Payne v. Markeson

414 S.W.3d 530, 2013 WL 4806864, 2013 Mo. App. LEXIS 1043
Missouri Court of Appeals·Decided September 10, 2013·No. No. WD 75771·Published·Cited by 24 cases

Opinion

JAMES EDWARD WELSH, Chief Judge.

This case arises from a lawsuit filed by Virginia Payne against Ashley Markeson in which Payne sought damages for inju[534] ries that she incurred in an automobile accident resulting from Markeson’s driving while intoxicated. The jury found in favor of Payne and awarded compensatory and punitive damages. Markeson appeals the circuit court’s denial of her motion to reduce the jury’s verdict by the amount of Payne’s settlement agreement with a co-defendant and the denial of her motion for remittitur as to punitive damages. We reverse and remand in part and affirm in part.

Background

In September 2009, a vehicle being driven by Ashley Markeson crossed the cen-terline and collided with Virginia Payne’s vehicle. Markeson, who was on probation for a prior DUI conviction, had been drinking at a bar just before the accident. At the time of the accident, Markeson’s blood alcohol level was .166 (over twice the legal limit). She was charged, and she pleaded guilty to second-degree assault due to intoxication.

Payne suffered numerous injuries, including fractures to her right ankle, left femur, and right wrist. She filed a lawsuit against Markeson, alleging that Markeson was negligent in causing the accident and seeking compensatory damages for her injuries. She also sought punitive damages on the basis that Markeson’s actions demonstrated conscious disregard for the safety of Payne and others.

Payne also sued MM Investments, Inc. (d/b/a Doc Holliday’s) pursuant to Missouri’s “Dram Shop Act,” section 537.053, RSMo.1 She alleged that MM Investments continued to serve Markeson alcohol that evening even though she was visibly intoxicated. Payne and MM Investments reached an agreement under which MM Investments agreed to pay Payne $475,000. On March 14, 2012, Payne filed a motion to dismiss her claim against MM Investments. The circuit court dismissed MM Investments on March 27th.

On May 30, 2012, Markeson filed a motion for leave to file an amended answer to include an affirmative defense for a reduction in the amount of the settlement agreement, pursuant to section 537.060, RSMo.2 Markeson attached a copy of the amended answer that she proposed to file. She also filed a separate “Motion for Reduction or Set-Off,” which set forth the amount of the settlement agreement. At a pre-trial hearing on June 15, the circuit court granted Markeson’s motion for leave to file an amended answer, finding that Payne would not be prejudiced by the filing. The court denied the “Motion for Reduction or Set-Off’ as moot.

A jury trial commenced on June 25, 2012, at which Payne presented evidence about Markeson’s intoxicated condition at the time of the accident, about her own injuries, and about the impact the accident has had on her life. On June 27, the jury returned a verdict in favor of Payne for $350,000 in compensatory damages and concluded that Markeson was liable for punitive damages. During the punitive damages phase of trial, Markeson testified about her punishment in the related criminal case and about the dire state of her [535] personal finances. The jury returned a verdict for $700,000 in punitive damages.

Markeson filed several post-trial motions, all of which were denied. The timing and substance of those motions and the court’s rulings on them are critical to the resolution of this appeal. Shortly after the verdict, on July 2, Markeson filed a “Motion to Reduce the Verdict,” in which she sought a reduction of $475,000 because the verdict did not reflect the reduction for the prior settlement, as required by section 537.060. Markeson also filed her amended answer on that same day. It included, as an affirmative defense, her right to a reduction under section 537.060. On July 5, Markeson filed a “Motion for Remittitur” seeking a reduction in the amount of punitive damages on the basis that the awarded amount was excessive.

On July 9, the court entered its “Judgment” in favor of Payne for $350,000 in compensatory damages and $700,000 in punitive damages. The Judgment did not include a reduction for the $475,000 pretrial settlement amount; nor did it rule on Markeson’s claims to a section 537.060 reduction in that amount. Markeson filed her “Motion for New Trial and Motion to Amend the Judgment” on July 31, again seeking a reduction in the judgment in the amount of $475,000, pursuant to section 537.060.

On September 17, the circuit court issued an Order denying both Markeson’s and Payne’s motions for new trial3 and denying Markeson’s Motion for Remittitur. The court did not rule on Markeson’s Motion to Reduce the Verdict but set it for a hearing on October 12, 2012.

At the October 12 hearing, Payne’s counsel raised the issue of whether the circuit court still had jurisdiction to rule on the motion. Markeson’s counsel stated that she was not prepared for argument on that issue. The court requested that the parties brief the issue and rescheduled the hearing for October 15. On October 15, after the parties presented their arguments, the circuit court told the parties that it had intended to provide Markeson the reduction but that due to the passage of time, the court no longer had jurisdiction over the case and the motion to reduce the verdict could not be granted.

On October 18, the circuit court entered its ruling on the Motion to Reduce the Verdict. The court stated that it had considered the arguments of counsel on the issue of whether the court lacked jurisdiction and had “determined that due to the time constraints set forth in the Rules, the Court lacked jurisdiction to rule on the Motion to Reduce the Verdict.” The court also found that it lacked jurisdiction to rule on Markeson’s Motion to Reconsider and/or Modify the Judgment, which she had filed the day before.

The court also denied Markeson’s “Motion for Order Nunc Pro Tunc,” which she had filed on October 22, again seeking a reduction for the $475,000 settlement amount. Markeson filed her Notice of Appeal on October 24, 2012.

Discussion

In Markeson’s first three points on appeal, her primary contention is that the circuit court erred in denying her Motion to Reduce the Verdict on the basis that it lacked jurisdiction.4 In Point I, she [536] argues that the circuit court erred in denying her Motion to Reduce the Verdict because it was actually a “motion to amend the judgment” under Rule 78.04,5 and, thus, was an authorized post-trial motion that extended the court’s jurisdiction to October 29. The question of whether a circuit court has jurisdiction over a case is purely a question of law that this court reviews de novo. McCracken v. Wal-Mart Stores East, LP, 298 S.W.3d 473, 476 (Mo. banc 2009).

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Payne v. Markeson, 414 S.W.3d 530, 2013 WL 4806864, 2013 Mo. App. LEXIS 1043 (Mo. Ct. App. 2013).

414 S.W.3d 530 (Payne v. Markeson) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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