Conachan v. Williams

511 P.2d 392, 266 Or. 45, 1973 Ore. LEXIS 332
CourtOregon Supreme Court
DecidedJune 21, 1973
StatusPublished
Cited by38 cases

This text of 511 P.2d 392 (Conachan v. Williams) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Conachan v. Williams, 511 P.2d 392, 266 Or. 45, 1973 Ore. LEXIS 332 (Or. 1973).

Opinions

TONGUE, J.

This is an action for damages for personal injuries arising out of an automobile accident. Defendant appeals from a judgment based upon a jury verdict for $9,500 in general damages and $950 in special damages for medical expenses.

The two primary issues raised by this appeal are: (1) was evidence of the amount of earnings alleged by plaintiff to have been lost between the time of his injury and the time of trial admissible as evidence of impairment of plaintiff’s earning capacity, in support of his claim for general damages and, if so, (2) was the testimony offered by plaintiff for that purpose, based upon average earnings by other em[49]*49ployees with similar contracts of employment, relevant and competent evidence to support such a claim of impairment of earning capacity?

The facts are important in considering these questions. Plaintiff was employed as a Division Manager by Prudential Insurance Co. His job involved recruitment, training and retention of life insurance agents. He was paid a minimal base salary, plus percentage “overrides” on those agents’ commissions. These “overrides” were the major source of his income and depended upon the number of agents working under him and the amount of sales made by them.

For the purposes of this appeal defendant does not deny liability for the accident which caused plaintiff’s injury. By the time of trial plaintiff had been discharged by his treating doctor and had made a normal recovery.

Plaintiff’s original complaint made no claim for permanent injuries, but alleged special damages of $6,250 for lost income prior to trial, in addition to medical expenses. In addition to praying for judgment for these amounts as special damages, the complaint prayed for $25,000 in general damages.

The evidence in question on this appeal consisted of the testimony of the General Manager of Prudential’s Portland agency to the effect that plaintiff was one of 15 or 16 Division Managers in the company’s Pacific Northwest Region; that in 1969 (before plaintiff’s injury), the average weekly income for this group was $219.33 and that plaintiff was rated third among this group, with income above that average, but that in 1970 (after plaintiff’s injury), the average weekly income for that group increased to $343, while plaintiff’s income was only $216.63, so that [50]*50he lost at least $125 per week in income during 1970 as a result of the accident. The General Manager also said that plaintiff had been highly regarded as having had “great potential” with the company and but for this injury would have “at least equalled” the weekly average income by other Division Managers; that before the accident he was known as “Mr. Hustle,” but that he “slowed down” after the accident and at the time of trial was “right at the bottom” of the group.

When this witness started to testify to the average earnings of the 15 or 16 other Division Managers defendant objected to that testimony as irrelevant. After an offer of proof of this testimony in the absence of the jury defendant objected to comparing plaintiff’s actual earning with the average earnings of other Division Managers upon the ground that such testimony was based on hearsay and speculation and that a claim of special damages for lost wages must be capable of accurate computation.

The trial court ruled that this testimony was “too speculative” to sustain plaintiff’s claim of special damages, but that it had “substantive probative value” and was admissible in support of plaintiff’s claim for general damages. Defendant then renewed her objections on the ground of relevancy, materiality and hearsay. She also objected that she did not have the “figures” used by the witness for use in cross-examination.

The trial court ruled, however, that although defendant could require the production of documents for use in cross-examination, plaintiff would be permitted to offer this testimony before the jury and that after defendant’s counsel heard the testimony she could make her “formal objection.”

That testimony was then repeated before the [51]*51jury. Defendant’s attorney undertook to cross-examine the witness, who conceded that the income of the Division Managers depended upon the number and effectiveness of the agents under their supervision. Defendant’s attorney then asked the witness to produce figures showing the number of agents working under each Division Manager in each office and the number of offices included in his computation of weekly average earnings, all for use in further cross-examination.

The trial then recessed over a week end. Upon resumption of the trial plaintiff’s attorney reported that his witness had a list of the offices involved, but did not have the number of agents employed in each office. Defendant then moved to strike plaintiff’s allegation of $6,250 for lost wages as special damages and also moved to strike the testimony as “too speculative” and as not supported by the information requested.

The trial court allowed defendant’s motion to strike plaintiff’s allegation of lost wages as special damages, but then inserted in the complaint as an allegation to support plaintiff’s claim for general damages (after the allegations describing his injuries) the words “and diminished his capacity to earn income, all to his general damage in the sum of $25,000.” The trial court also ruled that the cross-examination should continue, based on “what he’s got.”

1. Impairment of pre-trial earning capacity may he ■ claimed.

Defendant’s “summary” of argument on this issue is as follows:

“This Court has always recognized a distinction [52]*52between loss of earnings, which it has treated as a species of special damages suffered xip to the time of trial, and impairment of earning capacity, which it has treated as an element of general damages relating to future ability to make a living. The trial court here obliterated the distinction entirely by admitting testimony on specific lost income and instructing the jury it could use that evidence to determine as part of general damages plaintiff’s impaired earning capacity up to the time of trial. Maintenance of the distinction was particularly important here, because the plaintiff made no claim that his earning capacity for the future was in any way impaired by his injuries.”

This court has held, in effect, that when in such a case a plaintiff was not employed at the time of his injury, so as to entitle him to make a claim for pre-trial lost wages as an item of special damages, he may not make a claim for pre-trial impairment of earning capacity as an item of special damages, so as to entitle him to an instruction on such an item as special damages. Martin v. Hahn, 252 Or 585, 590, 451 P2d 465 (1969). That holding was reaffirmed by a divided court in Baxter v. Baker, 253 Or 376, 379, 451 P2d 456, 454 P2d 855 (1969). See also Shaw v. Pacific Supply Coop., 166 Or 508, 510, 113 P2d 627 (1941), and Fields v. Fields, 213 Or 522, 537, 307 P2d 528, 326 P2d 451 (1958). The distinction between pretrial and post-trial earning losses was strongly criticized, however, by the dissenting opinions in Baxter v. Baker, supra at 380-94.

Because of our continuing concern over this problem we requested both parties to submit supplemental briefs upon whether this court should now reconsider its previous decisions on this subject.

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Bluebook (online)
511 P.2d 392, 266 Or. 45, 1973 Ore. LEXIS 332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/conachan-v-williams-or-1973.