Oresman v. G. D. Searee & Co.

388 F. Supp. 1175, 1975 U.S. Dist. LEXIS 14330
CourtDistrict Court, D. Rhode Island
DecidedJanuary 16, 1975
DocketCiv. A. 4255
StatusPublished
Cited by7 cases

This text of 388 F. Supp. 1175 (Oresman v. G. D. Searee & Co.) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oresman v. G. D. Searee & Co., 388 F. Supp. 1175, 1975 U.S. Dist. LEXIS 14330 (D.R.I. 1975).

Opinion

OPINION

DAY, District Judge.

This is a civil action wherein the plaintiffs, citizens of Rhode Island, seek to recover damages allegedly sustained by them as a result of a severe stroke suffered by the plaintiff, Sandra Ores-man, on February 25, 1968. Jurisdiction of this action is invoked under the provisions of 28 U.S.C. § 1332.

In their complaint the plaintiffs allege that the stroke suffered by said plaintiff, Sandra Oresman, resulted from her taking contraceptive pills manufactured by the defendant. In their amended complaint they allege the following grounds for the liability of the defendant to them for their claims asserted against it, viz:

Count I: 'breach of implied warranty that said pills were of merchantable quality for use as an oral contraceptive;
Count II: negligent manufacturing of said pills and negligent misrepresentation that the pills were safe to be taken;
Count III: negligence and res ipsa loquitur ;
Count IV: strict liability in tort.

On January 6, 1971, this Court denied the defendant’s motion for summary judgment in its favor as to Counts I, III and IV of said complaint, Oresman v. G. D. Searle & Co., 321 F.Supp. 449 (D.R.I.1971). Following the completion of prolonged discovery by the parties and hearings and decisions on further pretrial motions by the parties, the trial of this action before a jury began on February 5, 1974. On March 22, 1974, after thirty (30) days of trial, the jury returned verdicts in favor of the plaintiffs. Its verdict in favor of the plaintiff Sandra Oresman was in the sum of $500,000, and its verdict in favor of Richard Oresman, her former husband, was in the sum of $15,000.

On March 27, 1974, the Clerk of this Court entered judgments reflecting these verdicts with the addition of the sum of $168,000 as interest to the verdict in favor of said Sandra Oresman and the addition of the sum of $5,040 as interest to the verdict rendered in favor of said Richard Oresman.

This matter is now before me upon the motions of the defendant to:

(1) Strike said pre-judgment interest from the amounts of said judgments.
(2) For judgment in its favor notwithstanding said verdicts.
(3) For a new trial, or
(4) In the alternative, to grant it a remittitur.

MOTION TO STRIKE PRE-JUDGMENT INTEREST

As hereinbefore recited, said judgments entered by the Clerk of this Court included interest on the amounts of the verdicts rendered by the jury on March 22, 1974. The computation of said interest was based upon a rate of eight per cent (8%) per annum from January 9, 1970, the date of the filing of the plaintiffs’ complaint until March 22, 1974, the date of the rendition of said verdicts, a period of four (4) years and seventy-two (72) days.

In its motion to strike said interest from said judgments, the defendant contends that the inclusion of pre-judgment interest in said judgments violates the *1178 provisions of 28 U.S.C. § 1961 and the Constitution of the United States.

28 U.S.C. § 1961 deals only with post judgment interest. It has no reference to pre-judgment interest. Although the defendant concedes that the Rhode Island statute, General Laws, R. I. Sec. 9-21-10, provides for the award of pre-judgment interest, it contends that said statute has no application to the federal courts. In my opinion this contention is clearly without merit. It is well settled that in diversity cases, such as this, federal courts follow state law on the question of pre-judgment interest.

In Massachusetts Benefit Association v. Miles, 137 U.S. 689, 11 S.Ct. 234, 34 L.Ed. 834 (1891) the Supreme Court in construing the provisions R.S. § 966, now found in 28 U.S.C. § 1961, said 137 U.S. at page 691, 11 S.Ct. at page 235:

“ . . . Section 966, while providing only for interest upon judgments, does not exclude the idea of the power in the several states to allow interest upon verdicts, and, where such allowance is expressly made by a state statute, we consider it a right given to a successful plaintiff, of which he ought not to be deprived by a removal of his case to the federal court. The courts of the state and the federal courts sitting within the state should be in harmony upon this point.”

In its opinion the Supreme Court was careful to point out that this rule is applicable only to cases where the jurisdiction of the Federal court is based upon diversity of citizenship and the existence of a controversy in the requisite amount. Jurisdiction of this action is based upon diversity of citizenship of the parties and the existence of a controversy in excess of $10,000. 28 U.S.C. § 1332.

In Moore-McCormack Lines, Inc. v. Amirault, 202 F.2d 893 (1 Cir. 1953), the Court of Appeals held 202 F.2d at page 895:

“ . . . But 28 U.S.C. § 1961 has no bearing on the problem whether pre-judgment interest is allowable as an item of damages on a particular claim, to be included in the total amount of the money judgment. As to that we must seek elsewhere for the applicable rule of law.”

Similarly, in the case of Sylvania Electric Products, Inc. v. Barker, 228 F.2d 842 (1 Cir. 1955) the Court of Appeals held 228 F.2d at page 851:

“On principle, interest on a verdict from the date of the writ is an item of substantive damages awarded “in order that the plaintiff may be more fully and justly compensated for the wrong complained of.’ Moore-McCormack Lines, Inc., v. Amirault, 1 Cir., 1953, 202 F.2d 893, 895. And Massachusetts accepts this general principle, for in D’Amico v. Cariglia, 1953, 330 Mass. 246, 112 N.E.2d 807, the Supreme Judicial Court of Massachusetts in discussing the statute now under consideration and its predecessor said that ‘Under both statutes interest was to be included as an item of damages.’ Under Massachusetts conflicts rules, therefore, it follows that the plaintiff’s right to interest on the verdict in the personal injury case figured from the date of the writ must be determined by the law of Nebraska.

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Cite This Page — Counsel Stack

Bluebook (online)
388 F. Supp. 1175, 1975 U.S. Dist. LEXIS 14330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oresman-v-g-d-searee-co-rid-1975.