Duncan v. Ford Motor Co.

Decision Date12 August 2009
Docket NumberNo. 4607.,4607.
Citation385 S.C. 119,682 S.E.2d 877
CourtSouth Carolina Court of Appeals
PartiesJerry D. DUNCAN and Anna M. Duncan, Respondents, v. FORD MOTOR COMPANY, Appellant.

Curtis L. Ott and Carmelo B. Sammataro, both of Columbia, for Appellant.

Karl S. Brehmer and L. Darby Plexico, III, both of Columbia, for Respondents.

HEARN, C.J.

Jerry and Anna Duncan initiated this lawsuit against Ford Motor Company after a fire, originating under the hood of their 2000 Ford Expedition, destroyed their home. The Duncans alleged Ford knowingly installed a defective speed control deactivation switch into the vehicle, which caused it to ignite. At the conclusion of trial, the jury awarded the Duncans $620,759.79 in actual damages, reduced to $589,721.80 in proportion to their comparative fault, and $3 million in punitive damages. Ford appeals. We affirm.

FACTS

Ford manufactured the Duncans' Ford Expedition in December 1999. A short time later, the Duncans purchased the vehicle and drove it without major incident until March 1, 2005. On that day, Anna Duncan parked her vehicle in the carport next to her home and walked inside. A few minutes later, her husband, Jerry, walked outside and observed fire coming from underneath the hood of the Expedition. Upon seeing the fire, Jerry told his wife to call 911, tried to put the fire out with a fire extinguisher, and attempted to drive the car away from their home. When the fire extinguisher failed and the car did not start, Jerry attempted to use the hayfork on the front of his tractor to remove the car from the premises. However, this effort was also unsuccessful. By this time, the fire had spread to the carport, and strong winds quickly pushed the flames from the carport to the Duncans' adjacent home. The Duncans fled to the end of the driveway and watched as the fire destroyed their home.

Prior to this incident, Ford recalled two lines of vehicles because of under-hood fires. First, in 1999, Ford recalled the panther platform line of vehicles, consisting of the Lincoln Town Car, the Ford Crown Victoria, and the Mercury Grand Marquis. Later, in 2005, Ford recalled the F-Series line of vehicles, including the Expedition. Ford attributed the under-hood fires in both lines of vehicles to the failure of the speed control deactivation switch (the switch). The switch, designed and manufactured by Texas Instruments, contained a hydraulic side and an electrical side separated by a thin layer of plastic called the kapton seal. The chief function of the kapton seal was to prevent brake fluid from entering the electrical side of the switch. In both the 1999 and 2005 recalls, Ford determined the fires were caused by the failure of the kapton seal to prevent fluid from entering the electrical side of the switch. Ford first installed the switch in panther platform vehicles in 1992. The next year, Ford installed the switch in the F-Series line of vehicles. The design of the switch and its component parts has remained unchanged since its initial installation in the panther platform line of vehicles in 1992.

One month after the 1999 recall of the panther platform vehicles, a group of scientists employed by Ford produced an internal document, the Special Investigation Team Report (SIT Report), which analyzed the cause of the fires and proposed solutions to remedy the problem. In the report, dated June 11, 1999, Ford acknowledged it did not completely understand the cause of the fires. However, the report identified one of the potential causes as the failure of the kapton seal to prevent brake fluid from entering the electrical side of the switch. The report did not mention deviations in the manufacturing process at Texas Instruments as a reason for the fires. The report outlined ten possible solutions to remedy the fires. Ford did not implement any of these proposed solutions and did not alter the kapton seal of the switch during the 1999 recall.

According to Ford's expert witness, Mark Hoffman, Ford neither incorporated the fixes proposed by the report nor altered the kapton seal because it determined that the seal's failure and the subsequent fires were caused by manufacturing problems at Texas Instruments. Specifically, Hoffman noted the change in the manufacturing process at Texas Instruments, from a manual to an automated system, resulted in component parts deviating from the specifications required by Ford. Accordingly, during the 1999 recall, Ford took two steps. First, it ensured that Texas Instruments resolved its manufacturing issues. Second, it replaced the switches in the panther platform series deviating from its specifications with switches conforming to its specifications.

The Duncans' expert, Jeff Morrill, made three observations when comparing the fire in the Duncans' Expedition to the fires in the recalled 1999 panther platform line of vehicles. First, the switches found in both were identical. Second, the fires were caused by the failure of the kapton seal to prevent brake fluid from entering into the electrical side of the switch. Third, Ford knew of the failure of the kapton seals before manufacturing the Duncans' 2000 Expedition as evidenced by the 1999 recall itself and the SIT Report. The Duncans then asked Kendrick Richardson, an expert in mechanical engineering, whether Ford breached the engineering standard of care, assuming the above observations reached by Morrill were correct. Richardson responded in the affirmative. The trial court precluded Ford from cross-examining Morrill and Richardson about the manufacturing problems at Texas Instruments, ruling this line of questioning was irrelevant.1

The jury returned a verdict in favor of the Duncans, awarding them $620,759.79 in actual damages, reduced to $589,721.80 in proportion to their comparative fault, and $3 million in punitive damages. This appeal followed.

STANDARD OF REVIEW

"[T]he admission or exclusion of evidence in general is within the sound discretion of the trial court." Fields v. Reg'l. Med. Ctr. Orangeburg, 363 S.C. 19, 25, 609 S.E.2d 506, 509 (2005). "To warrant reversal based on the admission or exclusion of evidence, the appellant must prove both the error of the ruling and the resulting prejudice, i.e., that there is a reasonable probability the jury's verdict was influenced by the challenged evidence or lack thereof." Id. at 26, 609 S.E.2d at 509. Appellate courts apply a de novo standard of review in determining whether an award of punitive damages is constitutionally excessive. Cooper Indus., Inc. v. Leatherman Tool Group, Inc., 532 U.S. 424, 436, 121 S.Ct. 1678, 149 L.Ed.2d 674 (2001). However, the factual findings made by the district court in conducting the excessiveness inquiry must be accepted unless clearly erroneous. Id. at 435, 121 S.Ct. 1678.

LAW/ANALYSIS
I. EVIDENTIARY ISSUES
A. Qualifications of Jeff Morrill

At trial, Jeff Morrill was qualified as an expert in the field of cause and origin of fire; however, the trial court found he was not qualified to offer design opinions. Ford asserts the trial court erred by allowing Morrill to present design opinions. Ford alleges Morrill gave design opinions when he testified about the reasons for the 1999 and 2005 recalls. In addition, Ford argues Morrill presented a design opinion when he concluded the cause of the recalls was the same. Lastly, Ford claims the trial court erred by allowing Morrill to testify about the 1999 SIT Report because he never worked for Ford and had no firsthand knowledge regarding the 1999 recall or the report. We disagree.

The qualification of an expert witness and the admissibility of expert testimony are matters within the discretion of the trial court. Gooding v. St. Francis Xavier Hosp., 326 S.C. 248, 252, 487 S.E.2d 596, 598 (1997). A trial court's ruling on the admissibility of expert testimony constitutes an abuse of discretion when the ruling is manifestly arbitrary, unreasonable, or unfair. Means v. Gates, 348 S.C. 161, 166, 558 S.E.2d 921, 924 (Ct.App.2001). "The facts or data in the particular case upon which an expert bases an opinion or inference may be those perceived by or made known to the expert at or before the hearing." Rule 703, SCRE.

Contrary to Ford's assertions, Morrill testified exclusively in his area of expertise — cause and origin of fire — and never offered any design opinions. He testified that Ford recalled both lines of vehicles because of under-hood fires. Next, Morrill stated the cause of the fires in both lines of vehicles was due to the failure of the kapton seal to prevent brake fluid from entering the electrical side of the switch. Morrill never testified that the kapton seal was defectively designed; rather, he only stated it caused fires. As an expert in cause and origin of fire, Morrill was qualified to offer such an opinion. In forming his conclusion, Morrill relied on the SIT Report. Because he relied on the report in forming his opinion, Morrill could testify about the report, regardless of whether he possessed firsthand knowledge of the report, the recalls, or worked at Ford. See Hundley ex. rel. Hundley v. Rite Aid of S.C., Inc., 339 S.C. 285, 295, 529 S.E.2d 45, 50 (Ct.App.2000) ("An expert witness may state an opinion based on facts not within his firsthand knowledge."); State v. Slocumb, 336 S.C. 619, 640, 521 S.E.2d 507, 518 (Ct. App.1999) (noting an expert may testify about the facts or data upon which he or she bases an opinion, as long as they are of a type reasonably relied upon by other experts in the field). Accordingly, the trial court properly allowed Morrill to testify in his area of expertise at trial and further, did not err in allowing him to base his opinion on the SIT Report.

B. Richardson Hypothetical

Next, Ford argues the trial court erred by allowing the Duncans to ask Kendrick Richardson whether Ford breached its engineering standard of care based on the...

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