Joyce Steel Erection, Ltd. v. Gordon Ray Bonner

506 S.W.3d 58, 2015 WL 3761477
Court of Appeals of Texas·Decided June 19, 2015·No. 06-14-00064-CV·Published·Cited by 4 cases

Opinion

OPINION

Opinion by

Justice Carter

While working on the construction of a building at Red River Army Depot, Gordon Ray Bonner was pinned between a 150,000-pound concrete tilt wall and a concrete embankment wall. As a result, Bonner suffered severe injuries to his pelvis, arteries, genitals, bladder, urethra, and *60 right leg that required numerous surgeries and other medical procedures. Bonner asserted claims against Joyce Steel Erection, Ltd., 1 Caruthers Construction, Inc., and Self Concrete, Inc., for his injuries. Ca-ruthers Construction and Self Concrete settled with Bonner before trial. A jury found that Bonner had incurred $3,500,000.00 in past damages and $3,500,000.00 in future damages. It also found that Joyce Crane was thirty-four percent responsible for the occurrence; Bonner was thirty-three percent responsible; and Premier Constructors, Inc., 2 Bonner’s employer, was thirty-three percent responsible. In addition, the parties stipulated that Bonner’s past medical expenses were $358,205.52 and that his past lost wages were $147,633.29. After making deductions for Bonner’s percentage of responsibility and the pretrial settlements, 3 the trial court entered judgment against Joyce Crane in the amount of $2,345,480.69, including prejudgment interest. Joyce Crane appeals to this Court asserting that the trial court erred in (1) failing to exclude damages attributable to Premier, the responsible third party, and (2) in failing to follow the declining-principal formula in calculating prejudgment interest. We find that the trial court did not err in failing to exclude damages attributable to the responsible third party, but that it erred in its calculation of prejudgment interest by not following the declining-principal formula. We, therefore, modify the trial court’s judgment and affirm the judgment, as modified.

I. The Trial Court Did Not Err in Failing to Exclude Damages Attributable to Premier

In Chapter 33 of the Texas Civil Practice and Remedies Code, the Texas Legislature established a comprehensive system for apportioning fault among all persons responsible for harm arising from tortious acts or acts that violate the Texas Deceptive Trade Practices-Consumer Protection Act. Tex. Civ. Prao. & Rem.Code Ann, §§ 33.001-.017 (West 2015). In so doing, the Legislature also limited the availability of joint and several liability. See id. Under this system, the trier of fact determines the percentage of responsibility attributable to each claimant, each defendant, each settling party, and each designated responsible third party. Tex. Civ. Prac. & Rem. Code Ann. § 33.003(a). If a claimant’s responsibility exceeds fifty percent, the claimant is barred from recovering damages. Tex. Civ. Prao. & Rem. Code Ann. § 33.001. Further, Chapter 33 places a limit on a claimant’s potential recovery by requiring that the amount of recoverable damages be reduced by the percentage of responsibility apportioned to the claimant and by all the amounts received in settlement. Tex. Civ. Prac. & Rem .Code Ann. § 33.012(a), (b); Battaglia v. Alexander, 177 S.W.3d 893, 906 (Tex.2005). It also limits the liability of a defendant whose responsibility does not exceed fifty percent to an amount equal to the percentage of responsibility apportioned to that defendant. Tex. Crv. Prac. & Rem. Code Ann. § 33.013(a); Bat *61 taglia, 177 S.W.3d at 906. Only when a defendant’s responsibility exceeds fifty percent is it jointly and severally liable for the entire amount of the claimant’s recoverable damages, minus the amount attributed to the claimant and all settlement proceeds. Tex. Civ. Prac. & Rem. Code Ann. § 33.013(b). The 1995 amendments to Chapter 33. allowed a defendant to significantly reduce the potential for joint and several liability by enabling it to join a third party who was not sued by the claimant but who might bear some percentage of responsibility for the claimant’s damages. 4 See Act of May 8, 1995, 74th Leg., R.S., ch. 136, § 1, 1995 Tex. Gen. Laws 971, 972-73 (amended 2003, 2011) (current versions at Tex. Civ. Prac. & Rem. Code Ann. §§ 33.003(a)(4), 33.004, 33.011(6)). 5

Section 33.012 requires the trial court to “reduce the amount of damages to be recovered by the claimant” by the percentage of the claimant’s responsibility and the sum of all settlements received. Tex. Crv. Prao. & Rem. Code Ann. § 33.012(a), (b). In its first point of error, Joyce Crane argues that Section 33.012 requires the trial court to exclude any damages attributable to the responsible third party before making deductions for the claimant’s percentage of responsibility and the value of any settlements. Joyce Crane points to the language used in Section 33.012 requiring the trial court to “reduce the amount of damages to be recovered by the claimant.” It first points out that “the amount of damages to be recovered by the claimant” is not necessarily the same as the “damages found by the jury,” citing to health care liability claim cases where, although the jury may find actual non-economic damages exceeding the statutory cap, the statutory cap is “the amount to be recovered by the claimant.” See Valley Grande Manor v. Paredes, No. 13-11-00752-CV, 2013 WL 3517806, at *2 (Tex.App.-Corpus Christi July 11, 2013, pet. denied) (mem. op.) (jury’s award of $275,000.00 damages reduced to $250,000.00 by trial court before reducing amount to be recovered by $10,000.00 settlement). Joyce Crane then argues that since Section 33.004 6 prevents the claimant from recovering against the responsible third party, then the amount of damages caused by the responsible third party is not included in “the damages to be recovered by the claimant” under Section 33.012. Therefore, it reasons, the trial court should deduct an amount equal to the percentage of fault apportioned to the responsible third party from the damages found by the jury to determine “the damages to be recovered by the claimant” under Section 33.012. 7 According to Joyce Crane, it is from this reduced figure that the trial court should then deduct amounts for the claimant’s percentage of responsibility and the sum of all settlements. 8

*62 A. Standard of Review

Our analysis of whether Section 33.012 requires the trial court to deduct an amount equal to the percentage of fault apportioned to a responsible third party from the- damages found by the jury to determine “the damages to be recovered by the claimant” involves statutory construction, which is a question of law that we review de novo. See MCI Sales & Serv., Inc. v. Hinton, 329 S.W.3d 475, 500 (Tex.2010); McIntyre v. Ramirez,

Joyce Steel Erection, Ltd. v. Gordon Ray Bonner, 506 S.W.3d 58, 2015 WL 3761477 (Tex. Ct. App. 2015).

506 S.W.3d 58 (Joyce Steel Erection, Ltd. v. Gordon Ray Bonner) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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