Penn v. Prestige Stations, Inc.

99 Cal. Rptr. 2d 602, 83 Cal. App. 4th 336
CourtCalifornia Court of Appeal
DecidedAugust 8, 2000
DocketD031255
StatusPublished
Cited by8 cases

This text of 99 Cal. Rptr. 2d 602 (Penn v. Prestige Stations, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Penn v. Prestige Stations, Inc., 99 Cal. Rptr. 2d 602, 83 Cal. App. 4th 336 (Cal. Ct. App. 2000).

Opinion

99 Cal.Rptr.2d 602 (2000)
83 Cal.App.4th 336

Janet PENN, Plaintiff and Respondent,
v.
PRESTIGE STATIONS, INC., et al., Defendants and Appellants.

No. D031255.

Court of Appeal, Fourth District, Division One.

August 8, 2000.
Rehearing Denied September 21, 2000.
Review Denied November 15, 2000.[*]

*603 Haight, Brown & Bonesteel, Rita Gunasekaran, Lyn Skinner Foster, Santa Monica, and Thomas S. Nelson, for Defendants and Appellants.

R. Morgan Holland, San Diego, for Plaintiff and Respondent.

BENKE, Acting P.J.

In Cedars-Sinai Medical Center v. Superior Court (1998) 18 Cal.4th 1, 5, 74 Cal.Rptr.2d 248, 954 P.2d 511 (Cedars-Sinai), our Supreme Court determined there is no cause of action for intentional spoliation of evidence by a litigation adversary.[1] Although its opinion on the issue was not rendered until after the judgment *604 in this case was entered, its opinion governs our review of the judgment. Accordingly, we must vacate that portion of the judgment which awarded plaintiff and respondent Janet Penn $95,000 for intentional spoliation of video tapes from a surveillance camera controlled by defendant and appellant Prestige Stations, Inc.'s (Prestige). Because, aside from the spoliation of evidence, there was no other basis upon which to award punitive damages, we must also vacate the jury's $500,000 punitive damage award.

SUMMARY

On the evening of November 2, 1995, Penn went to a convenience store operated by Prestige. She went to the back of the store to get a soda and milk. After taking a two-liter bottle of soda from a display shelf she took a few steps toward the milk, lost her footing and fell. A store employee who went to assist Penn noticed that water was on the floor in the area where Penn fell.

According to her treating neurologist, as a result of the fall Penn suffered nerve damage in her left shoulder and arm and a bulge of a spinal disc in her neck.

Penn filed a complaint against Prestige in which she alleged Prestige had negligently permitted a dangerous condition to exist at the store and that the condition, the wet floor, had caused her injuries. During the course of discovery Prestige disclosed that although surveillance cameras in the store were operating at the time of Penn's fall and although a Prestige supervisor was aware of Penn's potential claim, the supervisor, defendant and appellant Marlene Sheet, ordered that video tapes from the day of the fall be reused in the store's cameras, effectively erasing any evidence of the fall or the conditions of the store at the time of the fall.

After learning Prestige had destroyed any video record of her fall or conditions at the store, Penn amended her complaint to add Sheet as a defendant and causes of action against Prestige and Sheet for intentional and negligent spoliation of evidence.

Trial commenced in March 1998. At trial the jury found Prestige was negligent in maintaining the store and that its negligence had caused $38,500 in damages. However, the jury also found Penn had been 25 percent contributorily negligent.

With respect to Penn's spoliation causes of action, the jury found Sheet and Prestige were liable for intentional spoliation and that in the absence of their conduct Penn would have recovered an additional $80,000. The jury also found that the spoliation had caused Penn to incur $15,000 in out-of-pocket losses. As against Prestige only, the jury awarded Penn $500,000 in punitive damages.

Shortly after entry of judgment the Supreme Court filed its opinion in Cedars-Sinai In light of Cedars-Sinai Prestige argues that those portions of the judgment based on the spoliation of evidence must be reversed.

DISCUSSION

Prior to its opinion in Cedars-Sinai, our Supreme Court had "not previously addressed the question of whether tort remedies should exist for acts of spoliation." (Cedars-Sinai supra, 18 Cal.4th at p. 5, 74 Cal.Rptr.2d 248, 954 P.2d 511, fn. omitted.) Although the tort had been recognized in California Court of Appeal opinions (see Willard v. Caterpillar, Inc. (1995) 40 Cal.App.4th 892, 48 Cal.Rptr.2d 607 (Willard); Smith v. Superior Court (1984) 151 Cal.App.3d 491, 198 Cal.Rptr. 829 (Smith)), it had been rejected by other state courts and subjected to scholarly criticism. (See Petrik v. Monarch Printing Corp. (1986) 150 Ill.App.3d 248, 260-261, 103 Ill.Dec. 774, 501 N.E.2d 1312; Federated Mut. Ins. Co. v. Litchfield Precision Components, Inc. (Minn. 1990) 456 N.W.2d 434, 438; see also Comment, Spoliation of Evidence: A Troubling New Tort (1989) 37 U.Kan. L.Rev. 563, 592.)

*605 In rejecting the tort, the court found that it was inconsistent with the general principle which bars tort remedies for litigation-related misconduct and the related prohibition against attacking adjudications on the ground evidence presented was falsified or destroyed. (Cedars-Sinai, supra, 18 Cal.4th at pp. 9-11, 74 Cal.Rptr.2d 248, 954 P.2d 511.) The court noted there are a number of nontort remedies that seek to punish and deter spoliation, including an evidentiary inference that destroyed evidence is unfavorable to the party that destroyed it (Evid.Code, § 413), discovery sanctions (Code Civ. Proc., § 2023), and disciplinary sanctions against attorneys and criminal penalties. (Id. at pp. 11-13, 74 Cal.Rptr.2d 248, 954 P.2d 511.)

The court also found that in most cases of spoliation, it will be difficult to determine whether in fact a plaintiff has been damaged. (Cedars-Sinai, supra, 18 Cal.4th at pp. 13-14, 74 Cal.Rptr.2d 248, 954 P.2d 511.) Finally, the court found that the cost of defending spoliation claims would cause persons and entities "to take extraordinary measures to preserve for an indefinite period documents and things of no apparent value solely to avoid the possibility of spoliation liability if years later those items turn out to have some potential relevance to future litigation." (Id. at p. 15, 74 Cal.Rptr.2d 248, 954 P.2d 511.)

The court concluded, "[g]iven that existing remedies will in most cases be effective at ensuring that the issues in the underlying litigation are fairly decided, whatever incremental additional benefits a tort remedy might create are outweighed by the policy considerations described above." (Cedars-Sinai supra, 18 Cal.4th at p. 17, 74 Cal.Rptr.2d 248, 954 P.2d 511.)

The question we face, which was unanswered in the Cedars-Sinai opinion itself, is whether the holding in that case governs cases still pending at the time it was decided.

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Bluebook (online)
99 Cal. Rptr. 2d 602, 83 Cal. App. 4th 336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/penn-v-prestige-stations-inc-calctapp-2000.