Kechi Township v. Freightliner, LLC

592 F. App'x 657
CourtCourt of Appeals for the Tenth Circuit
DecidedNovember 13, 2014
Docket12-3118, 12-3134
StatusUnpublished
Cited by3 cases

This text of 592 F. App'x 657 (Kechi Township v. Freightliner, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kechi Township v. Freightliner, LLC, 592 F. App'x 657 (10th Cir. 2014).

Opinion

ORDER AND JUDGMENT **

JEROME A. HOLMES, Circuit Judge.

After a fire destroyed its machine shop, Kechi Township (“Kechi”) sued Freightliner, LLC (“Freightliner”) in a products liability action, alleging that Freightliner’s defective design of a truck (“the truck” or “the subject truck”) 1 caused the conflagration. A jury found Freightliner liable and awarded damages. Both parties appeal. Kechi appeals on the ground that the district court improperly excluded evidence from the jury’s damages calculation. For its part, Freightliner raises two issues: (1) its motion for judgment as a matter of law (“JMOL”) was improperly denied, and (2) expert testimony was improperly admitted. Having jurisdiction under 28 U.S.C. *659 § 1291, we affirm the district court’s orders denying Freightliner’s motion for JMOL, allowing Kechi’s expert witnesses to testify, and barring Kechi’s lay witnesses from testifying as to damages.

I

At around 12:15 a.m. on December 19, 2007, a fire started at Kechi’s machine shop. The fire destroyed the shop and all of its contents, 'including the following pieces of heavy equipment: the subject truck, a John Deere motor grader, a John Deere tractor, a John Deere mower, a John Deere Gator utility vehicle (“the Gator”), two Dixie Chopper mowers, an Allis Chalmers 345 wheel loader (“the wheel loader”), and a Chevy dump truck. After an investigation traced the fire to the subject truck, Kechi sued' Freightliner based on the truck’s allegedly defective design in Kansas state court. The case was later removed to federal district court on diversity grounds.

Prior to trial, Freightliner filed motions to exclude the testimony of Kechi’s two expert witnesses: Don Birmingham, a fire-origin expert, and Jim Martin, a fire-causation expert. Freightliner argued that the experts never inspected any of the company’s design drawings or specifications, that they performed inadequate research into the origin of the fire, and that they used an untrustworthy exemplar truck and battery in their investigations. After conducting a Daubert 2 hearing, the district court denied the motion to exclude Mr. Martin’s testimony, finding that the absence of the specifications and the reliability of the exemplars were matters for the jury and that Mr. Martin was not obliged to rule out every possible explanation for the fire. The district court also largely denied the motion to exclude Mr. Birmingham’s testimony, though it barred him from testifying as to the combustibility of the truck’s insulation.

During trial, Kechi attempted to elicit from James Day, the man in charge of the machine shop, testimony regarding the value of the real estate and personal property destroyed in the fire. Freightliner filed a motion to exclude Mr. Day’s testimony on damages, urging the court to “disallow Mr. Day [from] testifying] as a lay witness [to] values of the various pieces of [personal] property and real property when such testimony is plainly expert testimony under federal law.” Aplt. App. at 77 (Mot. & Supp. Mem. to Exclude Pis.’ Damages Evidence, filed Jan. 16, 2012). The district court granted the motion with respect to the real property on the grounds that the testimony at issue was based entirely on an appraisal performed by a third party, and thus constituted hearsay.

After oscillating somewhat on the question of the personal property, the district court ultimately concluded that it would exclude from the jury’s consideration damages testimony relating to any heavy equipment other than the Gator, the property in the Gator, and certain shop supplies and equipment, reasoning that Mr. Day had not demonstrated sufficient familiarity with the value of any of the other items. The court likewise declined to allow Lee Caster, who was apparently a trustee on the township board, 3 to testify to the value of the real estate, ruling that there were “certainly very valid ways to put on testimony as to the value of the *660 building [but] that has not been done.” Id. at 800 (Trial Tr., dated Jan. 17, 2012). 4

During its deliberations, the jury had before it a verdict form that asked it to itemize damages with respect to only three different things: the Gator, the property in the Gator, and certain “shop supplies and equipment.” Id. at 129 (Verdict, dated Jan. 19, 2012) (capitalization altered). The jury found Freightliner liable for the fire and awarded $21,000 in damages.

The jury’s verdict rendered, Freightliner renewed an earlier-filed motion for JMOL pursuant to Federal Rule of Civil Procedure 50. The district court denied the motion, declining to . “find as a matter of law that the evidence offered was overwhelmingly preponderant in favor of [Freightliner].” Id. at 201 (Order, filed March 29, 2012). Both parties appealed.

II

We first consider Freightliner’s challenge to the district court’s denial of its motion for JMOL. Such decisions are reviewed de novo, applying the same standard the district court did — namely, that “[a] party is entitled to judgment as a matter of law ‘only if the evidence points but one way and is susceptible to no reasonable inferences which may support the opposing party’s position.’ ” Hysten v. Burlington N. Santa Fe Ry. Co., 530 F.3d 1260, 1269 (10th Cir.2008) (quoting Tyler v. RE/MAX Mountain States, Inc., 232 F.3d 808, 812 (10th Cir.2000)).

With respect to the arguments concerning the admission of the expert testimony, “we review de novo the question of whether the district court applied the proper standard and actually performed its gatekeeper role in the first instance” and then “review the trial court’s actual application of the standard in deciding whether to admit or exclude an expert’s testimony for abuse of discretion.” Dodge v. Cotter Corp., 328 F.3d 1212, 1223 (10th Cir.2003). Freightliner questions the district court’s actual application of the standard; it does not contend that the court used the wrong standard or failed to perform its gatekeeper role. Accordingly, we will reverse only if we find an abuse of discretion.

Lastly, we review the district court’s exclusion of the damages testimony under an abuse-of-discretion standard. See James River Ins. Co. v. Rapid Funding, LLC, 658 F.3d 1207, 1212 (10th Cir.2011).

Ill

In overview, we hold that: (1) Freight-liner’s motion for JMOL was properly denied; (2) the district court did not abuse its discretion in admitting Kechi’s expert testimony; and (3) the district court did not abuse its discretion in excluding Ke-chi’s damages testimony. Our holdings compel us to affirm each of the district court’s challenged rulings.

A

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Bluebook (online)
592 F. App'x 657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kechi-township-v-freightliner-llc-ca10-2014.