Hills v. United Parcel Serv. Inc

• Decision Date: 14 May 2010
• Docket Number: No. 20080826.,20080826.
• Citation: 232 P.3d 1049,2010 UT 39
• Parties: Bruce HILLS and Judith Hills, individually, and as natural parents and heirs of Mark D. Hills (deceased), Plaintiffs and Appellants,v.UNITED PARCEL SERVICE, INC.; UPSCO United Parcel Service Co.; Liberty Mutual Holding Company, Inc.; Liberty Mutual Fire Insurance Company; and Skyline Electric Company, Defendants and Appellees.
• Court: Utah Supreme Court

232 P.3d 1049

2010 UT 39

Bruce HILLS and Judith Hills, individually, and as natural parents and heirs of Mark D. Hills (deceased), Plaintiffs and Appellants,v.UNITED PARCEL SERVICE, INC.; UPSCO United Parcel Service Co.; Liberty Mutual Holding Company, Inc.; Liberty Mutual Fire Insurance Company; and Skyline Electric Company, Defendants and Appellees.

No. 20080826.

Supreme Court of Utah.

May 14, 2010.

Edward P. Moriarity, Bradley L. Booke, Salt Lake City, Minot C. Maser, Missoula, MT, for plaintiffs.

Michael E. Dyer, Kira M. Slawson, Dori K. Petersen, Salt Lake City, Taggart Hansen, Jason C. Schwartz, Daniel J. Davis, Denver, CO, for defendant United Parcel Service, Inc.

Michael E. Dyer, Salt Lake City, for defendant UPSCO United Parcel Service Co.

Gary L. Johnson, Zachary E. Peterson, Salt Lake City, for defendant Liberty Mutual Holding Company, Inc. and Liberty Mutual Fire Insurance Company.

Dennis R. James, Brian H. Hess, Sara N. Becker, Salt Lake City, for defendant Skyline Electric Company.

NEHRING, Justice:

INTRODUCTION

¶ 1 In this appeal we consider for the first time whether Utah should recognize a cause of action for third-party spoliation of evidence. Bruce and Judith Hills sued United Parcel Service, Inc. (“UPS”) and Liberty Mutual Fire Insurance Co. for destroying evidence related to the death of their son, Mark Hills. Mark Hills' death is the subject of a wrongful-death suit against Skyline Electric Co. The district court dismissed the Hills' spoliation complaint under Utah Rule of Civil Procedure 12(b)(6) because it did not state a claim inasmuch as Utah does not recognize an independent tort of spoliation of evidence. Because we decline to adopt a tort of spoliation under the unique facts of this case, we affirm.

BACKGROUND

I. THE ACCIDENT AND INVESTIGATION

¶ 2 In August 2003, Skyline performed electrical work on a light fixture in a UPS mobile distribution unit. Skyline's work was fatally defective. Skyline failed to ground the fixture, creating a life-threatening “hot” electrical environment within the trailer. Four days later, at about 4:20 a.m., UPS employee Mark Hills reached for a fallen package and completed the electric circuit. He was electrocuted.

¶ 3 UPS mounted an immediate investigation of Mark Hills' death. UPS summoned Skyline personnel to the scene of the accident at about 6:15 a.m. UPS instructed Skyline to disassemble an electrical j-box that appeared to be the source of the problem. During this process, a plastic wall anchor piece disappeared.

¶ 4 Approximately three hours later, UPS contacted the Utah Occupational and Safety Health Division of the Labor Commission (“UOSH”). The UOSH compliance officer who came to the scene noted that it had already been altered. As a result, he was unable to ascertain the cause of Mark Hills' electrocution. The compliance officer instructed UPS to seal the scene from any further contact or activity until authorized by UOSH.

¶ 5 The next morning, UPS's workers' compensation insurance carrier, Liberty Mutual, hired an electrical contractor to investigate the scene. When the UOSH compliance officer returned to the scene that afternoon, he recognized that despite his instructions, the scene had been altered yet again. As a result, UOSH fined UPS $71,700. When UPS contested the citation, the compliance officer reduced the fine to $6,000 and reclassified the citation from “willful” to “serious.” The officer reasoned that although “the plastic anchor pertaining to the cause of the accident was removed or destroyed while under the control of UPS,” the situation was mitigated because UPS provided photographs of the plastic wall anchor taken shortly after the accident occurred.

II. PROCEDURAL HISTORY

¶ 6 Two lawsuits followed. First, the Hills filed a wrongful-death action against Skyline. They alleged that Skyline's negligent installation of electrical equipment caused Mark Hills' death. Second, during the discovery stage of the wrongful-death case, the Hills sued UPS, Liberty Mutual, and Skyline for allegedly destroying evidence related to the cause of electrocution. The complaint in the latter spoliation lawsuit alleged three causes of action: negligence, “intentional-misconduct,” and “tortious interference.”

¶ 7 In response, UPS and Liberty Mutual moved to dismiss the Hills' spoliation complaint; Skyline filed cross-claims against UPS for spoliation of evidence, opposed UPS's motion to dismiss, and joined the Hills' opposition to UPS's motion to dismiss. UPS then moved to dismiss Skyline's cross-claim on the grounds that Utah does not recognize the tort of spoliation of evidence. The district court ordered that both lawsuits be consolidated for discovery purposes. The court also stayed UPS's and Liberty Mutual's motions to dismiss the Hills' spoliation complaint pending the resolution of the wrongful-death action.

¶ 8 After further discovery, Skyline admitted liability for Mr. Hills' death but disputed the damages alleged by his estate. In light of Skyline's concession of liability in the wrongful-death action, UPS and Liberty Mutual renewed their motions to dismiss the Hills' spoliation complaint.

¶ 9 The district court initially dismissed Skyline's cross-claims against UPS, the Hills' negligence claims against all defendants, and any part of the “intentional misconduct” and “tortious interference” claims that duplicated damage claims in the wrongful-death action. The Hills do not appeal these orders. The court left open any claims for damages, including punitive damages, that might be found to flow from the alleged spoliation of evidence.

¶ 10 After supplemental briefing on the pending issues, the district court dismissed the Hills' remaining “intentional misconduct” and “tortious interference” claims under Utah Rule of Civil Procedure 12(b)(6) for failure to state a claim upon which relief may be granted. The court concluded that since neither of the Hills' claims exist in Utah, the Hills “appear to be claiming an independent tort of intentional spoliation of evidence.” The court found, however, that neither “the intentional nor the negligent spoliation of evidence as an independent tort has been adopted in Utah.” The court therefore applied traditional tort law and dismissed the Hills' spoliation claims because the Hills failed to show any damages caused by the alleged spoliation since Skyline had admitted liability in the underlying wrongful-death action. As an alternative ground for its decision, the district court held that the claims were barred by the exclusive-remedy provision of the Utah Workers' Compensation Act. We have jurisdiction over this appeal pursuant to Utah Code section 78A-3-102(3)(j) (2008).

STANDARD OF REVIEW

¶ 11 Because the propriety of a dismissal under Utah Rule of Civil Procedure 12(b)(6) for failure to state a claim is a question of law, “we give the trial court's ruling no deference and review it under a correctness standard.” Helf v. Chevron U.S.A., Inc., 2009 UT 11, ¶ 14, 203 P.3d 962 (internal quotation marks omitted).

ANALYSIS

¶ 12 This case presents two issues, each an issue of first impression: (1) whether Utah recognizes an independent tort of spoliation of evidence and, if so, (2) whether Utah recognizes a dual-capacity exception to the exclusive-remedy provision of the Utah Workers' Compensation Act. Because we decline to adopt a tort of spoliation of evidence on the facts of this case, we do not address the dual-capacity-exception issue.

I. WE DECLINE TO ADOPT AN INDEPENDENT TORT OF SPOLIATION OF EVIDENCE ON THE FACTS OF THIS CASE

¶ 13 The Hills ask this court to adopt an independent tort of spoliation of evidence. They contend that if we recognize this tort, the district court will have erred when it dismissed their complaint for failure to state a claim because the Hills would have sufficiently stated the claim that UPS and Liberty Mutual negligently and/or intentionally spoliated evidence related to their wrongful-death action against Skyline.

¶ 14 In contrast, UPS and Liberty Mutual urge this court to reject an independent tort of spoliation of evidence. They also contend that even if we adopt a tort of spoliation, the Hills cannot state a claim under the tort because Skyline has admitted liability in the wrongful-death action and, as a result, the Hills cannot show damages resulting from the alleged spoliation.

¶ 15 This court has consistently refused to issue advisory opinions or resolve purely academic matters where the outcome will not affect the rights of the parties. See Utah Dep't of Transp. v. Ivers, 2009 UT 56, ¶ 19, 218 P.3d 583; McRae v. Jackson, 526 P.2d 1190, 1192 (Utah 1974). Here, Skyline has admitted that it is liable for Mark Hills' wrongful death. All parties acknowledge that spoliation is a derivative cause of action. As such, it depends on another independent claim, here wrongful death, for its viability. Since Skyline has conceded liability in the primary wrongful-death action, the damages awarded to the Hills in that action will subsume any spoliation damages. Therefore, adopting a spoliation claim under the unique facts of this case would be a wholly-academic exercise.

A. The History of the Tort of Spoliation of Evidence

¶ 16 Spoliation is defined as “[t]he intentional destruction, mutilation, alteration, or concealment of evidence.” Black's Law Dictionary 1437 (8th ed. 2004). Spoliation can be either negligent or intentional and may be carried out by a first or third party. See Dowdle Butane Gas Co. v. Moore, 831 So.2d 1124, 1128 (Miss.2002). A first-party spoliator is a party to the underlying action (or the party's attorney) who spoliates evidence necessary or relevant to the plaintiff's claims against that party. See id. A third-party spoliator is often a stranger to the underlying action or “a party not alleged to have committed the underlying tort as to which the lost or destroyed evidence related.” Id. at 1129 (internal quotation marks omitted).

¶ 17 The tort of spoliation...