Groth v. Hyundai Precision and Ind. Co.

149 P.3d 333, 209 Or. App. 781, 2006 Ore. App. LEXIS 1927
CourtCourt of Appeals of Oregon
DecidedDecember 13, 2006
Docket0009-09219; A121714
StatusPublished
Cited by4 cases

This text of 149 P.3d 333 (Groth v. Hyundai Precision and Ind. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Groth v. Hyundai Precision and Ind. Co., 149 P.3d 333, 209 Or. App. 781, 2006 Ore. App. LEXIS 1927 (Or. Ct. App. 2006).

Opinion

*784 YRAGUEN, S. J.

Defendants Hyundai Motor Company Korea, Hyundai Precision and Industrial Company, Ltd., and Hyundai Machine Tools America, Inc. (collectively referred to hereafter as Hyundai) and Hyundai’s distributor, Ellison Machinery Company Northwest (Ellison), appeal after a jury awarded $1.9 million in economic damages 1 against all defendants and $8.3 million in punitive damages against Hyundai in a strict products liability action for wrongful death. The action was brought by the personal representative, Connie Groth (plaintiff), on behalf of the estate of Scott Groth (Groth), a machinist who was killed while operating a Hyundai V5 vertical industrial lathe. Defendants argue that the trial court erred in denying their motions for a directed verdict and for a new trial on the award of economic damages, and Hyundai argues that the trial court erred in submitting the issue of punitive damages to the jury, in failing to reduce the punitive damages award, and in denying Hyundai’s motion for a mistrial based on statements made during closing argument. The jury also awarded $1.9 million in nonecon-omic damages, which the court reduced to $500,000 pursuant to ORS 31.710. Plaintiff cross-appeals, contending that the trial court improperly reduced the award of noneconomic damages. For the reasons that follow, we affirm on the appeal and on the cross-appeal.

I. THE APPEAL

A. Submission of the Issue of Punitive Damages to the Jury

Initially, Hyundai contends that the trial court erred in denying its motion for a directed verdict on the issue of punitive damages because plaintiff did not present clear and convincing evidence that Hyundai acted with malice or showed a reckless and outrageous indifference to a highly *785 unreasonable risk of harm and acted with a conscious indifference to the health, safety, and welfare of others, as required by ORS 31.730(1) 2

In reviewing the trial court’s denial of a motion for a directed verdict, we view the evidence and all reasonable derivative inferences in the light most favorable to plaintiff. Williams v. Philip Morris Inc., 340 Or 35, 38, 127 P3d 1165, cert granted, 126 S Ct 2329, 164 L Ed 2d 838 (2006); Greist v. Phillips, 322 Or 281, 285, 906 P2d 789 (1995). 3 Groth was a machinist at Cornell Pump in Portland. He was machining a solid bronze impeller, which was being spun inside a Hyundai V5 lathe. The 50-pound impeller, which was spinning at approximately 1500 rpm, was held inside the lathe by clamps. The impeller broke free from the clamps, smashed through the plastic viewing window, 4 ***and struck Groth in the chest.

The evidence, when viewed in the light most favorable to plaintiff, would have permitted the jury to find that the Hyundai V5 lathe did not meet mandatory European standards or voluntary United States industry guidelines; that Hyundai “self-certified” the V5 lathe, which was permitted *786 under European standards, rather than obtaining independent certification of safety standard compliance; that Hyundai had no technical file on “self-certification” documenting risk analyses, design choices, or warnings required to use the product safely; that, if it was not possible to guard effectively against a force at the lathe’s maximum capacity, as claimed by Hyundai, Hyundai failed to warn users of the residual risks or limits of safe use; that modifications that were made because of customer concerns about the retaining door were completed not to reinforce or strengthen the window, but to provide an appearance of safety; that Hyundai knew that the V5 lathe was designed to take a work piece as heavy as 2200 pounds and spin it as fast as 2000 rpm on a 24-inch chuck, which would generate significantly more impact force than the force involved in this case; that Hyundai knew that it was foreseeable that work pieces would come loose during the machining process and knew that pieces did occasionally come loose from the clamps; that, prior to Groth’s death, Hyundai had to replace a V5 lathe retaining cover, which bowed out but did not break when it was struck by a work piece spun at a lower speed than the piece that was being spun at the time of Groth’s death; that it was mechanically possible to design and manufacture a door that probably could have contained the impeller hurled in this case; and that Hyundai expected operators to stand in front of the window on the retaining door when running the V5 lathe.

There was also evidence that would have permitted the jury to find that, although Hyundai was at first cooperative when the Oregon Occupational Safety and Health Division (OSHA) investigated the circumstances of Groth’s death and had prohibited the use of the V5 lathe until the lathe could be made safe with a stronger door, it later refused to strengthen the door and claimed that OSHA had no jurisdiction over it; that Hyundai refused to cooperate with Cornell Pump when it made independent efforts to strengthen the retaining doors on its Hyundai V5 lathes; and that Hyundai took the position that it had no obligation to warn users of the fatality and the limitations of the existing door on its V5 lathe.

The above evidence certainly would have permitted the jury to conclude, by clear and convincing evidence, that *787 Hyundai “has shown a reckless and outrageous indifference to a highly unreasonable risk of harm and has acted with a conscious indifference to the health, safety and welfare of others.” ORS 31.730(1). For that reason, the trial court properly denied Hyundai’s motion for a directed verdict on the issue of punitive damages. 5

B. Fourteenth Amendment Due Process

Because we reject Hyundai’s challenge to plaintiffs entitlement to punitive damages, we proceed to determine whether, as a matter of law, the award of punitive damages comports with federal due process. Goddard v. Farmers Ins. Co., 202 Or App 79, 112, 120 P3d 1260 (2005). Defendants contend that the $8.3 million punitive damages award is unconstitutionally excessive under the Due Process Clause of the Fourteenth Amendment to the United States Constitution, relying on BMW of North America, Inc. v. Gore, 517 US 559, 116 S Ct 1589, 134 L Ed 2d 809 (1996), and State Farm v. Campbell, 538 US 408, 123 S Ct 1513, 155 L Ed 2d 585 (2003).

The Due Process Clause of the Fourteenth Amendment prohibits the award of an excessive amount of punitive damages against a tortfeasor because, to the extent that an award is excessive, it furthers no legitimate purpose and constitutes an arbitrary deprivation of property.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Taylor v. Lane County
162 P.3d 356 (Court of Appeals of Oregon, 2007)
Union Bank of California, N.A. v. Copeland Lumberyards, Inc.
160 P.3d 1032 (Court of Appeals of Oregon, 2007)
Vasquez-Lopez v. Beneficial Oregon, Inc.
152 P.3d 940 (Court of Appeals of Oregon, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
149 P.3d 333, 209 Or. App. 781, 2006 Ore. App. LEXIS 1927, Counsel Stack Legal Research, https://law.counselstack.com/opinion/groth-v-hyundai-precision-and-ind-co-orctapp-2006.