Davis v. Mobil Oil Exploration and Producing Southeast, Inc.

• Decision Date: 06 February 1989
• Docket Number: No. 87-3895,87-3895
• Citation: 864 F.2d 1171
• Parties: 27 Fed. R. Evid. Serv. 787 Don Michael DAVIS, Plaintiff-Appellee, Cross-Appellant & Cross-Appellee, Highlands Insurance Co., Intervenor and Third Party Defendant-Appellee, Cross- Appellant, v. MOBIL OIL EXPLORATION AND PRODUCING SOUTHEAST, INC., Defendant-Third-Party Plaintiff-Appellant, Cross-Appellee, v. DUAL DRILLING COMPANY, Third-Party Defendant-Appellee.
• Court: U.S. Court of Appeals — Fifth Circuit

Page 1171

864 F.2d 1171

27 Fed. R. Evid. Serv. 787

Don Michael DAVIS, Plaintiff-Appellee, Cross-Appellant & Cross-Appellee, Highlands Insurance Co., Intervenor and Third Party Defendant-Appellee, Cross- Appellant, v. MOBIL OIL EXPLORATION AND PRODUCING SOUTHEAST, INC., Defendant-Third-Party Plaintiff-Appellant, Cross-Appellee, v. DUAL DRILLING COMPANY, Third-Party Defendant-Appellee.

No. 87-3895.

United States Court of Appeals, Fifth Circuit.

Feb. 6, 1989.

Rehearing Denied March 7, 1989.

Craig R. Nelson, New Orleans, La., for Mobil Oil Exploration & Producing Southeast, Inc.

George M. Papale, Jesse M. Suit, III, Gretna, La., for Davis.

Jeffrey J. Christovich, New Orleans, La., for Highlands Ins. Co.

Daniel A. Webb, New Orleans, La., for Highlands and Dual Drilling.

Appeals from the United States District Court for the Eastern District of Louisiana.

Before JOHNSON, JOLLY, and JONES, Circuit Judges.

JOHNSON, Circuit Judge:

Defendant Mobil Oil Exploration and Producing Southeast, Inc. (Mobil) appeals from a district court judgment entered pursuant to a jury verdict in favor of plaintiff Don Michael Davis for injuries which Davis suffered while employed as a floorhand on a land rig located on a Mobil well site. The land rig was owned and operated by Dual Drilling Company (Dual). On appeal, Mobil primarily challenges the sufficiency of the evidence to support the jury's finding of liability on its part for the injuries suffered by Davis. Mobil also disputes the sufficiency of the evidence to support the damage award. Further, Mobil challenges an evidentiary ruling by the district court admitting testimony offered by Davis regarding certain statements made by an unnamed Mobil employee.

Mobil also appeals from an order of the district court dismissing its third-party complaint for indemnity against the insurance carrier for Dual, Highlands Insurance Company (Highlands). Finally, Highlands, as an intervenor in the instant suit due to its status as workmen's compensation carrier for Dual, asserts on appeal that the district court erred in its computation of the reimbursment due Highlands from the judgment awarded Davis for workmen's compensation benefits already paid to Davis by Highlands. After reviewing the record and the various contentions of the parties, we affirm the judgment of the district court in all respects except as to the sufficiency of the evidence to support the damages award to Davis for future medical expenses. On the issue of future medical expenses, we reverse and render.

I. FACTS AND PROCEDURAL HISTORY

The instant dispute arises out of an accident suffered by plaintiff Don Michael Davis during the course of his employment as a floorhand for Dual Drilling Co. on a land rig owned by Dual located near Vacherie, Louisiana. The well site on which the rig was located was leased by Mobil who contracted with Dual to supervise, manage, and perform all of the drilling work on the well site. The accident sustained by Davis on the Dual rig which forms the basis of the instant suit occurred on February 5, 1984, when Davis slipped and fell due to an alleged "gross accumulation of drilling mud on the floor" of the rig. As a result of the fall, Davis suffered serious injuries to his back.

In the subsequent negligence suit brought by Davis against Dual and Mobil, Davis maintained that the mud on which he fell accumulated on the drill floor of the rig because a "Mobil company man" instructed Dual employees not to wash mud off the drill floor as frequently as safe practice would ordinarily dictate because of Mobil's desire to conserve water on the well site. Highlands Insurance Company, the workmen's compensation carrier for Dual, later intervened in the negligence suit brought by Davis to recover workmen's compensation benefits which Highlands had previously paid to Davis as a result of his accident. Additionally, Mobil filed a third-party complaint for indemnity against Highlands.

Thereafter, a jury returned a verdict finding Mobil partially liable for the injuries which Davis sustained as a result of his fall on the rig. The jury then awarded Davis damages in the amount of $206,000, which sum was reduced to $51,192 to account for the jury's finding of contributory negligence on the part of Davis and the negligence of his immediate employer, Dual. As to Highlands' claim in intervention for reimbursement of workmen's compensation benefits previously paid to Davis, the district court did permit such reimbursement, but not from that portion of the damage award reflecting the non-economic losses of Davis. Finally, the district court dismissed Mobil's third-party complaint for indemnity against Highlands. Mobil and Highlands now appeal.

II. DISCUSSION

A. Sufficiency of the Evidence

On appeal, Mobil challenges the sufficiency of the evidence to support the jury's verdict in favor of Davis. Mobil also contends that it cannot legally be responsible for the injuries sustained by Davis even assuming the veracity of the facts surrounding the accident as maintained by Davis at trial. Before proceeding to Mobil's contention regarding the sufficiency of the evidence to support the jury's verdict, however, it is necessary to address a further contention by Mobil regarding the admissibility of certain testimony which the district court allowed Davis to introduce at trial. Specifically, Mobil contends that the district court erred in allowing Davis and two of his co-workers to testify as to an unsafe directive allegedly issued by a Mobil company man at a safety meeting of Dual's employees on the day of Davis' accident. Davis and his co-workers testified that a Mobil company man instructed Dual employees not to wash off the drill floor until six joints of pipe had been drilled--apparently an unsafe practice which allows mud to accumulate on the floor of a rig.

In arguing that the district court erred in allowing such testimony, Mobil asserts that the testimony of Davis and his co-workers constitutes inadmissible hearsay. Davis, however, asserts that the testimony is not hearsay, but constitutes an admission of a party opponent, Mobil, which may be introduced into evidence pursuant to Fed.R.Evid. 801(d)(2)(D). Rule 801(d)(2)(D) provides in pertinent part:

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[.]

Mobil argues that the testimony of Davis and his co-workers concerning the unsafe directive made by the unidentified Mobil company man does not fall within the purview of Rule 801(d)(2)(D) since Davis and his co-workers failed to identify by name the Mobil company man who made the revealing statement. Presented with the above argument by Mobil, the inquiry for this Court becomes whether enough evidence was presented to support a conclusion by the district court that a certain unidentified person was in fact the agent of Mobil so that any admissions made by that person constituted the admissions of Mobil for purposes of Rule 801(d)(2)(D).

In this regard, Davis maintains that, while he did not know the names of the Mobil employees at the safety meeting where the unsafe directive was issued, he did recall that three Mobil employees were present at the meeting and the older of the three Mobil employees issued the order to conserve water by refraining from washing down the drill floor until six joints of pipe had been drilled. Further, Davis testified that the man who issued the unsafe order was wearing a Mobil hard hat. Additionally, Davis' two co-workers testified unequivocally that the individual who issued the order to conserve water was a Mobil company man. Persuaded that the above evidence is sufficient to allow the district court to permit the testimony as an admission against Mobil, we affirm the decision of the district court on this point. It should not be understated, however, that while a name is not in all cases required, a district court should be presented with sufficient evidence to conclude that the person who is alleged to have made the damaging statement is in fact a party or an agent of that party for purposes of making an admission within the context of Rule 801(d)(2)(D). ¹

Having determined that the district court did not err in admitting the testimony of Davis and his co-workers as to the unsafe instruction from the Mobil company man, we now address Mobil's contention that insufficient evidence was adduced at trial to support the findings of the jury. At the outset, it is noted that the above challenge to the jury's verdict was initially presented to the district court by Mobil in the context of a motion for judgment notwithstanding the verdict which the district court denied. Because of the deference afforded to the factual findings of the jury, a district court is prohibited from granting a motion for judgment notwithstanding the verdict "unless the evidence points so strongly and overwhelmingly in favor of the moving party that reasonable persons could not arrive at a contrary verdict." Knight v. Texaco, 786 F.2d 1296, 1298 (5th Cir.1986). In reviewing the decision of a district court to deny a motion for judgment notwithstanding the verdict, we view all of the evidence in the light most favorable to the nonmoving party and with all reasonable inferences from that evidence in favor of the nonmoving party. Id.

[I]f there is substantial evidence opposed to the motions, that is, evidence of such quality and weight that reasonable and fair-minded men in the exercise of impartial judgment might reach different conclusions, the motion[ ] should be denied,.... [I]t is the function of the jury as the traditional finder of the facts, and not the Court, to weigh conflicting evidence and inferences, and determine the credibility of witnesses.

Boeing Co. v. Shipman, 411 F.2d 365, 374-75 (5th...