Ryan v. Fortune Transportation Company, No. 1:00-cv-40074 (S.D. Iowa 4/11/2003), 1:00-cv-40074.
| Decision Date | 11 April 2003 |
| Docket Number | No. 1:00-cv-40074.,1:00-cv-40074. |
| Parties | SHARON K. RYAN, Individually and as Mother and Next Friend of her Minor Children, JAMES RYAN, CYLE RYAN, TIMOTHY RYAN and SAMANTHA RYAN, and JEFFREY R. RYAN, her Husband, Plaintiffs, v. FORTUNE TRANSPORTATION COMPANY and JAMES D. DAVIS, Defendants/Third-Party Plaintiffs, vs. MARK J. TANNER, PERISHABLE DISTRIBUTORS OF IOWA, LTD., STEPHEN STANBRIDGE, and B-T, INC., Third-Party Defendants. |
| Court | U.S. District Court — Southern District of Iowa |
Before the Court are various post-trial motions of the parties as well as applications for review of taxation of costs submitted by the Plaintiffs and Defendants Fortune Transportation and Davis. The litigation stems from a December 30, 1998, motor vehicle accident.
A jury trial began November 18, 2002. On November 26, 2002, the jury returned its verdict in favor of the Plaintiffs and against Defendants Fortune Transportation Company and James Davis, and against Third-Party Defendants Mark Tanner and Perishable Distributors of Iowa, Ltd., in the total amount of $1,035,751.50. The jury found no fault on the part of Third-Party Defendants Stephen Stanbridge and B-T, Inc. The jury assigned 10 percent of the fault to the Plaintiffs, 40 percent of the fault to Defendants Fortune Transportation and Davis, and 50 percent of the fault to Third-Party Defendants Tanner and Perishable Distributors. Judgment was entered in the case on December 2, 2002. On December 16, 2002, Plaintiffs submitted their bill of costs, seeking $8,872.41. On December 18, 2002, Defendants Fortune Transportation and Davis submitted their bill of costs, seeking $8,246.11.
In a post-trial motion filed fourteen days after entry of judgment, Plaintiffs requested a "new trial on the issue of damages only, or in the alternative, to alter or amend the judgment by additur". Plaintiffs identify their motion as being one brought "all pursuant to Federal Rule of Civil Procedure 59".1
Specifically, Plaintiffs challenge (1) the 10 percent apportionment of fault attributed to Sharon Ryan; (2) the 10 percent reduction of Timothy and Samantha Ryan's personal injury award; (3) the $150,000 awarded for Sharon Ryan's past pain and suffering as inadequate as a matter of law; (4) the $50,000 awarded for Sharon Ryan's future pain and suffering as inadequate as a matter of law; and (5) the $433 and $318.50 awarded to Timothy and Samantha respectively for past medical bills as inadequate as a matter of law because no award for corresponding pain and suffering was given.
Defendants Fortune Transportation and Davis and Third-Party Defendants PDI and Tanner have resisted the Plaintiffs' motions and have filed post-trial motions of their own. Moving under the provisions of Fed.R.Civ.P. 59(e), they ask that the verdict be altered or amended to conform to the evidence. Specifically, Defendants and Third-Party Defendants ask this Court to (1) reduce the amount awarded to Plaintiffs for compensated past medical expenses by the amount Plaintiffs do not need to repay their health insurance provider; (2) reduce the amount awarded to Sharon Ryan for past wage loss; and (3) reduce the amount awarded to Sharon Ryan for future medical expenses. Oral arguments were heard on the parties' post-trial motions on February 27, 2003.
On March 6, 2003, the Clerk of Court entered taxation of costs, granting Plaintiffs $295.00 (the only costs incurred prior to a more favorable offer of settlement being tendered by Defendants Fortune and Davis than what was recovered by Plaintiffs against them at trial). Finding Defendants Fortune Transportation and Davis' request for costs untimely,2 the Clerk of Court did not address them. On March 11, 2003, Plaintiffs sought review of the Clerk's determination of costs, and Defendants Fortune Transportation and Davis filed the same motion the next day. The post-trial motions and bill of cost motions of the parties are fully submitted and ready for ruling.
At oral argument, Defendants Fortune Transportation and Davis correctly argued that, in federal court, additur is unconstitutional because it does not comport with the Seventh Amendment right to trial by jury. See Dimick v. Schiedt, 293 U.S. 474, 482, 484-86 (1935). The Eighth Circuit Court of Appeals has accepted "the general rule that in a case where the amount of damages is in dispute, a grant of additur violates the 7th Amendment jury trial rights against whom the addition is granted". See Novak v. Gramm, 469 F.2d 430, 432 (8th Cir. 1972) (citing Dimick, 293 U.S. 474 (1935)). Therefore, this Court only addresses Plaintiffs' motion for new trial on the issue of damages.
A new trial can only be granted on the basis that the verdict is against the weight of the evidence, so that granting a new trial would prevent a miscarriage of justice. White v. Pence, 961 F.2d 776, 780 (8th Cir. 1992); see also S&W Agency, Inc. v. Foremost Insurance Co., 51 F. Supp.2d 959, 981 (N.D.Iowa 1998). "[F]ixing damages is peculiarly a jury function and its award will be sustained unless shown to indicate prejudice, mistake, or a complete disregard of law and evidence." Wright v. Hoover, 329 F.2d 72, 76 (8th Cir. 1964). Under Iowa law, the verdict of a jury should not be altered "unless the plaintiff proves the verdict: (1) is flagrantly excessive or inadequate; or (2) is so out of reason as to shock the conscience or sense of justice; or (3) raises a presumption [the verdict] is a result of passion, prejudice, or other ulterior motives; or (4) is lacking in evidential support." See Rinikerz v. Wilson, 623 N.W.2d 220, 230 (Iowa Ct.App. 2000). The focus of the court must remain on determining "whether, under the record, giving the jury its right to accept or reject whatever portions of conflicting evidence it chose, the verdict effects substantial justice between the parties". Cowan v. Flannery, 461 N.W.2d 155, 158 (Iowa 1990) (quoting Kautman v. Mar-Mac Comm. Sch. Dist., 255 N.W.2d 146, 148 (Iowa 1977)).
In light of this authority, of the five specific points raised in Plaintiffs' post-trial motions, all are denied; only one point merits discussion. In their brief, Plaintiffs cite Brant v. Bockholt, 532 N.W.2d 801 (Iowa 1995), arguing that when the jury awarded $433 to Timothy and $318.50 to Samantha for stipulated past medical expenses, but no amount for past pain and suffering, the jury created an award inadequate as a matter of Iowa law. Brant does not support Plaintiffs' contention.
At oral argument, Plaintiffs' counsel pointed to Cowan, arguing the case is authority that in Iowa, awarding an amount for past medical bills yet nothing for past pain and suffering is inadequate as a matter of law. See Cowan, 461 N.W.2d 155 (Iowa 1995). "Cowan testified that his head struck the windshield and his body struck the steering wheel." See id. at 159. "[H]e suffered severe headaches, dizziness, blurred vision and pain in the upper and lower back following the accident." Id. The jury ultimately provided an award allowing for past and future medical expenses, but no amount for past pain and suffering. See id. at 160.
The Iowa Supreme Court found that under the facts of Cowan, awarding an amount for past and future medical expenses but nothing for past and future pain and suffering was "illogical". See id. "[T]o award past and future medical expense incurred to relieve headache, neck and back pain and then allow nothing for such physical and mental pain and suffering" resulted in a situation where "[a]lthough the award may be adequate, a special verdict award of nothing for pain and suffering is inconsistent and unsupported by the evidence." Id. Only under the facts of Cowan was the particular jury award seen to be inadequate as a matter of law. As Cowan explains, Iowa has never adopted "an inflexible rule that every verdict awarding only damages for medical expenses in a personal injury action is inadequate as a matter of law". Id. at 159.
During the Ryan trial, the Court inquired, "What evidence do we have with regard to Timothy and Samantha with regard to their past pain and suffering?" Counsel for Plaintiffs responded, Counsel's response accurately summarized that evidence. Based on this record, awarding Timothy and Samantha an amount for past medical bills but nothing for past pain and suffering is not inadequate as a matter of law.
The three specific points of Defendants' and Third-Party Defendants' post-trial motions all equate to a motion to alter or amend the judgment by remittitur. These will be addressed in turn.
For the first point raised in their post-trial motion, Defendants and Third-Party Defendants argue Plaintiffs will enjoy a double recovery unless this Court adjusts the jury verdict by that portion of the medical expenses paid by Plaintiffs' health insurer which does not need to be repaid. The Defendants and Third-Party Defendants argue that because the parties stipulated Sharon Ryan's past medical expenses totaled $286,000 and have been paid by insurance, and of this amount paid, only $50,000 is to be refunded under the insurance carrier right of subrogation, without reducing Plaintiffs' award by $236,000, Plaintiffs recover twice. In their motion, Defendants and Third-Party Defendants argue this result is precisely what § 668.14 was designed to prevent.
In this case, pursuant to Iowa Code § 668.14, evidence was introduced at trial regarding previous payments of actual economic losses incurred for necessary medical care and the obligation of the Plaintiffs to repay any portion of such previous payments. The jury found that some of Sharon Ryan's damages had been paid by her insurance company and that an amount of $50,000 is to be...
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