Jeff & Elaine Mcnabb v. Metropolitan Property & Casualty Ins. Co.

CourtCourt of Appeals of Washington
DecidedMay 28, 2019
Docket77832-3
StatusUnpublished

This text of Jeff & Elaine Mcnabb v. Metropolitan Property & Casualty Ins. Co. (Jeff & Elaine Mcnabb v. Metropolitan Property & Casualty Ins. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jeff & Elaine Mcnabb v. Metropolitan Property & Casualty Ins. Co., (Wash. Ct. App. 2019).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION ONE JEFF MCNABB and ELAINE ) No. 77832-3-1 MCNABB, husband and wife, ) and the marital community ) composed thereof, ) ) Appellants, ) ) v. ) ) METROPOLITAN PROPERTY ) UNPUBLISHED OPINION AND CASUALTY INSURANCE ) COMPANY, an insurance company, ) FILED: May 28, 2019 ) Respondent. ) )

VERELLEN, J. —Jeff and Elaine McNabb sued their insurance provider,

Metropolitan Property and Casualty Insurance Company,for breach of contract,

bad faith, violation of the Consumer Protection Act(CPA)1 and violation of the

Insurance Fair Conduct Act(IFCA).2 The jury returned a verdict in favor of the

McNabbs and awarded over $8 million. But following trial, the court remitted the

entire $1,345,317.24 CPA damages verdict, citing potential duplication concerns.

Washington courts strongly presume the jury verdict is correct. A jury's

damages award must be within the range of substantial evidence in the record.

1 Ch. 19.86 RCW. 2 Ch. 48.30 RCW. No. 77832-3-1/2

And although mathematical exactness is not required to calculate damages, the

plaintiff must prove damages with reasonable certainty to avoid speculation.

Whether the result of speculation or duplication, on de novo review, the

evidence before us does not support the total amount of economic damages

awarded by the jury. But we arrive at a different number than the trial court on

remittitur. Rather than remittitur of $1,345,317.29, we conclude $875,588.10 of

economic damages is outside the range of the evidence in the limited record

before us. Therefore, we reverse the trial court's order of remittitur and remand

for entry of an amended judgment consistent with this opinion.

FACTS

In 2014, the McNabbs lived in Seattle with their two daughters. The

McNabbs' home was insured with Metropolitan. On June 12, 2014, the McNabbs'

tankless hot water heater flooded the home with hot water.

After receiving Metropolitan's initial offer, the McNabbs objected and

invoked the appraisal provision "[i]n accordance with the terms and provision of

the insurance policy."3 Under the appraisal provision, each party appointed an

appraiser, and the appraisers appointed an umpire.

3 Clerk's Papers(CP)at 2197; Report of Proceedings (RP)(July 17, 2017) at 72.

2 No. 77832-3-1/3

In November 2014, the McNabbs filed this lawsuit against Metropolitan for

breach of contract, bad faith, violation of the CPA, and violation of the IFCA.4

On March 23, 2016, the appraisal panel issued an award. The appraisal

award was divided into three categories:(1) dwelling,(2) contents, and (3) loss of

use. In each category, the appraisal panel provided a claim valuation at date of

loss and a separate claim valuation at date of appraisal. In the award for dwelling

and content, the appraisal panel also provided a replacement cost value and an

actual cash value.

After the three-week trial in July 2017, the jury returned a special verdict for

the McNabbs of $8,371,323.93.6 The award included $1,345,317.24 for CPA

damages. The McNabbs moved to increase the verdict on various grounds. On

September 22, 2017, the trial court granted the McNabbs' motion and entered an

amended judgment for $10,590,169.48.6

Metropolitan moved for remittitur on several grounds and for a new trial. On

November 20, 2017, the trial court denied Metropolitan's motion for a new trial and

granted remittitur only as to the CPA damages verdict.7 The court emphasized

"the main question" regarding economic damages "is whether they are duplicate

4 The McNabbs also sued (1) Allied Restoration, d/b/a Servpro of Central Seattle,(2) the appraiser, Tim Berglund, and (3) Taylor & Smith, LLC, d/b/a, PWC Construction. Metropolitan was the only defendant at trial. It appears the other defendants settled prior to trial. See CP at 94. 5 CP at 739-43.

6 CP at 2012-15. 7 CP at 2379.

3 No. 77832-3-1/4

awards."8 "[T]his Court cannot conclude that there is additional evidence of

damages supporting [the CPA award of damages] at least that would not duplicate

other awarded damages."9 The court entered an amended judgment for

$9,219,852.24.1°

Metropolitan appealed on various issues, and the McNabbs cross appealed

on remittitur. Metropolitan decided to pay the November 20, 2017 amended

judgment, and on February 21, 2018, the parties moved for a stipulated dismissal

of Metropolitan's appeal. This court granted the motion, and the McNabbs were

redesignated as the appellants.

ANALYSIS

I. Remittitur

The McNabbs contend the trial court erred in granting remittitur of the jury's

CPA damages verdict.

We review a trial court's decision granting remittitur de novo.11

Even in the context of de novo review, when reviewing a jury's award of

damages, we "'strongly presume the jury's verdict is correct.'"12 Under the

Washington State Constitution article 1, section 21, the right to a trial by jury is

8 CP at 2385. 9 CP at 2387.

10 CP at 2414.

11 Bunch v. King County Dep't of Youth Services, 155 Wn.2d 165, 176, 116 P.3d 381 (2005). 12 Terrell v. Hamilton, 190 Wn. App. 489, 510, 358 P.3d 453(2015)(quoting id. at 179).

4 No. 77832-3-1/5

"inviolate." "The jury is given the constitutional role to determine questions of fact,

and the amount of damages is a question of fact."13

"'An appellate court will not disturb an award of damages made by a jury

unless it is outside the ranqe of substantial evidence in the record, or shocks the

conscience of the court, or appears to have been arrived at as the result of

passion or prejudice.'"14 When reviewing a trial court's ruling on a motion for

remittitur, we view the evidence in the light most favorable to the nonmoving

party.18

"Compensable injuries under the CPA are limited to 'injury to [the] plaintiff in

his or her business or property."16 The CPA does not allow a plaintiff to recover

for personal injury, "mental distress, embarrassment, and inconvenience," or the

financial consequences of such injuries.17 But the business and property injuries

otherwise compensable are "relatively expansive."18

13 Bunch, 155 Wn.2d at 179. 14 Id. at 175 (emphasis added)(quoting Binqaman v. Grays Harbor Cmty. 1-losp., 103 Wn.2d 831, 835, 699 P.2d 1230 (1985)). 15 Collins v. Clark County Fire Dist. No. 5, 155 Wn. App. 48, 82, 231 P.3d 1211 (2010)(citing id. at 179). 16 Frias v. Asset Foreclosure Servs., Inc., 181 Wn.2d 412, 430, 334 P.3d 529(2014)(alteration in original)(quoting Hangman Ridge Training Stable, Inc. v. Safeco Title Ins. Co., 105 Wn.2d 778, 780, 719 P.2d 531 (1986)). 17 Id. at 431 (quoting Panaq v. Farmers Ins. Co. of Wash., 166 Wn.2d 27, 57, 204 P.3d 885 (2009)). 15 Id.

5 No. 77832-3-1/6

In general, although "[m]athematical exactness is not required,"19

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