Ford Motor Co. v. Durrill

714 S.W.2d 329, 1986 Tex. App. LEXIS 7804
CourtCourt of Appeals of Texas
DecidedMay 29, 1986
Docket13-84-390-CV
StatusPublished
Cited by33 cases

This text of 714 S.W.2d 329 (Ford Motor Co. v. Durrill) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ford Motor Co. v. Durrill, 714 S.W.2d 329, 1986 Tex. App. LEXIS 7804 (Tex. Ct. App. 1986).

Opinion

OPINION

NYE, Chief Justice.

This is an action brought by William and Shirley Durrill against the Ford Motor Company following an accident in which their daughter, Devary, was killed. The Mustang II 'vehicle Devary was driving was hit from behind by a 1972 Lincoln driven by James B. Rathmell. The car burst into flames after impact. Devary Durrill died seven and half days later of burns she sustained in the fire.

In answer to special issues, the jury found that a design defect in the automobile’s fuel system and Ford’s failure to warn of the dangers of fire following rear end collisions were producing causes of the occurrence. The jury also found that negligence in design and failure to warn were proximate causes of the accident. They awarded $6,861,663.00 in damages to the Durrills and assessed $100,000,000.00 in exemplary damages against Ford. The trial court ordered the Durrills to file a remit-titur of $80,000,000.00 of the exemplary damages as a condition of overruling Ford’s motion for new trial. Ford Motor Company brings fifty-six points of error contesting liability, damages and various evidentiary rulings. The Durrills seek reinstatement of the jury’s gross negligence award and prejudgment interest. This expertly tried case took more than seven weeks to complete, resulting in a record in this Court of nearly 7,000 pages and more than 300 exhibits. We reform and will affirm the trial court’s judgment on the condition of a remittitur by the appellees.

In appellant Ford’s first and second points of error it argues that the jury findings on gross negligence are immaterial because as a matter of law a corporation may not be grossly negligent. Ford contends that the essence of gross negligence is a mental attitude or state of mind which a corporation itself cannot have. It concedes that a corporation may be held legally liable on the basis of the acts and state of mind of natural persons under circumstances in which those acts and state of mind can properly be imputed to the corporation. Ford argues that the Durrills made no attempt to prove knowledge, state of mind, or acts or omissions of any individual Ford employee which would provide an evi-dentiary predicate for corporate liability.

A review of Texas case law is contrary to Ford’s argument. It shows that corporations may be held liable for gross negligence. In Ford Motor Co. v. Nowak, 638 S.W.2d 582 (Tex.App.—Corpus Christi 1982, writ ref’d n.r.e.), this court upheld a *334 gross negligence award of $4,000,000.00 against Ford Motor Company. We did not predicate liability upon the acts of individual employees of Ford. Likewise, in Rawl-ings Sporting Goods Co. v. Daniels, 619 S.W.2d 435 (Tex.Civ.App.—Waco 1981, writ ref’d n.r.e.) a punitive damage award of $750,000 was upheld against a company which manufactured football helmets. Recently, in International Armament Corp. v. King, 674 S.W.2d 413 (Tex.App.1984) aff'd, 686 S.W.2d 595 (Tex.1985), the Supreme Court held the evidence was sufficient for the jury to infer that Interarms intentionally did not inspect the safety related parts of the guns, but was interested only in the cosmetic appearance of its product. Again, in Monsanto Co. v. Johnson, 675 S.W.2d 305 (Tex.App.—Houston [1st Dist] 1984, writ ref'd n.r.e.), Monsanto Corporation was found grossly negligent. In each of these cases, the Courts held the manufacturer or the company liable for gross negligence without specifically requiring an identified individual to be held grossly negligent.

This is not a ease in which corporate liability arises from the negligent or intentional act of an employee whose conduct was authorized or ratified by a person acting in a managerial or supervisory capacity. Rather, it involves complex company policy decisions which were made by Ford management. As such, we find that it is proper to hold Ford accountable for gross negligence. These were corporate decisions which cannot be imputed to an individual engineer, a specific division, or a single manager.

Ford also argues that the special issue which asked the jury to find what sum of money, if any, should be assessed as exemplary damages against Ford Motor Company for the death of Devary Durrill, was an immaterial issue because it asked the jury to award damages that the Durrills cannot legally recover. Ford’s argument, in essence, is that the special issue was so worded that it allowed the plaintiffs to recover under the Wrongful Death Statute rather than under the Survival Statute, 1 which would have been proper. See Hofer v. Lavender, 679 S.W.2d 470 (Tex.1984). Ford’s objection to the special issue was that there was no evidence to support exemplary damages and that submitting this issue in a trial which involved both strict liability and ordinary negligence was improper. There was no objection that the issue was immaterial or improperly worded.

The trial court is vested with broad discretion in determining the form of special issues to be submitted to the jury. The issue submitted may have been more properly worded to focus on the defendant’s conduct as illustrated in the State Bar of Texas, Texas Pattern Jury Charges PJC 80.10 (1982) as follows:

Find from the preponderance of the evidence what sum of money, if any, should be assessed against [the defendant] as exemplary damages?

Or the issue could have asked:

What sum of money, if any, should be assessed as exemplary damages against Ford to the survivors of Devary Durrill?

Even though we find that the issue in question might have been worded differently, it was not improper.

In points of error five through fourteen, Ford challenges the evidence as legally and factually insufficient to support the jury’s findings that a defectively designed Mustang II was either the producing or proximate cause of the occurrence; and that Ford’s failure to warn users of the danger of fires following collisions was either the producing or proximate cause of the occurrence. In considering a “no evidence” or “insufficient evidence” point of error, we will follow the well established test set forth in Pool v. Ford Motor Company, 29 Sup.Ct.J. 301 (April 5, 1986) (not yet published); Dyson v. Olin Corp., 692 S.W.2d *335 456 (Tex.1985); Glover v. Texas General Indemnity Co., 619 S.W.2d 400 (Tex.1981); Garza v. Alviar, 395 S.W.2d 821 (Tex.1965); Allied Finance Co. v. Garza, 626 S.W.2d 120 (Tex.App.—Corpus Christi 1981, writ ref’d n.r.e.); Calvert, No Evidence and Insufficient Evidence Points of Error, 38 Tex.L.Rev. 361 (1960).

The test for determining a design defect was reiterated in Kindred v. Con/Chem, Inc., 650 S.W.2d 61, 62 (Tex.1983).

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Bluebook (online)
714 S.W.2d 329, 1986 Tex. App. LEXIS 7804, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ford-motor-co-v-durrill-texapp-1986.