Sanchez v. Mica Corp.

107 S.W.3d 13, 2002 WL 31753555
CourtCourt of Appeals of Texas
DecidedJanuary 24, 2003
Docket04-01-00643-CV
StatusPublished
Cited by12 cases

This text of 107 S.W.3d 13 (Sanchez v. Mica Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sanchez v. Mica Corp., 107 S.W.3d 13, 2002 WL 31753555 (Tex. Ct. App. 2003).

Opinion

Opinion by:

PHIL HARDBERGER, Chief Justice.

This case demonstrates the uncertainty of life in even the most commonplace of activities. It also raises several legal questions involving settlement credits, a juror’s bias; the jury charge, and legal and factual sufficiency issues. The facts are compelling.

A woman named Betty Jean Sanchez was an employee at the downtown campus of the University of Texas at San Antonio (“UTSA”). As she was walking to work, Mrs. Sanchez approached an area of sidewalk in which an electrical pull box was embedded. The pull box is designed for people to walk on as a part of the sidewalk. This pull box, however, had an electrical fault which made it electrically live and extremely dangerous. When Mrs. Sanchez stepped on it, she was killed on the spot. How such an awful thing could have happened was the subject of the lawsuit.

Edward Sanchez and Christine Sanchez, the appellants (“Sanchezes”), are Mrs. Sanchez’s children, who were 18 and 14, respectively, when Mrs. Sanchez died. The Sanchezes sued a number of contractors and subcontractors, City Public Service (“CPS”), and the Texas Department of *21 Transportation (“TxDOT”). A third plaintiff, Sylvia Estrada, also brought suit. Estrada was present when Mrs. Sanchez was electrocuted and was electrically shocked when she attempted to assist Mrs. Sanchez.

CPS and TxDOT settled the claims against them before trial for $2,500,000 and $8,000, respectively. A jury found four entities negligent, but did not find a fifth general contractor, Spaw-Glass, Inc., negligent. The jury allocated the percentage of negligence as follows: (1) CPS— 15%; (2) M & M Contracting — 30%; (3) MICA — 50%; and (4) TxDOT — 5%. The jury awarded the Sanchezes $7,590,000 in damages, including $340,000 for loss of inheritance. The jury awarded Estrada $303,000. The trial court determined that M & M and Mica were entitled to a dollar-for-dollar settlement credit in the amount of $2,508,000 with regard to the Sanchezes’ settlements with CPS and TxDOT. The trial court also determined that the damages awarded for loss of inheritance should be reduced to $106,000. The net judgment awarded in favor of the Sanchezes was $4,848,000. The trial court determined that M <& M and Mica were entitled to a dollar-for-dollar settlement credit in the amount of $7,500 with regard to Estrada’s settlements. The net judgment awarded in favor of Estrada was $242,400.

The Sanchezes present two issues on appeal, contending the trial court erred by: (1) granting a settlement credit for the portion of the CPS settlement allocated to punitive damages; and (2) reducing the jury’s award for loss of inheritance damages. Mica presents four issues in its cross-appeal, contending: (1) the trial court erred in refusing to strike a juror for bias; (2) the evidence is legally and factually insufficient to support the jury’s finding on Mica’s negligence; (3) the trial court erred in denying Mica’s request for a jury question on the statute of repose and for a jury instruction on new and independent cause; and (4) the damages awarded to the Sanchezes for loss of companionship and society and mental anguish ($7,000,-000) and the damages awarded to Estrada for physical pain and mental anguish ($300,000) were excessive. We affirm the trial court’s judgment.

I. Sanchezes’ Appeal (Two Issues)

Settlement CREDIT

Mica elected to have the court reduce the amount of damages to be recovered by the Sanchezes by the sum of the dollar amount of all settlements. See Tex. Civ. PRAC. & Rem.Code Ann. § 33.012(b) (Vernon 1997). “A defendant seeking a settlement credit has the burden to prove its right to such a credit.” Utts v. Short, 81 S.W.3d 822, 828 (Tex.2002). A defendant meets this burden by showing, in the settlement agreement or otherwise, the amount of the settlement credit. Id. “Once the nonsettling defendant demonstrates a right to a settlement credit, the burden shifts to the plaintiff to show that certain amounts should not be credited because of the settlement agreement’s allocation.” Id. In order “to limit a nonset-tling party’s dollar-for-dollar settlement credit to an amount representing actual damages, the settling party must tender a valid settlement agreement allocating between actual and punitive damages to the trial court before judgment. Otherwise, the nonsettling party is entitled to a credit equaling the entire settlement amount.” Mobil Oil Corp. v. Ellender, 968 S.W.2d 917, 928 (Tex.1998) (emphasis added). This allocation is important because a defendant cannot receive a credit for settlement amounts allocated to punitive damages. See id. at 927; Tex Civ. PRAC. & Rem.Code Ann. § 33.002(c)(2) (Vernon 1997).

*22 When a case involves facts suggesting that the settlement transaction or allocation is a sham, the nonsettling defendant has the burden of presenting evidence of the sham as part of its burden in electing a dollar-for-dollar credit. Utts, 81 S.W.3d at 829. The evidence may be presented before or after the jury’s verdict; however, “the trial court should resolve the issue before it submits the case if the nonsettling defendant so requests.” Id. Once the nonsettling defendant presents evidence of a sham, the trial court must presume the entire settlement credit applies unless the plaintiff presents evidence to overcome this presumption. Id.

At the request of several defendants, the trial court conducted a hearing on the settlement credit issue after all parties had closed and the case was ready to be submitted to the jury. Prior to that hearing, a copy of a handwritten Rule 11 agreement between CPS and the Sanchezes was submitted to the court. The Rule 11 agreement satisfied the defendants’ burden to show the amount of the settlement. The burden then shifted to the Sanchezes to present evidence of the allocation. If the Sanchezes met that burden, the burden would shift back to the defendants to prove that the allocation was a sham.

The Rule 11 agreement provided that the plaintiffs had the right to allocate the settlement funds among and between the estate and the children. The agreement also provided that the plaintiffs had the right to allocate the funds among damages, including punitive damages. The day after the Rule 11 agreement was signed, the plaintiffs’ lawyer sent a letter to the other defendants’ lawyers, attaching a copy of the agreement and informing them that the settlements funds would be allocated as follows: (1) $250,000 to each of the Sanchezes; (2) $1,000,000 to the estate; and (3) $1,000,000 to punitive damages.

At the settlement credit hearing, Tom Hall, one of the Sanchezes’ attorneys, testified that the ad litem for Christine, who was a minor, was not present during the settlement negotiations but had verbally approved the amount of the settlement allocated to Christine. Hall testified that Edward had not sought probate court approval of the settlement. Hall stated that the punitive damage award had not been allocated among the estate and the children.

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107 S.W.3d 13, 2002 WL 31753555, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanchez-v-mica-corp-texapp-2003.