Sandman v. Farmers Insurance Exchange

1998 MT 286, 969 P.2d 277, 291 Mont. 456, 55 State Rptr. 1165, 1998 Mont. LEXIS 278
CourtMontana Supreme Court
DecidedNovember 24, 1998
Docket98-289
StatusPublished
Cited by30 cases

This text of 1998 MT 286 (Sandman v. Farmers Insurance Exchange) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sandman v. Farmers Insurance Exchange, 1998 MT 286, 969 P.2d 277, 291 Mont. 456, 55 State Rptr. 1165, 1998 Mont. LEXIS 278 (Mo. 1998).

Opinion

JUSTICE NELSON

delivered the Opinion of the Court.

¶1 Linda K. Sandman (Sandman) appeals from the February 12, 1998 Order and Rationale of the Eleventh Judicial District Court, Flathead County, denying her various alternative post-trial motions. We affirm.

Background

¶2 Sandman sued her insurer, Farmers Insurance Exchange (Farmers), claiming breach of contract, unfair claims settlement practices, fraud, and negligent infliction of emotional distress in connection with the settlement of her uninsured motorist claims. Following the commencement of litigation, Farmers paid $100,000 policy limits to Sandman who was injured in the underlying automobile accident and, separately, $100,000 policy limits on behalf of her infant son who died as a result of the accident. With Sandman’s breach of contract claims settled as a result of Farmers payments to her, she amended her complaint to name Farmers’ adjuster, Keith Booth (Booth), as an additional defendant.

¶3 The case was tried on Sandman’s remaining claims and was submitted to the jury with a special verdict form. Question 5 on this verdict form asked: “Do you find by clear and convincing evidence that Defendants acted either fraudulently and or with malice?” This question was taken nearly verbatim from the special verdict form proposed by Sandman who posed Question 5 as follows: “Do you find by clear and convincing evidence that Defendants engaged in either fraud and/or malice.” In retyping Sandman’s Question 5, the 7” be *460 tween the words “and” and “or” was deleted in the form of the question submitted by the court to the jury. 1 Post-trial, Sandman characterized this as a typographical error and argued that it created confusion in the minds of the jurors. The record, however, contains no objection by her to the form of Question 5 — i.e., without the “/” — at or prior to the time that the verdict form was submitted to the jury by the trial court.

¶4 During deliberations, the jury foreman submitted a question to the court concerning Question 5. The jury’s inquiry stated: “Do we have to differencateate [sic] Between [sic] fraud and malice in # 5.” Again, the record is void of any discussion between the court and counsel at the time this question was submitted as to if or how this question should be answered. While Sandman argued post-trial that there was discussion that this question should have been answered differently, this discussion is not of record. Rather, what is clear from the record is that, not only did the court respond “No” to the jury question, but also that neither Sandman nor the Defendants registered any contemporaneous objection to this answer.

¶5 The jury returned the special verdict form finding that Booth or Farmers engaged in unfair claims settlement practices; that Booth or Farmers engaged in fraudulent conduct; and that Booth or Farmers did not negligently cause Sandman to suffer emotional distress. The jury awarded total damages of $15,000 as a result of the Defendants’ conduct. Finally, to Question 5 — “Do you find by clear and convincing evidence that Defendants acted either fraudulently and or with malice?” — the jury answered “No.” When polled by the bailiff, each juror, without comment, equivocation or explanation, stated that he or she had voted “No” on Question 5. The jury was thereafter discharged without objection.

¶6 Subsequently, Sandman filed alternative post-trial motions requesting the court to order that the answer to Question 5 is “Yes”; to set aside the jury verdict on Question 5; and either to enter judgment against Farmers and Booth on the issue of punitive damages as a matter of law or to grant her a new trial on the issue of punitive damages. Sandman based her motion on the affidavits of eight jurors. *461 Each of these identical affidavits stated that, based upon the court’s “No” answer to the jury question concerning Question 5, the juror determined that in order to answer ‘Yes” to Question 5, he or she had to find at least one of the Defendants acted both fraudulently and with malice. Each juror then concluded that because he or she did not find at least one of the Defendants acted both fraudulently and with malice, that the answer to Question 5 was “No.”

¶7 In opposing Sandman’s motion, Farmers and Booth submitted their own juror affidavits. Defendants obtained affidavits from five of the eight jurors from whom Sandman obtained affidavits. These affidavits, together with four more, stated, among other things, that the juror would not have awarded punitive damages in this case.

¶8 Following oral argument and briefing, the court denied Sandman’s post-trial motions, ruling that the affidavits were not proper as the jury had not been subject to external influences, nor did it resort to chance. Moreover, the court rejected Sandman’s substantive arguments on their merits; determined that there was conflicting evidence on the matters that would have supported a discretionary award of punitive damages; and noted that both parties had participated in the formulation of the verdict form and that neither party objected to the court’s answer to the jury’s question. Sandman timely appealed and the Defendants cross-appealed.

Issues

¶9 Sandman raises the following issues on appeal:

¶10 1. Whether the District Court erred in refusing to correct the jury’s verdict under Rules 60(a) or (b), M.R.Civ.R

¶11 2. Whether the District Court erred in refusing to correct the jury’s verdict under Rule 50(b), M.R.Civ.P.

¶12 3. Whether the District Court erred in refusing to vacate the jury’s verdict and order a new trial on either the issue of liability for or the amount of punitive damages pursuant to § 25-11-102, MCA, and Rule 59, M.R.Civ.P.

¶13 By way of cross-appeal, the Defendants raise two issues:

¶14 1. Whether the District Court erred in allowing Sandman to allege new claims on the eve of trial after the close of discovery.

¶ 15 2. Whether the District Court erred in failing to provide for separate findings against the Defendants on the verdict form.

¶16 We affirm issues 1 and 2 on the basis of the threshold issues of waiver and the propriety of the juror affidavits. Accordingly, we decline to address the merits of those issues. Furthermore, we do not *462 find reversible error as to Sandman’s issue 3 and, therefore, affirm as to that issue. Finally, having affirmed the decision of the trial court, we conclude that Defendants’ cross-appeal issues are moot, and thus, we do not address those issues.

Discussion

I.

¶17 Whether the District Court erred in refusing to correct the jury’s verdict under Rules 60(a), 60(b), or 50(b), M.R.Civ.P.

¶18 Sandman advances a number of arguments which she contends require the trial court to correct, mold, amend or reform the jury verdict based upon what she perceives to be the jury’s mistake in not awarding punitive damages arising out of its alleged confusion over the form of Question 5, the court’s “No” answer to the jury’s question, and a lack of evidence supporting the jury’s refusal to award punitive damages.

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Cite This Page — Counsel Stack

Bluebook (online)
1998 MT 286, 969 P.2d 277, 291 Mont. 456, 55 State Rptr. 1165, 1998 Mont. LEXIS 278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sandman-v-farmers-insurance-exchange-mont-1998.