Alyeska Pipeline Service Co., Inc. v. Beadles

• Decision Date: 23 January 1987
• Docket Number: S-1501,Nos. S-1459,s. S-1459
• Citation: 731 P.2d 572
• Parties: ALYESKA PIPELINE SERVICE COMPANY, INC., Appellant, v. Robert BEADLES, Appellee. Robert BEADLES, Appellant, v. ALYESKA PIPELINE SERVICE COMPANY, INC., Appellee.
• Court: Alaska Supreme Court

Page 572

731 P.2d 572

ALYESKA PIPELINE SERVICE COMPANY, INC., Appellant, v. Robert BEADLES, Appellee.

Robert BEADLES, Appellant, v. ALYESKA PIPELINE SERVICE COMPANY, INC., Appellee.

Nos. S-1459, S-1501.

Supreme Court of Alaska.

Jan. 23, 1987.

Rehearing Denied Feb. 27, 1987.

Marcus R. Clapp and John V. Acosta, Hughes, Thorsness, Gantz, Powell and Brundin, Fairbanks, for Alyeska Pipeline Service Co.

Arthur Lyle Robson, Fairbanks, for Robert Beadles.

Before RABINOWITZ, C.J., and BURKE, MATTHEWS, COMPTON and MOORE, JJ.

OPINION

RABINOWITZ, Chief Justice.

Robert Beadles was injured on August 8, 1981, while working at Pump Station Two of the Alaska Pipeline. Shortly after the accident, Beadles began to receive worker's compensation benefits from his employer, Northland Maintenance Company. He subsequently filed a negligence action against Alyeska Pipeline Service Company, Inc. (Alyeska), asserting that Alyeska was liable for his injuries and requesting punitive damages for its alleged reckless disregard for the safety of others. Alyeska filed a motion for summary judgment on the issue of punitive damages, which the superior court granted. ¹ The jury ultimately found Alyeska liable and returned a verdict of $270,918.00 for Beadles. Beadles now appeals from the superior court's denial of his motion for a new trial; its grant of summary judgment on his claim for punitive damages; and its disallowance of certain claimed costs. Alyeska appeals from the superior court's calculation of costs and attorney's fees under Civil Rule 68. ²

I. THE SUPERIOR COURT'S DENIAL OF A NEW TRIAL.

Beadles' primary contention here is that the superior court erred in refusing to grant a new trial because the jury's verdict of $270,918.00 was below the sum of Beadles' estimated past lost wages and his medical expenses. ³

The grant or denial of a motion for a new trial rests in the sound discretion of the trial court. We will not interfere with the trial court's discretion except in the most exceptional circumstances and to prevent a miscarriage of justice. Ahlstrom v. Cummings, 388 P.2d 261, 262 (Alaska 1964). A motion for new trial will be granted "where the evidence to support the verdict is completely lacking or is so slight and unconvincing as to make the verdict plainly unreasonable and unjust." Sloan v. Atlantic Richfield Co., 541 P.2d 717, 724 (Alaska 1975), vacated on other grounds, 552 P.2d 157 (Alaska 1976), quoting Ahlstrom, 388 P.2d at 262. If there is an evidentiary basis for the jury's decision, denial of the motion for a new trial will be affirmed. City of Whittier v. Whittier Fuel & Marine Corp., 577 P.2d 216, 222 (Alaska 1978). Here we conclude that the superior court did not abuse its discretion in denying Beadles' motion for a new trial.

Our review of the record does not lead us to believe that the evidence supporting the jury's damage award is so lacking as to make the award plainly unreasonable and unjust. The evidence indicated that Beadles' lost wages up to the time of trial totaled $201,914.00. Witnesses testified that Beadles had the capacity to become a vocational education instructor, engineer, or other related professional, and that he was a highly competent individual. Given the evidence as to lost wages and the stipulated amount of $29,813.24 of medical expenses, it is clear that the jury's determination of damages fell within the range of the evidence presented. ⁴

II. THE SUPERIOR COURT'S GRANT OF ALYESKA'S MOTION FOR SUMMARY JUDGMENT ON THE ISSUE OF PUNITIVE DAMAGES.

By granting Alyeska's motion for summary judgment on the issue of punitive damages, the superior court ruled that Beadles was not entitled to recover such damages against Alyeska. We recently faced a similar issue in Hayes v. Xerox, 718 P.2d 929 (Alaska 1986). There we upheld the superior court's order granting summary judgment and explained in part:

[I]n order to recover punitive damages "the plaintiff must prove that the wrongdoer's conduct was 'outrageous, such as acts done with malice or bad motives or a reckless indifference to the interests of another.' Actual malice need not be proved." Strum, Ruger & Co. v. Day, 594 P.2d 38, 46 (Alaska 1979), modified 615 P.2d 621 (Alaska 1980), cert. denied, 454 U.S. 894, 102 S.Ct. 391, 70 L.Ed.2d 209 (1981), overruled on other grounds, Dura Corp. v. Harned, 703 P.2d 396 (Alaska 1985), quoting Restatement (Second) of Torts § 908 (Tent. Draft No. 19, 1973). Conscious action in " 'deliberate disregard of [others] ... may provide the necessary state of mind to justify punitive damages.' " Id. If the evidence does not give rise to an inference of actual malice or conduct sufficiently outrageous to be deemed equivalent to actual malice, then the trial court need not submit the issue of punitive damages to the jury. Alyeska Pipeline Service Co. v. O'Kelley, 645 P.2d 767, 774 (Alaska 1982) (citations omitted).

Id. at 934-35. In Ross Laboratories v. Thies, 725 P.2d 1076, 1081 (Alaska 1986), quoting in part Alaska Placer Co. v. Lee, 553 P.2d 54, 61 (Alaska 1976), we reiterated that "punitive damages are a harsh remedy 'not favored in law.' "

In reviewing the superior court's grant of summary judgment on the issue of punitive damages, we must ascertain whether any genuine issue of material fact exists; if not, Alyeska accordingly is entitled to judgment as a matter of law. See Riley v. Northern Commercial Co., Mach. Div., 648 P.2d 961, 965-66 (Alaska 1982). Our review of the record discloses no basis for a punitive damage claim against Alyeska. ⁵ In short, Beadles' showing does not demonstrate that Alyeska's conduct was "outrageous" as we have previously defined that term. ⁶

III. THE SUPERIOR COURT'S DISALLOWANCE OF CERTAIN COSTS.

Beadles argues that the superior court should have awarded costs for expert witnesses, non-expert witnesses, photographic enlargement of exhibits, travel expenses for counsel to travel to Colorado Springs, postage, filing fees for a petition for review, and service of process fees. "The award and amount of costs and fees is committed to the broad discretion of the court and will not be disturbed on appeal absent a clear showing that the trial court's determination was arbitrary, capricious, or manifestly unreasonable, or that it stemmed from an improper motive." Alvey v. Pioneer Oilfield Serv., 648 P.2d 599, 601 (Alaska 1982), citing Tobeluk v. Lind, 589 P.2d 873, 878 (Alaska 1979).

The superior court implicitly determined that Beadles' non-expert witnesses were needed for less than three hours. Since Beadles offered no evidence to the contrary, we deem his first claim of error in regard to costs to be without merit. ⁷

Each of Beadles' expert witnesses who testified for one hour received $37.50 and those who testified for two hours received $62.50. In light of the fact that Administrative Rule 7(c) permits a maximum of $25.00 per hour for expert testimony, we see no error in the court's ruling. ⁸

Two of Beadles' medical experts flew to Fairbanks from Colorado Springs, Colorado, and another of Beadles' experts incurred significant travel expenses. The superior court in these three instances awarded only $12.50. This ruling was erroneous in view of the provisions of Administrative Rule 7(b). ⁹

The superior court denied Beadles' counsel's expenses for a trip to Colorado Springs to interview witnesses, concluding that a telephone interview would have sufficed. We cannot say that it was unreasonable on the superior court's part to find it unnecessary for Beadles' counsel to fly to Colorado Springs to interview prospective witnesses. Cf. Eagle Air v. Corron & Black/Dawson & Co., 648 P.2d 1000 (Alaska 1982). ¹⁰

The superior court also denied costs for postage, service of process on defendants other than Alyeska, and for filing a petition for review of the superior court's ruling on the summary judgment motion as to punitive damages. ¹¹ Civil Rule 79(b) allows costs for postage when service is by mail or to enable a party to secure some right accorded to him in the action or proceeding. The court awarded Beadles no costs for postage. In our view this was erroneous and the question of postage costs will be remanded for redetermination. However, the superior court did not err in refusing to award costs for service of process on other defendants. See Bovee v. LaSage, 664 P.2d 160, 165 (Alaska 1983). Nor did the court err in rejecting any award for costs in connection with Beadles' failed petition for review. Appellate Rule 508(a) generally prohibits costs if a petition is denied by an appellate court. ¹²

IV. CIVIL RULE 68 AND ATTORNEY'S FEES.

In its separate appeal, Alyeska contends that the superior court incorrectly determined that the "judgment finally obtained" by Beadles was greater than the offer of judgment tendered by Alyeska and thus erred in denying Alyeska's Rule 68 motion for attorney's fees and awarding fees to Beadles. Alyeska argues that the "judgment finally obtained" should not include the portion of the verdict equal to the amount previously paid to Beadles in worker's compensation benefits and further that the superior court erroneously awarded prejudgment interest on that amount. ¹³

After this litigation commenced, Alyeska tendered to Beadles a written offer of judgment in the amount of $365,000.00 plus costs and attorney's fees. Beadles did not accept the offer, and, as previously noted, the jury returned a $270,918.00 verdict in his favor. Alyeska then filed a motion for an award of attorney's fees and costs incurred after the offer of judgment under Rule 68, and Beadles requested fees pursuant to Rule 82.

The superior court awarded Beadles attorney's fees of $39,163.30 pursuant to Rule 82. The court explained that Beadles was entitled to prejudgment interest of $107,759.86 as of the date of the offer of judgment and that his recovery as of that date was $372,677.86. Since this total exceeded Alyeska's $365,000.00 offer, the superior court concluded...