Larsen v. Cruises

159 Misc. 2d 159, 602 N.Y.S.2d 981, 1993 N.Y. Misc. LEXIS 427
CourtCivil Court of the City of New York
DecidedJune 24, 1993
StatusPublished

This text of 159 Misc. 2d 159 (Larsen v. Cruises) is published on Counsel Stack Legal Research, covering Civil Court of the City of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larsen v. Cruises, 159 Misc. 2d 159, 602 N.Y.S.2d 981, 1993 N.Y. Misc. LEXIS 427 (N.Y. Super. Ct. 1993).

Opinion

OPINION OF THE COURT

Richard F. Braun, J.

This is an action for personal injuries due to plaintiff’s having slipped and fallen into the bathroom shower stall in her cabin on defendant’s ship in the Caribbean Sea in August 1980. Plaintiff was a passenger on the ship. As a result of plaintiff’s fall, she broke her coccyx and aggravated a quiescent osteoarthritis condition of her lumbar spine.

This action was tried before this court and a jury, and a verdict was reached on June 14, 1991 in favor of plaintiff in the amount of $38,200. Plaintiff’s prior motion to set aside the verdict as to damages was granted unless defendant were to stipulate to an increased amount of damages. Defendant did not so stipulate. Pursuant to this court’s order, and on consent, the new trial was limited to the issue of damages. Before this court and a new jury, a retrial was held as to damages, and the jury verdict was $508,600. The jury awarded plaintiff $192,000 for pain and suffering from the date of the accident to the date of the verdict; a total of $175,000 for future pain and suffering over 20 years; $81,600 for loss of earnings to the date of the verdict; and the sum of $60,000 for three years of future lost earnings.

Defendant now moves for a new trial. Plaintiff moves to have judgment entered, for prejudgment interest, and to have certain costs taxed. After an evidentiary hearing before this court, the parties have agreed that the verdict is reduced to $507,900.

Defendant asks in the affirmation in support of its motion that this court discount the jury award as to future pain and suffering, and future loss of earnings. Discounting of an award of future damages can take into account inflation, and the ability to receive the money now for the future and invest it. In violation of CPLR 2214 (a), defendant does not request in its notice of motion discounting of the jury’s award of damages for future pain and suffering, nor even have a standard request in the notice of motion for such other and further relief. Nevertheless, on December 22, 1992, an evidentiary hearing was held before this court, after the jury was discharged, at which plaintiff and defendant had economists [161]*161testify. Both economists agreed to the same discounting figure as to future lost earnings, which led to the agreed reduction of the verdict by $700. As to defendant’s request to discount the verdict as to future pain and suffering, that request is denied.

This is an action under general maritime law, and thus Federal law must be applied. (Pope & Talbot v Hawn, 346 US 406, 409-410 [1953]; Alvez v American Export Lines, 46 NY2d 634, 638-639 [1979], affd 446 US 274 [1980].) State substantive law cannot be applied, nor can State procedural or evidentiary rules if they "significantly affect the result of the litigation, i.e., would be outcome determinative” (citations omitted). (Matter of Rederi [Dow Chem. Co.], 25 NY2d 576, 581 [1970]; accord, Haggerty v Moran Towing & Transp. Co., 162 AD2d 189, 190-191 [1st Dept 1990].)

CPLR 4111 (f) provides that a jury in a personal injury action shall be instructed by the court that future damages must be awarded in full without any discounting for inflation. The jury was so charged here. Pursuant to CPLR 5041 (e), certain future damages awards in personal injury actions commenced on or after July 30, 1986 must account in an annuity contract for a 4% annual increase after a judgment has been entered in the amount of the present value of the annuity contract (this provision does not apply here because this action was commenced before that date, and for the reason stated infra).

However, discounting a jury award for future pain and suffering is outcome determinative. Thus, Federal law and not New York State law must be applied in order to determine if a jury award in a maritime action should be discounted because discounting could have a significant impact upon the result of the litigation. The concept of "significantly affect the result of the litigation” includes not only who will win the litigation but also, if the party asserting a cause(s) of action for damages is successful, how much he or she will be awarded.

At the posttrial evidentiary hearing, both parties’ economists testified that while testifying in prior court proceedings they had never been questioned about the discounting of a future pain and suffering award. Defendant’s economist conceded that generally economists do not value pain and suffering. Both economists agreed to a 1% figure for discounting of future pain and suffering, and that this figure would reduce the jury verdict by another $15,487. Although this may not [162]*162seem like a large figure, given the size of the verdict here, the more significant effect of discounting future pain and suffering awards can be seen in other cases adjudicated during times of higher inflation, which, given the cyclical nature of inflationary spirals, undoubtedly will return at some point. (See, e.g., Ursini v Sussman, 143 Misc 2d 727 [Sup Ct, NY County 1989, Gammerman, J.] [in a medical malpractice action, a 7Vz% discount factor was applied, in order to comply with the discounting required pursuant to CPLR 5031 (e), which is the medical malpractice action equivalent of CPLR 5041 (e)].)

Therefore, as discounting is outcome determinative, Federal law should be applied here. Under Federal law, discounting should be performed by the jury, not the court. (See, Oliveri v Delta S. S. Lines, 849 F2d 742, 751 [2d Cir 1988]; Yodice v Koninklijke Nederlandsche Stoomboot Maatschappij, 443 F2d 76 [2d Cir 1971]; see also, Monessen Southwestern Ry. Co. v Morgan, 486 US 330, 340 [1988] [action under the Federal Employers’ Liability Act].) No evidence was offered before the jury by either party as to discounting. Thus, the charge pursuant to CPLR 4111 (f) was appropriate because the jury had no evidence upon which to discount.

In any event, in a maritime case, an award for future pain and suffering should not be discounted. Although the Second Circuit has approved discounting for future pain and suffering (Matthews v CTI Container Transp. Intl., 871 F2d 270, 280-281 [1989]), it indicated in a recent pronouncement on the subject that it did so because of stare decisis in the circuit (although not all of its earlier holdings endorsed the concept), and that, if it were not bound thereby, it might have followed the various other circuits that reject such discounting. (Oliveri v Delta S. S. Lines, supra, 849 F2d, at 749-752, and citations therein.) In any event, where the United States Supreme Court has not ruled on such issue, and there is a disagreement among the circuits, this court is not required to follow the view of the Second Circuit, and will not do so on this issue, especially given the implied misgivings in Oliveri as to discounting for future pain and suffering. (Flanagan v Prudential-Bache Sec., 67 NY2d 500, 506 [1986].) Rather, this court will, for sound reasons, follow the majority rule of the other circuits, which have consistently ruled against such discounting. (See, e.g., Chicago & N. W. Ry. Co. v Candler, 283 F 881, 884-885 [8th Cir 1922].) Therefore, even if defendant had not waived its request to have the jury award for future pain and suffering discounted through its failure to present any evi[163]*163dence to the jury on the issue, under the prevailing Federal view no such discounting was appropriate.

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Related

Pope & Talbot, Inc. v. Hawn
346 U.S. 406 (Supreme Court, 1953)
American Export Lines, Inc. v. Alvez
446 U.S. 274 (Supreme Court, 1980)
Monessen Southwestern Railway Co. v. Morgan
486 U.S. 330 (Supreme Court, 1988)
Stissi v. Interstate and Ocean Transport Co.
590 F. Supp. 1043 (E.D. New York, 1984)
Neal v. McGinnis, Inc.
716 F. Supp. 996 (E.D. Kentucky, 1989)
Love v. State of New York
583 N.E.2d 1296 (New York Court of Appeals, 1991)
In re the Arbitration between Rederi & Dow Chemical Co.
255 N.E.2d 774 (New York Court of Appeals, 1970)
Alvez v. American Export Lines, Inc.
389 N.E.2d 461 (New York Court of Appeals, 1979)
Flanagan v. Prudential-Bache Securities, Inc.
495 N.E.2d 345 (New York Court of Appeals, 1986)
Haggerty v. Moran Towing & Transportation Co.
162 A.D.2d 189 (Appellate Division of the Supreme Court of New York, 1990)
Escobar v. Seatrain Lines, Inc.
175 A.D.2d 741 (Appellate Division of the Supreme Court of New York, 1991)
In re the Estate of Cohn
158 Misc. 96 (New York Surrogate's Court, 1936)
United Brands Co. v. Mutual Marine Office, Inc.
117 Misc. 2d 507 (New York Supreme Court, 1983)
Ursini v. Sussman
143 Misc. 2d 727 (New York Supreme Court, 1989)

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Bluebook (online)
159 Misc. 2d 159, 602 N.Y.S.2d 981, 1993 N.Y. Misc. LEXIS 427, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larsen-v-cruises-nycivct-1993.