Gillingham v. Reliable Chevrolet

1998 NMCA 143, 966 P.2d 197, 126 N.M. 30
CourtNew Mexico Court of Appeals
DecidedSeptember 15, 1998
Docket18,639
StatusPublished
Cited by21 cases

This text of 1998 NMCA 143 (Gillingham v. Reliable Chevrolet) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gillingham v. Reliable Chevrolet, 1998 NMCA 143, 966 P.2d 197, 126 N.M. 30 (N.M. Ct. App. 1998).

Opinion

OPINION

WECHSLER, J.

{1} Defendant, an automobile dealership, appeals from a judgment on a jury verdict in a motor vehicle accident case awarding Plaintiff punitive damages and from the district court’s award of costs. Defendant raises five issues on appeal: (1) there was insufficient evidence to support the award of punitive damages; (2) the district court’s instructions on punitive damages constituted reversible error; (3) it was reversible error to deny Defendant’s request for a limiting instruction with respect to the post-accident dishonesty of its employee; (4) the punitive damage award violated due process; and (5) the district court abused its discretion in awarding costs.

{2} We hold that substantial evidence supports the jury’s award of punitive damages, but because the district court’s instructions on punitive damages constituted reversible error, we reverse and remand for a new trial on that issue. We reverse the costs award in part and remand for reconsideration.

Background

{3} Michael Hinkle, a salesman and employee of Defendant, collided with and injured Plaintiff, while driving a car belonging to Defendant within the scope of his employment. Plaintiff sued Hinkle and Defendant. The jury found Hinkle negligent and awarded Plaintiff compensatory damages. Because Hinkle was on the job at the time of the collision, Defendant does not dispute that it is vicariously liable for those damages.

{4} The jury also found that separate conduct of Hinkle and Defendant was evidence of culpable mental states which were willful, reckless, or wanton. It found punitive damages against Hinkle and Defendant to be $250 and $275,000, respectively. The district court denied Defendant’s objections to the bill of costs for $49,045.02 filed by Plaintiff. Defendant appeals from the awards of punitive damages and costs.

Evidence Bearing on Punitive Damages

{5} As instructed by the district court, in order to determine that Plaintiff recover punitive damages from Defendant, the jury was required to find that Defendant’s conduct was evidence of a culpable mental state that was “willful, reckless, or wanton.” See UJI 13-1827 NMRA 1998. Defendant asserts that the evidence was insufficient to support the jury’s affirmative finding.

{6} Consistent with Uniform Jury Instruction 13-1827, the jury was instructed as follows:

Willful conduct is the intentional doing of an act with knowledge that harm may result.
Reckless conduct is the intentional doing of an act with utter indifference to the consequences.
Wanton conduct is the doing of an act with utter indifference to, or conscious disregard for, a person’s safety.

{7} Plaintiff contends that Defendant waived its right to challenge the sufficiency of the evidence because it failed to renew its motion for a directed verdict at the close of the evidence. This contention is without merit. During the settling of jury instructions and before closing arguments, counsel for Defendant argued that the “motion for directed verdict on [punitive damages] should be sustained.” Defendant’s arguments caused the district court to rule, “To the extent that you have renewed any of your motions for directed verdict, the same are denied for reasons previously stated by the Court.” Thus, Defendant fairly invoked a ruling on its renewed motion. See Rule 12-216(A) NMRA 1998.

{8} “The standard of review for an award of punitive damages is whether the award is supported by substantial evidence.” Sunwest Bank of Albuquerque, N.A. v. Daskalos, 120 N.M. 637, 639, 904 P.2d 1062, 1064 (Ct.App.1995). On appeal, this “[C]ourt views the evidence in the light most favorable to the verdict and disregards all inferences to the contrary.” Id. The evidentiary facts favorable to Plaintiff include the following.

{9} Hinkle, a twenty-one-year-old man, applied for a vehicle sales job with Defendant on February 27, 1994. Hinkle’s prior work experience was as a cook and restaurant manager. When Defendant hired Hinkle as a salesman, it anticipated that he would drive its vehicles throughout Albuquerque. Defendant’s representative acknowledged that motor vehicles have the potential for causing horrible damages if they are not driven properly.

{10} Hinkle stated on his application that he had a valid driver’s license. Hinkle also disclosed that he had previously been cited for driving 65 m.p.h. in a 55 m.p.h. zone. In the course of completing paperwork subsequent to his acceptance of a job, Hinkle produced, and Defendant accepted, a New Mexico identification card rather than a driver’s license. Defendant had access on its premises to a computer connection with the Motor Vehicle Division of the New Mexico Taxation and Revenue Department that would have enabled it to verify Hinkle’s driver’s license information within minutes, but it chose not to investigate Hinkle’s status because it thought it was unnecessary under the circumstances.

{11} Had Defendant used the computer connection to check Hinkle’s status at the time of his application, it would have learned that he had been cited on separate occasions for improper backing and speeding over 75 m.p.h., and that his license had been suspended in February 1993 after he failed to appear in court to respond to a traffic citation. Defendant would not have permitted Hinkle to drive its vehicles if it had known that he had a suspended license.

{12} Defendant did not test or monitor Hinkle’s driving nor provide him with any safe driving instructions or training. Three weeks after Defendant hired Hinkle, he collided with Plaintiff while negligently driving an automobile that he had taken for a customer test drive.

{13} The foregoing evidence permits the reasonable inferences that: (1) Defendant did not investigate Hinkle’s driving record or take any steps to ensure that he would drive safely; and (2) the dealership focused only on the potential economic benefit to be derived from hiring a new salesperson and it did not care about the risk of harm to the public posed by an unlicensed or incompetent driver. Such behavior may qualify as reckless or wanton conduct. See DeMatteo v. Simon, 112 N.M. 112, 114-15, 812 P.2d 361, 363-64 (Ct.App.1991) (jury could reasonably conclude that construction company displayed an utter indifference for the safety of others when company representative testified “that he knew DeMatteo had received several traffic citations and had been involved in auto accidents”; “that had he been aware of De-Matteo’s complete driving record, the construction company would not have entrusted DeMatteo with the company car”; and “that he knew how to obtain a copy of DeMatteo’s driving record”).

{14} We acknowledge that other inferences from the foregoing facts, plus other facts of record and inferences from them, would support a contrary verdict.

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Bluebook (online)
1998 NMCA 143, 966 P.2d 197, 126 N.M. 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gillingham-v-reliable-chevrolet-nmctapp-1998.