Magana v. Hyundai Motor America

• Decision Date: 25 November 2009
• Docket Number: No. 80922-4.,80922-4.
• Citation: 167 Wn.2d 570,220 P.3d 191
• Court: Washington Supreme Court
• Parties: Jesse MAGAÑA, Petitioner, v. HYUNDAI MOTOR AMERICA; Hyundai Motor Company, Respondents, and Ricky and Angela Smith, husband and wife, Dennis Nylander and Jane Doe Nylander, husband and wife, Defendants.

220 P.3d 191

167 Wn.2d 570

Jesse MAGAÑA, Petitioner, v. HYUNDAI MOTOR AMERICA; Hyundai Motor Company, Respondents, and Ricky and Angela Smith, husband and wife, Dennis Nylander and Jane Doe Nylander, husband and wife, Defendants.

No. 80922-4.

Supreme Court of Washington, En Banc.

Argued January 22, 2009.

Decided November 25, 2009.

Charles Kenneth Wiggins, Kenneth Wendell Masters, Wiggins & Masters, PLLC, Bainbridge Island, WA, Paul W. Whelan, Ray W. Kahler, Stritmatter Kessler Whelan Coluccio, Peter O'Neil, Attorney at Law, Michael E. Withey, Law Offices of Michael Withey, Alisa R. Brodkowitz, Brodkowitz Law, Seattle, WA, Derek Jay Vanderwood, Attorney at Law, Vancouver, WA, for Petitioner.

Douglas Fredrick Foley, Foley & Buxman, PLLC, Vancouver, WA, for Defendants.

Heather K. Cavanaugh, Miller Nash, LLP, Portland, OR, Michael Barr King, Gregory Mann Miller, James Elliot Lobsenz, Carney Badley Spellman, PS, Seattle, WA, for Respondents.

Hugh Davidson Spitzer, Emanuel Jacobowitz, Foster, Pepper, PLLC, Seattle, WA, for Amicus Curiae Association of Washington Business.

Aaron V. Rocke, Rocke Law Group, PLLC, Seattle, WA, Stewart Andrew Estes, Keating Bucklin & McCormack, Seattle, WA, for Amicus Curiae Washington Defense Trial Lawyers.

SANDERS, J.

¶ 1 Trial courts need not tolerate deliberate and willful discovery abuse. Given the unique facts and circumstances of this case, we hold that the trial court appropriately diagnosed Hyundai's willful efforts to frustrate and undermine truthful pretrial discovery efforts by striking its pleadings and rendering an $8,000,000 default judgment plus reasonable attorney fees. This result appropriately compensates the other party, punishes Hyundai, and hopefully educates and deters others so inclined.

¶ 2 We determine the trial court acted well within its discretion and reverse the Court of Appeals, which improvidently reversed the trial court.

FACTS AND PROCEDURAL HISTORY

¶ 3 On February 15, 1997 Jesse Magaña was a passenger in a 1996 Hyundai Accent, two-door hatchback driven by Ricky Smith (Smith). Angela Smith was also a passenger. As they drove over a hill they saw an oncoming truck driven by Dennis Nylander that appeared to be in their lane. Smith swerved the Accent to avoid the truck, causing his car to veer off the road. The car hit several trees and spun violently. Magaña was thrown out of the rear window and landed about 50 to 100 feet away from where the car eventually stopped. He was rendered a paraplegic due to the accident. Smith suffered a concussion, and Angela broke her collarbone, leg, and shoulder blade.

¶ 4 Magaña filed suit on February 8, 2000 in Clark County Superior Court against Hyundai Motor America and Hyundai Motor Company (collectively Hyundai), the Smiths, and the Nylanders. Magaña alleged his injuries were proximately caused by a design defect in the car which allowed the seat to collapse and by the negligent driving of Smith and Nylander. On January 11, 2002 the trial court granted the Nylanders summary judgment of dismissal, and they were dismissed from the lawsuit.

¶ 5 During discovery in 2000-2001 Magaña requested many documents from Hyundai. Hyundai refused to directly answer Magaña's requests but reworded and limited their scope. Hyundai never sought a protective order to narrow the scope of discovery, and Magaña never sought a motion to compel Hyundai to answer these discovery requests before the first trial.

¶ 6 In request for production 20 Magaña requested Hyundai produce "copies of any and all documents including but not limited to complaints, answers, police reports, photographs, depositions or other documents relating to complaints, notices, claims, lawsuits or incidents of alleged seat back failure on Hyundai products for the years 1980 to present." Clerk's Papers (CP) at 3728. Hyundai responded in April 2000 that the request was "overly broad and not reasonably calculated to lead to the discovery of admissible evidence" and that there were "no personal injury or fatality lawsuits or claims in connection with or involving the seat or seat back of the Hyundai Accent model years 1995-1999." CP at 2379.

¶ 7 In interrogatory 12 Magaña also requested Hyundai to "[i]dentify with name and model number all Hyundai vehicles that used the same (or substantially similar) front right seat as the 1996 Hyundai Accent." CP at 3722. Hyundai responded that the 1995-1999 "Hyundai Accents used the same or substantially similar right front seat as the 1996 Hyundai Accent" and that "[n]o other Hyundai model automobile uses the same or substantially similar design for the right front seat...." CP at 2376.

¶ 8 A jury trial commenced on June 3, 2002. At trial one of Magaña's expert witnesses Dr. Joseph Burton, testified that an alternative seat belt design, known as an integrated seat belt design, would have prevented Magaña's injuries. Hyundai objected because there was no discussion about an integrated seat belt design in Dr. Burton's deposition during discovery, but the trial court overruled the objection. Four days later the trial court decided it should have sustained Hyundai's objection to Burton's testimony and struck his testimony. However it did not advise the jury that the testimony had been stricken because of concerns it would highlight the evidence.

¶ 9 Magaña prevailed at the jury trial by a vote of 10-2 and was awarded over $8,000,000 in damages. The jury attributed 60 percent of the fault to Hyundai and 40 percent to Smith. Smith and Hyundai appealed. The Court of Appeals reversed and remanded in 2004 as to Hyundai,¹ determining the trial court's failure to instruct the jury that the expert's testimony had been stricken misled the jury as to which evidence was properly before it, and the error was not harmless. Magaña v. Hyundai Motor Am., 123 Wash.App. 306, 316, 319, 94 P.3d 987 (2004). The retrial was to be limited to the issue of liability without disturbing the jury's damages verdict. The mandate was issued on April 4, 2005. Magaña did not seek review in this court.

¶ 10 On May 23, 2005 the trial court set the retrial date for January 17, 2006. On September 13, 2005 Magaña's counsel requested that Hyundai update its responses to Magaña's previous discovery requests in 2000. Magaña believed Hyundai's initial response to interrogatory 12 (his request to discover other Hyundai vehicles with the same or similar seats to the 1996 Accent) was inaccurate because he had found a recliner mechanism in another Hyundai model that looked identical to the one in the 1996 Accent. Magaña also requested Hyundai update its response to request for production 20 regarding other incidents of seat back failure in Hyundai vehicles without limiting the response to 1995-1996 Accents because it was clear other Hyundai vehicles had the same recliner mechanism. Hyundai told Magaña it would provide him with information relating to alleged seat back failure in the 1995-1999 Accents and the 1992-1995 Hyundai Elantras. Magaña continued to request all seat back failure claims in Hyundai products from 1980 to the present.

¶ 11 On October 25, 2005 Hyundai updated its response to Magaña's request for production 20 by objecting but stating it would produce complaints and claims of alleged seat back failure in 1995-1999 Hyundai Accents and in 1992-1995 Hyundai Elantras. Hyundai also supplemented its response to Magaña's interrogatory 12 stating that only the 1995-1999 Hyundai Accents used the same or similar right front seat as the 1996 Accent and that although not asked by Magaña, the 1992-1995 Hyundai Elantras had a recliner on the right front seat that was substantially similar to the front recliner on the 1996 Hyundai Accent.

¶ 12 Hyundai also produced documents of two claims relating to seat back failure from 2000 (Matthew Dowling claim) and 2002 (Janelle Bobbitt and Joshua Chastagner claim). Hyundai represented these two claims were the only seat back failure claims involving 1995-1999 Hyundai Accents or 1992-1995 Hyundai Elantras other than Magaña's claim.

¶ 13 On October 27, 2005 Magaña filed a motion to compel Hyundai to produce all documents relating to other seat back failures in Hyundai vehicles as he had previously requested in the requests for production served on Hyundai in 2000. Hyundai opposed the motion, arguing it was too burdensome and would not lead to the discovery of admissible evidence. However, Hyundai never requested a protective order to narrow the scope of discovery.

¶ 14 On November 18, 2005 the trial court ordered Hyundai to produce "Police Reports, legal claims, Consumer Complaints and Expert Reports or Depositions and Exhibits and photographs thereto with respect to all consumer complaints and lawsuits involving allegations of seat back failure on all Hyundai vehicles with single recliner mechanisms regardless of incident date and regardless of model year." CP at 961-62. On November 21, 2005 Hyundai produced numerous documents that related to other complaints of seat back failure. On December 1, 2005 Hyundai produced additional documents including police reports, photographs, expert records, deposition transcripts, and for the first time, records from its consumer "hotline" database. Nine reports of seat back failure involving 1995-1999 Accents were included in these documents.

¶ 15 On December 23, 2005 Magaña moved for a default judgment against Hyundai, arguing that it would be impossible to prepare a proper case with the other similar incidents that had just been produced by Hyundai. Magaña also argued that evidence was lost due to the delay. Magaña argued a continuance would only reward Hyundai's behavior. Magaña claimed Hyundai (1) failed to comply with production requests, (2) falsely answered interrogatories, (3) willfully spoiled evidence of other similar incidents, and (4) failed to produce documents related to rear impact crash tests. Magaña's experts argued that the information of other similar incidents...