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Volume 12, Edition 4

Simmons v. Bisland

MEMORANDUM OPINION

Court of Appeals of Texas,

Austin.

Appellants, Richard Louis SIMMONS and Lindig Construction and Trucking, Inc.// Cross-Appellants, Edmond L. Bisland III and Rhonda Bisland

v.

Appellees, Edmond L. BISLAND III and Rhonda Bisland// Cross-Appellees, Richard Louis Simmons and Lindig Construction and Trucking, Inc.

No. 03-08-00141-CV.

April 9, 2009.

Before Chief Justice JONES, Justices PURYEAR and HENSON.

MEMORANDUM OPINION

DIANE M. HENSON, Justice.

Richard Louis Simmons and his employer, Lindig Construction and Trucking, Inc., appeal from the trial court’s judgment affirming a jury verdict in favor of Edmond and Rhonda Bisland in the Bislands’ suit for damages resulting from a motor vehicle accident. Simmons and Lindig argue that the trial court erred in allowing the Bislands to present evidence supporting their alternative liability theories after Simmons and Lindig stipulated to negligence, causation, and vicarious liability. Simmons and Lindig further argue that the jury awards for certain elements of damages are unsupported by the evidence. The Bislands cross-appeal, arguing that the trial court erred in allowing Simmons and Lindig a credit against prejudgment interest. We modify the trial court’s judgment to delete the credit against prejudgment interest and affirm the judgment as modified.

Simmons and Lindig’s motion for leave to file a post-submission brief is hereby granted.

BACKGROUND

The accident giving rise to the underlying suit occurred at approximately 4:30 p.m. on December 20, 2004, when Simmons, driving a Lindig-owned 18-wheeler fully loaded with limestone, rear-ended Edmond Bisland’s pickup truck. At the time of the collision, Edmond was stopped in the eastbound lane of Highway 21 in Hays County, waiting for oncoming traffic to pass so that he could make a left turn onto Yarrington Road. Simmons, who was traveling east on Highway 21 with his cruise control set at 65 miles per hour, failed to stop and rear-ended Edmond’s vehicle.

Witnesses to the accident testified that Edmond’s left turning signal had been flashing as he waited to turn left, that it was a clear day with dry road conditions, and that Simmons did not appear to slow down or apply his brakes before the collision. The force of the collision knocked Edmond’s vehicle 486 feet down the highway before it came to a stop, and the damage to Lindig’s 18-wheeler was so significant that it had to be towed from the scene. One witness testified, “It was a violent collision. I’ve never seen or witnessed anything as horrific as that. I’m surprised Mr. Bisland is here today.”

Edmond’s wife, Rhonda Bisland, testified that her husband called her from his cell phone immediately after the accident. Rhonda rushed to the scene, arriving before the emergency vehicles, and found Edmond pinned inside his truck. Edmond was ultimately extracted from his vehicle through the passenger side window and transported to the hospital. He suffered extensive injuries as a result of the accident, including a hangman’s fracture of the C-2 vertebra, which his treating physician, Dr. Paul Geibel, described as “the type of fracture seen in a hanging incident.”Edmond also suffered a compression fracture of the C-5 vertebra, a right elbow fracture and dislocation which required surgery, a rib fracture, and multiple contusions and abrasions. Due to Edmond’s severe spinal injuries, he was forced to undergo a cervical fusion procedure, which required that two cervical discs be removed, bone grafts from his pelvis placed in his spine, a titanium plate and screws attached to his spine, and a halo affixed to his skull, which remained in place for 81 days and prevented him from moving his neck at all. Edmond testified that while the halo was screwed into his skull, he had trouble sleeping and his “head felt like it had glass in it all the time.”Rhonda testified that during this period, Edmond “was miserable” and “his head hurt all the time. He said it felt like pieces of glass in his scalp.”

Dr. Geibel testified that Edmond would experience permanent limitation of motion as a result of the fused segments of his spine and that he also had the potential to develop “adjacent level degeneration” as a result of the cervical fusion procedure, “meaning he could get problems above or below the fusion where those levels [of Edmond’s spine] are now subjected to … stresses that normally would have gone through the other two levels.”According to Geibel, the potential for adjacent level degeneration created “a high risk” that Edmond would require an additional surgical procedure on his spine in the future. Geibel also stated that Edmond experienced ongoing headaches, chronic neck pain, and spasms that bother him on a daily basis and predicted that Edmond would require $1500 to $2000 worth of doctor’s visits, medication, and massage therapy per year in the future.

The Bislands testified extensively regarding the activities that Edmond had previously engaged in regularly but could no longer enjoy as a result of his injuries, including hunting, fishing, boating, bowling, camping, playing the fiddle, breaking and riding horses, and wrestling with the couple’s two young sons. Rhonda explained that the couple had enjoyed attending sporting events before the accident, but that they no longer do so because Edmond cannot sit for long periods of time without suffering from headaches and stiffness in his neck. Rhonda also testified that before the accident, Edmond performed all of the family’s household and auto repairs himself, had been remodeling the couple’s home in Smithville himself, and frequently assisted her in running an in-home day-care center, but that he can no longer perform these tasks as a result of his injuries. Rhonda further stated that Edmond has experienced continuing pain and headaches, which she believed to be worsening over time, as well as a potentially permanent loss of grip in his right hand as a result of the elbow fracture.

Prior to the accident, Edmond worked for the Texas Department of Transportation (TxDOT) as a heavy equipment operator. Edmond testified that he was one of only five individuals at TxDOT qualified to operate a certain type of hydraulic excavator and that he had taken great pride in his work. His supervisor, Wayne Barrett, testified that he considered Edmond to be a highly skilled, reliable, and dedicated employee. After missing almost a year of work and taking all of his accumulated sick leave, Edmond returned to his employment in November 2005 and discovered that he was unable to operate the equipment as he had in the past, due primarily to the difficulty he experienced getting into and out of the machines. In February 2007, Dr. Geibel placed Edmond on work restrictions, recommending that he not participate in frequent pushing, pulling, or lifting of items weighing over 25 pounds. Geibel also advised Edmond not to operate vibrating equipment for extended periods of time because of the possibility of exacerbating his neck spasms. As a result of these limitations, Edmond could no longer work as a heavy equipment operator and began serving TxDOT in a training capacity. Edmond testified that he lived with constant fear that he would lose his job and his ability to support his family, stating that a training position “runs out after awhile” and that it is difficult for him to train equipment operators because he cannot physically show them how to operate the equipment.

The Bislands filed suit against Simmons and Lindig in May 2005. Simmons and Lindig maintained in their pleadings, including the live pleading at trial, that the accident had been unavoidable and was not the result of Simmons’s negligence. In October 2007, less than three weeks before trial and six months after the deadline for amending pleadings, Simmons and Lindig stipulated to negligence and vicarious liability. After a jury trial on the issue of damages, the jury awarded Edmond Bisland $400,000 in past physical pain and mental anguish, $550,000 in future physical pain and mental anguish, $35,000 in past loss of earning capacity, $0 in future loss of earning capacity, $300,000 in past physical impairment, $915,000 in future physical impairment, $65,000 in past medical expenses, and $40,000 in future medical expenses. The jury also awarded Rhonda $25,000 in past loss of household services, $60,000 in future loss of household services, $52,000 in past loss of consortium, and $115,000 in future loss of consortium, bringing the Bislands’ total damage award to $2,557,000. The amount awarded by the jury was approximately $1,000,000 less than the total amount of damages requested by the Bislands. The trial court issued judgment on the verdict, awarding prejudgment and postjudgment interest on the award, with a credit against prejudgment interest for the amount of interest accrued during the period in which a settlement offer was outstanding. SeeTex. Fin.Code Ann. § 304.105(b) (West 2006). This appeal and cross-appeal followed.

On appeal, Simmons and Lindig argue (1) that the trial court erred in admitting evidence of the Bislands’ alternative liability theories after the stipulation to negligence and vicarious liability and (2) that the jury’s awards of certain elements of damages are not supported by the evidence. On cross-appeal, the Bislands argue that the trial court erred in awarding a credit against prejudgment interest for interest accrued during the period that a settlement offer was outstanding.

STANDARD OF REVIEW

The question of whether to include or exclude evidence is a matter committed to the trial court’s discretion. Volkswagon of Am., Inc. v. Ramirez, 159 S.W.3d 897, 918 (Tex.2004). Erroneous admission of evidence requires reversal only if “the error probably (though not necessarily) caused rendition of an improper judgment.” Reliance Steel & Aluminum Co. v. Sevick, 267 S.W.3d 867, 871 (Tex.2008); see also Nissan Motor Co. v. Armstrong, 145 S.W.3d 131, 144 (Tex.2004).

To evaluate the legal sufficiency of the evidence to support a finding, we must “determine whether the proffered evidence as a whole rises to a level that would enable reasonable and fair-minded people to differ in their conclusions.” Transportation Ins. Co. v. Moriel, 879 S.W.2d 10, 25 (Tex.1994). In reviewing a verdict for legal sufficiency, we credit evidence that supports the verdict if reasonable jurors could, and disregard contrary evidence unless reasonable jurors could not. City of Keller v. Wilson, 168 S.W.3d 802, 827 (Tex.2005). To evaluate the factual sufficiency of the evidence to support a finding, we consider all of the evidence, setting aside the verdict only if the evidence supporting the jury finding is so weak or so against the overwhelming weight of the evidence that the finding is clearly wrong and unjust. See Dow Chem. Co. v. Francis, 46 S.W.3d 237, 242 (Tex.2001). We may not substitute our judgment for that of the jury, even if the evidence would clearly support a different result. Maritime Overseas Corp. v. Ellis, 971 S.W.2d 402, 407 (Tex.1998).

We review a trial court’s award of prejudgment interest under an abuse-of-discretion standard. J.C. Penney Life Ins. Co. v. Heinrich, 32 S.W.3d 280, 289 (Tex.App.-San Antonio 2000, pet. denied). However, “a trial court has no ‘discretion’ in determining what the law is or applying the law to the facts.” Walker v. Packer, 827 S.W.2d 833, 840 (Tex.1992).

DISCUSSION

Admission of Liability Evidence

Simmons and Lindig argue that, in light of their stipulation to negligence and vicarious liability, the trial court erred in admitting evidence related to the Bislands’ alternative liability theories.The Bislands presented evidence at trial that by violating certain federal safety regulations imposed on motor carriers, Lindig had been negligent in its hiring, retention, supervision, and entrustment of Simmons. Simmons and Lindig contend that the trial court’s admission of this evidence constitutes harmful error because it was inflammatory and inflated the jury’s damage awards. The Bislands contend that Simmons and Lindig failed to properly preserve this issue for appellate review.

In the Bislands’ second amended petition, their live pleading at trial, they claimed that Lindig was vicariously liable for Edmond’s injuries on the basis of respondeat superior, and, in the alternative, that Lindig was liable based on its violations of federal motor carrier safety regulations, its negligent hiring, retention, and supervision of Simmons, and its negligent entrustment of the truck to Simmons.

As a general rule, evidence supporting alternative liability theories such as negligent hiring or negligent entrustment is inadmissible when the defendant has stipulated to vicarious liability. See, e.g., Estate of Arrington v. Fields, 578 S.W.2d 173, 178 (Tex.Civ.App.-Tyler 1979, writ ref’d n.r.e.); Patterson v. East Tex. Motor Freight Lines, 349 S.W.2d 634, 636 (Tex.Civ.App.-Texarkana 1961, writ ref’d n.r.e.) (“The theory of negligent entrustment in order to bind the truck company became immaterial as soon as the stipulation as to course of employment was made.”).

However, assuming without deciding that the trial court erred in admitting evidence in support of the Bislands’ alternative liability theories and that the error was properly preserved for appellate review, such error is harmless unless it “probably (though not necessarily) caused rendition of an improper judgment.” Reliance Steel, 267 S.W.3d at 871. The evidence complained of consists of evidence that Lindig failed to comply with certain federal safety regulations by (1) failing to obtain Simmons’s signature on his employment application, (2) omitting Lindig’s name and address from Simmons’s employment application, (3) neglecting to adequately document the reference check that Lindig conducted with Simmons’s previous employers, (4) failing to administer the required pre-employment drug test to Simmons until three months after his employment began, (5) briefly allowing Simmons to drive with an expired medical examiner’s certificate before it was renewed, and (6) failing to subject Simmons to a post-accident drug or alcohol test within the deadline for post-accident testing.The Bislands’ counsel also cross-examined Simmons regarding his employment application with Lindig, pointing out minor inaccuracies with the dates of his past employment and his previous addresses.

Lindig’s president, William Lindig, and its safety and personnel director, Kayla Gayle, both testified that Simmons was taken to the office of Dr. Daniel Ramsey for a drug test the day after the accident. Dr. Ramsey’s office was unable to locate clinical records confirming that Simmons had been drug tested on that date.

The Bislands also presented evidence that Simmons was later fired from Lindig after another accident in which Lindig’s president determined that Simmons had fallen asleep at the wheel. Simmons and Lindig did not object to this testimony at trial and therefore did not preserve error regarding its admission. SeeTex.R.App. P. 33.1. Simmons’s post-accident medical records, which indicated a possibility that he suffers from sleep apnea, were also entered into evidence without objection.

In response, Simmons and Lindig presented evidence that Simmons had been randomly drug tested multiple times during his employment with Lindig and had never received a positive result, that his medical examiner’s certificate was valid at the time of the accident, that a reference check with Simmons’s previous employers had yielded satisfactory results, and that Simmons had a clean driving record at the time of the accident, with no prior wrecks or tickets. Furthermore, while the Bislands’ counsel characterized the circumstances surrounding post-accident drug testing as a “cover-up” during opening argument, no evidence was presented that drugs or alcohol were involved in the accident. In addition, the report resulting from the Texas Department of Public Safety’s investigation of the accident, which was entered into evidence, indicated that the only factor or condition contributing to the accident was Simmons’s failure to control his speed. Noticeably absent from the report was any indication that the investigator believed Simmons was under the influence of drugs or alcohol at the time of the accident. Lindig’s president, William Lindig, read from the DPS report during his testimony and stated, in response to questioning, that the influence of alcohol was not listed on the report as a factor leading to the accident. William Lindig further testified that he allowed Simmons to drive a company vehicle home after the accident.

Viewing the totality of the evidence presented to the jury, including the severity of Edmond’s injuries, the hardship inflicted on his wife as a result of his injuries, and the eye-witness testimony regarding the horrific nature of the accident, we cannot conclude that the complained-of evidence, consisting primarily of complaints about employment paperwork, most of which had been remedied long before the accident occurred and none of which had any causal connection to the accident, probably caused the rendition of an improper damage award in this case. While Simmons and Lindig cite Reliance Steel, 267 S.W.3d 867, to support their contention that the alternative liability evidence caused the jury to inflate the damage awards, we find Reliance Steel to be distinguishable in that it involved evidence of the defendant-employer’s wealth, rather than evidence that the defendant-employer had, for example, failed to obtain a driver’s signature on his employment application several years before any accident occurred. See 267 S.W.3d at 870. Texas courts have long recognized the particularly prejudicial nature of evidence of a party’s wealth. See, e.g., Southwestern Elec. Power Co. v. Burlington N. R.R. Co., 966 S.W.2d 467, 471 (Tex.1998); Transportation Ins. Co. v. Moriel, 879 S.W.2d 10, 30 (Tex.1994). Given the relative insignificance of the evidence that Lindig had inadvertently violated federal regulations in its employment procedures when compared to the substantial evidence of the severity of Edmond’s injuries and the permanent and detrimental impact of these injuries on the Bislands’ lives, we hold that if the trial court did in fact err in admitting evidence of Lindig’s federal regulatory violations, any such error was harmless. See Reliance Steel, 267 S.W.3d at 871 (“Erroneous admission of evidence is harmless unless the error probably (though not necessarily) caused rendition of an improper judgment.”). Simmons and Lindig’s first issue is overruled.

Sufficiency of the Evidence

In their second issue on appeal, Simmons and Lindig raise a number of arguments regarding the sufficiency of the evidence to support certain elements of damages awarded by the jury, asserting (1) that the award of future medical expenses is improper because it represents an award for surgery on a preexisting condition, (2) that the jury improperly considered a preexisting degenerative disc condition in awarding damages, (3) that the ratio of non-economic to economic damages in this case is excessive, (4) that the mental anguish award is unsupported by the evidence, and (5) that the past physical impairment and loss of consortium awards are excessive because they exceed the amounts requested by the Bislands. We will address each of these arguments in turn.

First, Simmons and Lindig argue that the evidence is insufficient to support the award of $40,000 for future medical expenses because the jury awarded this amount for surgery on a preexisting disc condition. Dr. Geibel, Edmond’s treating physician, testified that a disc in Edmond’s spine showed a problematic level of herniation or deterioration, but stated that he could not confirm whether this abnormality existed prior to the accident.Geibel further testified that the disc in question was more likely than not subject to “an increased rate of deterioration due to the fusion” procedure Edmond had undergone as a result of the injuries he sustained in the accident. Geibel explained that Edmond was at risk of needing additional surgery as a result of the fusion procedure, and that this risk was heightened because of his deteriorated disc.

When asked, “Do you know whether or not the disc that’s showing problems now was injured in this accident?”Geibel replied, “No, I don’t know all of that. I don’t have those records or MRIs that-that preceded this.”

Geibel testified, “[A] normal person with normal discs would have an increased risk [of future surgery] because of the fusion, period. A person with a fusion and an abnormal disc is going to be at a very heightened and problematic-increased rate for additional problems.”Geibel stated that this combination of the fusion procedure and Edmond’s disc deterioration resulted in a greater than 50% risk that he would need future surgery.

In response, Simmons and Lindig presented the testimony of Dr. Nicholas Tsourmas, who reviewed Edmond’s medical records from February 2005, two months after the accident, and stated that the degenerative disc condition “has to be preexisting” and that it “cannot be caused by the accident” because such degeneration could not have occurred in such a short amount of time.Tsourmas further testified that he did not believe Edmond would need future surgery.

The February 2005 medical records noted “mild, broad annular bulging without significant mass effect” in the disc in question. On cross-examination, Tsourmas conceded that he had not reviewed the MRI taken on the date of the accident, nor had he reviewed any MRIs taken before the accident.

Regardless of whether Edmond’s disc deterioration predated the accident or the probability of his need for future surgery, the evidence presented at trial in connection with Edmond’s future medical expenses was not limited to surgical expenses. Rather, the Bislands presented evidence, through the testimony of Edmond’s treating physician, that they would incur a total of $94,250 in future medical expenses-$54,250 for necessary doctor visits, medication, and massage therapy, and an additional $40,000 in the event a future surgery was needed. Simmons and Lindig do not argue that the evidence is insufficient to support at least $40,000 in future non-surgical costs, including doctor visits, medication, and massage therapy. In light of this evidence, we will not disturb the jury’s award of $40,000 in future medical expenses. See Antonov v. Walters, 168 S.W.3d 901, 908 (Tex.App.-Fort Worth 2005, pet. denied) (“An award of future medical expenses lies largely within the jury’s discretion. Because issues such as life expectancy, medical advances, and the future costs of products and services are, by their very nature, uncertain, appellate courts are particularly reluctant to disturb a jury’s award of these damages.”).

In calculating the total cost of future doctor visits, medication, and massage therapy, the Bislands relied on an estimated cost of $1750 per year, reflecting the midpoint of Geibel’s estimation that these future yearly expenses would be between $1500 and $2000.

Lindig and Simmons also argue that the damages awarded to the Bislands for physical pain and mental anguish, physical impairment, and loss of consortium are excessive because they represent compensation for Edmond’s preexisting degenerative disc condition. As previously discussed, the jury was not presented with clear evidence indicating that a degenerative disc condition actually existed at the time of the accident. Geibel, Edmond’s treating physician, testified that he did not know whether Edmond’s degenerative disc was a preexisting condition, while Tsourmas-Simmons and Lindig’s expert-testified that he believed the degenerative disc predated the accident, but acknowledged on cross-examination that he had not reviewed Edmond’s MRI from the date of the accident or any MRI taken prior to the accident. The Bislands’ counsel also elicited testimony from Tsourmas that he had never served as lead surgeon on the type of surgery performed on Edmond and that he served as a hired expert witness on approximately three to four new cases each month. In its role as factfinder, the jury was free to disregard Tsourmas’s testimony. See, e.g., Weeks Marine, Inc. v. Salinas, 225 S.W.3d 311, 320 (Tex.App.-San Antonio 2007, pet. dism’d) (stating that “jury is entitled to disbelieve or discount any part of an expert’s testimony” and to “make credibility determinations and weigh competing expert testimony and the variables and assumptions upon which that testimony is based”). The jury also heard both Rhonda and Edmond testify extensively regarding the physical activities, including sports and outdoor recreational activities, that Edmond had previously enjoyed but could no longer engage in after the accident because of pain and limitations in his range of motion. Neither of the Bislands gave any indication that Edmond had experienced any pain, physical impairment, or difficulty participating in these activities prior to the accident. Finally, even if the jury did believe Tsourmas’s testimony that Edmond had a preexisting degenerative disc condition, there is no indication that the jury improperly considered this condition in awarding damages for physical pain and mental anguish, physical impairment, or loss of consortium. The jury was specifically instructed to award only the amount of money necessary to fairly and reasonably compensate Edmond for damages “that resulted from the occurrence or injury in question” and to fairly compensate Rhonda for injuries “that resulted from the occurrence in question.”Absent evidence to the contrary, we must assume that the jury followed these instructions. Turner, Collie & Braden, Inc. v. Brookhollow, Inc., 642 S.W.2d 160, 167 (Tex.1982); see also Pipgras v. Hart, 832 S.W.2d 360, 366 (Tex.App.-Fort Worth 1992, writ denied) (“The mere fact that the jury’s award was large does not indicate passion, prejudice, sympathy, or other circumstances not in evidence.”).

Simmons and Lindig further argue that the damage awards for physical pain, mental anguish, and physical impairment are excessive in comparison to the amounts awarded for loss of earning capacity and medical expenses, citing Houston Livestock Show & Rodeo, Inc. v. Hamrick, 125 S.W.3d 555, 581 n. 25 (Tex.App.-Austin 2003, no pet.)(“Courts often rely on a ratio of damages to establish whether noneconomic or actual damages are excessive.”). However, damage ratios are generally used when reviewing punitive damage awards, which are not at issue here, and even in cases involving punitive damages, courts have made it clear that there is no bright-line maximum ratio. See, e.g., State Farm Mut. Auto. Ins. Co. v. Campbell, 538 U.S. 408, 424-25, 123 S.Ct. 1513, 155 L.Ed.2d 585 (2003); Bennett v. Reynolds, 242 S.W.3d 866, 904 (Tex.App.-Austin 2007, pet. abated). The applicable standard of review requires us to uphold non-economic damage awards that are supported by the evidence, regardless of any ratio of non-economic damages to economic damages.See Marvelli v. Alston, 100 S.W.3d 460, 482 (Tex.App.-Fort Worth 2003, pet. denied) (“Matters of past and future physical pain, mental anguish, and physical impairment are particularly within the jury’s province. Therefore, as long as sufficient probative evidence exists to support the jury’s verdict, neither the reviewing court nor the trial court is entitled to substitute its judgment for that of the jury.”(internal citation omitted)).

We also note that while Simmons and Lindig refer to the awards for past and future physical impairment as non-economic damages, the jury was specifically instructed that damages for physical impairment “can encompass both economic and non-economic losses.”See also Golden Eagle Archery, Inc. v. Jackson, 116 S.W.3d 757, 764 (Tex.2003) (“Texas courts, including this one, have long recognized that ‘physical impairment’ or similar concepts could encompass both economic and non-economic damages.”).

The jury was presented with evidence that as a result of the accident, Edmond could no longer perform his job as a heavy equipment operator, could no longer participate in a wide range of hobbies and other activities that he had previously enjoyed, continued to suffer from pain, headaches, and muscle spasms, and suffered severe limitations in his range of motion. In light of this evidence, we hold that the jury’s damages awards for physical pain, mental anguish, and physical impairment are not excessive in comparison to the amounts awarded for loss of earning capacity and medical expenses.

Simmons and Lindig further argue that the evidence is legally and factually insufficient to support awards for past and future mental anguish. However, Simmons and Lindig did not properly preserve error on appeal regarding the legal sufficiency of the evidence to support an award for mental anguish. When a party contends that there is no evidence to support the submission of a specific element of damages in a broad-form jury question, the party must object before the charge is read to the jury. Harris County v. Smith, 96 S.W.3d 230, 236 (Tex.2002). In the present case, the jury was asked to award damages in a lump sum for “[p]hysical pain and mental anguish sustained in the past” and a lump sum for “[p]hysical pain and mental anguish that, in reasonable probability, Edmond L. Bisland will sustain in the future.”Simmons and Lindig argue on appeal that there is no evidence to support an award for mental anguish, but did not object to the inclusion of this element of damages in the broad-form question before it was read to the jury and therefore waived any legal sufficiency challenge regarding mental anguish. As for factual sufficiency, Simmons and Lindig are limited to challenging the evidence to support the lump sum awards for physical pain and mental anguish. See Brookshire Bros., Inc. v. Lewis, 997 S.W.2d 908, 922 (Tex.App.-Beaumont 1999, pet. denied) (“[T]o successfully challenge a multi-element damage award on appeal, an appellant must address all of the elements and show the evidence is insufficient to support the entire damage award.”). Given the evidence that Edmond suffered a great deal of pain as a result of his injuries, including feeling as if his head “had glass in it all the time” while the halo was screwed into his skull, that he continues to suffer daily from pain, muscle spasms, and headaches, and that he suffers from anguish resulting from his inability to perform his job as a heavy equipment operator and fear that he may not be able to support his family in the future, we hold that the damages awards for past and future physical pain and mental anguish are not so against the overwhelming weight of the evidence as to be clearly wrong and unjust. See Southwest Tex. Coors, Inc. v. Morales, 948 S.W.2d 948, 951-52 (Tex.App.-San Antonio 1997, no writ) (“Matters of pain and suffering, which are necessarily speculative and not subject to precise mathematical calculations, are particularly within the province of the jury to resolve and to determine appropriate amounts.”).

Finally, Simmons and Lindig argue that the damages awards for past physical impairment and past loss of consortium are excessive because they exceed the amounts requested by the Bislands. Simmons and Lindig provide no authority for the proposition that a damages amount suggested by plaintiffs’ counsel acts as a ceiling which the jury may not exceed. We also note that while the jury awarded certain elements of damages in excess of the amounts requested by the Bislands, other damage awards were considerably less than the requested amounts, resulting in an overall damages award that was $993,828.33 less than the total amount requested by the Bislands. In any event, it is within the province of the jury to determine the appropriate amounts to award for past physical impairment and past loss of consortium. See McDonald v. Dankworth, 212 S.W.3d 336, 346 n. 12 (Tex.App.-Austin 2006, no pet.)(stating that “physical impairment damages are inherently subjective and uniquely within the jury’s province”); P.T. & E. Co. v. Beasley, 698 S.W.2d 190, 196 (Tex.App.-Beaumont 1985, writ ref’d n.r.e.) (stating that for loss-of-consortium claim, “[t]he duty of resolving the monetary value to be placed on the loss falls upon the jury”). As previously discussed, the awards for physical impairment are sufficiently supported by the evidence. Similarly, given that loss of consortium is a “subjective state[ ] which present[s] some difficulty in translating the loss into a dollar amount,” Whittlesey v. Miller, 572 S.W.2d 665, 667 (Tex.1978), we hold that the award of $52,000 for Rhonda’s past loss of consortium covering a period of almost three years is not so contrary to the overwhelming weight of the evidence that it is clearly wrong and unjust. Because Simmons and Lindig provide no authority to suggest that a damage award must be considered excessive on the sole basis that it exceeds the amount requested by plaintiffs’ counsel, and because the past physical impairment and loss of consortium awards are supported by the evidence, we overrule this issue as well.

Having disposed of Simmons and Lindig’s arguments that the award of future medical expenses represented compensation for surgery on a preexisting condition, that the jury improperly considered a preexisting degenerative disc condition in making certain damage awards, that the ratio of non-economic to economic damages is excessive, that the mental anguish award is unsupported by the evidence, and that the past physical impairment and loss of consortium awards are excessive because they exceed the amounts requested, we overrule Simmons and Lindig’s second issue on appeal.

Prejudgment Interest

On cross-appeal, the Bislands argue that the trial court erred in allowing a credit against prejudgment interest in the amount of $17,580.51. Under section 304.105(b) of the finance code, prejudgment interest on the amount of any settlement offer is tolled during the period in which the offer may be accepted. SeeTex. Fin.Code Ann. § 304.105(b) (“If judgment for a claimant is more than the amount of a settlement offer of the defendant, prejudgment interest does not accrue on the amount of the settlement offer during the period that the offer may be accepted.”). At a post-trial hearing on the Bislands’ motion for entry of final judgment, Simmons and Lindig argued that they made a settlement offer in the amount of $400,000 on March 16, 2007, and asserted that the offer could have been accepted any time until October 10, 2007. On this basis, the trial court awarded a credit of $17,580.51.

The Bislands argue that there is no competent evidence to establish that a settlement offer was extended or that any offer remained open until October 10, 2007. In response, Simmons and Lindig point to a settlement offer letter attached to their response to the Bislands’ motion for entry of final judgment. This letter, which appears in the appellate record, is dated March 16, 2007, and states, “We are prepared to offer Four Hundred Thousand Dollars ($400,000) in exchange for a full & final release for all defendants from all claims.”The letter does not set a deadline for accepting the offer.

At the hearing on the motion to enter final judgment, the Bislands’ counsel stated that on October 10, 2007, he “clearly” told defendants’ counsel that the $400,000 offer “was dead, although it had been confirmed that he had been told that before.”Simmons and Lindig’s counsel asserted, on the other hand, that “no discussion or rejection [of the settlement offer], verbal or written, was done at least until that October 10th day.”These statements came in the form of the arguments of counsel, rather than sworn testimony. While Simmons and Lindig’s counsel referenced an affidavit swearing to the time line regarding the settlement offer, no affidavit was entered into evidence.0 After hearing the arguments of counsel, the trial court found in favor of Simmons and Lindig, allowing a credit to cover the period from the date of the offer letter until October 10, 2007.

0. The transcript of the hearing on the Bislands’ motion for entry of final judgment contains no indication that the referenced affidavit was actually presented to the trial court prior to its ruling on the issue of prejudgment interest.

A party seeking to toll prejudgment interest must provide the court with competent evidence to establish the proper amount of the award. Quality Beverage, Inc. v. Medina, 858 S.W.2d 8, 11 (Tex.App.-Houston [1st Dist.] 1993, no writ).“[C]ompetent evidence in this context could be stipulations, affidavits, or live testimony at a post-verdict or timely post-judgment hearing.” Foust v. Walters, 21 S.W.3d 495, 503 (Tex.App.-San Antonio 2000, pet. denied). In Quality Beverage, the court held that a party failed to present competent evidence to toll prejudgment interest when it merely attached counsel’s settlement offer letter as an exhibit to a response on a post-trial motion. See 858 S.W.2d at 11. Similarly, Simmons and Lindig were awarded a credit against prejudgment interest based solely on the arguments of counsel and a settlement offer letter attached to the response to the Bislands’ motion to enter judgment. No stipulation, affidavit, sworn testimony, or any other competent evidence on the issue of tolling appears in the record. As a result, we sustain the Bislands’ issue on cross-appeal and modify the trial court’s judgment to delete the $17,580.51 credit against prejudgment interest. See Aldine Indep. Sch. Dist. v. Ogg, 122 S.W.3d 257, 265 (Tex.App.-Houston [1st Dist.] 2003, no pet.)(holding that when reporter’s record is available, trial court’s findings of fact are binding only if supported by evidence).

CONCLUSION

We modify the trial court’s judgment to delete the credit against prejudgment interest and affirm the judgment as modified.

Tex.App.-Austin,2009.

Simmons v. Bisland

Not Reported in S.W.3d, 2009 WL 961522 (Tex.App.-Austin)

END OF DOCUMENT

Salvatore v. Pingel

United States District Court,

D. Colorado.

Michael SALVATORE, Plaintiff,

v.

Ian Michael PINGEL, as an individual, and Four Winds, Inc./People’s Choice Transportation, Inc., Defendants.

Civil Action No. 08-cv-00312-BNB-KMT.

April 6, 2009.

ORDER ON MOTION FOR SANCTIONS AND RELATED MOTIONS

BOYD N. BOLAND, United States Magistrate Judge.

This matter arises on the following:

(1) Plaintiff’s Motion for Sanctions Due to Spoliation of Evidence [Doc. # 77, filed 1/30/2009] (the “Motion for Sanctions”);

(2) Plaintiff’s Motion to Consider Supplemental Exhibits [Doc. # 85, filed 2/18/2009] (the “Motion to Supplement”);

(3) Plaintiff’s Motion for Leave to File a Reply In Support of His Motion for Sanctions Due to Spoliation of Evidence [Doc. # 89, filed 2/26/2009] (the “Motion to File Reply”); and

(4) Defendants’ Motion for Leave to File Sur-Reply to Plaintiff’s Motion for Sanctions Due to Spoliation of Evidence [Doc. # 91, filed 3/5/2009] (the “Motion to File Sur-Reply”).

The Motion to Supplement [Doc. # 85], Motion to File Reply [Doc. # 89], and Motion to File Sur-Reply [Doc. # 91] are GRANTED.

The Motion for Sanctions [Doc. # 77] is DENIED.

I. BACKGROUND FACTS

This is a personal injury case arising from a collision that occurred on May 17, 2005. According to the plaintiff:

On May 17, 2005, Defendant Pingel, while in the course and scope of his employment with Defendant Four Winds, drove a company van in to the rear of Mr. Salvatore’s motorcycle on Colorado 285. Mr. Salvatore was thrown from the motorcycle and rolled while Defendant Pingel struck and dragged the motorcycle 119 feet. Defendant Pingel was unable to stop the company van and carried the motorcycle through and into the intersection. Mr. Pingel was cited by the Sheridan Police Department for “following too closely.”

Motion for Sanctions at p. 2.

The plaintiff sued Ian Pingel for negligence and negligence per se in connection with his operation of the van. In addition, the plaintiff sued People’s Choice Transportation (“People’s Choice”), Mr. Pingel’s employer and the owner of the van, for respondeat superior; negligent hiring, retention, and supervision of Mr. Pingel; and for negligence and negligence per se for failure to properly maintain the van. In connection with the claims for failure to maintain the van People’s Choice, the plaintiff alleges:

58. Upon information and belief, Defendant People’s Choice Transportation purposefully ordered use of the vehicle after having had notice that the brakes were faulty and in poor working condition.

59. Upon information and belief, Defendant People’s Choice Transportation’s behavior was both willful and wanton in ordering use of the vehicle after Defendant People’s Choice Transportation was on notice of the faulty brakes. Such conduct was also heedless and reckless, and conducted without regard to the consequences, safety, or rights of the Plaintiff.

60. Plaintiff seeks exemplary damages under C.R.S. § 13-21-102. Such a claim is permitted based on evidence that People’s Choice Transportation had notice that the brakes on the vehicle involved in the collision were faulty, yet wantonly and willfully ordered continued use of the vehicle without regard for the safety of Plaintiff or others.

Second Amended Complaint [Doc. # 45, filed 9/15/2008] at ¶¶ 58-60.

There is evidence that the van’s brakes may have malfunctioned in connection with the accident. In particular, Mr. Pingel testified at his deposition:

Q: When did you slam on your brakes?

A: I began-as soon as I saw that [the plaintiff] stopped, then I gave that van every bit of braking that I had.

Q: Did this van, on that date, have any problems with the brakes?

A: The day previous-there’s a daily vehicle inspection report that drivers have to fill out when they drive a vehicle.

And the day previous, it was-it was written “brakes low,” which can be interpreted as several different things.

But on the daily vehicle inspection report, there’s two boxes, one that says, “above defects corrected,” one that says, “above defects need not be corrected for safe operation.”

And there was a box that said, “above defects corrected,” and it was checked, and it had my supervisor’s signature. So I was to assume, when I started driving the van, that the above defects had been corrected.

* * *

Q: Did you suspect that maybe the brakes had not been corrected-

MR. MAGGIO: Objection; foundation.

Q: -from the day before?

MR. MAGGIO: I’m sorry. Foundation.

A: Not at the time I started driving it. They felt fine.

Q: (By Ms. Hoskins) After the collision, did you suspect that maybe the brakes had not been repaired?

A: Yes.

MR. MAGGIO: Foundation.

Q: (By Ms. Hoskins) And that was based upon the length of time it took you to stop the van?

A: Right.

* * *

Q: So based on the length of time it took you once you slammed on the brakes for the van to stop, you would agree that it was abnormal?

MR. MAGGIO: Form and foundation.

A: It was likely that there was a problem based on that, on the amount of time it took.

Deposition of Ian Pingel [Doc. # 77-9] filed 1/30/2009] (“Pingel Depo.”) p. 41 line 10 through p. 47 line 10.

The plaintiff asserts that defendant People’s Choice destroyed five pieces of evidence relating to the van’s brakes:

(1) The Vehicle Inspection Report which People’s Choice drivers were required to prepare on a daily basis, Motion for Sanctions at ¶ 4;

(2) The Annual Inspection Report which was required to be completed annually and to be preserved for one year, id. at ¶ 5;

(3) The Maintenance Log which is a record of all maintenance work done on a vehicle and which is required to be maintained for 18 months after the vehicle is sold, id. at ¶ 6;

(4) The Accident Register which must be maintained for three years following an accident, id. at ¶ 7; and

(5) The Safety Manager’s Inspection Report which is prepared by the company’s safety manager following an investigation conducted to determine whether an accident was preventable. Id. at ¶ 8.

The plaintiff seeks various sanctions for spoliation of evidence including orders entering summary judgment on his claims against People’s Choice for failure to maintain the van; precluding any defense “relying upon the absence of evidence that the [d]efendants failed to preserve”; precluding the defendants from “denying that there was a problem with the brakes”; prohibiting the defendants “from claiming that the brakes on the vehicle were repaired sufficiently prior to the collision”; precluding defendants’ expert, Ted Bain, “from testifying about the brakes”; imposing an adverse inference instruction against the defendants at trial; and imposing monetary sanctions. Id. at p. 13; Plaintiff’s Reply In Support of His Motion for Sanctions Due to Spoliation of Evidence [Doc. # 88, filed 2/26/2009] (the “Reply”) at p. 18.

People’s Choice does not dispute the existence at one time of the Vehicle Inspection Report, Annual Inspection Report, Maintenance Log, or Accident Register. It argues, however, that those documents were destroyed as a routine practice of the company or as a result of negligence. Defendants’ Response to Plaintiff’s Motion for Sanctions Due to Spoliation of Evidence [Doc. # 83, filed 2/17/2009] (the “Response”) at p. 1. People’s Choice argues that it has produced an internal Incident-Accident Report [Doc. # 83-4] which it claims is the document the plaintiff identifies as the “Safety Manager’s Inspection Report.” Response at pp. 2-3.

Initially, the parties briefed the spoliation issue based on federal law. Subsequently, the plaintiff filed his Reply arguing that Colorado law should control the issue. Reply [Doc. # 88] at pp. 7-11.The defendants filed a Sur-Reply stating, among other things, that “[d]efendants welcome the application of Colorado law.”Sur-Reply [Doc. # 91-2] at p. 5.

II. LEGAL STANDARD

The legal standard under federal law for imposition of sanctions for spoliation of evidence was succinctly stated by this court in Cache La Poudre Feeds, LLC v. Land O’Lakes, Inc., 244 F.R.D. 614 (D.Colo.2007), as follows:

The court has inherent power to impose sanctions for the destruction or loss of evidence….

In determining whether sanctions are appropriate, the court must first determine whether the missing documents or materials would be relevant to an issue at trial. If not, then the court’s analysis stops there. If the missing documents would be relevant, the court must then decide whether [the custodian of the documents] was under an obligation to preserve the records at issue. Finally, if such a duty existed, the court must consider what sanction, if any, is appropriate giving the non-moving party’s degree of culpability, the degree of any prejudice to the moving party, and the purpose to be served by exercising the court’s power to sanction.

Id. at 620-21.

The standard under Colorado law is similar. In Costillo v. Chief Alternative, LLC, 140 P.3d 234 (Colo.App.2006), the court held:

Trial courts enjoy broad discretion to impose sanctions for spoliation of evidence….

Sanctions may be imposed both to punish a party who has spoiled evidence and to remediate the harm to the injured party from the absence of that evidence….

The trial court need not find that the evidence was destroyed in bad faith: it may sanction a party who willfully destroys evidence relevant to a contested issue.

Id. at 236.

III. ANALYSIS

The Motion for Sanctions must be denied in its entirety under either federal or Colorado law.

(A) Vehicle Inspection Report

The plaintiff argues that Mr. Pingel was required to complete a Vehicle Inspection Report (“VIR”) and that the defendants had a duty to preserve the report:

The company drivers were required to fill out the checklist of safety problems on a VIR for company vehicles and turn it into the mechanics on a daily basis. The mechanics would then be responsible for making and documenting the necessary repairs prior to the vehicle leaving the premises. Once the mechanics made the repairs listed on the VIR, they were required to store and maintain all VIRs for ninety (90) days pursuant to Federal Law…. Mr. Walls testified he personally searched for the VIR and was unable to locate any documents. He thought they were probably given to CTI [Casino Transportation] in September of 2005 when the company was sold but were most likely discarded in the trash. Mr. Walls testified that nobody requested that he preserve the VIR or any records pertaining to the 1998 Ford van.

Motion for Sanctions at ¶ 4 (internal citations omitted).

Thomas Walls testified about the destruction of the Vehicle Inspection Report:

Q: Are there boxes that are located maintenance logs or VIRs?

A: Not VIRs, not anymore, not from People’s…. Because People’s was gone September of ’05.

Q: So as of September 2005, all of the VIRs and maintenance logs that People’s Choice Transportation had, what happened to those?

A: Trash.

Q: Were they provided to you as part of the business and you discarded them, or were they discarded before you took over?

A: I’m sure-to be truthful, you know, they were in there when we took over. I don’t know when they threw them out at the time. They throw-usually you go through it once a month, you throw away the last month. So I couldn’t tell you honestly.

I don’t know exactly when they were thrown away. But like I said, every month you throw away the last month, three months ago. So you have three months of files, otherwise you’d have papers everywhere.

Deposition of Thomas Walls [Doc. # 83-3] (“Walls Depo.”) at p. 45 line 5 through p. 46 line 4.

Before a sanction for spoliation of the VIR may be imposed, the plaintiff must establish that People’s Choice was under an obligation to preserve it. Cache La Poudre, 244 F.R.D. at 621. Ordinarily:

[T]he duty to preserve evidence is triggered by the filing of a lawsuit. However, the obligation to preserve evidence may arise even earlier if a party has notice that future litigation is likely. The undeniable reality is that litigation is an ever-present possibility in our society. While a party should not be permitted to destroy potential evidence after receiving unequivocal notice of impending litigation, the duty to preserve relevant documents should require more than a mere possibility of litigation. Ultimately, the court’s decision [on the duty to preserve] must be guided by the facts of each case.

Id. (internal citations and quotations omitted).

In the Cache La Poudre case, plaintiff’s counsel sent a pre-suit demand letter to the defendant stating that the letter:

is to clearly put [Land O’Lakes] on notice of our client’s trademark rights and clearly establish the opportunities we have given Land O’Lakes to avoid exposure. The second purpose of this letter is to determine whether this situation can be resolved without litigation and media exposure…. We think you will agree that the company’s interests are best served by trying to resolve this unfortunate and difficult situation.

Id. at 622.The judge held, however, that this letter and others were insufficient to create a duty on the part of Land O’Lakes to preserve evidence, finding:

Rather than threatening impending litigation, [counsel’s] letter implied that her client preferred and was willing to explore negotiated resolution.

* * *

This court recognizes that under different circumstances, a demand letter alone may be sufficient to trigger an obligation to preserve evidence and support a subsequent motion for spoliation sanctions. However, such a letter must be more explicit and less equivocal than Cache La Poudre’s … correspondence with Land O’Lakes…. [P]rudent counsel would be wise to ensure that a demand letter sent to a putative party also addresses any contemporaneous preservation obligations.

Id. at 623.

Similarly, in Costillo, the Colorado Court of Appeals held:

Aloi [v. Union Pac. R.R., 129 P.3d 999 (Colo.2006) ], did not specifically address whether a trial court may sanction a party for precomplaint destruction fo evidence. However, the rule announced in Aloi-that a party may be sanctioned for destroying evidence after notice that it is relevant to litigation-would seemingly apply regardless of whether a complaint has been filed, so long as the party knew or should have known that the destroyed evidence was relevant to pending, imminent, or reasonably foreseeable litigation.

* * *

However, the behavior of the party moving form sanctions is an important factor for assessing whether sanctions are appropriate….

Here, the evidence showed that the manager of The Chief Alternative kept the entire apparatus, including the mirrored column and locknut, for approximately a year and a half following the incident. During this time plaintiff did not request to view or retain any of these items. The manager testified that approximately one month after the incident, he called plaintiff to inquire about her well-being and that plaintiff’s father said that “she was doing okay, that her bills were being paid, that she wasn’t hurt that bad, and they weren’t going to sue or anything.”The manager also testified that in January 2003, he spoke with The Chief Alternative’s insurance company and asked “if there was anything else that they needed from [him], and they said no, nothing had been filed, or they didn’t need any other paperwork from [him].” He did not specifically ask whether the insurance company needed the mirrored column. The manager also testified that he discarded the evidence when he closed The Chief Alternative in June 2003.

According to plaintiff, her attorney sent a “demand package” to The Chief Alternative’s insurance company in February 2003. However, a copy of this demand package was not included in the record. There is no indication in the record that plaintiff notified The Chief Alternative that she was planning to file a complaint or that it should preserve the mirrored column. Plaintiff did not inquire about the discarded evidence until after she filed this action in July 2003.

The trial court found that, while the parties may have known that a claim was “still out there” when the evidence was discarded, apparently no case had been filed, and this destruction was, at most, simple negligence. Based on this finding, the court denied plaintiff’s motion for sanctions and her request for an instruction that the jury could presume by the destruction that the product was defective.

[W]e perceive no error in the trial court’s determination. In contrast to Aloi, plaintiff did not provide The Chief Alternative with clear, prompt notice that a complaint would be filed.

140 P.3d at 236-37 (internal citations omitted).

In this case, the accident occurred on May 17, 2005. On June 1, 2005, plaintiff’s counsel sent a letter to an independent adjustor for the defendants’ insurance company which stated in its entirety:

Please be advised that this firm represents Michael Salvatore in regards to the motorcycle/automobile accident, which occurred on May 17, 2005. Please direct all written and oral communications to this office.

Thank you for your time and attention to this matter. Should you have any questions, please do not hesitate to contact this office.

Response at Exh. G [Doc. # 83-8]. The letter did not contain any threat of litigation or indication that litigation was anticipated or imminent.

The adjustor conducted an investigation of the accident and on June 16, 2005, sent his First Report to the insurance company. Motion for Sanctions at Exh.2 [Doc. # 77-3] (the “First Report”). The First Report included the following:

Pingle feels that soft brakes contributed to this loss….

Pingle has indicated that the brakes were soft, and a driver the day before, Jim Hickcox, commented about the “sponginess” and directed his comments to the maintenance crew. (The insured has indicated that that comment does exist)

* * *

If inspections reveal faulty brakes the driver may not be held responsible.

Id. at p. 3.

People’s Choice was purchased by Casino Transportation on September 1, 2005. Walls Depo. [Doc. # 83-3] at p. 6 lines 17-25.

Throughout 2006, adjustors for the defendants’ insurance company corresponded repeatedly with plaintiff’s counsel, but the evidence before me indicates that plaintiff’s counsel did not respond. For example, on May 11, 2006, an adjustor wrote to plaintiff’s counsel that “to properly evaluate your client’s claim we will need to have copies of all medical bills….” Response at Exh. J [Doc. # 83-11]. On June 1, 2006, the adjustor wrote again, stating that she had written to plaintiff’s counsel “on several occasions and would appreciate some sort of response from you.”Id. at Exh. K [Doc. # 83-12]. In addition, the adjustor asked if there would be “a claim for lost wages.” Id. On August 2, 2006, an adjustor wrote:

This letter is another request for information about Mr. Salvatore’s injuries sustained in the above captioned accident.

We would appreciate your cooperation in this matter, as you know, we cannot evaluate the injury claim without the medical reports, records and billings.

Once again we would request your permission to obtain a recorded statement from your client as soon as possible.

We would also like to know if Mr. Salvatore is still undergoing any treatment as a result of the accident?

We hope to hear back from you.

Id. at Exh. L [Doc. # 83-13].

On November 22, 2006, an adjustor wrote to plaintiff’s counsel:

In reviewing the file, we note that … our adjustor[ ] had written to you on several occasions but never received a response. Please advise me if you are still representing Mr. Salvatore. If so [there is a request for information].

If you are no longer representing Mr. Salvatore, please provide the courtesy of a response so that we can determine whether or not it is appropriate to contact him direct.

Id. at Exh. M [Doc. # 83-14].

On April 23, 2007, the adjustor made a Status Report to the defendants’ insurance company, which included the following:

We have finally heard from the Law Firm representing Mr. Salvatore. Ms. Holland Hoskins is the new attorney assigned to the case. Apparently they have terminated the prior attorney as Ms. Hoskins informed me that they have received a number of calls from her clients who have been waiting for some time to get their cases resolved. She is a bit overwhelmed with the case load but stated that she would get a Settlement Demand Packet out as soon as possible.

Id. at Exh. N [Doc. # 83-15].

On May 23, 2007, plaintiff’s counsel made a settlement demand. Id. at Exh. P [Doc. # 83-17]. The parties exchanged settlement offers from May 23, 2007, through November 1, 2007. Id. at Exhs. Q [Doc. # 83-18]; R [Doc. # 83-19]; S [Doc. # 83-20]; T [Doc. # 83-21]; U [Doc. # 83-22]; and V [Doc. # 83-23]. The settlement demand from plaintiff’s counsel dated November 1, 2007, included the following:

I have … attached a draft of a complaint that we will file in this case if this does in fact constitute your final offer.

However, it is in the best interest of both parties to settle this case without commencing costly litigation. My client is willing to greatly compromise his demand….

Id. at Exh. V. This is the first threat of litigation, albeit equivocal, in the record before me.

Based on the totality of the record before me, I find that the defendants knew or reasonably should have known of the likelihood of litigation stemming from this accident on November 1, 2007. They had a duty to preserve evidence based on the possibility of litigation on and after that date. Cache La Poudre, 244 F.R.D. at 629 (noting that “[a] party must ensure that relevant information is retained on a continuing basis once the preservation obligation arises”).

On November 21, 2007, the insurance adjustor informed plaintiff’s counsel that she would “forward the courtesy copy of your complaint to counsel.”Response at Exh. W [Doc. # 83-24. Suit was filed on February 13, 2008. Complaint for Damages and Jury Demand [Doc. # 1, filed 2/13/2008].

The evidence establishes that a Vehicle Inspection Report concerning the van involved in the accident should have been prepared on May 17, 2005, and preserved for three month thereafter, through August 2005. The evidence further establishes that the Vehicle Incident Report was destroyed in the normal course of business and as a part of a document destruction practice at an unknown date after September 2005. The defendants had no duty to maintain it after August 2005, and there was nothing improper in the destruction of the Vehicle Inspection Report in September 2005 or shortly thereafter. The Vehicle Inspection Report was not improperly destroyed, and no sanction for its destruction is appropriate.

The plaintiff argues that defendants’ post-suit assertion of work product immunity concerning the adjustor’s file, including the First Report, establishes that defendants anticipated litigation as early as May 19, 2005. Reply [Doc. # 88] at p. 15.I do not agree. The question is not the propriety of the defendants’ assertion of the work product immunity, but when under the totality of the circumstances the defendants knew or reasonably should have known of the likelihood of litigation stemming from this accident. The evidence establishes that date at November 1, 2007.

(B) Annual Inspection Report

The plaintiff argues that an Annual Inspection Report was required to be prepared and preserved, as follows:

Mr. Walls testified that People’s Choice Transportation was also required to have a mechanic conduct an annual inspection on each company vehicle using an Annual Inspection Report. The Annual Inspection Report was required to be stored and maintained in the company vehicle for one year until it is replaced by the subsequent yearly inspection report.

Motion for Sanctions at ¶ 5.

Mr. Walls testified that the Annual Inspection Report for the van involved in the accident was destroyed in the usual course of business within one year after it was prepared:

Q: What other logs are kept on company vehicles as to maintenance besides the VIR?

A: The only one that’s kept in the vehicle besides the VIR is the annual inspection report, which is they do an annual inspection on each vehicle once a year.

Q: Who does the inspection?

A: The mechanic.

Q: Where are those kept?

A: They’re kept in the bus. If they’re one year, they’re thrown away, then put a new one in. You do it every year. It just rotates.

* * *

Q: And every year, they’re discarded and the new one is placed in?

A: Correct.

Q: The old ones aren’t stored?

A: No.

Walls Depo. [Doc. # 77-4] at p. 36 line 18 through p. 37 line 13.

First, “[i]n determining whether sanctions are appropriate [based on a claim of spoliation], the court must … determine whether the missing documents or materials would be relevant to an issue at trial.” Cache La Poudre Feeds, LLC v. Land O’Lakes, Inc ., 244 F.R.D. at 621;accord Henning v. Union Pacific R. Co., 530 F.3d 1206, 1220 (10th Cir.2008)(stating that a spoliation sanction is proper only where a party has a duty to preserve the evidence and the adverse party was prejudiced by its destruction. “Without proving relevance, however, [the party seeking a sanction] could not show she was prejudiced,” and no sanction is appropriate). Similarly, Colorado law requires that “the destroyed evidence was relevant to pending, imminent, or reasonably foreseeable litigation.” Costillo, 140 P.3d at 236;accord In re Holmes’ Estate, 56 P.2d 1333, 1335 (Colo.1936)(holding that the “destruction of papers which might contain adverse evidence gives rise to a presumption unfavorable to the one responsible therefor”).

A copy of the form used to prepare the Annual Inspection Report is attached as Exhibit 5 to the Motion for Sanctions. The form indicates that on a particular date a vehicle was inspected and its systems were either found to be “OK” or to “Need[ ] Repair.” Motion for Sanctions at Exh. 5 [Doc. # 77-6]. If the system needs repair, the form contains a column for the “Repaired Date.” Id. Unless the annual inspection was performed the day before the accident, the day of the accident, or the day after the accident, it would not provide any evidence relevant to the condition of the brakes at the time of the accident. There is no evidence, however, of the dates of the annual inspections for the van at issue. Except to argue generally that “[t]he Annual Inspection Report documented critical evidence to Plaintiff’s claims and Defendants’ defenses,” Motion for Sanctions at ¶ 5, the plaintiff fails to address what he claims the Annual Inspection Report would have revealed about the state of the brakes at the time of the accident.

Nor is there any evidence concerning the destruction date of the 2005 and 2006 Annual Inspection Reports. The 2005 annual report apparently was destroyed in 2006, and prior to November 1, 2007, the date on which the defendants had a duty to preserve documents. On the evidence before me, I cannot say that the 2006 report was destroyed on or after November 1, 2007, and it seems likely that it was destroyed before that date.

I find that the Annual Inspection Reports were neither relevant to a matter at issue in this case nor were they destroyed at a time when People’s Choice had a duty to preserve them in connection with this litigation. No sanction for their destruction is appropriate.

(C) Maintenance Log

The plaintiff argues that a Vehicle Maintenance Log was required to be prepared and preserved, as follows:

Mr. Walls testified that People’s Choice Transportation was required to maintain a Maintenance Log on every company vehicle. The Maintenance Log is a record of all the maintenance work ever done on a company vehicle since the vehicle was owned. The Maintenance Log is required by law to be kept on every vehicle and maintained in the company’s mechanic’s office for 18 months after the vehicle is sold.

Motion for Sanctions at ¶ 6.

Section 396.3(b) and (c), 49 C.F.R, requires that a maintenance log be maintained by motor carriers for “a period of 1 year and 6 months after the motor vehicle leaves the motor carrier’s control.”Any person who violates this requirement “may be subject to civil or criminal penalties.”49 C.F.R. § 390.37.

The defendants do not dispute that the van involved in this accident was sold in May 2007. Sur-Reply at ¶ 9. Pursuant to federal regulation, People’s Choice was required to preserve the Maintenance Log until November 2008. If the Maintenance Log existed on November 1, 2007, People’s Choice was required to preserve it under its duty not to destroy evidence. See Cache La Poudre, 244 F.R.D. at 629 (“[a] party must ensure that relevant information is retained on a continuing basis once the preservation obligation arises”).

The only evidence concerning the destruction of the Maintenance Log is the testimony of Mr. Walls that it was thrown away at an unknown time after Casino Transportation purchased People’s Choice in September 2005. Walls Depo. [Doc. # 83-3] at p. 45 line 5 through p. 46 line 4. Mr. Walls also testified, however, that Casino Transportation was not aware of this accident until after the suit was filed in February 2008 and that no one asked Casino Transportation to preserve the Maintenance Log. Wall Depo. [Doc. # 91-3] at p. 30 lines 13-18; [Doc. # 77-4] at p. 48 line 25 through p. 49 line 4.

Under federal law:

[T]he general rule is that bad faith destruction of a document relevant to proof of an issue at trial gives rise to an inference that production of the document would have been unfavorable to the party responsible for its destruction. The adverse inference must be predicated on the bad faith of the party destroying the records. Mere negligence in losing or destroying records is not enough because it does not support an inference of consciousness of a weak case.

Aramburu v. The Boeing Co., 112 F.3d 1398, 1407 (10th Cir.1997)(internal citations omitted). A sanction less severe than an adverse inference may be imposed, however, without a showing of bad faith. 103 Investors I, L.P. v. Square D Co., 470 F.3d 985, 989 (10th Cir.2006)(holding that “[d]efendant was not required to show that plaintiff acted in bad faith in destroying evidence in order to prevail on its request for spoliation sanctions” less severe than an adverse inference instruction).

Under Colorado law, sanctions for spoliation of evidence may be imposed if a party “willfilly destroys evidence relevant to a contested issue.” Castillo, 140 P.3d at 236;accord Aloi, 129 P.3d at 1003-04.

In addition, “[t]he burden is on the aggrieved party to establish a reasonable possibility, based on concrete evidence rather than a fertile imagination, that access to the lost material would have produced evidence favorable to his cause.” Gates Rubber Co. v. Bando Chemical Industries, Ltd., 167 F.R.D. 90, 104 (D.Colo.1996)(internal citation and quotation omitted). Here, the plaintiff has produced no evidence that the Maintenance Log would have supported his position that the brakes were not maintained. To the contrary, the only evidence concerning maintenance of the brakes on the dates in question is Mr. Pingel’s testimony that “there was a box that said, ‘above defects corrected,’ and it was checked, and it had my supervisor’s signature.”Pingel Depo. [Doc. 77-9] at p. 42 lines 1-3.

I find that People’s Choice had a duty to preserve the van’s Maintenance Log until November 2008, and that by November 1, 2007, it had a duty not to destroy the Maintenance Log in order to preserve evidence in this case. There is no evidence as to when the Maintenance Log was destroyed, and it is possible that it was thrown away in September 2005 when Casino Transportation purchased People’s Choice. In any event, Casino Transportation did not know of the existence of this case until after suit was filed in February 2008. I find that the destruction of the Maintenance Log was the result of simple negligence and was at least in part attributable to the conduct of plaintiff’s counsel. See pp. 10-13, supra.As a result, I find that the negligent destruction of the Maintenance Log does not justify the imposition of any sanction based on spoliation of evidence. See Gates Rubber, 167 F.R.D. at 104 (stating that “[i]n order to determine the appropriateness of certain sanctions, whether dispositive or otherwise, judges need to balance the degree of misconduct evidenced by a party’s mental state against the degree of harm which flows from the misconduct”).

Nor does the fact that People’s Choice was required to maintain the Maintenance Log pursuant to federal regulation alter my decision. The negligent violation of a federal regulation “does not impose strict liability where a party has failed to maintain perfect record keeping.” Alvariza v. Home Depot, 240 F.R.D. 586, 590 (D.Colo.2007).

(D) Accident Register

The plaintiff argues that People’s Choice was required to maintain an Accident Register “for three years from the date of accident….” Motion for Sanctions at ¶ 7. This requirement is contained in 49 C.F.R. § 390.15(b):

For accidents that occur after April 29, 2003, motor carriers must maintain an accident register for three years after the date of each accident…. Information placed in the accident register must contain at least the following:

(1) A list of accidents as defined at § 390.5 of this chapter containing for each accident:

(i) Date of accident.

(ii) City or town, or most near, where the accident occurred and the State where the accident occurred.

(iii) Drivers Name.

(iv) Number of injuries.

(v) Number of fatalities.

(vi) Whether hazardous materials, other than fuel spilled from fuel tanks of motor vehicle involved in the accident, were released.

(2) Copies of all accident reports required by State or other governmental entities or insurers.

Pursuant to this regulation, People’s Choice was required to maintain an Accident Register concerning this accident for three years, until May 17, 2008. It could not destroy the Accident Register at all after November 1, 2007, based upon its obligation to maintain evidence in this case.

The plaintiff has all of the information required to be maintained in the Accident Register, however. The date of the accident, its location, the driver’s name, and any injuries sustained are not subject to dispute. The release of hazardous material is not relevant to the case. And the plaintiff has copies of all accident reports concerning the accident. Consequently, the plaintiff can show no prejudice as a result of the destruction of the Accident Register.

A sanction for spoliation is not appropriate where, as here, the destruction of evidence does not cause any prejudice. Henning, 530 F.3d at 1220; Costillo, 140 P.3d at 236.

(E) Safety Manager’s Inspection Report

Finally, the plaintiff argues that Mr. Walls testified that internal company policy required the defendant’s safety manager to investigate an accident to determine if it was preventable. This report, according to Mr. Walls, is stored in the driver’s accident file. Motion for Sanctions at ¶ 8.

Mr. Walls testimony is not nearly as helpful as the plaintiff claims. To the contrary and as the defendants point out at page3 n. 1 of their Response [Doc. # 83], Mr. Walls’ discussion about the Safety Manager’s Inspection Report concerned the internal policies of his employer, Casino Transportation, and “most companies, transportation companies.” Walls Depo. [Doc. # 83-3] at p. 56 line 6 through p. 57 line 22. That testimony did not address the internal practices of People’s Choice at the time of this accident. The defendants have produced a document titled People’s Choice Transportation Incident-Accident Report [Doc. # 83-6], however, which Mr. Pingel has identified as the report taken by People’s Choice at the time of the accident. Pingel Depo. [Doc. # 83-5] at p. 54 line 3 through p. 58 line 25.

I find that the defendants have produced the report made by People’s Choice at the time of the accident. The plaintiff’s insistence that there is some other internal report of the accident is based on a misreading of Mr. Walls’ testimony. The plaintiff has failed to show that a Safety Manager’s Inspection Report (other than Doc. # 83-6) existed and was destroyed and, to the contrary, the defendants have shown that the report was produced. Consequently, no sanction is appropriate with respect to that document.

IV. CONCLUSION

IT IS ORDERED that the Motion to Supplement [Doc. # 85], Motion to File Reply [Doc. # 89], and Motion to File Sur-Reply [Doc. # 91] are GRANTED.

IT IS FURTHER ORDERED that the Motion for Sanctions [Doc. # 77] is DENIED.

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