be at an "increased risk for psychological difficulties down the road due to the early loss of his mother and sister." After the accident, Yahir regressed in his use of speech and had to see a psychologist. Additionally, Mr. Morga testified that Yahir would wake up at night afraid and crying. Ms. Morga's older sister, Rebecca Brown, also testified regarding the relationship between Yahir and his mother prior to the accident.
c. Ylairam Morga
{20} The jury compensated the Estate of Ylairam $61 million for her wrongful death. The jury was instructed that if it were to find for the Plaintiffs, it "must then fix the amount of money which you deem fair and just for the life of Ylairam," for the following elements of damages: "reasonable expenses of funeral and burial[;] lost earning capacity, and the lost value of household services; [t]he value of her lost life; and the mitigating or aggravating circumstances attending the wrongful act, neglect, or default."
{21} Ylairam was only four years old at the time of the accident. At trial, Plaintiffs presented evidence regarding several aspects of Ylairam's life and her relationship with her family for the jury to consider in determining the amount of damages to be awarded for her death, including testimony by her father, Mr. Morga and various family photographs.
d. Marialy Morga
{22} The jury awarded the Estate of Ms. Morga $32 million for her wrongful death. The jury was instructed that it "must ... fix the amount of money which you deem fair and just for [her] life," including the following the elements of damages: "[t]he reasonable expenses for the funeral and burial; [t]he lost earning capacity and the [lost] value of household services; [t]he value of [her] life apart from her earning capacity; aggravating or mitigating circumstances attending the wrongful act, neglect or default; [and t]he loss of guidance and counseling to the deceased's minor child."
{23} At trial, specific evidence was presented regarding Ms. Morga's life so that the jury could make its determination of the damages incurred as a result of Ms. Morga's death. Ms. Brown testified about Ms. Morga's early life, her family and home in El Paso, Texas, as well as her personality and interests. Ms. Brown also testified regarding the closeness of their relationship. She presented Ms. Morga as a good mother, as well as an attentive daughter and wife. Mr. Morga also testified about his relationship with his wife, buying their first home, raising their two children, and their plans to put their children through college. He also testified that Ms. Morga had been planning to get her graduate equivalency degree, and someday obtain her cosmetology degree.
e. The Evidence Supports the Jury Award
{24} Defendants' arguments regarding the sufficiency of the evidence are, at their core, solely objections to the jury's large awards for non-economic injuries to Plaintiffs. Defendants did not target any specific component of Plaintiffs' evidence as insufficient or erroneous. Defendants do not dispute that the non-economic injuries and damages incurred by Plaintiffs are unique, intangible, and difficult to quantify in financial terms. As such, our judicial system relies on juries and trial courts, as the representatives of their local community, to best evaluate and determine the monetary value of these non-economic injuries, including pain and suffering, and the loss of life.
See
James Sandoval
,
{25} In this case, Defendants made a strategic decision to entrust the jury with the decision of how to determine the value of a life from the evidence presented, even going so far as to exclude Plaintiffs' economist from providing testimony regarding "specific damages for the value of a statistical life[,]" including "any numbers offering a benchmark value as to human life." Defendants' counsel specifically told the jury, "I am not going to submit to you a number, because I agree the value of life-I don't want to insult anybody about the value of life in this case. But you have to rely on you[r] own conscious[ ] when you're looking at [the] value of life." We agree that the damage awards in this case were very large. However, when an experienced district court judge, who is familiar with juries in his community, properly reviews the record and evaluates a motion for new trial and a motion for remittitur; the fact that Plaintiffs' awards are large does not transform Plaintiffs' undisputed evidence into something illogical or insufficient. Furthermore, although Defendants were afforded an opportunity to present evidence or testimony at trial to guide the jury in their determination of the value of life and other non-economic damages, Defendants specifically chose not to do so. Under our discretionary standard of review, Plaintiffs presented sufficient evidence to support the jury's right to perform its unique function-award all compensatory damages, including any non-economic damages for pain and suffering and loss of life that were incurred by Plaintiffs. Proper instructions were given that describe the factors a jury must consider in making its compensatory damage awards. We can only interpret Defendants' appellate argument to effectively require the appellate courts to establish a threshold or an absolute financial limit on the value of life, despite the district court and the jury's best efforts to fulfill their assigned duty to quantify something that is legally unique, intangible, and difficult to measure. We refuse to implement such a legal threshold or limit. Based upon the evidence presented at trial and the arguments presented for post-trial review, the district court did not abuse its discretion in denying Defendants' motions for a new trial or remittitur on the grounds of insufficient evidence to support the damage awards for Plaintiffs' non-economic injuries.
2. Comparison to Similar Verdicts in Other Cases Will Not be Applied to Develop Defendants' Sufficiency of the Evidence Argument
{26} Defendants' argument centers on the awards for wrongful death, pain and suffering, and emotional distress damages, all of which are non-economic and cannot be determined by any fixed standard.
See
Baca v. Baca
,
{27} Defendants ask this Court to compare the amount of damages awarded in this case to other similar cases and cite to our Supreme Court's analysis in
Vivian v. Atchison, Topeka & Santa Fe Railway Co.
, to support their argument that such comparisons are "helpful" to determine whether a verdict is excessive.
{28} Instead, this Court has continued to emphasize that "each case must be decided on its own facts and circumstances."
James Sandoval
,
{29} Defendants simply argue that the damage awards for wrongful death are "tens of millions of dollars greater than any awards in similar cases and far exceed any previous award in this [S]tate for wrongful death or comparable loss" and "far outstrips any prior verdict." Yet Defendants concede that they did not bring any evidence of other non-economic damage award cases to the attention of the district court for comparison. Even if a comparative verdicts analysis would be helpful to this Court in assessing excessive damages, Defendants have elected not to offer such an analysis or to make any connection to the evidence in this case. This Court is under no obligation to go outside the record to investigate and develop Defendant's argument about greatly exceeding all prior damage awards in this State.
See
Santa Fe Expl. Co. v. Oil Conservation Comm'n
,
3. A Comparison of Non-Economic to Economic Damages is Unsupported by our Case Law
{30} Next, Defendants argue that because the economic damages proven at trial make up a "minuscule part" of the total amount of damages awarded, the total amounts awarded to Plaintiffs are grossly disproportionate to the measurable injuries that occurred. We begin by recognizing that this Court has specifically rejected any fixed, mathematical formula as the best way to arrive at a damage award for pain and suffering-one aspect of non-economic damages-because "there can be no standard fixed by law for measuring the value of pain and suffering."
James Sandoval
,
{31} We leave any continuing concerns about the use of mathematical formulas to establish a legal basis for addressing excessive jury verdicts to the public and its ongoing debate with the legislative branch about the American judicial system and any major policy changes in New Mexico. See id. ¶ 17 (recognizing the public criticism and ongoing debate regarding excessive jury verdicts). Even in James Sandoval where "[t]he [trial] judge acknowledged that the jury verdict shocked the conscience of the court" we remanded for further consideration rather than undertake our own calculation of damages. Id. ¶¶ 7, 12-18. At this time, we see no support for Defendants' argument that the appellate courts should use fixed mathematical formulas to establish legal error and as the proper basis for reversing a jury's non-economic damage award.
C. The Verdict is Not the Result of Jury's Passion or Prejudice
{32} Defendants argue that we may simply "infer" that the jury was improperly influenced by passion or prejudice from the verdict itself and that it is "not necessary to point to trial error as a cause." However, we disagree that our case law allows us to infer improper passion or prejudice simply because the verdict is large and therefore "speaks for itself as to the existence of passion or prejudice." In
Vivian
, our Supreme Court stated that a verdict was "so grossly excessive as to require an inference that it resulted from passion, prejudice, partiality, [and] sympathy[.]"
{33} We also disagree with Defendants' argument that because the jury awarded sums "far greater" than requested by Plaintiffs, we may legally infer that passion and prejudice played an improper role in the jury's determination of damages. This argument mischaracterizes Plaintiffs' statements during closing argument as a request for a specific amount of monetary damages. Counsel for Ms. Morga's estate proposed to the jury that when considering damages for the loss of Ms. Morga's life, it could consider placing a value on a person's individual days of life. Counsel hypothetically stated, "[i]sn't it worth $500 a day for the enjoyment of your life, for the enjoyment of life that [Ms. Morga] has been deprived of? When you value life, I ask you to give those considerations of her life expectancy as an appropriate way for you to try and measure and place a value on something that we recognize ... can't be valued." We perceive this hypothetical suggestion to be general guidance to the jury for developing its own method for arriving at a valuation for Ms. Morga's life. The fact that the jury chose its own method or a higher daily value for the enjoyment of life when it awarded damages different from the hypothetical example suggested by counsel, does not establish error by the jury. We reject such a hypothetical inference that the jury's damage awards were the result of passion and prejudice.
{34} We now turn to the specific incidences occurring during trial that Defendants argue provoked passion or prejudice in the jury. These incidences include Mr. Morga's trial testimony and what Defendants characterize as "misconduct by Plaintiffs' counsel" in closing argument.
1. Mr. Morga's Testimony
{35} Defendants argue that Mr. Morga's testimony was "emotionally wrenching" when it addressed the sequence of events involving when he was informed of the accident, arrived at the scene, and observed the vehicle. Defendants concede that Mr. Morga's testimony was "an unavoidable aspect of the trial" but insist that the testimony "easily could have moved the jury" to award excess damages based on improper passion or prejudice.
{36} Mr. Morga's testimony was not objected to by Defendants. Counsel elicited testimony from Mr. Morga concerning his wife and children, as well as his description of the week leading up to the accident. Mr. Morga became visibly upset when asked how he learned about the accident and the district court ordered a recess break for the jury. Plaintiffs' counsel was then allowed to use leading questions on direct examination regarding when Mr. Morga arrived at the scene of the accident. When Mr. Morga again began crying, the district court took a second recess, and it ordered counsel to move on to another subject. Defendants' counsel commented, "[i]t's not necessary to make [Mr. Morga] cry to the jury, I'm sorry." Although the district court expressed concern with Mr. Morga's health and the impact of the testimony, there is no indication in the record that the district court believed improper prejudice had occurred from his testimony. Mr. Morga returned to the stand and completed the direct and cross-examination without any further breaks.
{37} Throughout Mr. Morga's testimony, Defendants did not ask the district court to strike any of his testimony, and Defendants never requested any kind of limiting instruction or admonition to the jury. Prior to deliberations, the jury was properly instructed that sympathy was not to play a role in the jury's determination. Without more than a witness crying during testimony that both parties expect to be visibly emotional, we cannot presume that the jury violated its oath and failed to follow the jury instructions.
See
Norwest Bank N.M., N.A. v. Chrysler Corp.
,
State v. Garnenez
,
2. Closing Argument
{38} Next, Defendants argue that Plaintiffs' closing argument caused the jury to be infected by improper passion or prejudice. Defendants point to three incidences in Plaintiffs' closing argument: (1) a photograph admitted into evidence, but previously unused by any witness at trial, depicting the crushed vehicle in which Ms. Morga's body was partially visible; (2) what Defendants characterize as Plaintiffs arguing to the jury that FedEx was attempting to "shift responsibility for the accident to its contractors"; and (3) Plaintiffs' "justice needs to be ignited" comment related to punitive damages. Defendants argue that the above incidents during closing arguments, individually or in combination, provide the legal basis for establishing improper passion or prejudice by the jury and causing an "excessive award of damages."
{39} We begin our review by emphasizing that a defendant must make "a timely and specific objection[, one] that apprised the district court of the nature of the claimed error and that allows the district court to make an intelligent ruling thereon" in order to preserve an issue for appeal.
Jose Sandoval
,
{40} In Jose Sandoval , this Court declined to consider alleged instances of misconduct by the plaintiff that were argued to be the cause of improper passion or prejudice because the defendant did not make a proper objection at trial. Id. ¶¶ 60-72. However, this Court noted that
[i]n cases involving improper closing argument, as when counsel go outside the record[,] we reserve the right in a proper case to reverse the judgment and award a new trial even if objection be not made. However, this rule is to only be applied as a last resort and is not to be applied unless we are satisfied that the argument presented to the jury was so flagrant and glaring in fault and wrongdoing as to leave the bounds of ethical conduct , such as going outside the record.
Id.
¶ 57 (emphasis added) (internal quotation marks and citations omitted). Defendants argue that the specific instances it has cited satisfy this
Jose Sandoval
exception because they are "so flagrant and glaring in fault ... as to leave the bounds of ethical conduct[.]" Defendants also argue that our
Jose Sandoval
decision represents an outlier in our case law that should not be perpetuated. These arguments are not compelling. A formal Court of Appeals opinion is controlling authority.
See
Gulbransen v. Progressive Halcyon Ins. Co.
,
{41} Finally, we disagree with Defendants that the alleged incidents of misconduct by Plaintiffs, either individually or collectively, are "so flagrant and glaring in fault and wrongdoing as to leave the bounds of ethical conduct" or rise to the level of flagrant or fundamental error.
Jose Sandoval
,
a. The Photograph
{42} The district court ruled that the photograph of the crash site could be used at trial if a "yellow sticky" note was placed to cover what appeared to be a human arm in the photo. The "yellow sticky" note purportedly fell off before closing argument. However, Defendants made no objection to the error and counsel for Defendants acknowledged that he chose not to object to this error during the closing argument. After Plaintiffs rested and the jury was excused for a recess break, Defendants' counsel mentioned the absence of the "yellow sticky" note. The district court acknowledged the missing note covering the designated portion of the photo and assured the parties that the photo would not go to the jury during deliberations as a solution to the issue now being brought to the court's attention. No further objection was made to this decision by the district court to address the "yellow sticky" note issue.
{43} Defendants argue that Plaintiffs' use of the photograph is an example of "flagrantly improper conduct" that could not be cured by an instruction from the district court. However, Defendants have failed to show that Plaintiffs' use of the photograph was so glaring in fault as to leave the "bounds of ethical conduct" or that the district court's ruling to address the issue rose to the level of fundamental error.
See
Grammer v. Kohlhaas Tank & Equip. Co.
,
b. Comments Related to Allocation of Fault
{44} Defendants argue that Plaintiffs' counsel made improper comments in closing argument related to FedEx's fault and responsibility for the damages incurred by Plaintiffs. First, Defendants argue that Plaintiffs' counsel tried to shift responsibility for the accident to its contractors, even though FedEx had agreed to pay for any damages attributed to its contractors or Quintana. Second, Defendants contend that Plaintiffs' comment-"it's happened before"-regarding other FedEx accidents defied Defendants' motion in limine to exclude all reference to other accidents involving Defendants. However, after reviewing the complete record of Plaintiffs' closing argument, we interpret Plaintiffs' comment differently. Comparative fault was a specific issue at trial and the parties disagreed about how the jury should allocate fault between the various Defendants. Plaintiffs argued that FedEx was attempting to allocate fault to their contractors and had used similar arguments in the past. Although FedEx assumed liability for all Defendants in this matter, the jury was still required to apportion fault amongst each Defendant. Defendants did not object to the jury verdict form that listed all four Defendants separately, as well as Ms. Morga, for the allocation of comparative liability. Because Defendants did not object to Plaintiffs' comments in closing or the jury instructions, we must apply a fundamental error standard of review.
See
Allen,
c. Plaintiffs' Closing Argument Regarding the Need to Ignite Justice
{45} Defendants objected to one fragment of Plaintiffs' closing argument in particular, the statement that "they don't want to show the pictures to inflame the [j]ury. Well, sometimes justice needs to be ignited." Defendants argue that this type of comment encouraged the jury to follow their passion and misled the jury by implying that Defendants sought to suppress photographic evidence. Again, when read in the full context of closing argument, Plaintiffs' statements were not outside the scope of proper argument, especially where Plaintiffs asked the jury to punish Defendants for their conduct and punitive damages were an issue the jury was properly required to decide. In addition, the jury was properly instructed that all arguments made by counsel in closing were not "to be considered by you as evidence or as correct statements of the law, if contrary to the law given to you in [the jury] instructions." We conclude that if Defendants believed that Plaintiffs' closing arguments were clearly illegal, unethical, or going outside the record, they should have timely and specifically objected at trial, requested an appropriate curative instruction or admonishment, and given the district court the opportunity to correct any error.
See
Jose Sandoval
,
"justice needs to be ignited," closing argument in the context of a potential award of punitive damages, we neither view such an argument as being so glaring in fault as to leave the "bounds of ethical conduct" nor do we recognize it to rise to the level of fundamental error.
See
Grammer
,
D. The Jury's Award Was Not the Result of a Mistaken Measure of Damages
{46} Finally, Defendants argue again that we may infer from the size of the jury's verdict that it applied a mistaken measure of damages.
See
Hanberry
,
{47} Plaintiffs asked the jury to award 2 percent of FedEx's $7 billion net worth as punitive damages in this case. Defendants argue that although the jury awarded no punitive damages, the amount in compensatory damages awarded-$165 plus million-is close to what was requested for punitive damages-$140 million. In the review of the special verdict form submitted to the jury, Judge Mathew specifically noted, "[t]he special verdict form indicates clearly that the jury understood that they were returning a verdict for compensatory damages." Furthermore, there are indications from the poll conducted of the jury following the actual verdict that several jurors wanted to give additional punitive damages, in addition to the amount awarded for compensatory damages. Defendants even stated on the record, "probably a couple of them wanted [to give] punitives" and the trial court agreed with Defendants' observation of the issue and comment. Based upon this clear record, Defendants' argument that the jury mistakenly applied a punitive measure of damages to award compensatory damages is not supported.
See
id.
¶ 52 (recognizing that the defendants had not "borne [their] burden of proving error");
Baxter v. Gannaway
,
I. Prejudgment Interest
{48} The district court had the discretion to award prejudgment interest. Section 56-8-4(B) ;
Coates
,
(1) if [Plaintiffs were] the cause of unreasonable delay in the adjudication of [Plaintiffs'] claims; and (2) if [Defendants] had previously made a reasonable and timely offer of settlement to [Plaintiffs].
"Prejudgment interest serves two purposes, promoting early settlements and compensating persons[.]"
Coates
,
{49} On March 31, 2015, the district court held its hearing on the issue of prejudgment interest and specifically limited the evidentiary presentation to factors within the elements of Section 56-8-4(B). Plaintiffs presented evidence of the possibility for a significant damage award resulting from the death and injury to Plaintiffs and that Defendants made one offer for settlement during the only mediation prior to trial. Defendants offered no witnesses at the hearing but relied upon the evidence that was attached to their motion to deny prejudgment interest. Defendants' motion argued that because Plaintiffs refused to accept a provision for confidentiality as part of any settlement agreement, "there was no point to trying to negotiate a potentially mutually acceptable settlement amount." Based upon the evidence presented, the district court concluded that there was "no evidence of delay in this case by any party" but that "Defendants did not make reasonable or timely offers of settlement." The district court's order further concluded that "the refusal on the part of ... Plaintiff[s'] counsel to engage in settlement discussions which involved any form of confidentiality agreement was not reasonable." The district court then balanced Plaintiffs' refusal to settle on a confidential basis with what it termed as Defendants' "complete lack of appreciation or concern about the potential result of a trial," to conclude that prejudgment interest was warranted in the amount of 5 percent per annum-half the allowable rate under the statute. See § 56-8-4(B) (giving the district court the discretion to allow interest up to 10 percent from the date of the complaint).
{50} Defendants now assert that their "liability was not a foregone conclusion" and that "the facts were not clear-cut in Plaintiffs' favor." Defendants also argue that the trial court abused its discretion in granting prejudgment interest by ignoring "[d]ifficult legal issues" and "thorny issues of causation, comparative fault, and [damages]."
Sunnyland Farms, Inc. v. Cent. N.M. Elec. Co-op., Inc.
,
{51} Finally, Defendants argue that Plaintiffs' refusal to make a settlement offer that included a provision for confidentiality was unreasonable and the district court's acknowledgment of Plaintiffs' unreasonableness should control the issue of prejudgment interest. In fact, Defendants argue that it was pointless for Defendants to make a reasonable settlement offer despite the district court's additional ruling that Defendants showed a "complete lack of appreciation or concern about the potential results of a trial." We disagree and emphasize that the statute does not require the parties to actually reach a settlement, it only requires that Defendants make a reasonable settlement offer.
See
§ 56-8-4(B). If no reasonable settlement offer was made by Defendants, other settlement conditions imposed by Plaintiffs are just one of many discretionary matters for the district judge to consider.
CONCLUSION
{52} For the foregoing reasons, we affirm the district court's denial of Defendants' motions for a new trial or remittitur. We also affirm the district court's grant of prejudgment interest.
{53} IT IS SO ORDERED.
WE CONCUR:
MICHAEL E. VIGIL, Judge
M. MONICA ZAMORA, Judge
Stating that "[i]f a trial or hearing has been commenced and the judge is unable to proceed, any other judge may proceed with it upon certifying familiarity with the record and determining that the proceedings in the case may be completed without prejudice to the parties."
This concession only applied to the damages claimed by, or on behalf of, Alfredo, Yahir, Ylairam and Marialy Morga. The concession did not apply to the settled loss of consortium claims by Rene and Georgina Venegas.
Reference
- Full Case Name
- Alfredo MORGA, Individually and on Behalf of the Estate of Ylairam Morga, Deceased; And as Next Friend of Yahir Morga, Minor Child, and Rene Venegas Lopez, Individually and as the Administrator of the Estate of Marialy Ruby Venegas Morga Deceased; And Georgina Leticia Venegas, Individually, Plaintiffs-Appellees, v. FEDEX GROUND PACKAGE SYSTEM, INC., Ruben's Trucking, LLC A/K/A Ruben Reyes A/K/A Shooter's Express Trucking, Inc., the Estate of Elizabeth Sena Quintana, and M&K's Trucking, Inc., Defendants-Appellants.
- Cited By
- 9 cases
- Status
- Published