Stephens v. Crown Equipment Corp.

22 F.3d 832, 1994 WL 150127
CourtCourt of Appeals for the Eighth Circuit
DecidedApril 28, 1994
DocketNo. 93-1828
StatusPublished
Cited by5 cases

This text of 22 F.3d 832 (Stephens v. Crown Equipment Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stephens v. Crown Equipment Corp., 22 F.3d 832, 1994 WL 150127 (8th Cir. 1994).

Opinion

HEANEY, Senior Circuit Judge.

Todd Stephens was injured while working at a warehouse owned and operated by Bridgestone/Firestone, Inc. (“BFI”). Stephens sued BFI for personal injury, and the jury found in his favor. BFI appeals, arguing that the district court erred in denying its motions for directed verdict and judgment as a matter of law. It appeals as well the denial of its motion for a new trial on the ground that there was insufficient evidence to support the jury’s award of $500,000 for loss of future earning capacity. We believe that the damages award for loss of future earning capacity lacks an adequate basis and remand for a remittitur in that regard, but affirm the remainder of the judgment in its entirety.

Stephens suffered serious injuries to his left foot and ankle on January 20,1989, while operating a forklift at Midwest Distribution Center, Inc., (“Midwest”) a warehouse owned and operated by BFI in Des Moines, Iowa. At the time of the injury, Stephens was employed by Action Warehouse Company, Ltd., (“Action”) an independent contractor. Pursuant to a contract with BFI, Action provided labor services at Midwest, among them receiving, storing, and preparing tires for shipment. All of the equipment, tools, and supplies in the warehouse, including the forklift Stephens was operating when he was injured, was owned by BFI. Work assignments in the warehouse were made by BFI using computer-generated “pick cards,” which directed employees to locations in the warehouse where tires could be found and told them ultimately what to do with them. Stephens was injured when, while attempting to complete his pick card assignment for the day, he tried unsuccessfully to avoid hitting a concrete wall and wedged his foot between the forklift and the wall. Prior to the accident, he had neither operated the particular type of forklift he was on nor had he received extensive training on it.

The basis of Stephens’ argument at trial was that BFI retained sufficient control over the work being performed by Action employees at Midwest to subject BFI to liability for his injuries. The jury was given special verdicts and returned a verdict in Stephens’ favor. It found that BFI retained the right to exercise control over the manner and method of training Action employees in the operation of forklifts at Midwest and/or in the way in which they were to carry out then-jobs. Among the damages awarded by the jury was $500,000 for loss of future earning-capacity.1 After reducing the total amount of damages awarded by twenty percent, the amount of fault the jury attributed to Stephens, judgment was entered in Stephens’ favor in the amount of $560,353.56.

Two issues are presented for our consideration. First, whether, as a matter of law, there was enough evidence for the jury to find that BFI exercised sufficient control over Action employees to render it hable for Stephens’ injuries. Second, whether the evidence was sufficient to support the jury’s award of $500,000 for Stephens’ future lost earning capacity.

I.

In ruling on a motion for judgment as a matter of law or, alternatively, for new trial, the court “must view the evidence most favorably to the non-moving party and give it the benefit of all reasonable inferences to be drawn from the record.” Cope v. Burlington N. R.R., 907 F.2d 67, 68 (8th Cir.1990). The court is “not free to weigh the evidence, to pass upon the credibility of witnesses or to substitute [its] judgment for that of the jury.” Id. A jury verdict may be set aside “only when there is no evidence of substance upon which reasonable persons could differ.” Id.

Under Iowa law, an owner of property ordinarily is not hable for injuries to the [835]*835employee of an independent contractor for injuries arising out of the contractor’s negligence. Downs v. A & H Constr. Ltd., 481 N.W.2d 520, 524 (Iowa 1992). However, when the owner entrusts work to an independent contractor and retains some degree of control over any part of the work, he may be liable to the independent contractor’s employee for physical harm caused by the owner’s failure to exercise his retained control with reasonable care. Id. at 524-25 (citing Restatement (Second) of Torts § 414). The degree of control an owner of property has is the critical, defining issue:

“It is not enough that [the employer] has merely a general right to order the work stopped or resumed, to inspect its progress or to receive reports, to make suggestions or recommendations which need not necessarily be followed, or to prescribe alterations and deviations. Such a general right is usually reserved to employers, but it does not mean that the contractor is controlled as to his methods of work, or as to operative detail. There must be such a retention of aright of supervision that the contractor is not entirely free to do the work in his own way.”

Id. at 525 (quoting Restatement (Second) of Torts § 414(e)) (emphasis added).

We find that the evidence in the record supports the jury’s finding that BFI retained the requisite control over the work performed by Action employees to render it liable for Stephens’ injuries. The services performed by BFI personnel at Midwest, contrary to BFI’s assertion, were not limited to (although they indisputably included) goal setting and other administrative functions.2

Perhaps the most compelling evidence of BFI’s “retained control” was its use of computer-generated “pick cards” to make daily work assignments. The pick cards were detailed orders listing the exact storage location of tires in the warehouse, their product codes and descriptions, and their ultimate destinations, both within the warehouse (loading doors) and outside of it (retail and other businesses). BFI’s foreman at Midwest, Gary Eiseheid, evaluated the cards and passed them on to Action supervisors, who in turn passed them on to Action employees, who relied exclusively on the information in the cards to perform their work. The pick cards provided all of the information needed for Action employees to complete their daily assignments, and, indeed, were vital to their ability to function at all.3 Upon finishing the jobs described in the pick cards, employees returned the cards to BFI’s office at Midwest; the cards assured BFI that the work had been assigned and completed.

Further evidence that BFI retained control over the work performed by Action employees is the fact that BFI owned and assumed maintenance responsibilities for all of the equipment in the warehouse, including the forklift Stephens was operating when he was injured. Significantly, BFI, at the request and upon the recommendation of its officers at Midwest, purchased the particular type of forklift Stephens was operating because of its stand-up feature, which allowed the forklift to be more easily maneuvered in narrow aisles. BFI officers apparently believed that narrower aisles at Midwest would allow for more storage space, which would ultimately allow for greater productivity on the part of Action employees.

Relying on Downs, 481 N.W.2d 520, BFI argues that mere ownership of the forklifts is insufficient to show that BFI had control over Action employees. We find Downs

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22 F.3d 832, 1994 WL 150127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stephens-v-crown-equipment-corp-ca8-1994.