Burch v. Children's Hospital of Orange County Thrift Stores, Inc.

109 Cal. App. 4th 537, 135 Cal. Rptr. 2d 404, 2003 Daily Journal DAR 6116, 2003 Cal. Daily Op. Serv. 4906, 2003 Cal. App. LEXIS 833
CourtCalifornia Court of Appeal
DecidedJune 6, 2003
DocketNo. G029586
StatusPublished
Cited by25 cases

This text of 109 Cal. App. 4th 537 (Burch v. Children's Hospital of Orange County Thrift Stores, Inc.) 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
Burch v. Children's Hospital of Orange County Thrift Stores, Inc., 109 Cal. App. 4th 537, 135 Cal. Rptr. 2d 404, 2003 Daily Journal DAR 6116, 2003 Cal. Daily Op. Serv. 4906, 2003 Cal. App. LEXIS 833 (Cal. Ct. App. 2003).

Opinion

[540]*540Opinion

FYBEL, J.

Plaintiff Rebecca A. Burch is the victim of severe personal injuries resulting from the collision of her automobile with a truck driven by defendant Eddie Phillip Bretado. Bretado was employed by defendant Children’s Hospital of Orange County Thrift Stores, Incorporated (CHOC Thrift Stores), owned by defendant Children’s Hospital of Orange County (CHOC). Bretado was acting in the course and scope of his employment at the time of the accident. Defendant Westrux International, Inc., was the owner and lessor of the truck driven by Bretado.

Burch’s first amended complaint (the complaint) alleged several theories of liability against all four defendants. These theories included negligent maintenance and negligent entrustment of the truck owned by Westrux. In July 2000, Burch served an unapportioned settlement offer of $50 million on all defendants under Code of Civil Procedure section 998. (All further statutory references are to the Code of Civil Procedure unless otherwise specified.) Defendants did not accept Burch’s offer.

As of the time of the section 998 offer, (1) the complaint alleged certain theories of liability that could make defendants liable, but not jointly and severally liable for the full amount of the judgment under the permissive user doctrine and Proposition 51, and (2) defendants’ answers to the complaint each contained a general denial and several affirmative defenses. At trial in May 2001, defendants stipulated to joint and several liability and the case was tried to a jury on damages. The jury awarded Burch damages in excess of $50 million, including an “undiscounted amount of past and future noneconomic damages.”

Burch moved for an award of expert witness costs in the amount of $68,016.44 and prejudgment interest in excess of $4 million under section 998 and Civil Code section 3291, respectively. The trial court denied Burch’s motion. Burch appealed the trial court’s order as to CHOC Thrift Stores and CHOC only. We hold Burch’s section 998 offer was not valid because it was not apportioned among defendants and, as of the time of the offer, under the pleadings, defendants could have been found liable, but not jointly and severally liable for the full amount of the judgment under the permissive user doctrine and Proposition 51.1 Therefore, we affirm the denial of Burch’s motion seeking prejudgment interest under Civil Code section 3291 and expert witness costs under section 998.

[541]*541Defendants contend the offer was invalid because it was “conditional” and Burch did not obtain a more favorable result at trial because the jury’s award included an award of future noneconomic damages not discounted to present value. In view of our holding, we do not reach these arguments.

Background

On February 3, 1999, Burch was severely injured after her car was hit by a.truck owned by Westrux. The truck was leased by Westrux to CHOC Thrift Stores and driven at the time by Bretado during the course of his employment with CHOC Thrift Stores.

Burch filed the complaint against CHOC Thrift Stores, CHOC, Bretado, and Westrux on February 3, 2000. The complaint contained a single cause of action for negligence and alleged: (1) “defendants, and each of them, were the agents, servants, employees, successors-in-interest, joint venturers, and assigns, each of the other, and at all times pertinent hereto were acting within the course and scope of their authority as such agents, servants, employees, successors, joint venturers, and assigns”; (2) defendants “were the owners, operators, lessees, and lessors of a certain International truck, and at all times herein mentioned, were driving said vehicle with the knowledge, permission, and consent, each of the other”; and (3) on February 3, 1999, defendants “so negligently, carelessly, recklessly, and unlawfully owned, drove, maintained, operated, entrusted, and controlled their said vehicle so as to cause it to collide with and crash into the vehicle driven by plaintiff, thereby directly and legally causing the injuries and damages to plaintiff as herein after enumerated.” Thus, among other allegations, the complaint alleged theories of negligent maintenance and negligent entrustment against Westrux as well as the other defendants.

On February 14, 2000, CHOC Thrift Stores, CHOC, and Bretado filed their answer to the complaint. Westrux filed its answer on March 31.

On July 24, 2000, Burch served all four defendants with a statutory offer to compromise under section 998. Burch’s offer stated as follows: “TO DEFENDANTS CHILDREN’S HOSPITAL OF ORANGE COUNTY THRIFT STORES, INCORPORATED, CHILDREN’S HOSPITAL OF ORANGE COUNTY, EDDIE PHILIP BRETADO, AND WESTRUX INTERNATIONAL, INC., AND TO THEIR ATTORNEYS OF RECORD: [1] Plaintiff, REBECCA A. BURCH, an incompetent person, by Jeffrey N. Burch, her guardian ad litem, offers to have judgment taken against defendants CHILDREN’S HOSPITAL OF ORANGE COUNTY THRIFT STORES, INCORPORATED, CHILDREN’S HOSPITAL OF ORANGE

[542]*542COUNTY, EDDIE PHILIP BRETADO, and WESTRUX" INTERNATIONAL, INC., and for herself in the above entitled action pursuant to section 998 of the Code of Civil Procedure for the sum of FIFTY MILLION DOLLARS ($50,000,000.00), each party to bear their own costs and attorneys’ fees. [H] If you accept this offer, please file the offer and notice of acceptance in the above-entitled action prior to trial or within thirty (30) days of service of this offer, whichever occurs first, or it will be deemed withdrawn.” Burch’s offer expired before any defendant accepted.

Approximately 10 months later and before trial, in May 2001, all four defendants admitted liability. At trial, defendants stipulated that Westrux and Bretado were the agents of CHOC Thrift Stores and CHOC and thus stipulated to joint and several liability among defendants.

The case was tried to a jury on the issue of damages only. The jury returned a verdict awarding Burch damages as follows: $1,488,361.40 in past economic damages; $25,150,831 in present cash value of future economic damages; and $25 million in undiscounted past and future noneconomic damages. Judgment was entered in favor of Burch and against defendants, “jointly and severally,” for $51,639,192.40.

Burch filed a motion for an award of prejudgment interest in the amount of $4,272,612.63 and expert witness costs in the amount of $68,016.44. The motion was made on the ground that Burch served a statutory offer to compromise under section 998 which was not accepted by defendants, and the judgment entered in Burch’s favor exceeded the section 998 offer. Defendants opposed Burch’s motion, arguing the section 998 offer was invalid because it did not inform each defendant of what each defendant must pay to settle the case, it constituted an unapportioned offer to multiple defendants, and the vicarious liability exception, explained below, did not apply.

Attached to the trial court’s minute order dated June 27, 2001 was the court’s “Ruling on Plaintiff’s Motion For Award of Prejudgment Interest and Expert Costs” denying Burch’s motion. The court’s ruling stated in part: “Civil Code Section 1431.2 abolished joint liability for non-economic damages in negligence actions. Plaintiff made an undifferentiated settlement offer pursuant to Civil Code of Procedure [yz'c] Section 998 as to all four defendants, which was not accepted. The offer was invalid as there was not joint and several liability as to all four defendants.

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109 Cal. App. 4th 537, 135 Cal. Rptr. 2d 404, 2003 Daily Journal DAR 6116, 2003 Cal. Daily Op. Serv. 4906, 2003 Cal. App. LEXIS 833, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burch-v-childrens-hospital-of-orange-county-thrift-stores-inc-calctapp-2003.