General Electric Co. v. Niemet

866 P.2d 1361, 18 Brief Times Rptr. 55, 1994 Colo. LEXIS 29
CourtSupreme Court of Colorado
DecidedJanuary 10, 1994
DocketNos. 92SC552, 92SC767
StatusPublished
Cited by68 cases

This text of 866 P.2d 1361 (General Electric Co. v. Niemet) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Electric Co. v. Niemet, 866 P.2d 1361, 18 Brief Times Rptr. 55, 1994 Colo. LEXIS 29 (Colo. 1994).

Opinions

Justice VOLLACK

delivered the Opinion of the Court.

We granted certiorari to determine the relationship between section 13-21-102.5, 6A C.R.S. (1987 & 1993 Supp.), which limits noneconomic damages in a civil action, and section 13-21-111.5, 6A C.R.S. (1987 & 1993 Supp.), the pro rata liability statute. Specifically, we now decide, in cases involving multiple defendants or where the plaintiff is partially at fault, whether the cap imposed by section 13-21-102.5 shall be applied to individual defendants after liability has been apportioned or whether it shall be applied first to the plaintiffs total award before pro rata liability is apportioned.

We consolidated two separate actions for review and concurrently address both appeals, since each raises the same issue. In the first case, General Electric Co. v. Niemet, No. 92SC552, General Electric appeals from the court of appeals’ decision upholding the trial court, which first calculated each party’s pro rata share of damages and then applied the statutory cap to each defendant. 843 P.2d 87. In Paraho Development Corp. v. Cooley, No. 92SC767, Paraho appeals from the court of appeals’ decision correcting the trial court’s error and directing the trial court to apportion the percentages of fault before applying the statutory cap. 851 P.2d 207.

We affirm the decisions of the court of appeals and hold that a trial court shall apportion liability according to the degree of fault before it applies the statutory cap on noneconomic damages. We hold that the cap in section 13-21-102.5 applies to the liability share of each defendant in a case, and does not act as a cap on the total amount a plaintiff may recover.

I.

A.

Donald Niemet is employed by the Electric Utilities Division of the City of Colorado Springs. On August 21, 1987, after nine years of employment with the City, Niemet was injured in an explosion and fire caused by a defective and improperly grounded transformer manufactured by General Electric. Niemet suffered severe burns and dislocation of both shoulders. At trial in November 1990, a jury determined that Niemet suffered $1 million in noneconomic damages, $120,000 in economic damages, and $75,000 in damages for physical impairment or disfigurement. The jury apportioned the liability three ways: the City of Colorado Springs was found to be fifty-five percent at fault; General Electric, thirty-five percent at fault; and Niemet, ten percent at fault. The court apportioned thirty-five percent of the damages to General Electric, or $350,000. Because the court found that clear and convincing evidence justified raising the cap on non-economic damages to $500,000, the cap was not used to reduce the noneconomic award further. The court of appeals affirmed the decision of the trial court.

B.

On September 6, 1980, Dennis Cooley was riding a motorcycle when he collided with a United States Postal Service vehicle driven by a Postal Service employee. Cooley was twelve years old at the time of the collision. In June 1988, Cooley filed this action against the Paraho Development Corporation and its subsidiary, Development Engineering, Inc., based on claims that Paraho had failed to remove certain rocks and natural vegetation in the area of the accident, which hindered or blocked drivers’ vision at the intersection.1

Trial occurred in early November 1990. The jury apportioned twenty percent of the fault to Paraho; twenty-five percent to the driver of the Postal Service vehicle (who was not a party); twenty percent to the United States (which was not a party); five percent to the plaintiff’s mother; five percent to the plaintiffs father; and twenty-five percent to the plaintiff. The jury further determined that Cooley sustained $350,000 in noneco-nomic losses, $350,000 in economic losses, [1363]*1363and no damages for physical impairment. The trial court initially reduced the verdict by eighty percent, representing the negligence of all non-parties and the plaintiff and his family, and entered judgment in the amount of $140,000 ($70,000 for noneconomic damages and $70,000 for economic damages). Pursuant to Paraho’s post-trial motions, however, the trial court altered this formula by applying section 13-21-102.5 and reducing the noneconomic damage award to $250,000, and then reduced this sum by eighty percent. The trial court then entered judgment for plaintiff in the amount of $50,000, rather than for $70,000 for noneconomic damages.

On appeal, the court of appeals reversed the trial court’s method of calculating non-economic damages and held that the trial court should have assessed the percentages of fault before it applied the $250,000 statutory cap.

II.

We granted certiorari in this case to decide the relationship between section 13-21-102.5, 6A C.R.S. (1987 & 1993 Supp.), which limits noneconomic damages to $250,000, and section 13-21-111.5, 6A C.R.S. (1987 & 1993 Supp.), the pro rata liability statute. Subsection (3)(a) of section 13-21-102.5 states:

In any civil action in which damages for noneconomic loss or injury may be awarded, the total of such damages shall not exceed the sum of two hundred fifty thousand dollars, unless the court finds justification by clear and convincing evidence therefor. In no case shall the amount of such damages exceed five hundred thousand dollars.

§ 13-21-102.5(3)(a), 6A C.R.S. (1987).

The pertinent parts of the pro rata liability statute, section 13-21-111.5, state:

(1) In an action brought as a result of a death or an injury to person or property, no defendant shall be’ liable for an amount greater than that represented by the degree or percentage of the negligence or fault attributable to such defendant that produced the claimed injury, death, damage, or loss....
(2) The jury shall return a special verdict, or, in the absence of a jury, the court shall make special findings determining the percentage of negligence or fault attributable to each of the parties and any persons not parties to the action.

§ 13-21-111.5(1), (2), 6A C.R.S. (1987).

The dilemma raised by Niemet and Cooley occurs when several defendants are found to be at fault and/or when the plaintiff himself bears some of the fault. In its most basic form, the issue is whether a trial court should apply the statutory cap on noneco-nomic damages before or after it rules on the pro rata liability of the defendants and the plaintiff.

An example is useful to illustrate these two alternatives and the effect on each of the parties. The Niemet jury determined that Niemet suffered $1 million in noneconomic damages and apportioned fifty-five percent of the fault to the City of Colorado Springs, thirty-five percent to General Electric, and ten percent to Niemet. Applying the finding of the jury, the trial court determined that General Electric was liable for $350,000. The trial court also found that clear and convincing evidence existed to raise the cap to $500,000. Because the amount of General Electric’s liability was less than $500,000, the eourt did not apply the statutory cap. In this scenario, General Electric would be ha-ble for $350,000.

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Bluebook (online)
866 P.2d 1361, 18 Brief Times Rptr. 55, 1994 Colo. LEXIS 29, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-electric-co-v-niemet-colo-1994.