Jolley v. Energen Resources Corp.

2008 NMCA 164, 198 P.3d 376, 145 N.M. 350
CourtNew Mexico Court of Appeals
DecidedSeptember 22, 2008
Docket27,489
StatusPublished
Cited by23 cases

This text of 2008 NMCA 164 (Jolley v. Energen Resources Corp.) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jolley v. Energen Resources Corp., 2008 NMCA 164, 198 P.3d 376, 145 N.M. 350 (N.M. Ct. App. 2008).

Opinion

OPINION

VIGIL, Judge.

{1} Plaintiff is the personal representative of the estate of her son (Decedent) who was nineteen years old when he died. In this wrongful death case the jury awarded Plaintiff $2,957,000 in compensatory damages, which was reduced to $1,922,050 based on a finding that Decedent was 35 percent negligent and Defendant was 65 percent negligent. The jury also awarded Plaintiff $13,000,000 in punitive damages. We affirm.

BACKGROUND

{2} On Sunday, July 21, 2002, after recreating in the Glade Run Recreation Area (Glade Run Area) on Bureau of Land Management (BLM) land just north of Farming-ton, Decedent backed up the vehicle he was driving to turn around and return to Farmington. He backed into an unfenced, unprotected natural gas wellhead operated by Defendant, identified as the McCord 13 well. The wellhead exploded, and Decedent burned to death at the scene after running from the vehicle with his body on fire. Plaintiffs suit for wrongful death asserted that Defendant was negligent in that Defendant failed to exercise ordinary care to protect its exposed natural gas wellhead at McCord 13 from contact with motorized vehicles. Plaintiff also contended that Defendant’s conduct was so reckless as to justify an award of punitive damages. The jury heard and considered the evidence during a six-day trial in which twenty-eight witnesses testified, and in which numerous documents, photographs, maps, and stipulations were admitted into evidence.

{3} Defendant acquired the McCord 13 well in 1997, along with approximately one thousand other natural gas wells in the San Juan Basin. The Glade Run Area where McCord 13 is located consists of sandy arroyos, slick rock, rolling terrain, and sparse vegetation and had been used for years for outdoor recreation. In 1988, the BLM designated the 33,800 acre Glade Run Area as a Recreation Management Area; and in 1996, the BLM designated the southern part of the Glade Run Area adjacent to Farmington as open for off-road vehicle use. Before the explosion at McCord 13, Defendant knew that it would be hazardous if a vehicle came into contact with a pressurized natural gas system, like a wellhead, and that it could kill someone. Notwithstanding this knowledge, Defendant did not erect any new fences or barricades around its unprotected wellheads. On the other hand, other natural gas companies operating in the Glade Run Area did erect fences and barricades around their natural gas wellheads near McCord 13 from as early as 1993 until the fall of 2001.

{4} A San Juan Deputy Sheriff testified that during his regular patrols of the Glade Run Area in the summer of 2002, he observed a fair, “almost substantial” amount of vehicular traffic pass through the middle of the McCord 13 well site, particularly on weekends. He added that he often saw young people parking in the area of the well because it was a “scenic view spot.”

{5} The opinion of Defendant’s general manager was that a barrier should have been put up around the wellhead to protect motorists who parked at the well and turned around to head back to Farmington. He also recognized that someone could back a vehicle into a wellhead and that an unprotected well head was a hazard. He conceded that Defendant should have done a risk assessment, and he admitted that the more serious the risk posed, the more likely it was that Defendant should have taken action. Backing into a wellhead and being killed was “the most serious risk” he could envision. He candidly told the jury that he should have been aware of teenagers parking at McCord 13 and fenced the wellhead.

{6} From the time it made its acquisition in 1997 until the explosion in 2002, Defendant did not have a program to assess the risk associated with its well sites, and it had no discussions about fencing or barricading any of the wells in the Glade Run Area. Furthermore, Defendant had no published policy addressing safety at its well sites during this time. This was due to its “bottom-up” safety program, which placed the burden of safety on lower-level employees. Consequently, the operator who took care of McCord 13 and the equipment on a daily basis was also the person responsible for making safety recommendations concerning the well site. The operator knew that another wellhead he serviced, which was owned by Defendant just north and west of McCord 13, was protected with a pipe barricade; he knew that the purpose of this barrier was to keep trucks from running into the wellhead; and he recognized that if a vehicle ran into a wellhead, it could kill someone. On multiple occasions when the operator serviced McCord 13 before the explosion, he observed new tracks indicating that traffic had passed on both sides of the wellhead. However, Defendant did not provide him with any guidance for making safety recommendations, tell him anything about its policies and procedures to protect the public, or ask him to give recommendations about whether new fences or barricades were needed at any of its well sites.

{7} Plaintiffs oil field safety expert testified that it was his opinion that Defendant’s conduct was both below the standard of care for the industry for an oil and gas operator and was reckless: (1) by failing to fence or barricade the McCord 13 site, (2) by failing to have a hazard analysis program, (3) by failing to have a top-driven safety policy, and (4) by failing to have a safety manual at the time of the explosion.

{8} The jury found that Defendant was negligent and determined that Plaintiffs total compensatory damages were $2,957,000. Since the jury also found that Decedent was 35 percent comparatively negligent, the compensatory damages award was reduced to $1,922,050. The jury also determined that because Defendant’s conduct was reckless, punitive damages were warranted. The jury adjudged that an award of punitive damages in the amount of $13,000,000 was appropriate to punish Defendant and to deter others from engaging in similar reckless conduct. Defendant’s total assets are $2.6 billion; the amount of punitive damages assessed is one-half of one percent (0.5%) of its assets.

{9} Defendant appeals, arguing that (1) misconduct by Plaintiffs counsel during closing argument requires reversal and (2) the punitive damages award is unconstitutionally excessive.

I. CLOSING ARGUMENT OF PLAINTIFF’S COUNSEL

{10} Defendant argues that the trial court abused its discretion in failing to grant a mistrial or new trial because improper arguments of Plaintiffs attorney in closing arguments to the jury deprived Defendant of a fair trial. The arguments that Defendant complains of fall into two categories: (A) violations of the trial court order excluding post-accident remedial measures and (B) improper “Golden Rule” arguments.

A. Post-Accident Remedy Arguments

{11} The trial court granted Defendant’s motion in limine and directed that unless Defendant argued at trial' that fencing and barricading wellheads was not feasible, neither party was permitted to present evidence to the jury that, after the accident, Defendant fenced and barricaded McCord 13 and other wellheads in the area. Defendant argues on appeal that Plaintiffs counsel violated the order four times in his closing arguments to the jury.

{12} While arguing liability, Plaintiffs counsel said:

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Cite This Page — Counsel Stack

Bluebook (online)
2008 NMCA 164, 198 P.3d 376, 145 N.M. 350, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jolley-v-energen-resources-corp-nmctapp-2008.