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Abernathy v. Superior Hardwoods
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ROBERT L. ABERNATHY AND JOYCE ABERNATHY, PLAINTIFFS-APPELLEES,
v.
SUPERIOR HARDWOODS, INC., DEFENDANT-APPELLANT.
No. 82-2228.
United States Court of Appeals, Seventh Circuit.
Argued February 18, 1983.
Decided April 5, 1983.
704 F.2d 963 (7th Cir. 1983)
Bruce P. Clark, Galvin & Galvin, Hammond, Ind., for
defendant-appellant.
James A. Corrigan, Nevoral & Corrigan, Chicago,
Ill., for plaintiffs-appellees.
Appeal from the United States District Court for the
Northern District of Indiana.
Before CUMMINGS, Chief Judge, and PELL and POSNER,
Circuit Judges.
POSNER, Circuit Judge.
One day in 1978 Robert Abernathy drove a flatbed
truck loaded with logs to a sawmill in Indiana owned by Superior
Hardwoods. The logs were fastened to the bed of the truck with four
chains. Abernathy released each chain but before he could stow them
all in the cab of the truck Superior Hardwoods' forklift began
unloading the logs and one tumbled off and hit Abernathy in the back.
Abernathy and his wife sued Superior Hardwoods for negligence, basing
federal jurisdiction on diversity of citizenship, and got a jury
verdict. Superior Hardwoods has appealed, arguing first that there is
insufficient evidence that it was negligent and Abernathy free from
contributory negligence. Contributory negligence is a complete defense
under Indiana tort law, see Koroniotis v. La Porte Transit, Inc.,
397 N.E.2d 656, 660 (Ind. App. 1979), which is conceded to govern this
case.
The appellant's brief states that "it is a common
occurrence for logs to fall from the truck when being unloaded with a
forklift, no matter how careful or prudent the operator of the
forklift may be," and that there is no evidence that its forklift
operator was imprudent or unskillful in the manner in which he removed
the logs from Abernathy's truck. But this takes too narrow a view of
what due care requires. Dexterity in carrying out a dangerous
procedure is only one way of avoiding accidents. Another is to take
precautions. If, as the company itself argues, unloading logs from a
flatbed truck is unavoidably dangerous, it should not be attempted
until the driver is well clear. Abernathy testified that he had worked
out with the operator a system by which the operator would not begin
unloading till Abernathy gave him a hand signal, but that on the day
of the accident the operator jumped the gun. The operator did not
recall such a practice but the jury was entitled to believe Abernathy;
the conceded dangerousness of the unloading procedure made his
testimony at least plausible. If it did believe him, moreover, it
would follow that the defendant was negligent whether or not due care
required hand signaling, or some equivalent precaution, in the first
place, on the same theory that if a railroad places a watchman at a
crossing and the traveling public comes to rely on him to warn of an
approaching train the railroad must tell the public before withdrawing
the watchman — "must use reasonable care to see that reliance by
members of the . . . public upon its representation of safety is not
converted into a trap." Erie R.R. v. Stewart, 40 F.2d
855, 857 (6th Cir. 1930). See also Indian Towing Co. v. United
States, 350 U.S. 61, 69, 76 S.Ct. 122, 126, 100 L.Ed. 48 (1955),
and for Indiana authority Clyde E. Williams & Associates,
Inc. v. Boatman, 176 Ind. App. 430, 435, 375 N.E.2d 1138, 1141
(1978); Board of Comm'rs of Monroe Cty. v. Hatton, 427
N.E.2d 696, 699 (Ind. App. 1981).
Even if it did not believe Abernathy's story about
hand signals the jury could have found that the failure to make sure
he was well clear before the unloading began was negligence on the
part of Superior Hardwoods, given the admitted danger of an accident
if he was not well clear and the trivial burden of making sure he was
before beginning to unload. According to Superior Hardwoods, such
precautions are not customary in its industry; but compliance with
custom is not a defense to negligence. Wiles v. Mahan,
405 N.E.2d 591, 594 (Ind. App. 1980); The T.J. Hooper, 60 F.2d
737, 740 (2d Cir. 1932).
On the question of Abernathy's contributory
negligence, Superior Hardwoods points to testimony that the logs on
Abernathy's truck had been stowed (presumably by him) improperly. But
the evidence was conflicting on the point and its resolution a matter
for the jury. The defendant also argues that Abernathy should have
heard the noise of the forklift beginning to unload and gotten out of
the way. But he testified that the noise of the forklift was drowned
out by the general noise of the sawmill, and whether it was or was not
was again an issue for the jury — provided the district judge did not
improperly limit the defendant's ability to present evidence of the
noise level. That is the next issue we must resolve. The president of
Superior Hardwoods made a videotape with his home videotape system
showing a forklift unloading logs from a truck at the sawmill. The
videotape was not a tape of the accident, of course — it was made
several years later — or even an attempt to reconstruct the accident.
It was an attempt (in the defendant's words) "to fairly and accurately
depict the method in which log trucks are routinely unloaded at" its
sawmill. The district judge allowed the tape to be shown to the jury
but only with the sound turned off. Yet according to the defendant the
soundtrack proves that Abernathy should have heard the forklift
beginning to unload the logs.
The levels both of background noise and of forklift
operating noise were relevant to the defense of contributory
negligence, and there is no objection in principle to presenting
evidence of noise levels through a sound recording, even one made long
after the accident. Cf. Young v. Illinois Central Gulf R.R.,
618 F.2d 332, 337-38 (5th Cir. 1980). But to be admissible — at least
as a matter of law, rather than in the trial judge's discretion — the
recording must, of course, meet minimum standards of reliability.
E.g., Renfro Hosiery Mills Co. v. National Cash Register Co.,
552 F.2d 1061, 1065-66 (4th Cir. 1977); Brandt v. French, 638
F.2d 209, 212 (10th Cir. 1981). This one did not. The microphone was
not placed where Abernathy had been standing when he was hit by the
log, though it easily could have been; the recording was made by an
amateur, using amateur's equipment; and there is no indication that in
the courtroom the video recorder's volume control would have been
adjusted to produce the same decibel level as the sounds actually
recorded.
Although all of these points could have been brought
out on cross-examination if the soundtrack had been played to the
jury, a district judge is not required to encumber a trial with
evidence of slight probative value merely because effective
cross-examination might expose its weakness. Fed.R.Evid. 403; see
Panter v. Marshall Field & Co., 646 F.2d 271, 296 n. 8 (7th Cir.
1981); Texas Eastern Transmission Corp. v. Marine
Office-Appleton & Cox Corp., 579 F.2d 561, 566-67 (10th Cir.
1978); 1 Weinstein's Evidence ¶ 403[06] (1982). Juries have a tough
enough time deciding cases intelligently even when they are not
assailed by evidence of tangential relevance, and federal trials
already take up enough time without being prolonged to receive such
evidence. Nor can a district judge rely on counsel's self-interest not
to offer worthless evidence. A lawyer with a weak case may throw in a
lot of evidence just to confuse the jury — a tactic sometimes called
"serving up a muddle." As the federal courts become ever busier, the
need for district judges to manage trials with a firm hand becomes
ever greater. The district judge in this case is to be commended
rather than criticized for not taking the easy way out, which would
have been to let in all the minimally relevant nonprivileged evidence
either party cared to offer.
The defendant argues that Abernathy's medical
witness, Dr. Miller, should not have been allowed to testify about the
results of an electromyograph test that he ran on Abernathy, because
the defendant's counsel did not have a reasonable opportunity to
prepare for cross-examination or introduce rebuttal testimony. The
test was performed on May 24, 1982, and the plaintiffs' counsel got an
oral report of the results on Friday, May 28. The trial was scheduled
to begin the following Tuesday, June 1 (Monday being Memorial Day). A
half hour before the scheduled opening of the trial the plaintiffs'
counsel told the defendant's counsel that the test had been run and
had been positive but that he had not yet received a written report.
The defendant's counsel made no objection to proceeding with the
trial. He was given an imperfectly legible copy of the test results
the next morning and immediately moved the judge to order Dr. Miller,
who was to testify that afternoon, not to refer to the test. The judge
deferred ruling on the motion until Dr. Miller took the stand and the
defendant's counsel had an opportunity to voir dire him concerning the
test. Counsel did not avail himself of the opportunity; Miller
testified; and counsel then moved for a continuance to allow him to
procure rebuttal testimony. The judge refused either to exclude
Miller's testimony or to grant a continuance, saying he didn't think
Miller's testimony about the test results, which had been brief, had
had a significant impact on the jury. If the judge had granted a
continuance he would have had to postpone his next trial, which was
scheduled to begin on June 7.
We have our doubts about the judge's stated reason
for denying the motions, although we recognize that he was in a better
position than we are to assess the impact of Dr. Miller's testimony on
the jury. Abernathy undoubtedly had been injured badly when the log
struck his back but it was unclear how severe the residual effects
were at the time of trial, three and a half years after the accident,
and what future difficulties he should expect. When Dr. Miller first
examined Abernathy, more than a year before giving him the
electromyograph test, the only observable symptom of a continuing back
problem was that Abernathy's left buttock was thinner than the right
(how much thinner the record does not reveal). Miller attributed the
asymmetry to the accident's having injured the nerve running into the
buttock from the spine. The EMG provided objective corroboration of
his diagnosis — originally based just on visual observation — and of
his testimony that Abernathy was 35-50 percent disabled as a result of
the accident.
But in this case as in most cases tried under the
Federal Rules of Civil Procedure surprise is a poor reason to exclude
expert testimony, or to recess a trial for the purpose of allowing
rebuttal testimony to be obtained and thereby break the jury's
concentration and throw the trial judge's docket out of gear, when
Rule 26(b)(4) makes it so easy to get pretrial discovery of the other
side's expert evidence. Cf. Connell v. Steel Haulers, Inc.,
455 F.2d 688, 692 (8th Cir. 1972). A personal-injury lawyer as
experienced as the defendant's lead counsel in this case should not
have been astounded to discover that an EMG — a standard diagnostic
test for back injuries, see 1B Gray, Attorneys' Textbook of Medicine ¶
14.43 (1982); 4 id. ¶ 182.42 — had been run on Abernathy, and
should not have been incapable of questioning Dr. Miller about the
test without first consulting a medical expert ("I would need to be
trained by a doctor as to what that report means before I could
cross-examine him"), especially when by his own admission he had
encountered EMGs previously in his practice. Counsel took a calculated
risk in not retaining a medical expert either to testify or to assist
him in cross-examination of the plaintiffs' expert without testifying,
see Fed.R.Civ.P. 26(b)(4)(B). A lawyer who undertakes to cross-examine
a medical expert without having his own expert at his elbow has only
himself to blame if the witness utters some arcanum that the lawyer
cannot understand.
Another reason the defendant's counsel should not
have been surprised is that when deposed early in May Dr. Miller had
indicated he might do an EMG on Abernathy. Counsel could have sought a
commitment from the plaintiffs' counsel to make the results of any
such test available to him well before the trial, but he did not.
Although the plaintiffs' counsel would have made life easier for the
defendant by asking Dr. Miller to conduct the EMG earlier, it is a
fact of life that trial preparations are rarely completed till the eve
of trial, and there is no indication that the plaintiffs or their
counsel were acting in bad faith. Cf. Perma Research & Development
v. Singer Co., 542 F.2d 111, 115 (2d Cir. 1976). The problem of
the illegibility of portions of the test report — again not contended
to have been created deliberately — could have been cleared up quickly
if the defendant's counsel had taken up the judge's invitation to
question Dr. Miller before he testified.
The defendant also complains about the judge's
refusal to allow a private investigator it had hired to testify that
the records of Ryder Truck Lines contradicted Abernathy's testimony
that Ryder had refused him a job because of his back. The investigator
had gone to Ryder's headquarters, had looked through a log of job
applicants, and had not found Abernathy's name. The proposed testimony
would have been hearsay, and not being within any express hearsay
objection would have been admissible only under the catch-all
provision of the Federal Rules of Evidence, Rule 804(b)(5), which
requires among other things that the evidence be "more probative on
the point for which it is offered than any other evidence which the
proponent can procure through reasonable efforts." The defendant knew
almost two years before the trial that Abernathy was claiming to have
applied for and been refused a job with Ryder; and even though Ryder's
headquarters were more than 100 miles from the place of trial, the
defendant could have subpoenaed and copied Ryder's records, deposed
their custodian, Fed.R.Civ.P. 30(a), 45(b), (d), and if the custodian
was unwilling to testify at trial placed his deposition in evidence,
Fed. R.Evid. 804(b)(1), along with properly authenticated copies of
the records themselves, Fed.R.Evid. 803(6). Such evidence would have
been much more reliable than the private investigator's testimony. The
district judge was not obliged to remedy the deficiencies of the
defendant's trial preparation. Rule 703 of the Federal Rules of
Evidence, heavily relied on by the defendant, is irrelevant. It deals
with expert testimony — testimony based on "specialized knowledge,"
Fed.R.Evid. 702 — and such knowledge was not required to understand
the list of applicants in Ryder's files.
The last and most difficult issue raised by this
appeal is whether the verdict — $291,309 for the plaintiffs jointly —
was so excessive that the defendant was entitled to a new trial. An
initial question is whether this is an issue of state or federal law.
If it is "substantive" it is an issue of state law, and if
"procedural" an issue of federal law, but these terms are conclusions
more than they are criteria. See, e.g., Sibbach v. Wilson &
Co., 312 U.S. 1, 16-19, 61 S.Ct. 422, 427-29, 85 L.Ed. 479 (1941)
(Frankfurter, J., dissenting). The majority view is that the issue is
procedural. See 11 Wright & Miller, Federal Practice and Procedure §
2802 (1973), and 1982 Pocket Part at pp. 5-6. Galard v. Johnson,
504 F.2d 1198, 1200 n. 1 (7th Cir. 1974), so holds, but is in some
tension with a number of seventh Circuit decisions dealing with the
related question (on which see generally Evans v. S.J. Groves &
Sons Co., 315 F.2d 335, 342 n. 2 (2d Cir. 1963) (Friendly, J.))
whether in a diversity case the standard for directing a verdict for
the defendant because the plaintiff's evidence of liability is
insufficient is a question of state or federal law, and holding that
it is the former. See, e.g., Wieloch v. Rogers Cartage Co.,
290 F.2d 235, 237 (7th Cir. 1961); Moran v. Raymond Corp.,
484 F.2d 1008, 1014 (7th Cir. 1973); Kuziw v. Lake
Engineering Co., 586 F.2d 33, 35 (7th Cir. 1978). Although the
decisions do not explain why state law should govern, do not cite
other Seventh Circuit decisions that hold the opposite (also without
giving reasons), notably Gudgel v. Southern Shippers, Inc.,
387 F.2d 723, 725 (7th Cir. 1967), do not answer the strong criticisms
in Wright, Law of Federal Courts 449-50 (1976), and do not discuss the
many contrary decisions in other circuits — see, e.g., Boeing Co.
v. Shipman, 411 F.2d 365, 368-70 (5th Cir. 1969) (en banc);
Yazzie v. Sullivent, 561 F.2d 183, 188 (10th Cir. 1977); but see,
e.g., McIntyre v. Everest & Jennings, Inc., 575 F.2d 155, 158
(8th Cir. 1978) — or even Galard itself, they nevertheless can
be defended, and maybe even reconciled with
Galard.
The usual assumption is that the question whether
state or federal law applies must be answered the same way whether the
issue is the sufficiency of the evidence or the excessiveness of the
verdict. See 9 Wright & Miller, Federal Practice and Procedure § 2525
at p. 553 (1971). But a rule determining how much evidence of
liability a plaintiff must put in to defeat the defendant's motion for
a directed verdict can be viewed as part of the definition of the
plaintiff's substantive rights under state law rather than as a rule
merely of jury control; it goes to liability, not just to amount of
damages, and it determines the defendant's right to judgment and not
just to a new trial. The difference is one of degree, though, and
maybe not a big one under the "outcome-determinative" test of cases
following Erie R.R. v. Tompkins, 304 U.S. 64, 58 S.Ct.
817, 82 L.Ed. 1188 (1938), such as Guaranty Trust Co. v. York,
326 U.S. 99, 65 S.Ct. 1464, 89 L.Ed. 2079 (1945). That test is
frequently disparaged on the ground that no issue that did not change
outcomes would be worth arguing about; but it has a core of good
sense: we ought not impart a systematic bias to the choice by
diversity plaintiffs (or defendants who can remove) between litigating
in federal and in state court, as we would be doing if we applied
federal rather than state law to an issue that affected outcomes
systematically rather than randomly. The rule that jury verdicts may
be set aside as excessive works in only one direction — against
plaintiffs. A federal rule more liberal than the applicable state rule
would induce many diversity plaintiffs to shun federal court and would
encourage defendants to remove, while a federal rule that was less
liberal would cause plaintiffs to flock to federal court, from which
defendants could not remove.
But against this must be set the fact that any rule
on the scope of the judge's control of the jury has Seventh Amendment
implications, see Wratchford v. S.J. Groves & Sons Co., 405
F.2d 1061, 1065-66 (4th Cir. 1969), and may therefore have to be
regarded as a matter of federal law. There is also the practical
consideration that the content of a sensible rule may be heavily
influenced by rules of procedure, the composition or size of juries,
or the role of the trial judge, all factors that may differ between a
state and the federal court system. For example, if federal juries are
more impartial on average than state juries because drawn from a
larger area, or if federal trial judges are more active in guiding the
jury than their state counterparts are, there is an argument
independent of the Seventh Amendment for placing tighter limits on the
power of federal judges to set aside verdicts as excessive.
But we need not try to resolve these interesting
questions; here, as in most cases, see, e.g., Longenecker v.
General Motors Corp., 594 F.2d 1283, 1285 (9th Cir. 1979),
the state and federal standards for setting aside a verdict as
excessive happen to be "virtually identical," as noted by a federal
district judge who is a former Indiana appellate judge, Johnson v.
Baltimore & Ohio R.R., 65 F.R.D. 661, 666 (N.D. Ind. 1974).
Both Indiana and the Seventh Circuit allow the trial judge to set
aside the jury's verdict only if it is grossly excessive, and in both
systems appellate review of his refusal to do so is extremely limited
because of his superior ability, by virtue of having observed the jury
at first hand, to assess its fairness and competence. Cf. United
States v. Bruscino, 687 F.2d 938, 941 (7th Cir. 1982) (en banc).
We therefore would not set aside a jury's verdict as excessive unless
there was no rational connection between the evidence on damages and
the verdict — unless, in other words, the verdict was "monstrously
excessive," Quilter v. Elgin, Joliet & E. Ry., 409 F.2d
338, 340 (7th Cir. 1969), quoted in Galard v. Johnson,
supra, 504 F.2d at 1199; or in the equivalent formulation of the
Indiana courts "so excessive as to be flagrantly outrageous and
extravagant." State v. Daley, 153 Ind. App. 330, 339, 287
N.E.2d 552, 557 (1972); see also Richmond Gas Corp. v.
Reeves, 158 Ind. App. 338, 368, 302 N.E.2d 795, 815 (1973);
State v. Thompson, 385 N.E.2d 198, 214 (Ind. App. 1979).
Our review of the verdict in this case would be
easier if the district judge had submitted the case to the jury on a
special verdict (or a general verdict with special interrogatories)
listing each item of damage separately. Fed.R.Civ.P. 49. Then the
damage award would be simply the sum of the amounts awarded for each
item. But neither party asked for such a verdict, and the judge did
not submit one to the jury on his own initiative, as he could have
done. 9 Wright & Miller, supra, § 2505 at p. 492 and n. 35, §
2511 at p. 522 and n. 31. Moreover, although the Abernathys' counsel
asked the jury to award between $275,000 and $300,000 — and the jury
did — he did not explain the reasoning behind that range. Only one
tangible, and incidentally undisputed, item of damage was submitted to
the jury in precise quantitative form — Mr. Abernathy's medical bills,
stipulated to be $3,333.25. The jury may have taken the exact midpoint
of the range suggested by the plaintiffs' counsel, which would be
$287,500, and added the medical expenses, or it may have added those
expenses to $288,000, or it may have followed a different procedure
altogether. Reconstructing a jury's thinking from a general verdict is
often difficult and fruitless, and an additional complication here is
that the stipulated medical expenses do not jibe with the last three
digits of the verdict.
But we know the jury awarded damages, besides
medical expenses, of about $288,000 and it may have derived that
figure from the statement by plaintiffs' counsel in closing argument
that it would not be unreasonable to give Mr. Abernathy $10 a day for
the rest of his life to compensate him for his pain and suffering from
the accident. The parties stipulated that at the time of the accident
Mr. Abernathy had a life expectancy of a shade under 40 years, and $10
a day for 40 years is (ignoring leap years) $146,000. If the jury
awarded the same amount to Mrs. Abernathy for loss of consortium, the
total would be $292,000. (Although Mrs. Abernathy's life expectancy
was longer than her husband's, this is irrelevant. You cannot claim
loss of consortium for a period after your spouse's death unless the
defendant's culpable acts accelerated his death, and there is no
suggestion that the accident reduced Mr. Abernathy's life expectancy.)
This is close to the roughly $288,000 that the jury awarded in
addition to Mr. Abernathy's medical expenses.
We cannot see how the jury could rationally have
based its verdict even in part on lost earnings. Though there was
evidence that in the three years immediately preceding the accident
Abernathy had earned $4,400, $9,500, and $2,600, respectively, and
though Dr. Miller testified that Abernathy was 35-50 percent disabled,
Abernathy has worked since recovering from the accident (not steadily,
but he didn't work steadily before), and is disabled only to the
extent of being unable to perform heavy work; and we find it hard to
see what effect being confined to light work would have on an average
annual income of $5,500 a year, which was at the time little if any
more than the minimum wage for a full-time worker, and would be below
it now. It is true that before the accident Abernathy worked
intermittently, with frequent layoffs; and probably when he did work
he received a higher hourly rate than he does now, for there is a wage
premium (other things being equal) for heavy over light work. But
neither the plaintiffs' counsel nor any witness tried to compute for
the jury's benefit (or give the jury the figures from which it could
itself have computed) the loss in hourly pay multiplied by the number
of hours that Abernathy could reasonably expect to work for the rest
of his working life. There was thus no factual basis for the jury's
awarding lost earnings. Even if we were certain that Abernathy's
partial disability had reduced or will reduce his hourly earnings or
number of hours of work, we could not uphold an award of damages from
lost earnings when the jury was given no evidence from which it could
estimate that loss in dollars. Scott v. Nabours, 156 Ind. App.
317, 321, 296 N.E.2d 438, 441 (1973); cf. Jeanneret v. Vichey,
693 F.2d 259, 265 (2d Cir. 1982).
The question of damages for pain and suffering is
more difficult. The accident was unquestionably a serious and painful
one. Several of Abernathy's vertebrae were fractured, an operation was
performed to remove a hematoma (a blood mass) that formed in his back
as a result of the accident, and for six months after the accident he
was in pain and could not walk normally or climb stairs. Also, two
teeth were knocked loose, and later pulled. At the time of the trial
Abernathy still had some sciatica (a pain running up and down the leg,
typically caused by pressure on a nerve), though he was not taking any
pain killers. Dr. Miller testified that he might recommend, although
he had not yet done so, an operation on Abernathy's back to fuse the
damaged vertebrae in order to alleviate the sciatica. Mrs. Abernathy
testified that since the accident her husband had been very irritable
and was unable to water-ski, dance, bowl, or go to the movies with
her, or play outdoor games with their children.
Although Mr. Abernathy is entitled to a substantial
award for the six months of pain and restricted movement that followed
the accident, there is little evidence of pain or other disutility
since then other than what can be inferred from his wife's testimony.
Of course his back may get worse; and not only is a spinal fusion a
dangerous procedure, because there is a significant possibility of its
causing paralysis, but it often is unsuccessful in relieving pain. On
the other hand, the evidence is uncontested that Abernathy was
suffering from disc disease ("slipped disc") before the accident; his
vertebrae were already beginning to disintegrate and press on the
nerves. To someone already suffering from disc disease a back injury
is a terrible thing; and the fact that a tort victim, because of a
preexisting weakness, suffers a worse injury than a normal person
would suffer is not in itself a ground for reducing his damage award.
See, e.g., Vosburg v. Putney, 80 Wis. 523, 50 N.W. 403 (1891);
Johnson v. Bender, 174 Ind. App. 638, 644-45, 369 N.E.2d 936,
940 (1977). But it is different when the weakness makes it likely that
the injury complained of would have occurred anyway, so that the
accident merely accelerated it. The "defendant has a right to offer
evidence that the plaintiff was suffering from a disease and to prove
the character and extent of the pain which would probably result from
such disease, and to have this evidence considered by the jury in
mitigation of damages . . . ." Sherman v. Indianapolis
Traction Co., 48 Ind. App. 623, 628, 96 N.E. 473, 476 (1911). See
also Louisville N.A. & C. Ry. v. Jones, 108 Ind. 551, 559-61, 9
N.E. 476, 485-86 (1886); Treschman v. Treschman, 28 Ind.
App. 206, 217-18, 61 N.E. 961, 965 (1901); Steinhauser v. Hertz
Corp., 421 F.2d 1169, 1173-74 (2d Cir. 1970). A man who has disc
disease yet does heavy work — Mr. Abernathy at the time of the
accident — is quite likely in time to experience symptoms similar to
those Abernathy experienced prematurely because of the accident. It is
unreasonable to ascribe to the accident 100 percent of the back pain
that he is expected to suffer over his lifetime.
We said earlier that the plaintiffs' counsel
suggested to the jury that $10 a day would not be unreasonable
compensation for Mr. Abernathy's pain and suffering. No figure was
suggested for Mrs. Abernathy's loss of consortium but it could not be
so great, and suppose it was $5 a day. Then the maximum verdict the
jury could have awarded the Abernathys on their counsel's own theory
would have been $219,000. But even this would be too much. In gauging
the reasonableness of an award of damages for a future loss, the court
must consider the present discounted value of that loss. See, e.g.,
State v. Daley, supra; State v. Thompson, supra; O'Shea v.
Riverway Towing Co., 677 F.2d 1194, 1199 (7th Cir. 1982). If $15 a
day would compensate the Abernathys for the damage (apart from medical
expenses) that they can expect to suffer over the next 40 years, and
they are awarded $15 today for each day of future suffering, then
assuming as we must that they will invest the money, however
conservatively, they will have more than $15 when each of those future
days rolls round — dramatically more, for the last days. (The present
value at a 2 percent discount rate of $15 to be received in 40 years
is $6.79.). Assuming that the plaintiffs' counsel was speaking in
"real" (that is, inflation-free) terms — a reasonable assumption since
he named a constant figure rather than one rising over time — the
proper discount rate would have been the real, that is, the
inflation-free, discount rate for riskless investments. That rate is
usually estimated at 1-3 percent. O'Shea v. Riverway Towing
Co., supra, 677 F.2d at 1198-1200. The present value of $219,000
to be received over 40 years, discounted at 2 percent, is $149,771.36.
We cannot understand how an award of damages greater than the sum of
this amount and the stipulated medical expenses of $3,333.25 —
$153,104.61 in total — could have been made consistently with the
evidence, the instructions, and the closing argument of the
plaintiffs' counsel (compare Barker v. Cole, 396 N.E.2d 964,
969 (Ind. App. 1979), upholding a $50,000 verdict for much more
serious orthopedic injuries) — especially when we consider how likely
it is that Mr. Abernathy's pre-existing disc disease would eventually
have caused him pain even if he had not had an accident but instead
had continued doing heavy work.
If the plaintiffs are willing to accept a remittitur
of $138,204.39 of the judgment ($291,309.00 - $153.104.61), we shall
affirm the judgment as so modified. See 11 Wright & Miller, supra,
§ 2820, at pp. 133-34. Otherwise we shall remand for a new trial
limited to damages. There will be no award of costs in this court.