Adams v. Ford Motor Co.

199 Cal. App. 4th 1475, 132 Cal. Rptr. 3d 424, 2011 Cal. App. LEXIS 1315
CourtCalifornia Court of Appeal
DecidedSeptember 29, 2011
DocketNo. B225791
StatusPublished
Cited by40 cases

This text of 199 Cal. App. 4th 1475 (Adams v. Ford Motor Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adams v. Ford Motor Co., 199 Cal. App. 4th 1475, 132 Cal. Rptr. 3d 424, 2011 Cal. App. LEXIS 1315 (Cal. Ct. App. 2011).

Opinion

[1478]*1478Opinion

JOHNSON, J.

Appellants Billie Jean Adams and her three children (Adams) brought suit for general and special damages against respondent Ford Motor Company (Ford) following the death of their husband and father, Richard Adams. A few days before trial, Ford made a settlement offer under Code of Civil Procedure section 998 (section 998) in the amount of $2,500 per plaintiff, totaling $10,000.1 Ford’s section 998 offer also included a mutual waiver of costs. Adams rejected the offer and the parties proceeded to trial. In December 2009, the jury returned a verdict in favor of Ford.

In February 2010, Ford filed a memorandum of costs, seeking to recover expenses totaling $185,741.82, including $167,570 in expert witness fees, pursuant to section 998, subdivision (c). Adams filed a motion to tax costs, arguing that Ford’s section 998 settlement offer was unreasonable and made in bad faith, and that Ford’s expert witness fees were not reasonably necessary for Ford’s preparation of trial. The trial court denied Adams’s motion, finding that Ford’s settlement offer was reasonable, and that Ford’s expert witness fees were reasonably necessary for Ford’s defense at trial.

Adams contends that the trial court abused its discretion in denying the motion. We disagree, and accordingly, we affirm.

FACTUAL BACKGROUND AND PROCEDURAL HISTORY

Decedent Richard Adams was a “shade tree mechanic”2 who, throughout his life, conducted routine maintenance on all of his used vehicles, five of which were manufactured by Ford. Following the death of Mr. Adams from mesothelioma, a form of cancer associated with exposure to asbestos, his wife, Billie Jean Adams, and their three children brought suit against numerous defendants, including Ford Motor Company, alleging that the defendants’ actions and products caused the decedent to become exposed to asbestos.3 Specifically, with regard to Ford and other automobile manufacturers, the complaint alleged that the decedent was exposed to high levels of asbestos dust while replacing brake pads on his vehicles, including vehicles [1479]*1479manufactured by Ford.4 The complaint also named defendants in the construction trade (construction defendants), and alleged that the decedent’s illness was also caused by his exposure to asbestos while working in construction. Adams sought $150,000 in medical expenses, $1 million in loss of earnings and $1 million in general damages.

By November 2009, four years into the litigation, Adams’s claims against most of the defendants had been settled or dismissed, with the exception of the claim against Ford. Adams had settled with construction defendants Union Carbide and La Habra respectively for $20,000 and $7,500. Adams had also settled with automobile manufacturers Isuzu and Nissan, respectively for $50,000 and $2,000, as well as with brake manufacturer Honeywell for $4,750. Another automobile manufacturer, Volkswagen, successfully filed a motion for summary judgment in 2008, and was dismissed from the case. Finally, Adams had secured larger settlements with automobile service companies Pep Boys and AutoZone, in the amount of $70,000 and $25,000 respectively. The record is silent with regard to Adams’s claims against the remaining defendants.

On November 25, 2009, Ford served Adams with a timely section 998 offer to settle the case for $2,500 per plaintiff, totaling $10,000. Ford’s section 998 offer also included a mutual waiver of costs. Adams allowed the offer to expire and the parties proceeded to trial. On December 21, 2009, the jury returned a verdict in favor of Ford, finding that it did not manufacture, sell or distribute the brakes that Adams claimed had caused the decedent’s illness.

Following trial, Ford filed a memorandum of costs reflecting total claimed costs of $185,741.82, which included expert witness fees of $167,570. Subsequently, Adams filed a timely motion to tax costs, solely challenging the propriety of Ford’s claim for expert witness fees. Adams’s motion alleged that Ford’s section 998 offer was unreasonable and made in bad faith, and that Ford’s expert witness costs were not reasonably necessary for the preparation of trial.

Specifically, Adams’s motion claimed that Ford’s section 998 offer was a “token offer,” made in bad faith with no reasonable expectation that Adams would accept it. Adams further alleged that, in light of the important amount of costs and damages sought by the complaint, Ford’s $10,000 offer could not [1480]*1480carry any reasonable prospect of acceptance, and was therefore made with the sole purpose of recovering expert witness fees should Ford prevail at trial. Adams also argued that based on the evidence available to both parties at the time of the offer, a reasonable possibility existed that Adams would prevail at trial, and, therefore, Ford’s $10,000 offer did not constitute a reasonable prediction of Ford’s potential liability. Finally, Adams alleged that, even in the event that Ford’s offer was found to be reasonable, Ford was only entitled to postoffer expert witness costs under section 998, subdivision (d). Based on these allegations, Adams demanded that the trial court strike Ford’s memorandum of costs.

On April 15, 2010, the trial court held the first of two hearings on Adams’s motion. At the hearing, the court expressed its “tentative thinking” on the motion and stated, “Ford is the prevailing party,” and “the settlement amount offer, given that it included a substantial waiver of costs, was reasonable.” The trial court also indicated that without information about the settlements Adams had entered into with the other defendants, it would be difficult for the court to question the reasonableness of Ford’s section 998 offer, given that Ford had secured a defense verdict at trial. Moreover, in response to Adams’s argument that Ford’s section 998 offer was unreasonable in light of the “enormous” costs and damages sought by Adams, the trial court stated that Adams’s evidence against Ford at trial was “pretty attenuated,” and it “was not surprised at all by the jury’s verdict.” The court further noted that in “automotive friction” cases, causation is often very hard to establish. Consequently, the court opined, Adams had to evaluate Ford’s section 998 offer in the context of their limited chance of succeeding at trial.

Regarding the reasonableness of the expert witness fees incurred by Ford, the court expressed some concern with the “extraordinary amount” of the fees, but recalled that expert testimony was “very critical ... for Ford in this case.” The court ultimately decided to order supplemental briefing on the reasonableness of the expert fees. Specifically, the court ordered Ford to present additional evidence about its expert fees, and to provide the court with a “yardstick” against which to measure these fees.

Finally, the trial court rejected Adams’s argument that Ford was only entitled to postoffer costs under section 998, subdivision (d), since Ford was a prevailing defendant and could therefore recover, at the court’s discretion, the costs of expert witness fees, whether incurred before or after the settlement offer under section 998, subdivision (c).

On June 15, 2010, the trial court held a second hearing on Adams’s motion to tax costs. In its supplemental briefing, Ford presented additional evidence [1481]

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Cite This Page — Counsel Stack

Bluebook (online)
199 Cal. App. 4th 1475, 132 Cal. Rptr. 3d 424, 2011 Cal. App. LEXIS 1315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adams-v-ford-motor-co-calctapp-2011.