Outback Steakhouse of Florida, Inc. v. Markley

831 N.E.2d 228, 2005 Ind. App. LEXIS 1314, 2005 WL 1712967
CourtIndiana Court of Appeals
DecidedJuly 25, 2005
Docket18A04-0401-CV-13
StatusPublished
Cited by1 cases

This text of 831 N.E.2d 228 (Outback Steakhouse of Florida, Inc. v. Markley) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Outback Steakhouse of Florida, Inc. v. Markley, 831 N.E.2d 228, 2005 Ind. App. LEXIS 1314, 2005 WL 1712967 (Ind. Ct. App. 2005).

Opinion

OPINION

MAY, Judge.

Outback Steakhouse appeals a judgment against it in a personal injury action brought by David and Lisa Markley. The Markleys were injured in an automobile collision with William Whitaker, who had been served alcohol at Outback. 1 Outback raises seven issues on appeal, which we consolidate and restate as:

1. Whether a new trial is required based on the Markleys' failure in an interrogatory to disclose a witness' prior statement that Whitaker was intoxicated when Outback served him, or to inform Outback when that witness indicated she would recant her deposition testimony to the contrary;

2. Whether the trial court improperly declined to give an instruction on non-party fault Outback tendered;

3. Whether the trial court improperly limited Outback's impeachment of one of the Markleys' witnesses when the witness had, before trial, admitted he was guilty of wire fraud but the Markleys' counsel did not disclose that information to Outback or the court;

4. Whether the jury's award was artificially inflated due to the Markleys' reference in closing argument to punitive damages after the Markleys had agreed to drop their punitive damages claim and their failure to disclose a witness who would testify about special damages the Markleys suffered. 2

We affirm.

FACTS AND PROCEDURAL HISTORY

On July 21, 1997, the motorcycle the Markleys were riding was hit by a car driven by Whitaker. The Markleys were both seriously injured. David suffered a broken leg and ankle and an injury to his foot. He was unable to continue working as a millwright. Lisa's injuries were more serious. She had internal injuries, a fractured tibia and pelvis, and extensive damage to the urogenital and rectal area. She required numerous surgeries and was unable after the accident to have sexual intercourse or bear children.

Whitaker left the scene. Earlier that evening Whitaker had attended the opening of an Outback restaurant in Muncie where he had drinks. There was conflicting testimony as to his level of intoxication when 'he left Outback. Whitaker then proceeded to a bar called Van's, where he had more drinks. There was conflicting testimony as to whether the drinks he consumed at Van's contained alcohol. Whitaker left Van's between 10:30 and 11:00 *232 pm. and hit the Markleys on his way home.

The Markleys sued Outback in 1999, alleging Outback served alcohol to Whitaker when he was visibly intoxicated. Outback served interrogatories on the Markleys asking them to identify evidence on which they would rely on the issue of Whitaker's visible intoxication 3 and to provide the names of persons with actual knowledge on that issue. The Markleys' response included several names, but did not mention Patrice Roysdon, 4 who served drinks to Whitaker. Roysdon was a server employed by Outback, and she knew Whitaker. The response indicated the interrogatory would be supplemented as discovery proceeded.

In a post-trial deposition, Roysdon testified she told the Markleys' counsel in 1997, about a month after the accident, that she thought Whitaker was visibly intoxicated. The Markleys' counsel confirmed, both during the deposition and in a teleconference with the court during the deposition, that Roysdon had made that statement in 1997. In its motion to dismiss Outback's motion for relief from judgment, the Mark-leys' counsel stated Roysdon "shortly after [the accident], advised counsel for the Plaintiffs that William Whitaker was intoxicated when he was served alcohol at Outback." (Appellants' App. at 460) (emphasis in original). 5

However, the Markleys did not identify Roysdon in their response to Outback's 1999 interrogatories asking for the names of persons on whom they would rely with knowledge of facts supporting the Mark-leys' allegation that the defendants provided alcoholic beverages to Whitaker with actual knowledge he was visibly intoxicated. Nor did they ever amend their discovery answers to identify Roysdon as someone who would testify Outback served Whitaker with actual knowledge he was visibly intoxicated.

In 2001, Outback's attorney located Roysdon and asked her whether she had served Whitaker when he was visibly intoxicated. She told counsel Whitaker appeared normal when he left Outback and there was no way he was intoxicated. (Appellant's App. at 682.) In her pretrial deposition she stated under oath Whitaker was not visibly intoxicated at Outback.

Outback moved for summary judgment contending there was no evidence of Outback's actual knowledge Whitaker was served when he was visibly intoxicated. The Markleys responded that Whitaker's visible intoxication could be inferred from evidence Whitaker was extremely intoxicated when he arrived at Van's. The Mark-leys' response did not mention Roysdon. Outback's motion was denied and trial commenced in June of 2002. That proceeding ended in a mistrial after it was *233 learned the Markleys had not disclosed a witness prior to trial After the witness testified, a juror pointed out he knew the witness. The juror was excluded after he opined the witness was a pathological liar.

A second trial began in June of 2008. During opening statement, Outback told the jury Roysdon would testify Whitaker was not visibly intoxicated, and that no witness would be produced who could testify to the contrary. Outback had subpoenaed her, and she came to court on Thursday, June 19, 2008. Outback's counsel asked her to return the following Tuesday, as the Markleys had not yet finished presenting their case.

Roysdon contacted the Markleys' counsel after speaking with Outback's counsel and met with the Markleys' counsel the Sunday before she was scheduled to testify. She told the Markleys' counsel she planned to change her testimony. The Markleys' counsel did not inform Outback or the trial court of this, nor did the Mark-leys supplement their discovery responses. Roysdon appeared in court that Monday and the Markleys called her as a witness. Roysdon testified she lied when she gave her deposition in 2001 and that Whitaker was visibly intoxicated and she continued to serve him after she realized he was intoxicated. Outback was not notified the Markleys would call her to testify or that she would contradict the statements she previously made in her deposition.

The jury returned a verdict of $60 million for the Markleys. It allocated 65% of the fault to Outback and 35% to Whitaker, and the trial court accordingly entered judgment against Outback in the amount of $39 million. The trial court also ordered a transcript of Roysdon's testimony be prepared and forwarded to the prosecutor for whatever action he might deem appropriate.

Outback took post-trial depositions of Roysdon and Whitaker and moved to correct error and for relief from judgment. The trial court denied both motions. Additional facts regarding other witnesses and discovery abuse allegations will be provided where relevant below.

DISCUSSION AND DECISION

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Related

Outback Steakhouse of Florida, Inc. v. Markley
856 N.E.2d 65 (Indiana Supreme Court, 2006)

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Bluebook (online)
831 N.E.2d 228, 2005 Ind. App. LEXIS 1314, 2005 WL 1712967, Counsel Stack Legal Research, https://law.counselstack.com/opinion/outback-steakhouse-of-florida-inc-v-markley-indctapp-2005.