In Re Joint Eastern & Southern Dist. Asbestos Lit.

726 F. Supp. 426
CourtDistrict Court, E.D. New York
DecidedDecember 7, 1989
DocketCV-87-2173
StatusPublished
Cited by2 cases

This text of 726 F. Supp. 426 (In Re Joint Eastern & Southern Dist. Asbestos Lit.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Joint Eastern & Southern Dist. Asbestos Lit., 726 F. Supp. 426 (E.D.N.Y. 1989).

Opinion

726 F.Supp. 426 (1989)

In re JOINT EASTERN and SOUTHERN DISTRICT ASBESTOS LITIGATION.
Frank RUMMO and Betty Rummo, Plaintiffs,
v.
The CELOTEX CORPORATION, Defendant.

No. CV-87-2173.

United States District Court, E.D. New York.

December 7, 1989.

Jay W. Dankner, Abby J. Resnick, Sullivan & Liapakis, P.C., New York City, for plaintiffs.

David Speziali, Speziali & Constantine, Newfield, N.J., for defendant.

MEMORANDUM AND ORDER

WEINSTEIN, District Judge.

Plaintiff is dying of mesothelioma, a dread cancer of the lining of the lungs, as a result of his work with asbestos thirty years ago in the Brooklyn Navy Yard. He *427 has less than one year to live. He cannot work. Were it not for this disease, this 53 year-old man would have a work-life expectancy of some twelve years. The question posed is whether his loss of future income should be based on the one year he may live or the many years he could have lived were it not for the defendant's delict in supplying asbestos without warning workers of the dangers.

The court instructed the jury to make alternative findings of fact. Based on present work-life expectancy it fixed loss of earnings at $45,000.00. Based on work-life expectancy not reduced by mesothelioma it awarded $775,000.00. Both sums are supported by the trial record.

I. Principles of Compensation

This is a diversity case. New York law applies. Erie R.R. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938). But this state's highest courts have not definitively analyzed the issue in published opinions. We turn therefore to the general law of torts, as would New York's highest court. MacPherson v. Buick Motor Co., 217 N.Y. 382, 111 N.E. 1050 (1916) (Cardozo, J.). "[U]nderlying principles, with whatever qualification may be called for as they are applied to varying conditions, are the tests and standards of our law." Id. 111 N.E. at 1053.

A. Actions by Injured Party

A primary goal of the American law of torts is to adequately and justly compensate personal injury victims. Compensatory damages include the loss or impairment of earning capacity. 22 Am.Jur.2d Damages § 157 (1988); 4 F. Harper, F. James, Jr. & O. Gray, The Law of Torts § 25.8 (2d ed. 1986); 2 S. Speiser, C. Krause and A. Gans, The American Law of Torts § 8:27 (1985); 4 Restatement (Second) of Torts § 924, comments c & d (1979). Damages are computed by measuring the monetary value of the diminution in the plaintiff's annual earning capacity, multiplying that amount by the number of years the plaintiff could have worked—his work-life expectancy—and then discounting that amount to present value. See 2 M. Minzer, J. Nates, C. Kimball, D. Axelrod & R. Goldstein, Damages in Tort Actions § 10.23 (1989); 4 F. Harper, F. James Jr. & O. Gray, The Law of Torts § 25.8 (2d ed. 1986); 2 S. Speiser, C. Krause & A. Gans, The American Law of Torts § 8:27 (1985).

The problem of whether to use pre- or post-injury life expectancy when calculating personal injury damages has been largely neglected until recently because medical knowledge was not sufficiently advanced to permit a reliable estimate of reduced life expectancy. Improvements in medical technology, demographics and statistics now allow that estimation to be made with sufficient accuracy to satisfy legal standards. Fleming, The Lost Years: A Problem in the Computation and Distribution of Damages, 50 Cal.L.Rev. 598, 599-600 (1962).

Given the possibility of accurate projections, it is desirable to think of a worker's earning capacity as equivalent to work-capital. Adjusting for such factors as increased skills, demand for the worker's services, and inflation, that capital is depleted as life advances. An injury that reduces the period of work-life expectancy deprives the worker of the value of work-capital. By awarding damages for lost earning capacity, we are, in effect, compensating the worker for the shortening of his or her "economic horizon." 2 S. Speiser, C. Krause & A. Gans, The American Law of Torts § 8:27, at 628 (1985).

The Restatement (Second) of Torts may be read to support compensation to the victim directly for loss of work-capital. It states that anticipated losses of earnings should be calculated for "the expected working period that the plaintiff would have had during the remainder of his prospective life, but for the defendant's act." 4 Restatement (Second) of Torts § 924, comment d at 525 (1977) (emphasis supplied).

The Restatement (Second) of Torts indicates one way of calculating that life expectancy by use of statistical tables:

[I]n order to ascertain the damages, to determine the expectancy of the injured *428 person's life at the time of the tort ... it is permissible to use mortality tables and other evidence as to the average life expectancy of a large number of persons.

Id. comment e, at 526 (emphasis supplied).

Speiser, Krause and Gans note:

Work life expectancy is an important factor in determining an injury victim's damages from loss or impairment of future earning capacity.

2 S. Speiser, C. Krause & A. Gans, The American Law of Torts § 8:27, at 632 (2d ed. 1985). Building on the possibility of prediction, these authors strongly urge compensating the living victim for the loss of his or her work-capital. They write that:

damages for decreased earning capacity should be determined by deducting the injury victim's earning ability after the injury from his earning ability immediately prior to the injury.

Id. at 630. Earning ability prior to the injury must be calculated based on the victim's pre-injury life expectancy.

Calculating damages for lost earning capacity based on the victim's pre-injury life expectancy has been criticized as overcompensating the plaintiff, because no deductions are made for his or her living expenses between the time of projected actual death and the time death probably would have occurred had there been no injury. It has been viewed, however, as the "lesser of two evils." The alternative method of awarding damages based on the victim's shortened life expectancy would, in effect, reward the defendant for having successfully injured the plaintiff so severely as to curtail his or her life span, and would under-compensate plaintiff's dependents for the loss of support during those lost years. 4 F. Harper, F. James, Jr. & O. Gray, The Law of Torts § 25.8, at 552 n. 9 (2d ed. 1986); Note, The Measure of Damages For a Shortened Life, 22 U.Chi.L.Rev. 505, 505-06 (1955). "It is permitting a defendant to assert the excessiveness of his own tort to escape paying full compensation for the injury." Note, The Measure of Damages For a Shortened Life, 22 U.Chi.L. Rev. 505, 506 n. 6 (1955) (quoting Olivier v. Houghton County Street Ry., 138 Mich. 242, 244, 101 N.W. 530, 531 (1904)). As between some unfairness to the tort-feasor and gross under-compensation to the victim, the former seems more appealing to our sense of justice.

B. Relation to Death Actions

Addressing the legal problem requires consideration of damages awarded in a death action brought for loss to the estate because of the worker's untimely death, as well as damages awarded in a suit by a victim commenced during his or her lifetime.

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