Lorraine Smith v. Sidney Katz

696 F. App'x 582
CourtCourt of Appeals for the Third Circuit
DecidedJune 27, 2017
Docket15-1086, 15-1127
StatusUnpublished
Cited by4 cases

This text of 696 F. App'x 582 (Lorraine Smith v. Sidney Katz) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lorraine Smith v. Sidney Katz, 696 F. App'x 582 (3d Cir. 2017).

Opinion

OPINION **

RESTREPO, Circuit Judge

Following a 5-day trial, a jury returned a verdict in this matter on June 18, 2012 in favor of plaintiff, Lorraine Smith, and against defendant, Sidney Katz, awarding compensatory damages in the amount of $1,290,000 due to injuries caused by a high amount of mold spores in the air inside the building which Katz owned and where Smith worked. The District Court ordered a remittitur of the damages awarded, but Smith rejected the remittitur and demanded a new trial on damages only. See, e.g., Cortez v. Trans Union, LLC, 617 F.3d 688, 716 (3d Cir. 2010) (citing Hetzel v. Prince William Cnty., 523 U.S. 208, 211, 118 S.Ct. 1210, 140 L.Ed.2d 336 (1998) (per curiam)) (“[A] court must afford a plaintiff the option of a new trial when it attempts to reduce a jury award because it believes the amount of the verdict is not supported by the evidence.”). Following the second trial on damages, the jury on October 4, 2013 awarded Smith $55,000 in non-economic damages and $20,000 in economic damages.

On appeal, Smith claims the District Court erred in remitting the damages awarded after the first trial, and in the alternative, that the District Court erred in denying her motion for a new (third) trial on damages after the second trial. On cross-appeal, Katz requests Judgment in his favor on the ground that the District Court erred in denying his renewed motion for judgment as a matter of law after the first trial, or in the alternative, that we should remand the case for a remittitur of the award after the first trial “to an amount closer to the [$11,000.00] range,” see Katz’s Br. 28, or if we determine that the second trial was warranted, that we affirm the jury’s award following the second trial on damages. 1 For the reasons *585 explained below, we affirm the District Court’s Order denying Katz’s motion for judgment as a matter of law and remitting the damages awarded following the first trial, and we affirm the Judgment following the retrial as well as the District Court’s denial of Smith’s motion for new trial following the retrial.

I. 2

Smith initiated this action against Katz and Alfred Marshall in the Superior Court of the Virgin Islands, and defendants removed the case to the District Court of the Virgin Islands on April 18, 2010 based on diversity of citizenship. 3 Smith’s Complaint alleged, among other things, that Marshall and Katz, as lessors, negligently failed to use reasonable care to protect from a harmful condition and also negligently failed to warn Smith of. this condition. 4 According to Smith’s Complaint, she experienced medical conditions, including exacerbation of pre-existing conditions, caused by a dangerous condition in the Building, which included mold inside the Building, and that the high amount of mold was due to the improper construction of the building, and a poor ventilation system, which failed to properly remove the particulates from the Building.

On June 11, 2012, a jury trial commenced (“first trial”). At that trial, the evidence indicated that on May 19, 1995, Katz and Marshall, doing business as A & S Realty, entered into a lease agreement with the Government of the Virgin Islands (“Government”). The Government was leasing the building (“Marshall Building” or “Building”) in St. Thomas as an office location for the Bureau of Internal Reve *586 nue (“BIR”) of the Virgin Islands. 5

Orlando Ramirez testified that he was hired by Katz to oversee a build-out of the Building for the purpose of creating office space for the BIR. Following Ramirez’s advice, Katz then hired Wilson Construction Company to help with the build-out, as well as other contractors to install or renovate the plumbing, electricity, and air conditioning.

During his testimony, Ramirez acknowledged that the build-out did not include many procedures that should have been followed to protect the structure of the Marshall Building from water and excess moisture. According to Ramirez’s testimony, under his agreement with Katz, Ramirez’s responsibilities included, but were not limited to, overseeing the air conditioning and ductwork installation.

Sometime after the initial construction of the build-out had been completed and the BIR employees had begun working in the Marshall Building, the Building was flooded with rain water, and Katz had Ramirez build a retaining wall to attempt to keep out any water in the future. Ramirez testified that although he would periodically inform the BIR of work being performed, he neither sought nor needed the BIR’s permission since he was working for Katz, the owner of the Building. He also acknowledged that although he oversaw the building of a retaining wall, he failed to address the water that had already flooded inside the Building.

Ramirez testified that in June 2008, Katz requested that Ramirez visit the Building to look into a mold problem in the Building. Ramirez acknowledged there had been an.odor in the Building, and he referred Katz to Todd Donohue, a mechanical contractor who worked with air conditioning and plumbing issues, to help address the problem.

Stephen Monsanto, the Operations Manager for the BIR from 1994 to 1998, testified that he helped to negotiate the agreement to lease the Marshall Building. He testified that as part of the negotiations, Katz agreed to perform the build-out needed for the offices, and in fact, although the lease provided that the Government was responsible to maintain the premises, all renovations and building structural decisions such as the type of ductwork used, the air-conditioning, or the contractors used were ultimately made by Ramirez, who worked for Katz. Monsanto testified that Katz was the individual ultimately responsible for the build-out for the BIR’s office space.

Louis Willis, who became the Director of the BIR in June 2000, testified that there was “always” water on the floor in parts of the Marshall Building which “came from the hills” outside the Building. (JA 807) He testified that in 2002 or 2003, there was “tremendous flooding” in the Building from water which “came from the top floor down to the bottom” amounting to “about 10 to 12 inches of water.” (JA 807.) After Willis spoke with Katz, Katz through Ramirez built a retaining wall, which “solved the major water problem,” but parts of the building “always had drippings of water.” (JA 808-09.) Willis further testified that at some point the landlord paid for “blocks” to substitute for sheetrock walls to protect the employees at the BIR from being robbed. (JA 809.) When the sheetrock walls were taken out, moisture was observed at the bottom of the sheetrock. As a result of the moisture problems with the *587 Building, Willis did not want to renew the lease.

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Bluebook (online)
696 F. App'x 582, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lorraine-smith-v-sidney-katz-ca3-2017.