John Bachenski v. Mark Malnati, Flash Cab Company, and John Hawkotte

11 F.3d 1371
CourtCourt of Appeals for the Seventh Circuit
DecidedJanuary 25, 1994
Docket93-1273
StatusPublished
Cited by67 cases

This text of 11 F.3d 1371 (John Bachenski v. Mark Malnati, Flash Cab Company, and John Hawkotte) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Bachenski v. Mark Malnati, Flash Cab Company, and John Hawkotte, 11 F.3d 1371 (7th Cir. 1994).

Opinion

FLAUM, Circuit Judge.

This appeal is brought by a plaintiff in a diversity case, whose claims against two defendants were dismissed prior to trial and whose claim against a third defendant was rejected by a jury. The plaintiff challenges both the pre-trial dismissals and the district court’s refusal to upset the jury’s verdict. We affirm all around.

I.

This case stems from an automobile accident that occurred in Chicago on March 2, 1989, in which a taxicab owned by defendant Flash Cab Company (Flash) and driven by defendant John Hawkotte collided with a car driven by defendant Mark Malnati. Plaintiff John Bachenski was a passenger in the taxi and on February 7, 1991, filed suit against Malnati, Hawkotte and Flash in federal district court, basing jurisdiction on diversity of citizenship. 1 Bachenski asserted liability against Malnati and Hawkotte on negligence theories and against Flash solely on a re-spondeat superior theory. Malnati and Flash were timely served with process. They appeared, filed answers and also filed crossclaims for contribution against one another. Hawkotte was not served.

On November 12, 1991, Malnati filed what was effectively a crossclaim for contribution against Hawkotte and accomplished service on him on December 26, 1991. On February 4, 1992, Hawkotte moved to dismiss Bachen-ski’s complaint for failure to serve within 120 days after the filing of the complaint, as required by Federal Rule of Civil Procedure 4(j). On February 19, the district court granted the motion and dismissed the complaint ■ against Hawkotte without prejudice. Bachenski then moved for leave to refile against Hawkotte. The district court denied the motion because the operative state two-year statute of limitations had run.

On April 17, 1992, Flash moved for summary judgment, arguing that the dismissal of Hawkotte, although technically without prejudice, effectively worked an adjudication on the merits because of the interim running of the limitations period, and thus mandated the dismissal of Bachenski’s claim against it under the applicable Illinois rule that an adjudication on the merits in favor of a servant bars an action premised on respondeat superior against his master. The district court granted the motion and dismissed Bachen-ski’s claim against Flash with prejudice. As a result, Bachenski was left with a claim against’ Malnati; Flash and Hawkotte remained in the case only because of Malnati’s contribution claims.

Just prior to trial, these contribution claims were dropped pursuant to a settlement between Malnati, Hawkotte and Flash, ünder the terms of which Flash agreed to pay 90% of any judgment entered against Malnati. Counsel for Malnati represented to the court that Malnati personally was un *1374 aware of the existence of the settlement agreement, which in fact was executed between the parties’ respective insurance companies. • Counsel then moved in limine to prevent cross-examination on this topic at trial. The district accepted counsel’s representation about Malnati’s ignorance of the settlement and granted the in limine request.

The case proceeded to trial on the claim against Malnati. After a four day trial, the jury returned a verdict for Malnati. Bachen-sM then made a timely motion for a judgment as a matter of law under Rule 50 or, in the alternative, a new trial under Rule 59. In his motion Baehenski reasserted his opposition to the earlier dismissals of Hawkotte and Flash from the case and the court’s evidentiary ruling precluding inquiry into the settlement agreement at trial. He also attacked the jury verdict for Malnati as being against the manifest weight of the evidence.

The district court denied Bachenski’s motion in its entirety, 809 F.Supp. 610. The court quickly rejected Bachenski’s contention that the jury verdict was contrary to the manifest weight of the.evidence, writing that “what controls here is that the issue of Mal-nati’s .negligence vel non posed the classic totally-faet-intensive jury question.” Turning to the exclusion of evidence of settlement at trial, the district court observed that because the existence of the agreement was unknown to Malnati, it did not have the potential to bias his testimony. In concluding that it properly cordoned the jury off from evidence of the settlement, the district court noted that jury knowledge of the settlement would have had a potential for prejudice because such an agreement could be construed as an admission of fault by Malnati or could encourage the jury to redress Ba-chenski’s injuries at the acceptable cost of Malnati bearing a small fraction of the burden. The court next addressed Bachenski’s claim that he had good cause under Rule 4(j) for not serving Hawkotte within 120 days of the filing of the complaint. The court found that Bachenski’s continued unsuccessful attempts, to achieve mail service, 2 his failure to employ a professional process server, and the fact that Malnati was able to serve Hawkotte without much difficulty all indicate that Ba-chenski did not have good cause for his failure to serve Hawkotte.

Finally, the court revisited its earlier oral decision to dismiss Bachenski’s claim against Flash on summary judgment. The court first noted that under Illinois law, the applicable substantive law of the case, the dismissal on the merits of either the principal or agent in a respondeat superior relationship mandates the dismissal of the other, and a dismissal on statute of limitations grounds is considered a dismissal on the merits for that purpose. In its oral ruling the court had pointed out that although the Rule 4(j) dismissal of Hawkotte was technically without prejudice according to the language of the Rule, the Rule’s drafters expressly contemplated that the effect of such a dismissal would be with prejudice if the statute of limitations had run in the meantime. The court explained that it therefore felt compelled to dismiss Flash from the case. Thus, Bachenski’s motion was denied completely. Baehenski now appeals to this court claiming the district court erred by dismissing his claims against Hawkotte and Flash, by barring mention of the inter-defendant settlement at trial, and by refusing to upset the jury verdict for Malnati. Jurisdiction in this court being proper, we affirm on all grounds.

II.

A.

Baehenski has a tough row to hoe to convince a court that the evidence educed at trial cannot support a verdict for Malnati. Although we review the district court’s denial of a Rule 50 motion de novo, see Timmerman v. Modern Industries, Inc., 960 F.2d 692, 697 *1375 (7th Cir.1992), the standard under Illinois law for a judgment notwithstanding the verdict is strict. 3 A verdict will be upset and a contrary judgment entered only if “all of the evidence, when viewed in its aspects most favorable to the opponent, so overwhelmingly favors the movant that no contrary verdict based on that evidence could ever stand.” Pedrick v. Peoria & Eastern R.R.

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11 F.3d 1371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-bachenski-v-mark-malnati-flash-cab-company-and-john-hawkotte-ca7-1994.