Qwest Services Corp. v. Blood

252 P.3d 1071, 2011 Colo. LEXIS 428, 2011 WL 2138162
CourtSupreme Court of Colorado
DecidedMay 23, 2011
DocketNo. 09SC534
StatusPublished
Cited by690 cases

This text of 252 P.3d 1071 (Qwest Services Corp. v. Blood) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Qwest Services Corp. v. Blood, 252 P.3d 1071, 2011 Colo. LEXIS 428, 2011 WL 2138162 (Colo. 2011).

Opinions

Justice MARTINEZ

delivered the Opinion of the Court.

Petitioner Qwest Services Corporation ("Qwest") was found negligent for failing to maintain a utility pole that collapsed while respondent Andrew Blood was climbing it as part of his employment as a lineman with respondent/third-party defendant Public Service Company of Colorado, doing business as Xeel Energy ("Xcel"). The jury determined that Qwest was 100% at fault for Blood's injuries and awarded $9,917,600 for economic damages, $10,000,000 for physical impairments and disfigurement, $1,000,000 for non-economic damages, and $750,000 for loss of consortium. The jury further awarded $18,000,000 in exemplary damages after finding that Qwest acted willfully and wantonly in failing to maintain the pole and by failing to have a periodic inspection program that would have detected the pole's dangerous condition. Upon review, the court of appeals upheld the majority of the award in the published opinion of Blood v. Qwest Services Corporation, 224 P.3d 301 (Colo.App.2009). Qwest sought certiorari review in this Court seeking a new trial on all issues and a reversal of the judgments in favor of Blood and Xcel.

We granted certiorari on two issues related to the award of exemplary damages.1 We hold that the U.S. Supreme Court's decision in Philip Morris USA v. Williams, 549 U.S. 346, 127 S.Ct. 1057, 166 L.Ed.2d 940 (2007), does not support Qwest's facial challenge to section 18-21-102(1), C.R.S. (2010). Qwest's as-applied challenge to section 18-21-102(1) also fails because the trial court's instruction to the jury to disregard post-accident evidence in assessing exemplary damages was sufficient to comply with Philip Morris.

We also conclude, on de novo review, that the evidence is sufficient to demonstrate that Qwest's failure to implement a periodic pole inspection program was "willful and wanton" beyond a reasonable doubt and thereby satisfies the requirements for an exemplary damages award under section 13-21-102(1)(a).

Finally, we hold that the jury's $18 million exemplary damages award is within a constitutionally permissible range which is not "grossly excessive." After conducting a de novo review of the record and analyzing the three guideposts announced in BMW of North America v. Gore, 517 U.S. 559, 575, 116 S.Ct. 1589, 134 L.Ed.2d 809 (1996), we conclude that Qwest's failure to implement a periodic pole inspection program was sufficiently reprehensible to justify an exemplary damages award slightly less than compensatory damages.

I. Facts and Procedure

Andrew Blood, a lineman employed by Public Service Company of Colorado, doing business as Xeel Energy ("Xcel"), suffered severe and permanent injuries while working on wood utility pole numbered P5905 owned by Qwest Services Corporation ("Qwest"). P5905 was installed in 1958.2 In 1960, Qwest and Xeel entered into a Joint Use Contract ("JUC") that allowed Xeel to use Qwest's poles. In 2004, Union Pacific's operations required that P5905 be moved from the rail[1077]*1077road's right of way. Keel developed and executed a plan to relocate P5905.

Three weeks before Blood's injury, an Xeel crew removed P5905's high voltage lines using a bucket truck. Two weeks later, Qwest removed the phone cable and sole supporting guy line from P5905. On June 29, 2004, Xcel assigned Blood to remove its attachments from P5905. Blood visually inspected P5905, and determined that it was well-placed in the ground. Blood also sound-tested P5905 by striking it numerous times with a heavy hammer to detect internal rot. He believed the pole was solid enough to climb, a belief shared by other experienced Xeel lineman on the scene. Thus, rather than using a bucket truck, Blood climbed the pole and started removing Xeel's attachments. As he was removing the last crossarm, P5905 broke, carrying Blood to the ground.

Due to the force of the fall, Blood suffered a burst fracture of his T-12 and L-1 vertebrae, a forward dislocation of his T-11 vertebra on his T-12 vertebra, a broken pelvis and a fractured right femur. Even though surgeons at Saint Anthony's Central, a level one trauma center in Denver, were able to stabilize and realign Blood's spinal column, he was rendered a T12 paraplegic from the waist down. As a result, he has impaired motor skills and sensory functions in his legs, a neurogenic bladder, limited bowel function, sexual and reproductive dysfunction, and impaired cognitive function due to the medications that are necessary to alleviate the chronic neuropathic pain that often results from a spinal injury.

A. The Complaints

Blood sued Qwest for negligence, claiming that the accident was attributable to Qwest's failure to adopt a periodic pole inspection, maintenance, and repair program that would have discovered P5905's decay prior to Blood's accident. Blood's wife, Carrie, also sued Qwest for loss of consortium. Blood later amended his complaint to request exemplary damages based on Qwest's knowledge that its poles would rot over time and endanger linemen and the public.

Qwest brought a third-party complaint against Xeel seeking, among other things, contractual indemnity under the JUC. Article XII of the JUC provided that each party was responsible for injuries to its employees arising from a jointly used pole where the injuries were caused by the concurrent negli-genee of the parties or could not be traced to the sole negligence of the other party. Qwest argued that Xeel was negligent in failing to properly train its employee Blood and should have to pay for all of his damages pursuant to Article XII.

Xcel, in turn, raised the affirmative defense that Qwest could not enforce the liability-shifting provisions in Article XII of the JUC because it failed to perform a material term of the contract, namely to implement a periodic pole inspection program. In response to this affirmative defense, Qwest presented two arguments. First, Qwest argued that a periodic pole inspection program was not a material term of the JUC as demonstrated by the fact that Xeel had abandoned its own inspection program in 1995. Hence, Qwest argued that its failure to implement a periodic pole inspection program did not constitute a breach of the JUC. In the alternative, Qwest argued that Xeel had waived its right to declare a breach of the JUC due to the fact that Keel continued to perform the JUC after Blood's accident despite knowing that Qwest still did not have a periodic pole inspection program in place. Qwest did not seek to bifurcate its contract claim against Xeel from Blood's negligence claim.

B. Periodic Pole Inspection Program

There was extensive evidence in the record about the type of periodic pole inspection program that should have been in place to detect the rot that caused P5905's failure. The JUC mentioned the Edison Electric Institute manual (the "manual") and the National Electrical Safety Code ("NESC") as "accepted modern methods" for inspecting, maintaining, and repairing poles. The 1959 edition of the manual recommends that the first inspection of a wooden pole be conducted 24 years after the pole is installed, followed by periodic inspections every 12 years. Similarly, the NESC has specific safety requirements regarding residual strength and [1078]

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Cite This Page — Counsel Stack

Bluebook (online)
252 P.3d 1071, 2011 Colo. LEXIS 428, 2011 WL 2138162, Counsel Stack Legal Research, https://law.counselstack.com/opinion/qwest-services-corp-v-blood-colo-2011.