Rawson v. Sears, Roebuck and Co.

• Decision Date: 28 August 1985
• Docket Number: Civ. A. No. 81-K-1454.
• Citation: 615 F. Supp. 1546
• Parties: Gary RAWSON, Plaintiff, v. SEARS, ROEBUCK AND COMPANY, Defendant.
• Court: U.S. District Court — District of Colorado

615 F. Supp. 1546

Gary RAWSON, Plaintiff, v. SEARS, ROEBUCK AND COMPANY, Defendant.

Civ. A. No. 81-K-1454.

United States District Court, D. Colorado.

August 28, 1985.

James A. Carleo, Colorado Springs, Colo., for plaintiff.

Gregory A. Eurich, Holland & Hart, Denver, Colo., for defendant.

MEMORANDUM OPINION AND ORDER

KANE, District Judge.

Plaintiff's Complaint was filed in July, 1981, in the District Court in and for the County of Pueblo. It was removed to the United States District Court for the District of Colorado. On January 27, 1982, all but three of the plaintiff's claims for relief were dismissed. Rawson v. Sears, Roebuck and Co., 530 F.Supp. 776 (D.Colo. 1982). In that same opinion, I held that a private right of action could be implied under C.R.S. § 8-2-116.

On January 10, 1983, I granted summary judgment in favor of Sears on two of the plaintiff's remaining three claims. Rawson v. Sears, Roebuck and Co., 554 F.Supp. 327 (D.Colo.1983). I denied Sears' motion for summary judgment on plaintiff's claim of violation of C.R.S. § 8-2-116, holding that the findings and order of the Colorado Industrial Commission, affirmed by the Colorado Court of Appeals, did not collaterally estop plaintiff from litigating the issue of the reason for plaintiff's discharge. I also denied Sears' Motion for Reconsideration and Sears' Motion for Summary Judgment or, in the Alternative, for Certification of Questions of Law.

On January 20, 1984, I issued an order granting and denying pre-trial motions. I granted Sears' request for a separate trial on the issue of liability, pursuant to Rule 42, Fed.R.Civ.P. I further ordered that because Mr. Jansen had testified at his deposition that the reason for plaintiff's discharge was the mishandling of inventory, Sears would not be allowed to introduce any statements or testimony relating to incidents or conduct of the plaintiff other than those related to the inventory charges.

On January 30, 1984 a jury of seven found that Sears, Roebuck and Co. violated Colo.Rev.Stat. § 8-2-116 when it terminated Gary Rawson from his job as manager of its Pueblo store in March of 1979. Defendant moved for a directed verdict at the end of plaintiff's case and at the end of its own case. I denied both motions.

On July 15, 1985 a new jury of six was selected to try the issue of damages. Trial proceeded to conclusion. Instructions of law were given to the jury without objection. On July 19, 1985 the jury returned its verdict awarding the plaintiff damages against the defendant in the following amounts:

A. $580,500.00 for lost wages and benefits from the date the plaintiff would have retired.

B. $264,410.00 for future wages and benefits and reduction in the value of pension benefits from the date of verdict discounted to present value.

C. $5,000,000.00 for pain, suffering and humiliation, both past and future.

The jury also found, according to Colorado law, beyond a reasonable doubt that the injuries and losses complained of by the plaintiff were attended by circumstances of malice or a wanton or reckless disregard of the rights and feelings of the plaintiff and awarded $10,000,000.00 as exemplary damages.

Defendant has moved for judgment notwithstanding the verdict or, in the alternative for a new trial or remittitur. Defendant makes the following four arguments:

1. This court should enter judgment in favor of Sears notwithstanding the verdict with respect to the jury's award of punitive damages.

Defendant submits that the jury verdict of $10,000,000 for punitive damages is unsupported by the evidence and thus seeks judgment N.O.V. Sears claims that the evidence presented at trial demonstrates that its conduct did not meet the standard required to justify punitive damages ("beyond a reasonable doubt"). It also claims that plaintiff failed to show an evil intent or reckless disregard of his rights and feelings, which is necessary for the award of punitive damages. Rather, defendant points to plaintiff's own misconduct during his employment with Sears, conceded by plaintiff at trial, as supportive of its articulated reasons for discharging plaintiff.

2. The compensatory damages for pain and suffering awarded by the jury are excessive and contrary to the evidence.

Defendant states that $5,000,000 awarded by the jury for pain, suffering and humiliation is grossly excessive and unreasonable. Defendant calls on me to exercise sound discretion to prevent a miscarriage of justice. Defendant states that the "law in this District is clear that a `federal trial judge has not only the discretion to grant a new trial in order to prevent a miscarriage of justice, but it is his obligation to do so where it appears to him that the verdict has been arbitrary and against the clear weight of the evidence.'" Atchison, Topeka and Santa Fe Railway Company v. Hadley Auto Transport, 216 F.Supp. 94, 97 (D.Colo.1963) (see pp. 6-7 of Defendants' Brief). Defendant also notes that exercise of such a power by the court "is not in derogation of the right of trial by jury but is one of the historic safeguards of that right." Holmes v. Wack, 464 F.2d 86, 88 (10th Cir.1972).

Defendant further observes that the Tenth Circuit in Malandris v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 703 F.2d 1152, 1168 (10th Cir.1981) has set down guidelines for whether an award by a jury of either compensatory or punitive damages can be set aside.

We have said that absent an award so excessive as to shock the judicial conscience and to raise an irresistible inference that passion, prejudice, corruption or other improper cause invaded the trial, the jury's determination of the damages is considered inviolate. Metcalf v. Atchison, Topeka and Santa Fe Railway Co., 491 F.2d 892, 898 (10th Cir.) ... Such bias, prejudice or passion can be inferred from excessiveness. Wells v. Colorado College, 478 F.2d 158, 162 (10th Cir.) ... However, a verdict will not be set aside on this basis unless it is so plainly excessive as to suggest that it was the product of such passion or prejudice on the part of the jury. Id. ...

Such cases recognize the principle that if the court determines that the verdict was the result of passion or prejudice, or for any other reason it appears that the jury erred or abused its discretion not only on the issue of damages but also on the issue of liability, the court must unconditionally order a new trial and cannot give the plaintiff the option to accept a lesser amount....

However, another remedy is also recognized. Where the court concludes there was error only in an excessive damage award, but not one also tainting the finding of liability, the appellate court may order a remittitur and alternatively direct a new trial if the plaintiff refuses to accept the remittitur, a widely recognized remedy. Holmes v. Wack, 464 F.2d 86, 89 and n. 3 (10th Cir.) ...

While defendant agrees it is an emotional event for plaintiff to lose a job he has held all his working life, it opines that the "award for pain and suffering returned by the jury, however, suggests that Rawson's depression and despondency has a compensatory value of several times that of a traumatic physical injury such as would render an individual a quadraplegic" (see p. 9 of Defendant's Brief). (Defendant cites two recent Colorado district court cases awarding quadraplegic plaintiffs $4,900,000 and $4,100,000 for pain and suffering, loss of income, and medical expenses.) (See p. 9 of Defendant's Brief.) Defendant also notes that plaintiff's counsel suggested a figure of $1,000,000 as appropriate damages for pain and suffering. Thus, defendant claims, the jury's verdict was excessive and not reasonably based upon the evidence at trial.

3. The damages awarded by the jury for economic loss are also excessive and unreasonable and a new trial should be granted.

Without citing any case law and relying entirely upon the expert testimony of Dr. Wykstra regarding plaintiff's loss of wages, defendant claims that the jury's award of damages for lost wages and benefits as well as future wages and benefits was in excess of any evidence in the record. Based on such testimony, defendant asserts that the jury award of $580,500 for lost wages and benefits should be reduced to $314,000. It also asserts that the jury award for economic loss exceeded any evidence on the subject by $101,510. Thus, defendant requests a new trial on all issues relating to wage loss, past and future.

4. The punitive damages awarded by the jury are grossly excessive and unreasonable, and a new trial should be granted.

Defendant states a new trial must be granted because of the extraordinarily excessive amount of punitive damages awarded by the jury. While defendant concedes a jury has discretion in making punitive damages awards, it notes that such damages are subject to the supervision of the court which may order remittitur or a new trial to prevent a miscarriage of justice. Defendant further notes that in Colorado the amount of punitive damages awarded must bear some relation to the gravity of the injuries sustained by plaintiff and to the amount of compensatory damages, Frick v. Abell, 198 Colo. 508, 602 P.2d 852, 854 (1979); and the degree of the defendant's malice must also be considered in determining the proper relationship between punitive and compensatory damages, Taylor v. Sandoval, 442 F.Supp. 491, 496 (D.Colo.1977).

Defendant calls my attention to several facts to be considered in determining the amount of punitive damages which reasonably could be awarded to plaintiff. Defendant first argues that evidence demonstrating its evil intent or reckless disregard for the feelings of plaintiff is minimal to nonexistent. Second, assuming that I will reduce to some substantial degree the compensatory damage award for pain and suffering, defendant notes that the punitive damage award should be reduced proportionately. Finally, defendant notes that plaintiff only sought punitive damages in the...