Children International v. Ammon Painting Co.

215 S.W.3d 194, 2006 Mo. App. LEXIS 1895, 2006 WL 3589332
CourtMissouri Court of Appeals
DecidedDecember 12, 2006
DocketWD 65766
StatusPublished
Cited by34 cases

This text of 215 S.W.3d 194 (Children International v. Ammon Painting Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Children International v. Ammon Painting Co., 215 S.W.3d 194, 2006 Mo. App. LEXIS 1895, 2006 WL 3589332 (Mo. Ct. App. 2006).

Opinion

VICTOR C. HOWARD, Chief Judge.

The current breach of contract action involves the imprudent performance of Defendant Ammon Painting Company in painting Plaintiff Children International’s printing room floor. While preparing the floor for paint, Defendant Ammon damaged beyond repair Plaintiffs recently purchased printing press. This court is left with two issues on appeal: did the trial court abuse its discretion in remitting the jury’s verdict after each itemized damage was examined independently and is the Plaintiff entitled to prejudgment interest as a matter of law.

Facts

Appellant Children International is a Missouri not-for-profit corporation, which mails approximately 26,000,000 pieces of material to its donors annually. It has historically been in the practice of printing some of its own materials and outsourcing, or having third-party printers prepare the remaining material. In November of 2002, Children International purchased a new printing press for $1,400,000 from a German company. At this time, the U.S. dollar and Euro were trading at close to parity. After the printer had been installed, but before it had been placed in ordinary operations, Children International entered into a contract with Ammon Painting Company in which Ammon would repaint the floor of Children International’s printing room.

While preparing the floor of the printing room, Ammon failed to protect the printing press. The press was severely damaged, by small pieces of shot used to abrade the floor, and later determined to be beyond repair. As a result, Children International ordered an identical new press from the same German company to replace the press destroyed by Ammon. By April 2004, however, the Euro and dollar were no longer in parity; one Euro could be bought for $1,187. The price of an identical replacement press was negotiated for $1,600,000. Children International sold the damaged machine for $635,000.

While Children International was negotiating with Ammon and its representa *198 tives and waiting for the new machine to arrive, it employed other companies to print its mailing materials. The total cost of this outsourcing was roughly $690,648. 1

Children International brought suit for damages. A breach of contract claim was submitted to the jury. 2 Children International requested that the jury return itemized damages: one damage for the damage to the machine and one for the loss of use of the machine. During closing arguments, counsel for Children International asked the jury to fully compensate the Plaintiff in the amount of $965,000 for damage to loss of property and $691,758.27 for loss of use of the property. Children International introduced no evidence that damage done by loss of use was more than $691,758.27. The parties agreed that the court would determine the propriety of prejudgment interest after the jury had returned a verdict. In April of 2005, the jury returned the following numbers on the verdict form supplied to them with the instructions:

We, the undersigned jurors, assess the damages of Plaintiff, Children International, as follows:
For property damage, $765,000 (state the amount or, if none, write the word, “none”).
For loss of use of property, $892,000 (state the amount, or if none, write the word, “none”).

Later in April of 2005, the court entered judgment. The court found “the verdict was contrary to the weight of the evidence and exceeds fair and reasonable compensation for Plaintiffs damages for loss of use.” Pursuant to section 537.068, 3 the court sua sponte remitted $201,352 of the verdict on the loss of use line. The court also found that Plaintiff was not entitled to prejudgment interest because its claims were not liquidated. Appellant filed a motion to amend the judgment or in the alternative for a partial new trial, which the trial court denied. 4 This timely appeal follows.

I. Remittitur

A. Standard of Review

Trial courts have broad discretion in awarding or declining to award remittitur. Emery v. Wal-Mart Stores, Inc., 976 S.W.2d 439, 448 (Mo. banc 1998). We presume that the trial court acted within its discretion and will only find otherwise after a showing that the ruling in question is so arbitrary and unreasonable as to shock the conscience. Anglim v. Mo. Pac. R.R. Co., 832 S.W.2d 298, 303 (Mo. banc 1992).

*199 B. Analysis

This court is charged with the task of determining whether a trial court, when ordering remittitur, is to look to the verdict as a whole or look to the component, itemized portions of the verdict when determining if the jury verdict is excessive. Remittitur is authorized, in Missouri, by statute. The remittitur statute states, “[a] court may enter a remittitur order if, after reviewing the evidence in support of the jury’s verdict, the court finds that the jury’s verdict is excessive because the amount of the verdict exceeds fair and reasonable compensation for plaintiffs injuries and damages.” Section 537.068.

If we were to examine the verdict as a whole, we would likely find an abuse of discretion. Ample evidence supported and little evidence disputed the jury’s finding that Plaintiff suffered $1,656,758.26 in total damages. Alternatively, if we analyze each itemized damage of the jury’s verdict independently, then the trial court would be well within the bounds of the remittitur statute in authorizing a reduction of the loss-of-use damage. The parties produced no evidence that the loss-of-use damage totaled $892,000.

Except in limited circumstances, inapplicable to the current case, plaintiffs are not required to seek itemized damages. 5 While the purpose of these inapplicable and required instances of seeking itemized damages is partially to comply with section 510.270, requiring itemized damages when punitive damages are sought, it also is used by the court to spot jury error and misunderstanding. When the jury describes how it arrived at its total award, the court can more readily determine if the jury’s findings were against the manifest weight of the evidence. 6 See Byrd v. Burlington N. R.R., 939 S.W.2d 416, 418 (Mo.App. E.D.1996) (reasoning “the non-itemized verdict of the jury does not enable us to determine what award it made for future pecuniary damages and whether or not it made some adjustment for ‘present value.’ We find no error.” (Internal citations omitted.)). The court can reverse if the evidence presented does not support the jury’s particular conclusions. It thus compels the jury to arrive at a rational verdict.

Discretionary, as opposed to mandatory, itemized verdicts presumably serve a similar function. They operate not only as a tool for the plaintiff but also a means for the court to temper improper jury awards.

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Bluebook (online)
215 S.W.3d 194, 2006 Mo. App. LEXIS 1895, 2006 WL 3589332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/children-international-v-ammon-painting-co-moctapp-2006.