Robert B. Carlton and Bobbie L. Carlton v. H. C. Price Company and Roger Dale Moyers

640 F.2d 573, 1981 U.S. App. LEXIS 19207
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 16, 1981
Docket79-1422
StatusPublished
Cited by60 cases

This text of 640 F.2d 573 (Robert B. Carlton and Bobbie L. Carlton v. H. C. Price Company and Roger Dale Moyers) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robert B. Carlton and Bobbie L. Carlton v. H. C. Price Company and Roger Dale Moyers, 640 F.2d 573, 1981 U.S. App. LEXIS 19207 (5th Cir. 1981).

Opinion

R. LANIER ANDERSON, III, Circuit Judge:

This appeal arises out of a personal injury diversity action tried in the Southern District of Texas. Plaintiffs-appellees, Robert and Bobbie Carlton, are husband and wife who were injured in an accident involving the motorcycle they were riding and a vehicle operated by defendant-appellant, Roger *575 Moyers, an employee of defendant-appellant, H. C. Price Company. Because the issue of liability had been conceded, the four and one-half day trial concerned only the amount of damages due appellees. The parties stipulated that “the provisions of the laws of Alaska relating to pre-judgment interest, offers of judgment, attorneys’ fees, and case costs shall be applied by the federal court, Galveston Division, in the same manner and with the same effect as would have been done by the State Court of Alaska, provided, however, that pre-judgment interests shall be suspended effective January 11, 1978.” Record on Appeal at 12.

The issues on appeal include the following: (1) whether the district court’s award of pre-judgment interest on future medical damages was proper under Alaska law; (2) whether the jury’s awards of future medical expenses in the amount of $130,000 for Bobbie Carlton and $60,000 for Robert Carlton were supported by the evidence; (3) whether the district court abused its discretion under Alaska law in making its award of attorney’s fees. 1

We affirm the trial judge’s award of prejudgment interest on future medical damages. We hold with respect to the award of future medical expenses to Bobbie Carlton, that $91,544 is the maximum amount reasonably supported by the evidence. We hold with respect to the award of future medical expenses to Robert Carlton, that $29,075 is the maximum amount reasonably supported by the evidence. If plaintiff-appellee Bobbie Carlton declines to make a remittitur in the amount of $38,456 (i. e., $130,000 minus $91,544), and if plaintiff-appellee Robert Carlton declines to make a remittitur in the amount of $30,925 (/. e., $60,000 minus $29,075), then we order a new trial, with respect to either or both of them on the issue of future medical expenses only. Finally, we affirm the district court’s application of the attorney’s fee schedule, but remand for redetermination of attorney’s fees under the schedule in light of our holding with respect to future medicals.

PRE-JUDGMENT INTEREST ON FUTURE DAMAGES

The district court determined that prejudgment interest should be awarded on the future medical damages. Appellants argue that such an award amounts to double recovery because “appellees have not been deprived of the use of the money awarded them for the future medicals.” (Brief of appellants at 28-29.) Although appellants have cited no cases squarely supporting their position, they purport to find support for their position from Beaulieu v. Elliott, 434 P.2d 665 (Alaska 1967), and ERA Helicopters, Inc. v. Digicon Alaska, Inc., 518 P.2d 1057 (Alaska 1974). Beaulieu recognized that an undiscounted present money award in the exact dollar amount of an expense or loss to be incurred in the future would overcompensate for that expense or loss. However, Beaulieu refused to discount to present value such an award, reasoning that inflation would offset such overcompensation. Appellants argue that Beaulieu suggests that such an undiscounted dollar award is full compensation for expenses or losses to be incurred in the future, and therefore that prejudgment interest would amount to double recovery which has been forbidden by ERA Helicopters, Inc. v. Digicon Alaska, Inc., supra, and State v. Stanley, 506 P.2d 1284 (Alaska 1973).

Although appellants’ argument has some appeal, we believe it runs contra to Alaska precedent. For example, in State v. Phillips, 470 P.2d 266 (Alaska 1970), prejudgment interest was awarded for damages which included expenses to be incurred in the future for housekeeping services, and included a husband’s loss of services in the *576 future from his deceased wife. 470 P.2d at 272. The purpose of prejudgment interest recognizes that the injured party was injured at the moment the cause of action accrued, and that the injured party is entitled to be made whole as of that moment. Thus, the purpose of prejudgment interest is to put a plaintiff in the position he would have been in had he had his trial and recovered his judgment immediately after his injury. Accord, City and Borough of Juneau v. Commercial Union Insurance Co., 598 P.2d 957 (Alaska 1979).

Beaulieu can provide no comfort for appellants. The Supreme Court of Alaska, in State v. Phillips, supra, expressly stated that “[w]e do not believe Beaulieu has any application to the prejudgment interest problem in the case at bar because inflation and wage increases are not significant factors in the normal period between accrual of the cause of action and judgment.” 470 P.2d at 274, n. 28. We can see the logic of Phillips’ rejection of the analogy from Beaulieu. While inflation may offset the refusal to discount damages for future losses to present value, that process does not affect the disparity between a plaintiff who receives his trial and judgment the day after an injury and a plaintiff who receives his judgment after years of protracted litigation. 2 Under Beaulieu both plaintiffs would receive a dollar amount without reduction to present value; but prejudgment interest is necessary to place the latter plaintiff in the same position as the former.

Nor can appellants derive any comfort from ERA Helicopters, Inc. v. Digicon Alaska, Inc., supra, or State v. Stanley, supra. Those eases simply permit, as a substitution for prejudgment interest, an award for the actual provable damages attributable to the loss of the use of the damaged property. For example, in Stanley, plaintiff was awarded damages in the amount of the value of a vessel which had been negligently sunk, and also damages for the loss of the use of that vessel from the time of its sinking until the judgment, at which time plaintiff received a dollar award equal to the value of the vessel. The court noted that damages for the loss of use of the vessel were simply a more appropriate substitute for prejudgment interest. We also note that the Stanley case cites State v. Phillips, supra, with apparent approval. 506 P.2d at 1295, n. 23. In the instant case, appellees have not received a substitute for prejudgment interest, and accordingly ERA Helicopters and Stanley are inapposite.

We conclude that the award of prejudgment interest on the entire judgment, including that portion allocated to future medical expenses, was proper under Alaska law. 3

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Bluebook (online)
640 F.2d 573, 1981 U.S. App. LEXIS 19207, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robert-b-carlton-and-bobbie-l-carlton-v-h-c-price-company-and-roger-ca5-1981.