Sanford v. Johns-Manville Sales Corp.
Opinion of the Court
Ninety-two asbestos cases were consolidated for trial. In order to streamline things, the trial was divided into three distinct phases, the first two phases using the same jury. On appeal
THE TRIAL
The district judge consolidated 92 asbestos cases for trial on the liability issues. After the conclusion of the evidence in the first phase of the trial, the jury found that the defendants’ products were defective and that defendants were grossly negligent. Since the jury returned a finding of gross negligence, the court gave the parties an opportunity to offer additional evidence on whether and to what extent punitive damages should be assessed against the defendants. The same jury decided liability and punitive damages as to all 92 plaintiffs. The question submitted to the jury dealing with punitive damages asked the jury to determine the percentage that punitive damages should bear to compensatory damages. The liability and punitive damages issues made up the first portion of the trial
The second portion of the trial, the Sanford trial, grouped four
Final take nothing judgments were entered in favor of the defendants against plaintiffs Burke, Sanford and Nichols. Final judgment was entered in favor of plaintiff-Wade against the defendants. The remaining Loyd 92 plaintiffs, whose cases have not been tried on compensatory damages, and the defendants, jointly moved the trial court to certify certain issues for interlocutory appeal pursuant to 28 U.S.C. § 1292(b). The motion was granted and interlocutory appeal allowed by this court. Upon joint motion of the parties, the Sanford appeal was consolidated with the Loyd 92 interlocutory appeal.
HAVING YOUR CAKE AND EATING IT TOO: FAILURE TO OBJECT TO THE MODE OF TRIAL
The trial essentially had the following three phases: the liability phase, the punitive damages phase and the compensatory damages phase
GROSS NEGLIGENCE, THEY HAD A RIGHT TO KNOW
Plaintiffs contend that the court should have instructed the Sanford jury
We now address the gross negligence issue. In phase two of the trial, the Loyd 92 jury decided that although the defendants were grossly negligent, no punitive damages should be awarded.
The question before us is not what would happen if the same mode of trial were employed and a jury had found that punitive damages should be awarded. Consequently, we do not decide whether in this situation the gross negligence finding should be put before the jury whose task it is to determine compensatory damages in a similar trifurcated action.
EXCLUDING/ADMITTING EVIDENCE ON THE STATE OF THE ART
Plaintiffs contend that in proving the “state of the art” issue, they were relegated to using secondary evidence. Various documents were excluded from evidence which would have strengthened their case contend Plaintiffs. Furthermore, the videotape deposition of Dr. Cor-win Hinshaw, defendants’ expert witness, was admitted into evidence although plaintiffs’ counsel was not present
Because plaintiffs prevailed on the state of the art issue
EXCLUSION OF EVIDENCE ON THE COMPENSATORY DAMAGES ISSUE
During the compensatory damages phase of the trial, the third phase, the district judge excluded plaintiffs’ exhibits which concerned the progressive nature of asbestos related diseases. The excluded documents showed the following two things: (1.) that the medical tools for diagnosing asbestos related diseases are relatively crude and (2.) that serious disease from asbestos exposure can exist before it can be clinically detected. The exhibits were developed and filed by defendants in other courts. Plaintiffs claim they were forced to prove secondarily what the defendants had previously admitted. The evidence offered during the third phase of the trial consisted of the live testimony of one physician and the deposition testimony of three other physicians. These experts testified on the topics contained in the exhibits which plaintiffs sought to offer. The information was put before the jury in this form rather than through the excluded exhibits. The only item excluded from the jury at this phase of the trial was the fact that six of the nine defendants had filed documents in other cases which indicated they were aware of the facts the plaintiffs sought to prove at this trial.
At this stage of the trial, the issues before the jury concerned the question of compensatory damages. Consequently, the fact that defendants had filed documents in other litigation which showed they may have been aware of relevant facts on the issue of compensatory damages was not
EXCLUSION/ADMISSION—EXHIBITS 76 AND 2600-2604
During closing arguments of the punitive damages phase
The trial judge has broad discretion in the admission or exclusion of evidence. See Peteet v. Dow Chem. Co., 868 F.2d 1428, 1431 (5th Cir.), cert. denied sub nom., Dow Chem. Co. v. Greenhill, — U.S. -, 110 S.Ct. 328, 107 L.Ed.2d 318 (1989); The assertion made by plaintiffs in their pleadings constituted judicial admissions. See White v. Arco/Polymers, Inc., 720 F.2d 1391, 1396 (5th Cir. 1983). In the manner the exhibit was used by defendants we cannot say the trial judge abused his discretion in admitting the exhibit. The exhibit was only once referred to during this phase of the trial. The jury has a right to know what a party seeks in his complaint if the information is relevant. See Frank v. Bloom, 634 F.2d 1245, 1251 (10th Cir. 1980) (stating “[t]he factual matter contained in the pleadings is admissible as an admission by a party made by his agent acting within the scope of his employment”); Continental Ins. Co. of N.Y. v. Sherman, 439 F.2d 1294, 1298 (5th Cir. 1971) (assuming relevancy, pleadings in the same action are generally admissible). Accordingly, no error occurred in the admission of exhibit 76.
Exhibits 2600-2604 were excerpts from financial statements of five of the defendants that were filed with the Securities and Exchange Commission. These exhibits contained information on the wealth of the companies and their ability to deal with the asbestos litigation. One financial statement set forth that in the opinion of management, the asbestos claims would “not have a materially adverse effect on the Company’s financial position.” The jury was instructed they could award any percentage of compensatory damages as punitive damages. During the punitive damages phase, not one defendant argued that an award of punitive damages would bankrupt that defendant.
Furthermore, plaintiffs argue they should have been allowed to admit this evidence in response to defendants’ exhibit 76. Assuming arguendo that error occurred in admitting the exhibit and excluding the others, the error was harmless. The discussion involving defendants’ exhibit 76 took up less than 3 of 172 pages of the punitive damages phase closing argument. The exhibit was hardly used at trial and little attention was focused upon it. The judge instructed the jury on the law of
THE INFAMOUS LETTER
During the course of the compensatory damages phase of the trial, a letter was introduced into evidence. The letter authored by Mr. Madeksho, one of the plaintiffs’ attorneys in this case, was sent to Mr. Dartez, an asbestos plaintiff who previously has been before this court. See Dartez v. Owens-Illinois, et al., 910 F.2d 1291 (5th Cir. 1990); Dartez v. Fibreboard Corp., 765 F.2d 456 (5th Cir. 1985). Nevertheless, Mr. Dartez is not a plaintiff in this action and has absolutely nothing to do with this case except for the fact that he and several of these plaintiffs have the same attorney. The letter sent to Mr. Dar-tez advised him to see Attorney-Madeksho prior to visiting a physician so that the two “may go over what needs to be related to the doctor.” Dartez was also instructed not to fill in the doctor’s questionnaire or have his conversation with the doctor -recorded. Finally, the letter stated: “DO NOT SHOW THIS LETTER TO DEFENSE DOCTOR OR MEMBERS OF HIS STAFF.”
While the letter does not put Attorney-Madeksho in the best light, it was error and an abuse of discretion to admit the letter at any phase of the trial. Try as they may in their brief to contend the letter is relevant, the truth of the matter is the letter was brought out at trial solely to portray plaintiffs’ counsel, specifically Ma-deksho, as a villain. Dartez is not a party to this litigation. The letter dealt solely with what Dartez was to do regarding a medical exam. Error was committed in the admission of this letter.
Shortly after admission of the infamous letter-the judge instructed the jury that the exhibit was withdrawn and they were to disregard the letter and “give no further consideration to it.” The trial judge’s instruction to the jury cured any error which may have occurred from introduction of the letter. See Mouton v. Tug “Ironworker", 811 F.2d 946, 948 (5th Cir. 1987) (“the trial courts instruction to disregard, the objectionable matter was sufficient to cure any error”); Riddle v. Exxon Transp. Co., 563 F.2d 1103, 1108-09 (4th Cir. 1977) (involving an analogous situation in which the court concluded that a cautionary instruction will generally cure any error resulting from the erroneous introduction of evidence; especially when the error is not dwelled
THE TEAGUE REPORT
Dr. Wilson is the testifying expert for defendants in asbestos cases. Dr. Teague is his partner. Mr. Sanford went for an examination to be performed by Dr. Wilson. Dr. Wilson was busy, however, and Dr. Teague performed the examination. Dr. Teague’s examination, recorded in a medical report, revealed asbestosis in Mr. Sanford. A later examination of Mr. Sanford by Dr. Wilson found no evidence of asbestosis, however. Plaintiffs argue that reversible error occurred when the Teague report was not admitted into evidence. They contend the report was an admission of a duly authorized agent under Fed.R.Evid. 801(d)(2)
Under Texas law an agent is authorized to act for and on behalf of the principal and is subject to the principal’s control. Lubbock Feed Lots, Inc. v. Iowa Beef Processors, Inc., 630 F.2d 250, 269 (5th Cir. 1980). It is highly doubtful, not impossi
IN CONCLUSION
We now end by stating that for the above reasons the judgment of the district court is in all respects
AFFIRMED.
. Issues were also certified for interlocutory appeal pursuant to 28 U.S.C. § 1292(b). The opinion addresses and answers the certified issues as well.
. The jury found against the defendants on the liability issue but failed to find that punitive damages were warranted.
. In other words, liability and punitive damages were decided as to all 92 plaintiffs.
. These four cases, along with the interlocutory certification, are the subject of this appeal.
. The Loyd jury decided liability and punitive damages while the Sanford jury decided the compensatory damages for four of the plaintiffs.
. We add, although do not decide its correctness, that the method followed by the lower court is not wholly without support. Rosales v. Honda Motor Co., Ltd., 726 F.2d 259, 260 (5th Cir. 1984), approved a bifurcated trial on the issues of liability and damages, despite the Texas policy "that in personal injury cases the issues are so intertwined that such bifurcated trials are impermissible. Consequently, a trifur-cation may be ordered in federal court even if disallowed in state court as long as substantive state law is not impinged. The mode of the trial appears procedural under Fed.R.Civ.P. 42(b) and the teachings of Hanna v. Plumer, 380 U.S. 460, 473-74, 85 S.Ct. 1136, 1145, 14 L.Ed.2d 8 (1965). Furthermore, Jenkins v. Raymark Ind., Inc., 782 F.2d 468, 474-75 (5th Cir. 1986), approved bifurcation of punitive and compensatory damages. This seems to add further support to the lower court's mode of conducting this trial.
. We think it interesting that plaintiffs were more than happy to try the case in the method proposed by the court until the jury had returned a zero percentage multiplier for punitive damages. Plaintiffs’ counsel, at oral argument, even acknowledged that he did not object to the mode of trial in the lower court. Furthermore, the district court had both subject matter and in personam jurisdiction to try this case. Consequently, plaintiffs’ argument that the court lacked jurisdiction to try the case in the manner which it did is misplaced.
. The "Sanford jury" was the jury that determined compensatory damages for four of the plaintiffs.
. The "Loyd 92” jury determined liability and punitive damages.
. This is so because the jury answered zero to the question inquiring of the percentage of compensatory damages to be assessed against each defendant as punitive damages.
. "State of the art” as used in asbestos litigation refers to the issue of when the dangers of asbestos containing products were known or knowable to the manufacturers of asbestos.
. Plaintiffs' counsel had examined Dr. Hin-shaw on two prior occasions, however. This is undisputed by plaintiffs.
. The state of the art issue relates to liability. Plaintiffs even conceded in their brief that they prevailed on the state of the art issue.
. Plaintiffs offered no evidence prior to closing argument in this phase; the defendants offered some evidence, however.
. After the incident, the letter was not mentioned again by either side during the trial. Furthermore, the fact the letter took up a small portion of a long and complex trial lends support to our conclusion of the harmlessness of the letter.
. Fed.R.Evid. 801(d)(2)(D) provides a statement is not hearsay if "[t]he statement is offered against a party and is ... a statement by the party’s agent or servant concerning a matter within the scope of the agency or employment, made during the existence of the relationship.”
. If anything, Dr. Teague was possibly an independent contractor. An independent contractor undertakes to do a specific piece of work for another using his own means and methods without submitting himself to the control of the other with respect to all details. Sherard v. Smith, 778 S.W.2d 546, 548-49 (Tex.App. — Corpus Christi 1989, writ denied). Since Dr. Teag-ue was presumably under no control of the defendants, he was an independent contractor under the "right of control” test used in Texas to identify an agency relationship. Id.
Reference
- Full Case Name
- Bobby R. SANFORD, Cross-Appellee v. JOHNS-MANVILLE SALES CORP., Armstrong World Industries, Inc., Celotex Corp., Eagle-Picher Industries, Inc., Gaf Corp., Owens-Corning Fiberglas Corp., Owens-Illinois, Inc., and Pittsburgh Corning Corp., Cross-Appellants Gerald L. BURKE, Cross-Appellee v. JOHNS-MANVILLE SALES CORP., Fibreboard Corp., Armstrong World Industries, Inc., Celotex Corp., Eagle-Picher Industries, Inc., and Pittsburgh Corning Corp., Cross-Appellants Joe B. NICHOLS, Cross-Appellee v. JOHNS-MANVILLE SALES CORP., Fibreboard Corp., Armstrong World Industries, Inc., Celotex Corp., Eagle-Picher Industries, Inc., Pittsburgh Corning Corp., and GAF Corp., Cross-Appellants Robert E. WADE, Cross-Appellee v. JOHNS-MANVILLE SALES CORP., Fibreboard Corp., Armstrong World Industries, Inc., Celotex Corp., Eagle-Picher Industries, Inc., Owens-Corning Fiberglas Corp., Owens-Illinois, Inc., and Pittsburgh Corning Corp., Cross-Appellants Louis LOYD and wife, Jo Ann Loyd v. JOHNS-MANVILLE SALES CORP.
- Cited By
- 14 cases
- Status
- Published