J.F.P. Offshore, Inc. v. Diamond

600 So. 2d 1002, 1992 Ala. LEXIS 647, 1992 WL 142097
CourtSupreme Court of Alabama
DecidedJune 26, 1992
Docket1910257
StatusPublished
Cited by1 cases

This text of 600 So. 2d 1002 (J.F.P. Offshore, Inc. v. Diamond) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J.F.P. Offshore, Inc. v. Diamond, 600 So. 2d 1002, 1992 Ala. LEXIS 647, 1992 WL 142097 (Ala. 1992).

Opinion

STEAGALL, Justice.

Wayne Diamond sued J.F.P. Offshore, Inc., in the Mobile Circuit Court, for damages based on hand-related injuries he sustained as a crew member of a drilling rig owned by J.F.P. Offshore. He sued under the Jones Act, alleging negligence and failure to provide a safe workplace. The jury returned a verdict in favor of Diamond in the amount of $650,000; the trial court reduced the sum to $617,500 to reflect the 5% contributory negligence the jury found.

J.F.P. Offshore raises several issues on appeal, most of which deal with the future lost wages that Diamond sought and on which the trial court charged the jury. J.F.P. Offshore contends that expert testimony was required in order for the jury to reduce any award of damages for lost future wages to present value. J.F.P. Offshore also contends that the trial court erred in failing to instruct the jury on how it was to arrive at a present value, i.e., that the trial court failed to provide the jury with any guidelines to that end.

J.F.P. Offshore argues initially that substantive federal law controls this case, because Diamond sued under the Jones Act, and that the jury instructions regarding future lost wages should have been based on federal law. Although the trial court applied federal law in charging the jury on contributory negligence, it did not do so in charging the jury on future lost wages. With regard to which law — state or federal — to apply in an action brought in a state court on a federal claim, we stated in Illinois Central Gulf R.R. v. Price, 539 So.2d 202, 205-06 (Ala.1988):

“Judicial comity causes us, as a State court, to defer to federal law as to consequences that intimately affect recovery or non-recovery in a case involving a federal cause of action over which the courts of this State have concurrent jur-isdiction_ Under the concepts of civility and courtesy (which we reach before we reach the concept that an Alabama law that interferes with a federal law must yield), we defer to federal law, whether it be substantive or procedural, in enforcing a federal cause of action, just as the federal courts have deferred to State law, whether it be substantive or procedural, see Guaranty Trust Co. of New York v. York, [326 U.S. 99, 65 S.Ct. 1464, 89 L.Ed. 2079 (1945),] in exercising jurisdiction over a cause of action solely because of the diversity of citizenship of the parties.”

More specifically, this is an admiralty case, and “[t]he legal rights and liabilities arising in respect of a cause of action within the full reach of admiralty jurisdiction are measurable by standards of maritime law, and in the event of an action being brought in state courts in respect of such a cause of action, maritime substantive law [1004]*1004applies.” 1 A. Jenner, J. Loo, & J. Grieder, Benedict on Admiralty § 127 (1987). Although there is no federal general common law, Erie R.R. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938), there is “federal common law” in certain limited areas:

“[Ajbsent some congressional authorization to formulate substantive rules of decision, federal common law exists only in such narrow areas as those concerned with the rights and obligations of the United States, interstate and international disputes implicating the conflicting rights of States or our relations with foreign nations, and admiralty cases. In these instances, our federal system does not permit the controversy to be resolved under state law, either because the authority and duties of the United States as sovereign are intimately involved or because the interstate or international nature of the controversy makes it inappropriate for state law to control.”

Texas Industries, Inc. v. Radcliff Materials, Inc., 451 U.S. 630, 641, 101 S.Ct. 2061, 2067, 68 L.Ed.2d 500 (1981).

We are, therefore, constrained to apply federal substantive law to this case. Turning to the charge the trial court gave here concerning future lost wages, we find it apparent that that instruction was incomplete. The trial court charged the jury as follows:

“There is also a claim for loss of future earnings or future earning capacity. In arriving at the amount of your award for any loss of future earnings or earning capacity you should consider what the Plaintiff’s health, physical ability and earning power or capacity were before the accident and what they are now. The nature and the extent of his injuries and whether or not they are reasonably certain to be permanent. Or, if not permanent, the extent of their duration. All to the end of determining first the affect if any of his injury upon his future earnings or earning capacity and second the present cash value of any lost or future earnings or earning capacity which you are reasonably satisfied from a preponderance of the evidence in this case that the Plaintiff is reasonably certain to suffer in the future as a proximate result of the injury in question.
“Now you have heard me use that term ‘present cash value’ and you are probably asking, ‘Well, what does that mean?’ The law says that ‘present cash value’ means the sum of money needed now which when added to what that sum may reasonably be expected to earn in the future will equal such earnings at the time in the future when these earnings would have been received.”

We need look no further than our own federal circuit to determine what the charge should have included. The trial court correctly charged the jury that an award for future lost wages must be reduced to present value, see Monessen Southwestern Ry. v. Morgan, 486 U.S. 330, 108 S.Ct. 1837, 100 L.Ed.2d 349 (1988); St. Louis Southwestern Ry. v. Dickerson, 470 U.S. 409, 105 S.Ct. 1347, 84 L.Ed.2d 303 (1985); and Jones & Laughlin Steel Corp. v. Pfeifer, 462 U.S. 523, 103 S.Ct. 2541, 76 L.Ed.2d 768 (1983); it failed, however, to charge the jury on the appropriate method to use in determining present value.

In Culver v. Slater Boat Co., 722 F.2d 114 (5th Cir.1983), the Fifth Circuit Court of Appeals discussed the three methods available for adjusting future lost wages to present value (case-by-case, below-market-discount, and “total-offset”) and held:

“[FJact-finders in this Circuit must adjust damage awards to account for inflation according to the below-market discount rate method. The parties may, if they wish, stipulate the below-market discount rate, as they may stipulate any other disputed issue. If they are unable to do so, they may introduce expert opinion concerning the appropriate rate. Other evidence about the effect of price inflation is inadmissible. Evidence about the likelihood that the earnings of an injured worker would increase due to personal merit, increased experience and other individual and societal factors continue, of course, to be admissible. We recognize that the Supreme Court declined in

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Cite This Page — Counsel Stack

Bluebook (online)
600 So. 2d 1002, 1992 Ala. LEXIS 647, 1992 WL 142097, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jfp-offshore-inc-v-diamond-ala-1992.