Wedmore v. Jordan Motors, Inc.

• Decision Date: 13 April 1992
• Docket Number: No. 71A05-9106-CV-204,71A05-9106-CV-204
• Citation: 589 N.E.2d 1180
• Parties: Jack WEDMORE, Appellant-Plaintiff, v. JORDAN MOTORS, INC. d/b/a Jordan's Ford City, Appellee-Defendant.
• Court: Indiana Appellate Court

Page 1180

589 N.E.2d 1180

Jack WEDMORE, Appellant-Plaintiff, v. JORDAN MOTORS, INC. d/b/a Jordan's Ford City, Appellee-Defendant.

No. 71A05-9106-CV-204.

Court of Appeals of Indiana Fifth District.

April 13, 1992.

Transfer Denied July 6, 1992.

Charles A. Sweeney, Jr., Sweeney, Pfeifer & Blackburn, South Bend, for appellant-plaintiff.

Robert D. Lee, James F. Groves, Hardig, Lee & Groves, South Bend, for appellee-defendant.

RUCKER, Judge.

Appellant-plaintiff Jack Wedmore appeals a trial court judgment ordering him to remit $380,000.00 of a $400,000.00 punitive damage award or suffer a new trial. Wedmore raises two issues for our review which we rephrase as:

1) Whether the trial court's order granting either remittitur or a new trial complies with Ind. Trial Rule 59(J)(7).

2) Whether the trial court erred in reducing Wedmore's $400,000.00 punitive damage award to $20,000.00.

We affirm.

The facts relevant to this appeal disclose Jordan Motors is a Ford Motors automobile dealership that buys and sells new and used cars. In late January, 1979, Jack Wedmore purchased from Jordan Motors a purportedly new 1979 Ford Thunderbird at a purchase price of $10,133.00. Within three days of the purchase, Wedmore noticed ripples on the back trunk and hood of the car and therefore returned the car to Jordan Motors. Wedmore was assured repairs would be made in the Spring.

From June, 1979, until August, 1979, Wedmore was compelled to return the car to Jordan Motors on six different occasions for repair of the damaged trunk and hood. At least one of those occasions was contentious--Wedmore threatening to sue and the owner of Jordan Motors threatening Wedmore, a small business owner, with the ruin of his business. On another occasion, Wedmore left the car at Jordan Motors for repair for a number of weeks only to find, upon his return, that Jordan Motors had done no work on the car. There was one incident where the car was returned to Wedmore with no hubcaps and the residue of the simonizing process was still on the exterior of the car. On yet another occasion, Jordan Motors painted the hood and trunk but the paint color did not match the rest of the car. Jordan Motors never properly remedied the problem of the ripples on the hood and trunk. In 1989, Jordan Motors reported retained earnings of $1,062,398.00 and had a net worth of $742,645.00.

On December 27, 1979, Wedmore filed a complaint against Jordan Motors alleging breach of warranty, fraud, misrepresentation, and strict liability in tort. Wedmore sought compensatory as well as punitive damages. Due to numerous continuances and the resignation of a trial judge, the case was not heard until November of 1990. After a three day trial, the jury returned a verdict for Wedmore and awarded him $10,000 in compensatory damages and $400,000.00 in punitive damages.

Jordan Motors filed its motion to correct errors. The trial court granted the motion and entered its special findings of fact and conclusions of law remitting compensatory damages to $5,133.00, remitting punitive damages to $20,000.00, and giving Wedmore the option to accept remittitur or in the alternative to suffer a new trial. It is from this order Wedmore appeals.

I.

Because Wedmore does not challenge the remittitur of the compensatory damages award, our review is limited to that portion of the trial court's order concerning punitive damages only. In ruling on a motion to correct errors, the trial court may take such action as will cure the error if it determines that prejudicial or harmful error has been committed. T.R. 59(J). Where the error complained of is excessive damages, the trial court may "grant a new trial subject to ... remittitur." Ind.Trial Rule 59(J)(5).

Wedmore does not contest the trial court's authority to grant a new trial subject to remittitur; however, Wedmore complains the trial court failed to follow the provisions of Ind.Trial Rule 59(J)(7) which provides:

In reviewing the evidence, the court shall grant a new trial if it determines that the verdict of a non-advisory jury is against the weight of the evidence; and shall enter judgment, subject to the provisions herein, if the court determines that the verdict of a non-advisory jury is clearly erroneous as contrary to or not supported by the evidence, or if the court determines that the findings and judgment upon issues tried without a jury or with an advisory jury are against the weight of the evidence.

In its order correcting error the court shall direct final judgment to be entered or shall correct the error without a new trial unless such relief is shown to be impracticable or unfair to any of the parties or is otherwise improper; and if a new trial is required it shall be limited only to those parties and issues affected by the error unless such relief is shown to be impracticable or unfair. If corrective relief is granted, the court shall specify the general reasons therefor. When a new trial is granted because the verdict, findings or judgment do not accord with the evidence, the court shall make special findings of fact upon each material issue or element of the claim or defense upon which a new trial is granted. Such finding shall indicate whether the decision is against the weight of the evidence or whether it is clearly erroneous as contrary to or not supported by the evidence; if the decision is found to be against the weight of the evidence, the findings shall relate the supporting and opposing evidence to each issue upon which a new trial is granted; if the decision is found to be clearly erroneous as contrary to or not supported by the evidence, the findings shall show why judgment was not entered upon the evidence.

This court has previously determined that the latter paragraph provides the trial court with two courses of action: 1) enter an order correcting the error without a new trial, or 2) enter an order for a new trial. Wedge v. Lipps Indus., Inc. (1991), Ind.App., 575 N.E.2d 332, 335, citing Borowski v. Rupert (1972), 152 Ind.App. 9, 281 N.E.2d 502. Here, the trial court entered an order for a new trial or acceptance of remittitur. Thus, the trial court was bound to enter special findings of fact concerning (a) whether the decision is against the weight of the evidence, (b) whether the decision is clearly erroneous, or (c) whether the decision was not supported by the evidence. Wedge, supra. Where the trial court determines that the decision of the jury is clearly erroneous as contrary to the evidence, or not supported by the evidence, then "the findings shall show why judgment was not entered upon the evidence." T.R. 59(J)(7).

In the case before us, the trial court found that the measure and amount of punitive damages awarded by the jury was "erroneous and not supported by the evidence." Record at 212. The trial court then entered special findings of fact, the relevant portions of which are as follows:

19. The physical damage to Wedmore's vehicle was minor in nature.

20. The vehicle could have been repaired in 1979 at a cost of Five Hundred ($500.00) to Two Thousand ($2,000.00) Dollars.

21. The physical damage to Wedmore's vehicle posed no threat of personal injury to Wedmore or to any other human being.

22. The vehicle was still owned by Wedmore on the date of trial on November 15, 1990 and had been driven in excess of One Hundred Thousand (100,000) miles.

23. The net worth of Jordan for the year of 1989 was $742,645.00

CONCLUSIONS OF LAW AND JUDGMENT

* * * * * *

5. The evidence supports a finding by the jury of misrepresentation or concealment by Jordan in the sale of the vehicle to Wedmore amounting to malice or gross negligence and that Wedmore had the right to rely on those representations. Thus, fraud or other independent torts of malice, willful and wanton misconduct or gross negligence exist to support the awarding of punitive damages and such finding is not contrary to law.

6. The evidence presented to the jury does not support a jury verdict of Four Hundred Thousand ($400,000.00) Dollars for punitive damages.

7. The evidence does support a jury verdict of Twenty Thousand ($20,000.00) Dollars in punitive damages.

* * * * * *

9. Based upon the evidence presented at trial the Court now finds for the plaintiff and awards the plaintiff as punitive damages the amount of Twenty Thousand ($20,000.00) Dollars.

Record at 215-17. According to Wedmore, these findings and conclusions are insufficient because they contain no language indicating the jury's verdict is clearly erroneous, contrary to law or against the weight of the evidence. Wedmore argues the trial court has merely substituted its own judgment for that of the jury without explaining its decision according to the mandate of Trial Rule 59.

Special findings of fact and conclusions of law provide a theory underlying the judgment entered by the trial court. Willett v. Clark (1989), Ind.App., 542 N.E.2d 1354. The adequacy of special findings depends on whether the findings sufficiently disclose a valid basis underlying the legal result reached in the judgment. Id. The findings and conclusions of a trial court are to be liberally construed in support of the judgment. Scott v. Kell (1956), 127 Ind.App. 472, 134 N.E.2d 828 reh. denied, 127 Ind.App. 472, 137 N.E.2d 449, trans. denied, 127 Ind.App. 472, 141 N.E.2d 106.

It is true where special findings are entered, we may not affirm the trial court's judgment on any ground which the evidence supports, rather we must determine if the special findings are adequate to support the trial court's decision. Orkin Exterminating Company, Inc. v. Walters (1984), Ind.App., 466 N.E.2d 55, trans. denied. However, it is also true we may consider supporting memoranda to determine the trial court's actions. See Huff v. Travelers Indem. Co. (1977), 266 Ind. 414, 363 N.E.2d 985 (supporting memoranda read in conjunction with special findings of fact provided basis for trial court's reasoning).

In the case before us,...