Moore Pontiac, Buick, Gmc, Inc. v. Candria Scott ( 2009 )

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2006-SC-000693-DG
TIMOTHY MORGAN
ON REVIEW FROM COURT OF APPEALS
V. CASE NOS . 2004-CA-002350-MR AND 2004-CA-002363-MR
PIKE CIRCUIT COURT NO. 03-CI-01352
CANDRIA SCOTT
AND JAMES E . SCOTT, JR . APPELLEES
AND 2006-SC-000701-DG
CANDRIA SCOTT
AND JAMES E . SCOTT, JR . APPELLANTS
ON REVIEW FROM COURT OF APPEALS
V. CASE NOS . 2004-CA-002350-MR AND 2004-CA-002363-MR
PIKE CIRCUIT COURT NO . 03-CI-01352
MOORE PONTIAC, BUICK, GMC, INC . APPELLEE
AND 2007-SC-000282-DG
MOORE PONTIAC, BUICK, GMC, INC. CROSS-APPELLANT
ON REVIEW FROM COURT OF APPEALS
V. CASE NOS . 2004-CA-002350-MR AND 2004-CA-002363-MR
PIKE CIRCUIT COURT NO . 03-CI-01352
CANDRIA SCOTT CROSS-APPELLEES
AND JAMES E. SCOTT, JR.
OPINION OF THE COURT
AFFIRMIMG
INTRODUCTION
Among other issues, these appeals ask us to examine the extent of a car
dealer's liability for injuries arising out of accidents that occur during a test
drive. We hold that, at least under the facts presented, the dealer should not
have been held liable .
We also consider the question of whether a tortfeasor to whom the jury
apportioned only a portion of the liability for the plaintiffs' injuries becomes
liable for all of the plaintiff's damages when, on appeal, it is determined that
the remaining co-defendant, against whom fault was also apportioned, was not
a proximate cause of the injury and should not have been found liable. We
conclude that he does.
II . FACTUAL AND PROCEDURAL HISTORY.
The legal questions presented in these appeals are complex, but the
essential underlying facts of the appeals are common and simple. Timothy
Morgan stopped at Moore Pontiac, Buick, GMC, Inc ., to test drive a Chevrolet
Silverado pickup truck. After talking about the truck with Morgan for awhile,
the salesperson allegedly copied Morgan's driver's license' and set off with
Although the copy of Morgan's driver's license made at Moore Pontiac was
purportedly lost and, thus, never introduced into the record, we have been directed
to no evidence suggesting that Morgan was not a licensed driver on the day of the
test drive.
Morgan on a test drive. 2 Soon, however, the salesperson realized the truck was
low on gas, which necessitated a return to the dealership . The salesperson
testified that after refueling, he asked Morgan to wait while the salesperson
talked to his manager; but Morgan drove off the lot in the Silverado with his
family before the salesperson returned. In contrast, Morgan testified that a
salesperson did not accompany him on the first test drive and that, believing
he had permission to do so, he drove the Silverado off the lot with his girlfriend
and child as passengers . What is undisputed is that Moore Pontiac's company
policy required one of its employees to accompany a customer on a test drive.
During the test drive, Morgan lost control of the Silverado, crossed into
another lane of traffic, and struck a vehicle driven by Candria Scott. A light
misty rain was falling, and Morgan surmised that the Silverado hydroplaned.
Candria Scott injured her knees and fractured her left femur.
Candria Scott and her husband, James, sued Morgan and Moore Pontiac
to recover for Candria's injuries and James's loss of consortium . The Scotts
claimed that Morgan had driven negligently and that Moore Pontiac had failed
in its duties to ensure the safe operation of its vehicle . The case eventually
went to trial, where Morgan admitted causing the accident. The trial court
directed a verdict on Candria's past medical bills ($274,339 .28) . The jury
Much is made in the briefs about Morgan's only being twenty-one years old at the
time of the test drive and to his allegedly "scraggly" appearance . Morgan's
appearance and age are irrelevant to the legal issues in this case .
apportioned fault equally between Moore Pontiac and Morgan .3 In addition to
the past medical bills, the jury awarded Candria $1,160,200 .00 in future
medical bills ; $500,000 .00 in past mental or physical pain and suffering;
$2,000,000 .00 in future mental or physical suffering; and awarded James
$100,000 .00 for loss of consortium . The trial court entered judgment
accordingly.4
Moore Pontiac and Morgan each filed an appeal . The Court of Appeals
affirmed as to Morgan, but reversed as to Moore Pontiac, finding that "Moore
Pontiac's adoption of the internal policy [requiring a Moore Pontiac employee to
be present for test drives] does not expose it to liability to Scott . . . ." A divided
panel of the Court of Appeals, however, granted the Scotts' petition for
extension of its original opinion and issued a new opinion in which it added
language remanding the case "with directions that Morgan be designated as
liable for 100% of the assessed damages." Morgan, the Scotts, and Moore
Pontiac all filed petitions for discretionary review . We granted discretionary
review in all three cases, and we resolve all three in this combined opinion .
III . ANALYSIS.
A. We Affirm the Court of Appeals as to the Scotts' Appeal.
The Scotts also sued Moore Chevrolet, a sister dealership to Moore Pontiac that
was the record title owner of the Silverado, for failing to exercise ordinary care in
inspecting and repairing the Silverado; but the jury found no liability for Moore
Chevrolet.
In a supplemental judgment, the trial court also ordered Moore Pontiac and
Morgan to pay $3,887 .24 of the Scotts' costs .
The Scotts contend that the Court of Appeals erred in ruling that Moore
Pontiac had no legal liability for the accident and the resulting injuries . We
disagree.
It has long been the law in this Commonwealth that a vehicle's owner,
such as a dealership, is not liable for injuries sustained by a third party during
a test drive if the vehicle's owner or a representative of the owner, such as a
salesperson, is not present in the vehicle during the test drive . On the other
hand, a vehicle's owner may potentially be liable for injuries sustained by a
third party if the owner or his or her representative is present during the test
drive. 5 Our holdings on those issues appear to be in accord with the general
rule in these types of cases .6
See, e.g., Wayne's Adm'x v. Woods , 275 Ky. 477, 121 S .W.2d 957 (1938) ("In
Wilhelmi v. Berns, 274 Ky. 618, 119 S.W.2d 625, we held a dealer liable to a third
person for injuries received where the car was being driven by a customer,
accompanied by one of the dealer's salesmen . There, of course, it could with
propriety be said that the, car was actually within the control or custody of the
salesman . The great weight of authority recognizes the liability of the dealer in
such a situation . On the other hand, the authorities are unanimous, so far as we
can discover, in holding that a dealer is not responsible, in the absence of a statute
to the contrary, for injuries received by third persons where an automobile is
loaned to a prospective purchaser, who is a competent driver, for trial. Clearly, the
customer was acting for the dealer only in a restricted sense. It was not the
purpose of the transaction to affect the dealer's relationship with third persons.
Such benefit as might accrue to the dealer arose from the reactions of the customer
himself, and not from dealings between the customer and third persons.") (citations
omitted) ; Johnson-Kitchens Ford Corp . v. Shifflett , 462 S .W.2d 430, 432 (Ky.
1970) .
61 C .J.S . Motor Vehicles § 858 (2008) ("The owner of a motor vehicle generally is
not liable for the wrongful or negligent operation of the vehicle by a prospective
purchaser, unless the owner or the owner's agent is present in the car . . . . As a
general rule, where the owner of a motor vehicle or his or her agent is not present
in the vehicle, the owner is not liable for the negligent or wrongful operation of the
vehicle by a prospective purchaser . A prospective purchaser is usually regarded as
a bailee of the vehicle, and not as an agent or servant of the owner or one engaged
in a joint enterprise with the owner. However, liability may be imposed where the
The Scotts do not contest this settled rule of law. They actually concede
the established Kentucky precedent regarding a dealer's liability for an accident
occurring during a test drive.? But the Scotts contend that precedent is not
pertinent because they argue that Moore Pontiac's liability arises from its own
independent acts of negligence rather than being held vicariously liable for
owner or his or her agent is personally negligent, as in entrusting the vehicle to an
incompetent driver or permitting the operation of a defective vehicle . Thus, a
motor vehicle dealer is liable for damages resulting from an accident involving one
of its vehicles if the dealer negligently entrusts the vehicle to an incompetent
driver. However, the relationship of the dealer and the permissive driver or
prospective purchaser, standing alone, is not sufficient to create vicarious
liability.") (footnotes omitted) ; see also 8 Am .Jur.2d Automobiles and Highway
Traffic § 625 (2008) .
Although our precedent appears to be based upon the theory that a passenger may
have some control over the operation of a vehicle, we recognize that, although
distinguishable from the case at hand, at least one state appellate court has opined
that "[i]t is unrealistic to hold, in the present day uses of motor vehicles when
heavy traffic is the rule and not the exception, that the occupant of a motor vehicle
has factually any control or right of control over the driving of the operator ."
Gaspard v. LeMaire , 158 So .2d 149, 154 (La . 1963) . Although also distinguishable,
another state court has held that the imputation of negligence to a passenger
because of the driver's negligent conduct based upon a theory that the passenger
had control over the vehicle is a "legal fiction . . . ." Watson v. Regional
Transportation District, 762 P.2d 133, 138 (Colo . 1988) .
Also, "an argument could be made that holding an automobile dealer liable for
injuries resulting from a test drive only where the dealer had an employee present
during the test drive could serve as a disincentive for dealers to have an employee
accompany prospective purchasers on test drives . Such a diminution in the
number of dealer-accompanied test drives would not appear to have the socially
desirable goal of furthering public safety, since implicit in the theory that a dealer
should only be liable when it has a representative present is an assumption that
test drivers will operate vehicles more carefully when a representative of the dealer
is present (based upon the now-disputed belief that the dealer's representative
would have at least some theoretical control over the test driver's operation of the
vehicle) .
So, in a proper case, we perhaps should re-examine our earlier holdings pinning
liability on a car dealer or other vehicle owner for injuries occurring during a test
drive only if a representative of the dealer or other vehicle owner is physically
present in the car during the test drive. But we need not explore further that
interesting issue in this opinion because the Scotts have not challenged our
holdings in this area, many of which are based upon bailment doctrine .
Morgan's negligence . Toward that end, the Scotts present two theories under
which they contend Moore Pontiac should be liable for their injuries . First,
they contend that Moore Pontiac's actions (or inaction) cause it to be liable
under our oft quoted statement in Gravson Fraternal Order of Eagles, Aerie
No . 3738, Inc . v . Cla wwell that "every person owes a duty to every other person
to exercise ordinary care in his activities to prevent foreseeable injury ."g
Certainly we agree with the principle espoused in that statement, but we
disagree with the Scotts that its application leads to liability for Moore Pontiac.
First, Claywell is factually dissimilar to the case at hand because
ClgMell involved dram shop liability . And we later noted that much of our
holding in Claywell might have been superseded by statute. 9 Second, and
more importantly, our language in Clayvvell did not speak of creating new
causes of action. Rather, our statement was an expression of the general
principle that each member of the public owes the remainder of the public a
duty to exercise reasonable care in his or her everyday affairs.
As the Court of Appeals has noted, Claywell is often invoked "by parties
advocating a theory of liability or a cause of action where none previously
existed and legal authority is otherwise lacking. Despite its use of the catch
phrase `universal duty of care,' the Gravson case itself demonstrates that the
duty referred to is not without limits ."lo Indeed, we remain committed to the
736 S.W.2d 328, 332 (Ky. 1987) .
DeStock No. 14, Inc. v. Logsdon, 993 S .W.2d 952, 955-58 (Ky. 1999) .
10 James v. Wilson , 95 S .W.3d 875, 891 (Ky.App. 2002) .
longstanding tort principle that liability based upon negligence is premised
upon the traditional prerequisites, such as proximate cause and
foreseeability . 11 Simply put, the concept of a universal duty of care is not so
broad as to lead to a conclusion that a vehicle's owner has automatically
breached a legal duty of care simply by permitting an apparently competent
driver to take the owner's vehicle for a test drive . Or, in other words, a vehicle
owner generally satisfies his or her duty of care in test-drive situations simply
by determining before the test drive that the prospective purchaser and test
driver is duly licensed and is otherwise not obviously impaired. 12 Since Moore
Pontiac met its relatively low burden to ascertain that Morgan was not an
incompetent driver, we reject the Scotts' claim that the unfortunate
See, e.g., Reece v. Dixie Warehouse and Cartage Co . , 188 S .W .3d 440, 445 n.6
(Ky.App . 2006) ("It is well-established that to establish liability for negligence the
plaintiff must prove: (1) a duty; (2) a breach of that duty; (3) which was the
proximate cause of an injury ; and (4) which resulted in damages. All of these
elements are essential to a valid claim.") .
12 See, e.g., 8 Am.Jur.2d Automobiles and Highway Traffic § 625 ("A motor vehicle
dealer who places one of his or her vehicles in the hands of a prospective
purchaser, or one acting for the latter, whom he or she knows, or in the exercise of
reasonable care should know, to be incompetent to operate the vehicle safely is
liable for injuries caused by the driver's incompetence . In general, unless there are
facts and circumstances which might reasonably put the dealer on inquiry, he or
she is not obliged to test the competency and skill of the customer before
entrusting him or her with an instrumentality which, even though it may become
highly dangerous by improper use and operation, is not inherently dangerous . . . .
In the absence of knowledge to the contrary, the dealer may rely on the driver's
license as evidence of the competency of the driver . . . ...) (footnotes omitted) ;
Rogers v . Wheeler, 864 S .W.2d 892, 896 (Ky. 1993) ("When Rogers let Daugherty
take the vehicle off the lot to see if she wanted to purchase it, he had a duty to
determine if she had a valid driver's license . K.R.S. 186 .620 provides that no
person shall authorize or knowingly permit a motor vehicle owned or controlled by
him to be driven by any person who has no legal right to drive . Cf. 7 Am.Jur.2d
Automobiles and Highway Traffic § 651 provides in part that a dealer who places
one of his vehicles in the hands of a prospective purchaser who he knows or in the
exercise of reasonable care should know is incompetent to operate the vehicle
safely is liable for injuries caused by the driver's incompetence.") .
circumstances of this case are so extraordinary as to hold Moore Pontiac liable
for a purported breach of ordinary care to the Scotts. 13
The Scotts' second and closely related theory of recovery is that Moore
Pontiac assumed a duty of ordinary care to the Scotts. The gist of the Scotts'
argument is that Moore assumed a duty of care toward the Scotts, and the rest
of the public, by adopting and then failing to follow its own in-house rule
requiring a Moore Pontiac employee to accompany Morgan on his test drive.
We disagree.
We have previously adopted Restatement (Second) of Torts § 324A
regarding the elements necessary for liability for the breach of a voluntarily
assumed duty. 14 Under § 324A, "[o]ne who undertakes . . . to render services
to another which he should recognize as necessary for the protection of a third
person or his things, is subject to liability to the third person for physical harm
resulting from his failure to exercise reasonable care to protect his
undertaking, if' the person's "failure to exercise reasonable care increases the
risk of such harm," or if "the harm is suffered because of reliance of the other
13 To the contrary, we find nothing extraordinary about the facts relied upon by the
Scotts, such as the fact that it was slightly raining on the day of the accident; the
fact that Morgan was in his early twenties (well above the legally permissible age to
possess a drivers' license) ; the fact that Morgan's vehicle purportedly was an "old
van"; nor the purported fact that the vehicle Morgan test drove was "fast" (the jury
ruled against the Scotts on their claim that the truck was improperly maintained);
nor the Scotts' assertion that the accident happened on an unduly dangerous
roadway, of which Morgan should have been forewarned, because we agree with
Moore Pontiac that it "cannot be held liable . . . for failing to prevent a test driver
from driving on the same road [Candria Scott] deemed safe enough to travel ."
14 Ostendorf v. Clark Equipment Co., 122 S.W . 3d 530, 538-39 (Ky. 2003) .
or the third person upon the undertaking ." 15 The Scotts cannot meet these
criteria .
We agree with the Court of Appeals that the Scotts could not have
reasonably relied upon Moore Pontiac's policy regarding having a salesperson
accompany a test driver because the evidence showed that the Scotts were
unaware of the policy's existence . After all, one cannot logically rely upon an
unknown . And even if the Scotts had somehow divined the existence of Moore
Pontiac's in-house policy before the accident, they have pointed to no evidence
tending to prove that Candria Scott drove differently in reasonable reliance
upon Moore Pontiac's internal policy.
We also agree with the Court of Appeals that Moore Pontiac's failure to
observe its own in-house policy did not increase the risk of harm to Candria
Scott . First, we reject any argument that a person or business entity's
adoption of an internal guideline or policy and subsequent failure to follow that
internal guideline automatically leads to liability under § 324A. 16 Second, we
fail to see how Moore Pontiac's failure to abide by its own internal policy
15 Id. at 538 .
We also reject the Scotts' claim under § 324A's other basis for liability, which is
premised upon a voluntary undertaking "to perform a duty owed by the other to
the third person . . . ." Id. The Scotts take great pains to point out that they are
not seeking to hold Moore Pontiac vicariously liable for Morgan's negligence,
meaning that they are not arguing that Moore Pontiac assumed Morgan's duty to
operate the truck with due care during the test drive .
16 See, e.g., Murphy v. Second Street Corp . , 48 S.W.3d 571, 575 n.16 (Ky.App. 2001)
(holding that defendant's failure to follow its internal policy by filling out incident
report after plaintiff was assaulted at nightclub "did not create a new duty or
constitute an assumption of a duty that [defendant] otherwise did not have.") ;
Angabooguk v. State, 26 P.3d 447, 452 (Alaska 2001) ("[party's] internal rules and
guidelines do not create a duty of care for [party] .") .
10
increased the risk of harm to Candria . As the Court of Appeals noted, without
the internal policy, Moore Pontiac could have "lent its cars to responsible
drivers without making itself liable for the damages caused by their negligence .
The existence and subsequent non-observance of the in-house rule did nothing
to increase this risk. The situation is exactly what it would have been had
Moore Pontiac not instituted the policy." And Morgan testified that he was
going under the speed limit before the accident and, furthermore, that he drove
more safely during the test drive because his family was with him than he
would have driven had the salesperson alone accompanied him. Therefore, it is
clear that Moore Pontiac's failure to observe its in-house policy was not the
proximate cause of the Scotts' injuries, which is fatal to the Scotts' claims
against Moore Pontiac . 17 We therefore affirm the Court of Appeals' conclusion
that Moore Pontiac should have been granted a directed verdict dismissing the
Scotts claims against it, and that the judgment against Moore Pontiac must be
vacated .
B. Because We Have Affirmed the Court of Appeals' Decision Regarding the
Scotts' Appeal, Moore Pontiac's Appeal is Moot.
Moore Pontiac filed a separate appeal, essentially arguing that the trial
court committed reversible error by allowing the Scotts' counsel to make
improper remarks about Moore Pontiac's financial condition during closing
argument and that Moore Pontiac was entitled to a judgment as a matter of
17 Reece, 188 S .W.3d at 445 n.6 (stating that to establish liability for negligence,
plaintiff must prove the defendant's breach of duty was the proximate cause of the
injury) .
law. We have already affirmed the Court of Appeals' conclusion that Moore
Pontiac should not have been held liable for the Scotts' damages . So Moore
Pontiac's argument that it was entitled to judgment of a matter of law is moot.
Likewise, although we shall address the propriety of the Scotts' counsel's
closing argument during our discussion of Morgan's appeal, that issue is moot
as to Moore Pontiac.
C'. We Affirm the Court of Appeals' Decision Regarding Morgan's Percentage
of Liability
Morgan contends that the Court of Appeals erred by granting a petition
for an extension of its opinion, and then extending its opinion to assign one
hundred percent liability and damages against Morgan, despite the jury's
finding that Morgan was only fifty percent responsible for the Scotts' injuries
and resulting damages . We disagree and accordingly affirm the Court of
Appeals determination .
In support of his argument that he should bear only fifty percent of the
liability for the Scotts' injuries, Morgan relies primarily upon the decision of
this Court in Prudential Life Insurance Company v. Moody, 18 a decision
premised on KRS 454.040, the statute that allows juries to assess joint or
several damages against multiple defendants . 19 We find Morgan's reliance
1 8 696 S .W.2d 503 (Ky. 1985)
19 KRS 454 .040 states : In actions of trespass the jury may assess joint or several
damages against the defendants . When the jury finds several damages, the
judgment shall be in favor of the plaintiff against each defendant for the several
damages, without regard to the amount of damages claimed in the petition, and
shall include a joint judgment for the costs.
12
upon Prudential Life to be misplaced because it contains a critical factual
difference .
In Prudential Life, a jury determined that one party, Carney, was
negligent and liable for the plaintiff's injuries, fixing his share of the fault at
fifty percent. Carney, however, escaped responsibility for his negligence and
the resulting liability because the statute of limitations had expired. He
remained, both in fact and in law, "at fault" for the injury, but the running of
the statute of limitations put his negligence beyond reach of the jury's
verdict. 20 The remaining fifty percent of fault rested with the other tortfeasor .
The causal connection between his negligent conduct and the damages did not
increase simply because the plaintiff had waited too long to assert a claim
against Carney.
In sharp contrast to Carney in Prudential Life , Moore Pontiac escapes
liability because it did nothing to incur liability and, as a matter of law, its
actions were not a proximate cause of the Scotts' injuries . The applicability of
Prudential Life is further diminished because it was rendered three years
before the enactment of KRS 411 .182(1), which requires apportionment of
fault "[ijn all tort actions . . . involving fault of more than one (1) party to the
action . . . ." Here, there is not "more than one party" at fault. Morgan is the
only party at fault . Only Morgan breached a duty and only Morgan caused an
injury. In Prudential Life, Carney was at fault but avoided liability because the
20 Prudential Life Insurance , 696 S .W.2d at 509 .
13
statute of limitations had expired.21 Here, Moore Pontiac avoids liability for the
simple reason that it did nothing that legally or proximately caused the
injuries.
Our decision in Owens Corning Fiberglas Corp v. Parrish , is more to the
point:
[F]ault may not be properly allocated to a party, a dismissed
party or settling nonparty unless the court or the jury first find
that the party was at fault ; otherwise, the party has no fault to
allocate. KRS 411 .182 ; Floyd v. Carlisle Construction Co., Inc . ,
758 S.W.2d 430, 432 (Ky.1988) "If there is an active assertion of a
claim against joint tortfeasors and the evidence is sufficient to
submit the issue of liability to each, an apportionment instruction
is required whether or not each of the tortfeasors is a party-
defendant at the time of the trial." Id . (emphasis added) . The
mere fact that a party has been sued or has settled does not
permit the factfinder to allocate part of the total fault to that
party . 22
What rings clear from Owens Corning is that fault may be apportioned only
among those against whom the evidence of liability was sufficient to allow
submission of the issue of fault to the jury. The inability of Morgan or the
Scotts to present sufficient evidence of fault on the part of Moore Pontiac
eliminated any proper allocation of fault to Moore Pontiac. The jury should not
have been instructed on apportionment because Morgan was the only party
liable . When, under the evidence, only one party is shown to have caused an
injury, fault and its resulting liability cannot legally or rationally be
apportioned elsewhere . This concept was also expressed by the decision of the
Court of Appeals in Jenkins v. Best, in which the appellant claimed the right as
21 Id.
22 58 S.W.3d 467, 472 (Ky. 2001) .
14
a defendant in a tort action to appeal the dismissal of his co-defendant in order
to preserve the possibility of an apportionment instruction . 23 The Court of
Appeals noted that, while this right does exist, "it does not give a party the right
to apportion fault to persons whose liability has been judicially determined not to
exist." 24 Moore Pontiac's liability has been judicially determined not to exist.
There should have been no apportionment .
Morgan emphasizes that our decision in Hilen v. Haves, 25 echoed by the
enactment of KRS 411 .182, firmly established the concept that it is
fundamentally unfair to burden any party with more liability than his share of
the fault would justify. We agree, but we can find nothing fundamentally
unfair about assigning one hundred percent of the fault for an injury to the
only party that breached a duty and caused the injury.
Morgan argues that the Court of Appeals committed a procedural error
by granting the Scotts' request for extension of its opinion regarding issues that
were not properly preserved for appellate review. The initial opinion of the
Court of Appeals simply reversed the trial court's judgment regarding the
liability of Moore Pontiac and affirmed as to Morgan . Later, the Court of
Appeals granted the Scotts' motion for an extension of that original opinion and
then issued a revised opinion which added a provision remanding the matter to
23 250 S.W.3d 680, 686 (Ky. App . 2007)
24 Id. (Emphasis added .)
25 673 S .W.2d 713 (Ky. 1984) (supplanting the doctrine of contributory negligence was
supplanted with comparative fault) .
15
the trial court for entry of a judgment against Morgan for all of the damages
determined by the jury.
The proper means of preserving the issue, Morgan contends, would have
been for the Scotts to have filed a protective cross-appeal . We agree that new
issues cannot properly be raised in a petition for rehearing, but we do not see
this matter as having raised a new issue, nor do we see how adding a cross-
appeal to an already complex procedural appellate process would be necessary
to address this matter. 26 The Court of Appeals' initial conclusion that Moore
Pontiac's actions were not, as a matter of law, a proximate cause of the Scotts'
damages left Morgan as the only party whose fault caused the injury and
therefore, ipso facto, he was one hundred percent at fault. Correcting of the
trial court's judgment to reflect what the law and the evidence had clearly
established was simply the natural aftermath of the Court of Appeals' original
opinion . The Court of Appeals' decision to extend the Opinion to provide
guidance to the trial court in correcting the judgment was well within its
purview under Civil Rule 76.32 .
D. We Find No Error in Other Issues Raised began.
Morgan raises seven somewhat interrelated issues in his separate appeal .
We review them below, but find no error to warrant reversal.
26 See, e.g., Commonwealth, Department of Highways v. Thomas , 427 S.W.2d 213,
218 (Ky. 1967) (refusing to consider issue raised for first time in petition for
rehearing) .
16
1. The Trial Court's Failure to Pre-Screen Segments of Videotaped
Deposition Testimony Played for the Jury During Closing Argument was
a Harmless Error .
Morgan contends that the trial court erred by permitting portions of a
physician's videotaped deposition testimony to be displayed to the jury during
closing argument without first conducting a hearing .27 Although we urge trial
courts to conduct hearings before exposing such matters to the jury, we decline
to hold that the lack of a hearing is, standing alone, reversible error.
We agree with a previous ruling of the Court of Appeals that there is no
blanket prohibition against counsel playing selected portions of a videotaped
deposition for a jury during closing argumentt28 But our opinion should not be
misconstrued as holding that a trial court must invariably permit such
segments to be displayed to the jury during closing argument . 29 Instead, we
27 Although the videotaped record of the trial does not clearly show the video screen
upon which the jury viewed the segments, we estimate that the total length of the
segments played to the jury was approximately three minutes .
28 Owensboro Mercy Health System v. Payne, 24 S.W.3d 675, 678-79 (Ky.App. 2000),
citing Condella v. Cumberland Farms, Inc. , 689 A.2d 872, 875 (N.J . Super.Ct. Law
Div. 1996) .
Obviously, since closing argument is not evidence, Dixon v. Commonwealth ,
263 S .W.3d 583, 593 (Ky. 2008), and counsel should not seek to introduce new
evidence during closing argument, then counsel may present to the jury during
closing argument only portions of recorded testimony that have already been
entered into evidence .
29 Condella , 689 A.2d at 875 ("Although in the case at bar the review of the videotape
was not lengthy, this procedure could result in long delays between closing
arguments which could impair the orderly and efficient administration of the jury
process. The court should have discretion to deny or limit the application to show
portions of the videotape testimony if the time necessary to review the testimony
would unduly delay plaintiff s closing, and thereby prejudice defendant, as
plaintiff s closing would be substantially fresher in the jury's mind at the time they
deliberate .") (citations omitted) .
17
hold only that the trial courts of the Commonwealth have discretion to permit,
or to refuse, the re-playing of videotape segments in closing argument . 3 °
If a trial court exercises its discretion to permit the usage of segments of
videotapes during closing argument, we emphasize that the trial judges must
scrupulously control their playing by ensuring that the segments presented to
the jury are not overly lengthy, do not overly emphasize one party's case, and
are not a misrepresentation of the witness' testimony . 31 We also agree with a
New Jersey court's wise pronouncement that a trial court
should give a cautionary instruction, preferably at the time the
video is played during summation . . . . The judge should inform
the jury that attorneys are permitted to show the video to assist in
displaying what they consider significant testimony, but it is the
jury's function and obligation to determine the facts based on its
recollection of all of the evidence, including both direct and cross-
examination of all witnesses, and jurors should not place any extra
emphasis on portions of testimony played back. 3 z
Moreover, if a trial court permits video segments to be played to a jury
during closing argument, we agree with another New Jersey court's holding
that a trial court "out of the jury's presence, should therefore view the proposed
30 State v. Muhammad , 820 A.2d 70, 82 (N.J. Super. Ct. App. Div. 2003) ("Trial
judges have broad discretion in setting the permissible boundaries of summations.
They may permit some or all of the proposed video playbacks, or they may reject
their use entirely . The determination is guided in each case by balancing the
benefit to the proponent against the possible prejudice to the opposing party.
Rejection may also be based on undue consumption of time, inability to avoid delay
between summations, potential to confuse or mislead the jury, or any other
appropriate consideration . Special caution should be exercised to avoid playback of
testimony of an inflammatory nature .") .
31 Condella, 689 A.2d at 875.
32 Muhammad , 820 A .2d at 82 . Since Morgan does not argue about the lack of a
cautionary instruction to the jury in this case regarding the video snippets played
during closing argument, we shall not consider whether the trial court's failure to
caution the jury was erroneous.
18
portions of the videotape testimony in open court on the record to make sure
that it accurately reflects the evidence ."33 This prophylactic hearing should
ensure that the trial court exercises proper control over counsel's proposed use
of snippets of video testimony during closing argument, thereby best ensuring
that closing argument does not devolve into a contest to determine which side
employed the best videographers or editors . 34
Although there was discussion in this case between the trial court and
counsel on this issue, all parties seem to agree that the trial court did not
personally view the snippets the Scotts' counsel planned to use during closing
argument before permitting counsel to display those video snippets to the jury.
The trial court's failure to view the snippets before permitting counsel to
display them to the jury was an error . Since we are constrained to "disregard
any error or defect in the proceeding which does not affect the substantial
rights of the parties[,]" 35 we must now determine whether that error was
harmless .
Morgan does not contend that the video snippets played to the jury
during the Scotts' closing arguments contained any substantive problems
(such as being too lengthy or misrepresenting the doctor's complete testimony) .
Instead, Morgan's sole argument on this issue is that the trial court committed
reversible error by failing to view the snippets before allowing the Scotts'
33 Condella, 689 A.2d at 875 (emphasis added) .
34 Muhammad , 820 A.2d at 81 ("A trial may not be reduced to a battle of highlight
films .") .
35 Kentucky Rules of Civil Procedure (CR) 61 .01 .
19
counsel to display them to the jury. In the absence of even an allegation of
substantive prejudice to Morgan from the contents of the snippets played to the
jury, we conclude that the trial court's procedural failure to screen the snippets
for itself before permitting them to be played for the jury was a harmless error.
2. The Trial Court Did Not Err by Permitting the Scotts' Counsel to Play
Edited Portions of Video Depositions During Trial.
During the Scotts' case in chief, the Scotts' counsel played for the jury
selected portions ofseveral videotaped depositions. Morgan argues that the
trial court erred by permitting the Scotts' counsel to play only selected portions
of those videotaped depositions. We disagree.
CR 32 .01 specifically permits a party to play "any part or all of a
deposition . . . . .. So there was nothing inherently improper about the Scotts'
counsel's decision to play only selected portions of these depositions . If
Morgan desired the remainder of the deposition(s) to be played for the jury, he
could have either required the Scotts to present the remainder of the
deposition(s) to the jury or he could have done so himself. 36 But Morgan did
not avail himself of either option . In these types of situations, we agree with
the Court of Appeals' earlier holding that a trial court is not required to
mandate on its own motion that additional portions of an edited videotaped
deposition be displayed to the jury . 37
36 See CR 32.01 (d) ("If only part of a deposition is offered in evidence by a party, an
adverse party may require him to introduce any other part which ought in fairness
to be considered with the part introduced, and any party may introduce any other
parts.") .
37 Davenport v . Ephraim McDowell Memorial Hospital, Inc. , 769 S.W.2d 56, 61
(Ky .App. 1988) ("CR 32 .01 permits the reading of a portion of a deposition, and
20
Moreover, Morgan does not contest the Scotts' assertion that he refused
their offer during trial to introduce the entirety of at least one of the video
depositions in question. And because of the objection of another defendant,
the trial court admonished the jury that the deposition(s) had been edited .
The only authority cited by Morgan is CR 30 .02, which generally governs
depositions; but nothing in that general rule contravenes CR 32 .01's clear and
specific allowance of the usage of edited videotaped depositions at trial.
Finally, we reject Morgan's argument that he was unable to object properly at
trial because the Scotts did not give him adequate notice of their intent to use
the edited videotapes during trial . There is no notice requirement in CR 32 .01 .
And it is undisputed that the Scotts' counsel provided all parties and the trial
court with an index describing the video testimony to be presented at trial and
referencing the location of that testimony in the stenographic transcript . So we
agree with the Court of Appeals that "Morgan had at his disposal the means to
specifically identify and locate the portions of the video testimony being
presented in order to determine whether additional portions of the testimony
would assist the jury in understanding his theory of the case."
We note that although Morgan contends that he had no time to object to
the editing done by the Scotts, he still, despite plenty of time for research and
subpart (d) of the rule allows the opposing party the opportunity to require any
other parts to be introduced for the sake of fairness . The right to require such
additional portions to be introduced belongs to opposing counsel, and it is their
responsibility to avail themselves to the right . Absent a call upon the court to
observe CR 32 .01(d), the party who makes the initial offering of a portion of a
deposition should not be hindered by a sua sponte ruling to put so much as one
more word into evidence .") .
21
reflection, has not shown us how the editing distorted or otherwise improperly
condensed the depositions in question .33 In sum, although we encourage
parties to provide as much notice as possible to the trial court and opposing
counsel of their intention to use portions of video depositions during trial, we
do not find that the trial court erred by permitting the Scotts' counsel to play
selected portions of certain depositions in this case .
3 . The Scotts' Counsel's Reference to Morgan's Financial Status During
Closing Argument Does Not Necessitate a New Trial.
During his closing argument, the Scotts' attorney stated that Moore
Pontiac had not sued Morgan for the damage done to its vehicle because it
either believed Morgan had done nothing wrong or Moore Pontiac did not think
it would "get a dime out of' Morgan . Although not stated by Morgan, no
contemporaneous objection was made to that comment. Counsel later stated
that the apportionment instruction was important because it was the "ultimate
instruction that determines whether or not Candy [Candria Scott] really gets
anything ." Again, although not mentioned by Morgan, no contemporaneous
objection was made to this statement. Shortly thereafter, the Scotts' counsel
argued that if the jury found Morgan 100 percent liable, the Scotts would get
"the same case against him [Morgan], and judgment against him [Morgan] as
they [Moore Pontiac] would have had had they filed suit against him [Morgan]
38 We note that even in his brief before the Court of Appeals, Morgan merely stated,
"[t]here may have been testimony in these depositions that was objectionable and
should have been removed . . . ."
22
for the truck." A contemporaneous objection was made to that statement, 39
along with a motion for mistrial; but the trial court denied any relief.
Many decades ago, our predecessor court eloquently noted that "[t]here is
no law applicable to the poor that is not likewise applicable to the rich, nor is
any law applicable to the rich that is not likewise applicable to the poor,"
meaning that "an endeavor on the part of an attorney or litigant to inflame the
minds of the jury by referring to the financial status of either of the parties is
improper."40 We agree with the wisdom of our predecessor court's statement
on this subject and remind counsel that reference to the financial condition of
a party to a civil action is generally improper .
The statements at issue patently refer to Morgan's poverty and, by
inference, Moore Pontiac's deep financial pockets . We agree with the Scotts
that counsel is permitted to inform the jury of the legal effect of apportionment
of liability, 41 but the statements in question go further to imply or directly state
that Morgan was virtually penniless . And Morgan's counsel's quite unusual
decision to argue in closing to the jury that his client, not Moore Pontiac,
should be found primarily responsible for the Scotts' injuries was not linked to
39 Although the angle of the videotaped record is unclear, it is possible that counsel
for Moore Pontiac was the principal speaker at the bench conference .
40 Walden v. Jones , 289 Ky. 395, 158 S.W.2d 609, 612 (1942) . See also, e.g., Jones v.
City of Bowling Green, 354 S .W.2d 749, 751 (Ky. 1962) ("an endeavor on the part of
an attorney to influence the minds of the jurors by referring to the financial effect
of the verdict on either party is improper, although the reference may not
necessarily be prejudicial .") .
41 Young v. J.B . Hunt Transportation, Inc . , 781 S.W.2d 503, 507 (Ky. 1989) ("The
best way to safeguard litigants' rights to a fair verdict is to allow counsel to inform
the jury of the legal effect of apportionment of liability and argue the significance of
such determination in the context of the overall result.").
23
the relative financial status of Moore Pontiac and Morgan and, thus, did not
open the door for the Scotts' counsel to refer repeatedly to Morgan's penury. 42
So we conclude that the Scotts' counsel's statements here were improper
commentary upon Morgan's purported financial status.
The question then becomes whether those improper statements were
prejudicial or were harmless errors under CR 61 .01 . Indeed, our predecessor
court even explicitly noted that reference to a party's financial status by
counsel is "not always prejudicial . . . ."43 Our analysis of this issue is
complicated by the fact that a timely objection was made only to one of the
statements at issue.
We note that Morgan does not contest that a witness for Moore Pontiac
had already referred to Morgan's insurance status, without objection from
Morgan. During the bench conference regarding the objection to the Scotts'
counsel's reference to Morgan's purported lack of wealth, the trial court
specifically and correctly based its denial of relief, at least in part, on the fact
that this insurance-related testimony already had been presented to the jury.
We conclude that the earlier improper insinuation into the trial of insurance
should have lessened the harmful effects of the Scotts' counsel's improper
reference to Morgan's financial status .
42 We construe Morgan's counsel's passing reference in closing argument to Morgan's
"broad enough shoulders" to be a statement that Morgan was prepared to accept
the jury's ultimate verdict, not a veiled attempt to inject Morgan's financial status
into the proceedings.
43 Walden , 158 S .W.2d at 612 .
24
Most important, however, is the lack of demonstrable prejudice to
Morgan stemming from the comments at issue . All that Morgan's counsel
essentially relies upon to establish prejudice is the fact that the jury's verdict
was large but not unanimous. First, it would be sheer speculation to find that
jurors were coerced into returning a verdict against Morgan because of his
purported lack of deep pockets. Next, Morgan's argument to the contrary
notwithstanding, it defies logic to presume that a jury inexplicably increased its
verdict against Morgan (or increased the percentage of fault it ultimately
assigned to Morgan) because counsel for the Scotts improperly referred to
Morgan's ostensible lack of wealth. Prejudice in this area would be far more
apparent if, as would be more typical, counsel had contended that Morgan was
blessed with an abundance of financial resources .
On balance, we conclude that the improper comments did not adversely
prejudice Morgan's substantial rights. So we conclude that the comments were
harmless errors.
4 . The Trial Court Did Not Err By Refusing to Give an Instruction
Regarding Candria's Alleged Failure to Mitigate Her Damages .
Morgan contends that the trial court committed reversible error by failing
to instruct the jury regarding Candria Scott's purported failure to mitigate her
damages by failing to follow all of her physician's treatment advice. We
disagree.
Under Kentucky law, a party is required to mitigate his or her damages .44
So if a party introduces evidence that another party has failed properly to
mitigate his or her damages, the jury should be given a failure-to-mitigate
damages instruction.45 A trial court's failure properly to instruct a jury is
presumptively prejudicial . 46 So the question becomes whether there was
sufficient specific evidence introduced to support a mitigation of damages
instruction. Like the Court of Appeals, we find that there was not.
Under Kentucky law, a tortfeasor "takes the claimant as he finds him
and is entitled to neither credit nor setoff against the amount of the claimant's
damages because of preexisting physical conditions which make the claimant
more susceptible to injury, or to greater injury, than would have been the case
with better health."47 Candria was obese and a smoker at the time of the
accident. Morgan contends that Candria's failure to lose weight and to stop
44 See, e.g., Davis v. Fischer Single Family Homes, Ltd., 231 S.W.3d 767, 780
(Ky.App. 2007) ("It is well-settled in this Commonwealth that a party must mitigate
his damages.") ; Equitable Life Assurance Society of United States v. Merlock, 253
Ky. 189, 69 S.W .2d 12, 15 (1934) ("It is a rule of general application that where a
plaintiff sustains damage by reason of an injury or disease, it is his duty to
minimize his damage .") .
45 Clark v. Hauck Manufacturing Co. , 910 S .W.2d 247, 251 (Ky. 1995) (holding that it
is a "basic tenet of Kentucky law" that "a party is entitled to a jury instruction in
every duty supported by the facts entered into by the evidence, whether that duty
is a common law duty or a statutory duty.") ; Farrington Motors, Inc. v. Fidelity& .
Cas . Co . of New York, 303 S.W.2d 319, 321 (Ky. 1957) ("Each party to an action is
entitled to an instruction upon his theory of the case if there is evidence to sustain
it.") .
46 McKinney v . Heisel, 947 S.W.2d 32, 35 (Ky. 1997) ("In this jurisdiction it is a rule
of longstanding and frequent repetition that erroneous instructions to the jury are
presumed to be prejudicial ; that an appellee claiming harmless error bears the
burden of showing affirmatively that no prejudice resulted from the error.") .
47 Wemyss v. Coleman , 729 S.W.2d 174, 178 (Ky. 1987) .
26
smoking entitled him to an instruction regarding Candria's alleged failure to
mitigate her damages.
Morgan would only have been entitled to a failure to mitigate instruction
relating to Candria's failure to lose weight and stop smoking after the accident
if he had offered specific evidence showing that her continued smoking and
obesity had caused a worsening of her condition attributable to her failure to
follow reasonable medical advice . But Morgan did not adduce the requisite
specific testimony . In fact, Dr. Akers specifically testified that Candria's weight
did not cause her femur to fail to heal. Also, Dr. Hegg only testified' generally
that the use of tobacco negatively affects healing of fractures and that Candria
had been advised to stop using tobacco; but he did not know whether Candria
had stopped using tobacco and was not specifically asked (and, thus, did not
specifically testify) whether Candria's tobacco use specifically retarded the
healing of her fractured femur . Such general testimony is insufficient to
mandate a jury instruction regarding a plaintiff's failure to mitigate damages .48
As the Court of Appeals aptly noted, "[w]hile there was some testimony that
excess weight and smoking may contribute to the failure of bone fractures to
properly heal, nothing in the expert testimony directly connects any
complications in the healing process to these factors . . . . ..
48 Cf. Pr oven Products Sales and Service v. Crutcher, 464 S .W.2d 800, 802 (Ky. 1971)
(holding in workers' compensation case that claimant's failure to follow general
admonition to lose weight was not sufficient to cause reduction in benefits) .
27
Because there was no evidence that Candria's failure to lose weight and
stop smoking caused her femur to fail to heal, Morgan is not entitled to a
mitigation of damages instruction related to Candria's obesity and smoking. 49
Morgan further contends that he was entitled to an instruction relating
to failure to mitigate damages because of Candria's alleged failure properly to
use a bone stimulator prescribed by a physician to help heal her fractured
femur. Dr. Hegg testified that his partner, Dr. Tau, had prescribed an electrical
stimulator but that a log showed that Candria had used the bone stimulator
only half the prescribed time. But Dr. Hegg did not testify that Candria's
alleged failure to use the bone stimulator impeded the healing of her fractured
femur.50 So we agree with the Court of Appeals that there is a "lack of direct
testimony to support a mitigation instruction ."
5 . We Cannot Say as a Matter of Law that the Verdict was Excessive.
Morgan contends that there was no evidence to support the jury's
approximately $4 million verdict (half of which was improperly apportioned to
Moore Pontiac) . Morgan concedes that the Scotts were entitled to some sort of
49 See generally 22 Am .Jur.2d Damages § 367 (2008) ("The doctrine of avoidable
consequences may not be invoked as the basis for a hypercritical examination of
the conduct of the injured party. The duty to mitigate is not absolute; recovery is
diminished only to the extent that the plaintiff fails to mitigate the damages as they
would be mitigated by an ordinary, reasonable person under similar
circumstances . One need not take the best of all possible care of one's injuries, or
employ the means best adapted to cure such injuries .") (footnotes omitted) .
so Dr. Hegg was asked if he would "agree that this stimulator was something that she
needed to use all the time . . . as prescribed?" Dr. Hegg's response was simply that
"(i)f you are going to try and do it, it doesn't tend to work unless you use it." That
vague, somewhat nonresponsive answer is not a specific statement or conclusion
that Candria's failure fully to use the stimulator caused her femur to fail to heal
timely.
28
recovery but argues the jury's verdict was excessive because "there was no
evidence of excessive speed, impairment, intoxication or other factor[s]
involving Morgan's operation of the vehicle that would have caused the jury to
have awarded a verdict of this magnitude had Morgan been tried alone ."
Morgan contends that the jury returned such a large verdict because of the
Scotts' counsel's improper remarks at closing regarding the parties' financial
status . So Morgan contends that the trial court erred by denying his CR 59 .01
motion for a new trial . We disagree.
Since "a proper ruling on a motion for new trial depends to a great extent
upon factors which may not readily appear in an appellate record[,]" we may
not disturb a trial court's decision to deny a motion for a new trial unless that
decision is "clearly erroneous ."51 As an appellate court, our task is to "review
the record and decide whether, when viewed from a standpoint `most favorable'
to the prevailing party, there is evidence to support the verdict and
judgment."52
In the light most favorable to the Scotts, Candria suffered the immediate
trauma of the accident, has a left femur that may never heal properly, has
undergone multiple surgeries to attempt to heal her injuries, and may undergo
more surgical procedures in the future . After the accident, Candria's mobility
was limited; and she is more dependent upon her husband for help .
51 Miller v. Swift, 42 S.W.3d 599, 601 (Ky. 2001) .
52 Davis v. Graviss , 672 S .W.2d 928, 933 (Ky. 1984) . Davis was overruled on other
grounds by Sand Hill Energy, Inc. v. Ford Motor Co . , Ky., 83 S.W.3d 483, 493-95
(2002) . Sand Hill was later vacated by Ford Motor Co . v. Estate of Smith, 538 U.S .
1028 (2003) .
29
Additionally, the jury awarded Candria less than the maximum amount she
had sought for future medical services, past mental and physical suffering, and
future mental and physical suffering. Furthermore, the jury awarded Candria
nothing on her claim for permanent impairment of .her power to earn money in
the future. Finally, the jury awarded James less than he sought on his claim
for loss of services and conjugal relations with Candria . Moreover, Morgan has
not shown that Candria's medical expenses were unreasonable or inflated . To
the contrary, Morgan's own brief provides that "[t]here was no dispute that
Ms . Scott received serious orthopedic injuries that had required surgical
intervention." On balance, therefore, we, like the Court of Appeals, cannot say
that the trial court's refusal to set aside the verdict as excessive was clearly
erroneous.
Morgan expresses understandable concern that the jury's fact finding
with respect to damages may have been influenced by the apparent availability
of the deeper pockets of Moore Pontiac, and his own apparent lack of
significant resources. We have maintained in Kentucky a long-standing
doctrine that the jury's finding on liability is independent of its finding on the
amount of damages. 53 KRS 411 .182 maintains that doctrine by requiring that
juries make their finding as to fault and damages in separate interrogatory
instructions . It is presumed that the jury will follow the instructions issued to
53 See Sand Hill Energy, Inc. v. Smith, 142 S.W .3d 153, 156 (Ky. 2004) ; Scuddy
Mining Co. v. Couch, 295 S .W .2d 553, 554 (Ky. 1956) .
30
it by the trial court. 54 As stated above, in Part D[3] of this opinion, it would be
sheer speculation to presume that the jury's assessment of damages was
improperly influenced by the apparently disparate wealth of Morgan and Moore
Pontiac .
6 . The Trial Court Did Not Err in Granting a Directed Verdict as to Candria
Scott's Past Medical Expenses .
At the close of proof, the trial court granted a directed verdict of
$274,339 .28 on Candria Scott's past medical expenses claim. Morgan
contends the trial court erred by granting the directed verdict. We disagree.
"Generally, a trial judge cannot enter a directed verdict unless there is a
complete absence of proof on a material issue or if no disputed issues of fact
exist upon which reasonable minds could differ ." 55 In the case at hand,
however, Morgan has not presented evidence to show that Candria's past
medical expenses were improper, unreasonable, or not attributable to the
injuries she sustained in her collision with Morgan . So there was no disputed
issue of fact, nor any question on this issue, as to which reasonable minds
could differ .
We agree with Morgan that the jury decides whether a plaintiff's past
medical bills were reasonable and stemmed from the injuries underlying the
54 Johnson v. Commonwealth , 105 S.W .3d 430, 436 (Ky. 2003) (quoting Scobee v.
Donahue , 291 Ky. 374, 164 S.W.2d 947, 949 (1942) ("It is to be assumed that the
jury . . . followed the evidence and instructions in their entirety .") ; United States v.
Davis, 306 F.3d 398, 416 (6th Cir. 2002) ("Juries are presumed to follow the
instructions they are given.") .
ss Bierman v. Klapheke , 967 S .W.2d 16, 18-19 (Ky. 1998) .
31
cause of action.56 So a trial court should exercise great caution before granting
a directed verdict on those issues . But, under the facts of this case, the trial
court did not err by refusing to submit the matter of Candria's past medical
expenses to the jury.
The question regarding the propriety of medical bills does not become a
matter for the jury's resolution if there is nothing in the record tending to show
a dispute about the amount of those bills or their relationship to the alleged
injuries underlying the action . For example, in Jones , heavily relied upon by
Morgan, the evidence showed that the plaintiff did not claim to be hurt and to
seek medical attention for about two weeks after the accident.57 In fact, the
plaintiff had called an attorney before she had even called a physician. 58 And a
physician testified that he found no damage attributable to the underlying
trauma. 59 So there was a question for the jury as to whether the plaintiff's
medical expenses were reasonable and connected to the underlying accident.
Likewise, Carlson v. McElroy , 60 the other case relied upon by Morgan for
the proposition that a jury is not required to believe the plaintiff or her
physician on the issue of her injuries, is similar to Jones and distinguishable
from the case at hand . In Carlson , there was evidence that the plaintiff had
56 See, e.g., Jones v. Mathis , 329 S.W.2d 55, 56-57 (Ky. 1959) .
57 Id. at .57 .
58 Id.
59 Id.
60 584 S.W .2d 754 (Ky.App. 1979) .
32
pre-existing medical problems and had been involved in other accidents . 61
Thus, the jury was required to determine the reasonableness of plaintiff's
medical expenses in light of the evidence about the underlying accident and,
furthermore, to determine whether those medical expenses stemmed from the
underlying accident.62 None of those factors is present in the case at hand .
Finally, Morgan's theory that the jury might have awarded a lesser amount to
Candria for her past medical expenses because they awarded her less than the
amount she sought for her future medical expenses is sheer speculation .
Since there was no issue upon which reasonable minds could differ
regarding Candria's past medical expenses, the trial court did not err by
granting a directed verdict on that issue .
7. The Trial Court Did Not Abuse its Discretion by Refusing to Lower the
Interest Rate on the Judgment.
Interest on judgments is governed by KRS 360 .040, which provides in
relevant part that "[a] judgment shall bear twelve percent (12%) interest
compounded annually from its date. . . . [S]uch judgment may bear less
interest than twelve percent (12%) if the court rendering such judgment, after a
hearing on that question, is satisfied that the rate of interest should be less
than twelve percent (12%) ." Morgan contends that the trial court erred by not
reducing the interest rate below twelve percent. We disagree .
Morgan's sole argument is that the interest rate should have been
lowered because evidence of the current market rates demonstrated that a
61 Id. at 756 .
62 Id.
33
lower interest rate was appropriate. But the fact that a trial court could have
chosen to impose a lower interest rate does not necessarily mean that its
decision to impose a higher rate was an abuse of discretion . 63 Moreover, the
fact that a twelve percent interest rate in today's economic climate may be well
above the marketplace norm is a matter properly to be considered by the
General Assembly because that body has the power and discretion to lower the
de facto legal interest rate contained in KRS 360 .040 . In short, Morgan has
pointed to nothing to cause us to conclude that the trial court's decision to
impose the current de facto rate set forth in KRS 360 .040 was an abuse of
discretion .
IV. CONCLUSION .
For reason's set forth above, the decision of the Court of Appeals is
affirmed . This matter is remanded to the trial court for proceedings consistent
with this opinion .
All sitting. Schroder, Scott, Venters, JJ ., concur. Minton, C .J ., concurs
in result only. Abramson, J., concurs in part and dissents in part by separate
opinion, Cunningham, J ., joins . Noble, J., concurs in part and dissents in part
by separate opinion .
ABRAMSON, JUSTICE, CONCURRING IN PART AND DISSENTING IN
PART: While I agree with the majority's conclusion that Moore Pontiac had no
liability as a matter of law, I disagree with the concept that Morgan should now
63 See Owensboro Mercy Health System, 24 S.W.3d at 679 (applying abuse of
discretion standard to trial court's decision regarding proper interest rate on
judgment) .
34
owe 100% of the damage verdict. In this case the jury was instructed in
assessing fault to "consider both the nature of the conduct of each party and
the extent to which the conduct of each was a factor in causing the injuries
complained of." This language from Instruction No. 8 does not follow the
apportionment statute which requires the fact finder to consider "both the
nature of the conduct of each party at fault and the extent of the causal
relation between the conduct and the damages claimed ." KRS 411 .182 (2) .
However, either formulation of the instruction (and certainly the one that
tracks the language of the statute is preferable) results in an integrated verdict
where the jury is encouraged, indeed directed, to consider how each party's
conduct relates to the injuries or damages. Significantly, KRS 411 .182 (1) (a)
provides that the fact finder shall indicate "the amount of damages each
claimant would be entitled to recover if contributory fault is disregarded. . ."
(Emphasis supplied) . There is no statutory directive for the jury to disregard
comparative fault in assessing damages and, again, subsection (2) quoted
above actually directs the jury to consider the interrelationship of damages and
each party's fault .
While in theory damages are determined without regard to who is being
held responsible, in fact jurors are often affected by the identity of the
defendant(s) . Some items of damages, such as medical expenses, may be
circumscribed by objective evidence but less well-defined types of damages,
such as pain and suffering, are particularly susceptible to variance based on
the presence or absence of "deep pockets ." In any given case, leaving the
35
plaintiff with a partial verdict may be unfair to the plaintiff, but granting him
the whole verdict reapportioned only against the legally liable parties as
discussed by Justice Venters in his majority opinion may be unfair to the
remaining defendant(s) . In my view, if a party to whom some fault has been
apportioned is subsequently found to have no liability as a matter of law, the
appropriate course is to remand the case for a new trial on damages only, with
the jury directed to determine damages under the aforementioned statutory
standards to be recovered from those parties who are in fact legally liable .
Thus, I would remand this case for a damages trial as to Timothy Morgan . For
this reason, I respectfully concur in part and dissent in part.
Cunningham, J., joins.
NOBLE, JUSTICE, CONCURRING IN PART AND DISSENTING IN PART: I
concur with Justice Venter's opinion as to the law on apportionment. On the
question of whether the entire liability for the Scotts' damages should rest on
the sole remaining tortfeasor, Morgan, if Moore Pontiac was never rightfully a
party, then it can have no liability, and whatever damages the jury found must
be assessed against the only party who does. If Morgan caused all of the
damages, he cannot avoid a portion of them just because an improper
apportionment instruction was given. I also agree with the majority opinion on
the other issues in this case .
However, I cannot say that Moore Pontiac has no duty of any kind in this
case. While I may not have agreed with the jury's findings, whether Moore
Pontiac had undertaken a duty by establishing a policy for their benefit and for
36
the benefit of customers and persons on the highway that increased the risk of
harm to Scott when it did not follow its own policy was in fact a question for
the jury. As car salesmen, Moore Pontiac is in a superior position to know the
risks attendant to allowing potential customers to test drive its vehicles, and it
has a great interest in determining which areas of the highway are safe for the
test drive . In fact, Moore Pontiac publicly claimed this duty by posting its
policy requiring a salesman to accompany a test driver prominently, by having
an approved test drive route, and by requiring test drivers to show their driver's
license .
At first thought, one might say that the absence of a salesman did not
cause the wreck-Morgan's poor driving did. But Moore Pontiac was well
aware that a salesman accompanying a test driver would have steered the
driver to the approved route, could have cautioned the driver about
inappropriate speed, or even could have required the driver to return to the lot
if the driver's skill was questionable . Instead, according to his own testimony,
Morgan ended up on an unapproved and curvy road, where he took a curve too
fast and lost control of the vehicle. The salesman's absence thus could have
been argued to increase the risk because the safeguards he would bring were
not in place.
There was a dispute in the evidence whether any salesman accompanied
Morgan on either of his two test drives : The salesman claimed he went on the
first test drive, and Morgan claimed he did not. The jury was free to believe
either man's testimony. Moore Pontiac's policy was either violated once or
twice that day.
Additionally, part of the reason Moore Pontiac created its test drive policy
and thus assumed a duty was that its own insurance company required such a
policy as a condition of insuring Moore Pontiac . Obviously, the insurance came
from a superior position of knowledge as to the incidence of risk during test
drives and had a clear opinion about what would decrease that risk. Moore
Pontiac, in the business of selling cars, benefits directly from allowing potential
customers to test drive their vehicles. They have insured against the risks
attendant to such a practice . Such a business should not be allowed, as a
matter of public policy, to benefit from an activity without taking reasonable
measures to prevent risk to others while they are receiving that benefit. If
Moore Pontiac had followed its policy, the insurance company would have no
basis to deny a claim related to the policy. While the presence or absence of
insurance is not a factor in determining damages, as a matter of law it can be
considered to determine the nature of the duty Moore Pontiac assumed and the
reason for assuming the duty.
Assumption of a duty is meaningless if there is no one to whom the duty
is owed. The general public is clearly the beneficiary of such a duty whether
each member of the public is aware of the duty or not. For example, each
member of the public may not be aware of a company's duty not to release
hazardous waste where they may come in contact with it, but the company still
has the duty and the public is the beneficiary . In the same way, Moore Pontiac
38
had the duty not to allow an unsafe test driver loose on the public without
reasonable efforts to be safe.
What is most troubling to me in this case is that there are questions of
fact for the jury to determine that are ignored if Moore Pontiac is given a
directed verdict, tempting though that might be if we were the finders of fact.
That is not what an appellate court should do . There is simply too much
evidence in the record to say that as a matter of law Moore Pontiac had no duty
to Scott. If there is any evidence which the jury might believe to support its
findings of fact, then we must give deference to its decision. Here, the jury
determined the facts to be against Moore Pontiac . Moore Pontiac was properly
submitted to the jury as a party in this case because it undertook a duty for
the benefit of itself, its customers, and the public . The jury having made its
decision after weighing the evidence, I would affirm its verdict against Moore
Pontiac and Morgan, and its apportionment of fault between them.
COUNSEL FOR APPELLANT TIMOTHY MORGAN:
Pamela Adams Chesnut
Boehl, Stopher 8, Graves, LLP
444 West Second Street
Lexington, Kentucky 40507-1040
COUNSEL FOR APPELLANT MOORE PONTIAC, BUICK, GMC, INC. :
Deborah H . Patterson
Rania Marie Basha
Virginia Hamilton Snell
Wyatt, Tarrant 8v Combs
500 West Jefferson Street, Suite 2800
Louisville, Kentucky 40202
William J . Baird, III
William Jesse Baird, IV
Baird 8v Baird, P.S .C .
P . O. Box 351
Pikeville, Kentucky 41502
COUNSEL FOR APPELLEES CANDRIA SCOTT AND JAMES E . SCOTT,
JR. :
Gary C . Johnson
Rhonda J . Blackburn
Gary C . Johnson, PSC
110 Caroline Avenue
P. O. Box 231
Pikeville, Kentucky 41502