Terry Boyd v. BNSF Railway Company

858 N.W.2d 797, 2014 Minn. App. LEXIS 112
CourtCourt of Appeals of Minnesota
DecidedDecember 29, 2014
DocketA14-277
StatusPublished
Cited by2 cases

This text of 858 N.W.2d 797 (Terry Boyd v. BNSF Railway Company) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Terry Boyd v. BNSF Railway Company, 858 N.W.2d 797, 2014 Minn. App. LEXIS 112 (Mich. Ct. App. 2014).

Opinions

OPINION

HOOTEN, Judge.

In this appeal from a judgment in a Federal Employers’ Liability Act (FELA) action, appellant BNSF Railway Company challenges the district court’s award of costs and disbursements to respondent Terry Boyd, arguing that: (1) Minn. R. Civ. P. 68.03(b)(2), which permits enhanced costs based on the rejection of a settlement demand, is preempted by FELA; and (2) the district court abused its discretion by awarding certain expert costs. Because the Minnesota rule is not preempted by FELA and the district court acted within its discretion when awarding expert costs, we affirm.

FACTS

In February 2012, Boyd filed a five-count complaint against BNSF, alleging violations of FELA, 45 U.S.C. §§ 51-60 (2012); the Federal Safety Appliance Act (FSAA), 49 U.S.C. §§ 20301-06 (2012); and the Locomotive Inspection Act (LIA), 49 U.S.C. §§ 20701-03 (2012), stemming largely from a March 6, 2011 incident in which Boyd slipped on a ladder and was injured in the course of his employment with BNSF.1

On January 15, 2013, Boyd made BNSF a settlement offer of $275,000 pursuant to Minn. R. Civ. P. 68.01. This offer was not accepted by BNSF, and the case proceeded to a trial of Boyd’s FELA and LIA claims on May 28, 2013.2 The jury returned a verdict for Boyd on both FELA claims, finding that BNSF failed to provide Boyd with a reasonably safe workplace and that BNSF’s negligence caused injury to Boyd in violation of FELA. The jury found no violation of LIA. The jury awarded Boyd damages in the amount of $610,954.61. The district court granted BNSF’s motion for offsets and reduced the award, entering judgment in favor of Boyd for $411,954.98.

After Boyd filed an affidavit of taxation of costs pursuant to Minn. R. Civ. P. 54.04(b), the court administrator taxed $152,537.16 in costs and disbursements against BNSF, which included $62,584.48 [801]*801under rule 68.03. These costs and disbursements included expert fees in the amount of $37,985.74 for Alan Blackwell and $20,558.66 for Dr. Robert Andres.

BNSF challenged the award with the district court, arguing that the doubling of costs under rule 68.03 is preempted by FELA. The district court held that FELA does not preempt rule 68.03. The district court reasoned that because rule 68.03 “is not meant to make a party whole” and “is not an element of damages initially sought by [Boyd],” its application is unlike that of the prejudgment-interest rule at issue in Monessen Sw. Ry. v. Morgan, 486 U.S. 330, 108 S.Ct. 1837, 100 L.Ed.2d 349 (1988). The district court also distinguished enhanced costs under rule 68.03 from punitive damages available under MinmStat. § 549.20, subd. 1(a) (2012). Therefore, the district court held that rule 68.03 could be applied in this action. BNSF also challenged the expert fees taxed by the court administrator. The district court upheld the fees for Blackwell and reduced the fees for Dr. Andres to $10,352.88. With that fee reduction and other cost changes, the district court ultimately taxed BNSF $133,751.12 for costs and disbursements. BNSF challenges this award.

ISSUES
I. Does FELA preempt the doubling of post-offer costs and disbursements pursuant to Minn. R. Civ. P. 68.03?
II. Did the district court abuse its discretion by awarding costs and disbursements for the expert fees charged by Blackwell and Dr. Andres?

ANALYSIS

I.

BNSF disputes the district court’s award of double costs under Minn. R. Civ. P. 68.03(b)(2), arguing that the doubling of costs is preempted by FELA. “Whether federal law preempts state law is an issue of statutory interpretation, which we review de novo.” ' Meyer v. Nwokedi, 777 N.W.2d 218, 222 (Minn.2010).

A. Minnesota Rule of Civil Procedure 68.03

Minnesota Rule of Civil Procedure 68.03(b)(2) allows a plaintiff, who serves an offer of settlement on the defendant and wins a judgment greater than that offer, to recover (1) the rule 54.04 costs to which it would otherwise be entitled, and (2) an additional amount equal to its rule 54.04 costs incurred after the date of the offer.3 Rule 68.03 balances this potential reward for plaintiffs with a similar incentive for defendants. If a plaintiff rejects a defendant’s offer of settlement and the verdict is in favor of the plaintiff but less favorable than defendant’s offer, the defendant is awarded its post-offer costs and does not have to pay plaintiffs costs. Minn. R. Civ. P. 68.03(b)(1). Thus, under this scenario, the defendant effectively receives “double” post-offer costs; the defendant recovers its post-offer costs and is relieved of having to pay the post-offer costs a plaintiff would otherwise be entitled to under rule 54.04. See Minn. R. Civ. P. 68 2008 advisory comm. cmt. (“[U]nder the revised rule, a plaintiff who rejects a Rule 68 offer suffers dual adverse consequences: loss of the [802]*802right to recover his costs and required payment of the defendant’s costs.” (emphasis added)).

B. FELA

FELA provides that “[e]very common carrier by railroad ... shall be liable in damages to any person suffering injury while he is employed by such carrier ... for such injury or death resulting in whole or in part from the negligence” of the railroad. 45 U.S.C. § 51. In creating this right of recovery for railroad workers, Congress “crafted a federal remedy that shifted part of the human overhead of doing business from employees to their employers.” Consol. Rail Corp. v. Gotts-hall, 512 U.S. 532, 542, 114 S.Ct. 2396, 2404, 129 L.Ed.2d 427 (1994) (quotations omitted). Congress has given state courts concurrent jurisdiction with federal courts over adjudication of FELA claims, 45 U.S.C. § 56, and has prohibited railroad defendants in state courts from removing FELA lawsuits to United States district courts. 28 U.S.C. § 1445(a) (2012). FELA does not expressly address the decision to award costs and disbursements to the prevailing party or the shifting of those costs and disbursements between the parties.

C. Preemption

The Supremacy Clause of the United States Constitution provides that “[t]his Constitution, and the Laws of the United States ... shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.” U.S. Const, art. VI, cl. 2. The Supremacy Clause “invalidates state laws that interfere with, or are contrary to, federal law.” Hillsborough Cnty., Fla. v. Automated Med. Labs., Inc.,

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Related

Terry Boyd v. BNSF Railway Company
874 N.W.2d 234 (Supreme Court of Minnesota, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
858 N.W.2d 797, 2014 Minn. App. LEXIS 112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terry-boyd-v-bnsf-railway-company-minnctapp-2014.