Nationwide Mutual Fire Insurance Company Guy J. Staley Norma Staley v. Ford Motor Company

174 F.3d 801, 1999 U.S. App. LEXIS 7674, 1999 WL 231613
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 22, 1999
Docket97-3548
StatusPublished
Cited by57 cases

This text of 174 F.3d 801 (Nationwide Mutual Fire Insurance Company Guy J. Staley Norma Staley v. Ford Motor Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nationwide Mutual Fire Insurance Company Guy J. Staley Norma Staley v. Ford Motor Company, 174 F.3d 801, 1999 U.S. App. LEXIS 7674, 1999 WL 231613 (6th Cir. 1999).

Opinion

RYAN, Circuit Judge.

The plaintiffs in this products liability diversity action, Nationwide Mutual Fire Insurance Company and its insured, Guy and Norma Staley, appeal from a jury verdict in favor of the defendant, Ford Motor Company. We are called upon to decide two issues: (1) whether the district court improperly excluded expert testimony based on a finding that Nationwide had spoiled evidence; and (2) whether judicial misconduct tainted the proceedings, thereby preventing Nationwide from receiving a fair trial. We answer both questions in the affirmative and accordingly we vacate the jury’s verdict and remand for a new trial.

I.

One day after the Staleys’ son delivered a new 1994 Lincoln Town Car to the Sta-leys’ garage while they were vacationing, a fire started, apparently in the garage attached to the Staleys’ house, causing significant damage to the garage and the house. After the fire was extinguished, the Fire Marshall inspected the scene and opined that a faulty garage door opener was a possible cause of the fire.

Nationwide provided fire insurance coverage on the premises. Its expert, Richard Casto, arrived on the scene three days after the fire, by which time the damaged garage had been boarded up. Casto took photographs and he cleared debris off the Lincoln which remained in the garage, but did not take any measurements. Apparently, a videotape was taken of the scene on this visit, but the tape has never been found. Casto thought the fire began in the Lincoln. Nationwide’s second expert, Ralph Dolence, went to the scene one day after Casto; he took photographs and focused his attention on the electrical wiring in the car. He believed the fire was probably caused by the electrical wiring but he was not able to pinpoint a defect. That same day, Nationwide contacted the Lincoln Mercury dealership from which the *803 car had been purchased to inform the dealership that Nationwide believed the Lincoln might have been the source of the fire and to invite someone from Ford to inspect the vehicle.

The following day — now five days after the fire — because clean-up efforts were set to begin at the Staley residence, Nationwide removed the car to another indoor location for safekeeping. Ford was not notified that Nationwide was moving the car. Finally, two days later — now a week after the fire — Nationwide told Ford where the car was located and that repairs to the Staley residence would begin in six days. Ford then sent a photographer to the residence and then to the indoor facility where the car was being stored.

Approximately two months later, Nationwide sent another expert, Ken Berc-hak, to inspect the Lincoln. He discovered an apparent short in an electrical wire harness, which he believed caused the fire, and he removed the wire harness for the purpose of preserving it. Ford was not notified of Berchak’s inspection and removal of the wire harness.

After paying the Staleys under the terms of its policy, Nationwide sued Ford in subrogation, claiming that a design or manufacturing defect caused the fire in the Lincoln and, in turn, to the house and garage.

Before the case proceeded to trial, Ford moved to exclude the testimony of Nationwide’s expert, Berchak, as a sanction for removing the electrical wire harness from the Lincoln — an act Ford characterized as “spoliation” of evidence at the fire scene. The district court granted Ford’s motion, agreeing that the removal of the wire harness amounted to spoliation. The court stated that by removing the car from the garage, and the wore harness from the car, Nationwide denied Ford an opportunity to develop information favorable to its defense. Although Ford asked that all testimony by the expert be excluded, the court stated that Berchak would be permitted to testify regarding his conclusion that a defect caused the fire as long as he based his opinion on evidence which Ford had the opportunity to inspect, “such as burn patterns on the vehicle.”

During trial, before Berchak testified, Ford moved once again to exclude Berc-hak’s testimony, arguing that under Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579, 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993), Berchak had not established a sufficient basis upon which to form an opinion regarding the cause of the fire or the manufacturing defect. The court overruled Ford’s objection and allowed Berc-hak to testify, but forbad any reference to the wire harness.

Once Berchak began to testify regarding his opinion that a manufacturing defect caused the fire, Ford again renewed its previous objection. This led to a side-bar conference, the transcript of which reveals much confusion on the part of the trial judge as to the scope of the evidence to which Berchak would be allowed to testify. The court allowed Berchak to resume his testimony, only to interrupt the witness, claiming the testimony was repetitious. The court then disallowed the testimony and refused to permit plaintiffs’ counsel to approach the bench for another side-bar conference. After a recess and a proffer of evidence by plaintiffs’ counsel, the court once again agreed to let Berchak testify, but again interrupted the testimony, claiming it was repetitive. As we have said, the jury’s verdict was for the defendant.

II.

A.

Nationwide argues that the district court not only erred in excluding Berc-hak’s opinion testimony, but compounded the error when it violated its own order by not allowing Berchak to testify as to matters to which the court had already agreed Berchak could testify. Because we find that the court erred in excluding the expert testimony, it is not necessary to de *804 cide whether the court’s subsequent contradictory rulings amounted to additional error.

Nationwide contends that the court erred in ruling that Nationwide’s investigation “spoiled” the wire harness by removing it from the vehicle. The evidence was not destroyed, Nationwide argues, but merely removed from the damaged vehicle in order to preserve it for further inspection by Ford and for use at trial. Nationwide argues that its removal of the wire harness did not prejudice Ford because Ford had two months to inspect the harness before it was removed from the car and had further opportunity to inspect the wire harness once it was removed, but did not ask to do so. Nationwide also argues that, in all events, it did not remove the wire harness in bad faith, and therefore, it should not have been sanctioned for its removal.

Ford responds that the wire harness was effectively “spoiled” as useful evidence when it was separated from the Lincoln’s frame or chassis and related electrical system to which it was connected. That is particularly so, Ford argues, since apparently Nationwide’s claim is that the harness caused the fire because of the manner in which it was installed on the vehicle. Ford also argues that it did not have an adequate opportunity to inspect the wire harness because it was not aware that Nationwide considered the wiring to be a defect until it was already removed. In other words, Ford argues, it could not possibly know what to inspect without knowing which component of the car Nationwide was claiming to be defective.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Teran v. Lawn Enforcement
W.D. Tennessee, 2024
Morton v. United States
W.D. Michigan, 2024
NLRB v. Bannum, Inc.
Sixth Circuit, 2024
United States v. Larry Braswell
704 F. App'x 528 (Sixth Circuit, 2017)
Scott Gerber v. Stephen Veltri
702 F. App'x 423 (Sixth Circuit, 2017)
United States v. Reginald Daniels
616 F. App'x 782 (Sixth Circuit, 2015)
Hurt v. Commerce Energy, Inc.
92 F. Supp. 3d 683 (N.D. Ohio, 2015)
Rodda v. Joy Mining Machinery
15 F. Supp. 3d 1156 (N.D. Alabama, 2014)
Dennis Freudeman v. Landing of Canton
702 F.3d 318 (Sixth Circuit, 2012)
United States v. Jerome Ransom
428 F. App'x 587 (Sixth Circuit, 2011)
R.C. Olmstead, Inc. v. CU Interface, LLC
657 F. Supp. 2d 878 (N.D. Ohio, 2009)
Adkins v. Wolever
Sixth Circuit, 2009
Scott v. Eastman Chemical Co.
275 F. App'x 466 (Sixth Circuit, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
174 F.3d 801, 1999 U.S. App. LEXIS 7674, 1999 WL 231613, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nationwide-mutual-fire-insurance-company-guy-j-staley-norma-staley-v-ford-ca6-1999.