Maxey v. Freightliner Corp.

623 F.2d 395
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 8, 1980
DocketNo. 78-2301
StatusPublished
Cited by12 cases

This text of 623 F.2d 395 (Maxey v. Freightliner Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maxey v. Freightliner Corp., 623 F.2d 395 (5th Cir. 1980).

Opinions

DANIEL HOLCOMBE THOMAS, District Judge:

Appellants appeal from the trial court’s granting of a judgment N.O.V. which set aside a jury assessment of exemplary damages in a products liability case. We affirm.

In November of 1977, a trial by jury was commenced before the Honorable Patrick E. Higginbotham, United States District Court, Northern District of Texas. The jury returned a verdict favorable to the appellants on the issues of design defects and gross indifference and awarded $150,-000.00 in actual damages and $10,000,000.00 in exemplary damages. The jury also found that plaintiffs’ decedent had assumed the risk of injury by use of the appellee’s product. By subsequent Order and Opinion entered on April 21, 1978, Maxey v. Freightliner Corp., 450 F.Supp. 955 (N.D. Tex.1978), the trial court set aside the jury’s verdict on the issues of gross indifference as well as their determination concerning assumption of the risk. The court let stand the jury’s verdict as to actual damages. We affirm the judgment of the District Court.

This case involves the design of the fuel system on a truck tractor manufactured by [397]*397appellee Freightliner Corporation. The tractor portion of this eighteen wheeler carried 160 gallons of fuel in two lightweight aluminum tanks attached to the outside of the truck frame rails. The aluminum side-mounted tanks are connected to each other by an equalizer line attached to a depression in the bottom of each tank, thus permitting fuel to flow between the tanks, and in the event of detachment, to drain from both tanks.

On November 21, 1974, the decedents, Billy and Dee Maxey, were en route to Michigan when outside of Comanche, Texas, their tractor/trailer rig tipped over while rounding a curve, and slid to a stop on its right side. The right fuel tank ruptured, spilled its fuel, and ignited.1 There was substantial disagreement between the parties as to whether the cause of death to the decedents resulted from the actual accident or subsequent fire.

The plaintiffs-appellants are Frank Max-ey and Mary Maxey, grandparents and next friends of Mary Kathryn Maxey, age 12, and Carroll Kaylene Maxey, age 9, children of the decedents.

The Maxey’s claims for relief in the trial court included allegations that the design of the fuel system was not reasonably crash-worthy, that Freightliner had failed to warn users of the product of this danger, and that Freightliner’s conduct regarding the design, testing, and sale of trucks with this fuel system constituted gross indifference meriting the imposition of exemplary damages under Texas law.

Appellants noticed this appeal from the trial court’s judgment setting aside the jury’s verdict on gross indifference. Appel-lee Freightliner has filed a cross-appeal from the judgment awarding the surviving children actual damages of $150,000.00.

I. EVIDENCE OF GROSS INDIFFERENCE SUPPORTING AN AWARD OF EXEMPLARY DAMAGES

Appellants urge that in setting aside the jury’s verdict of “gross indifference” the trial court failed to note strong evidence in the record showing Freightliner’s indifference to consumer safety. We disagree.

Judgment N.O.V. should be granted only when the facts and inferences point so strongly and overwhelmingly in favor of the moving party that reasonable men could not arrive at a contrary verdict, viewing the facts in the light most favorable to the party against whom the motion is made, and giving that party the advantage of every fair and reasonable inference which the evidence justifies. Boeing v. Shipman, 411 F.2d 365, 374-375 (5th Cir. 1974) en banc. Jones & Laughlin Steel Corp. v. Matherne, 348 F.2d 394, 397-398 (5th Cir. 1965). The standard for reviewing such motions is the same in the trial court and on appeal. The Court considers only the question of law regarding the sufficiency of the evidence to raise a jury issue. Boeing v. Shipman, supra; Glazer v. Glazer, 374 F.2d 390, 400 (5th Cir. 1967).

Appellants argue that the evidence of Freightliner’s gross indifference raised an issue for the jury.

The motion for judgment notwithstanding the verdict tests the sufficiency of the evidence in just the same way as does the motion for a directed verdict at the close of all the evidence. Shaw v. Edward Hines Lumber Co., 249 F.2d 434 (7th Cir.). In a doubtful case the court may prefer to deny the motion for a directed verdict, and consider the attack on the sufficiency of the evidence subsequently on motion for judgment N.O.V.

If a verdict is directed and the appellate court holds that the evidence was in fact sufficient to go to the jury, an entire new trial must be had. If, on the other hand, the trial court submits the case to the jury, though it thinks the evidence insufficient, final determination of the case is greatly expedited. If the jury agrees with the Court’s appraisal of the evidence, and returns a verdict for the party [398]*398who moved for a directed verdict, the case is at an end. If the jury brings in a different verdict, the trial court can grant judgment notwithstanding the verdict. Then if the appellate court holds that the trial court was in error in its appraisal of the evidence, it can reverse and order judgment on the verdict of the jury, without any need for a new trial. Wright and Miller, Federal Practice and Procedure, Section 2533, Pg. 586.

“ * * * a motion for a directed verdict or a judgment notwithstanding the verdict should be granted if there is no substantial, i. e., not more than a mere scintilla of evidence to sustain the verdict.” U. S. v. Strebler, 313 F.2d 402 (8th Cir. 1963) (See Footnote 1, page 403). “The scintilla evidence rule is not applied in federal courts.” Mann v. Bowman Transportation, Inc., 300 F.2d 505 (4th Cir. 1962). See, also Tackett v. Kidder, 616 F.2d 1050 (8th Cir. 1980).

The problem, however, lies not with merely stating the rules, but with applying them to a particular set of facts. Were the scintilla rule to be followed in cases such as this, we might easier find error by the trial court in its granting of the motion n. o. v. However, as heretofore stated, the standard is that of substantial evidence to support a verdict. Our careful reading of the transcript reveals no such evidence.

Granted, a judgment n. o. v. may at times seem harsh. However, we agree with the trial judge whose presence at the trial afforded him a much better vantage point from which to evaluate the evidence not from a transcript alone, but from seeing and observing the witnesses themselves.

II. EXEMPLARY DAMAGES UNDER TEXAS LAW

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