THS Northstar Associates v. WR Grace & Co.-Conn.

860 F. Supp. 640, 1994 U.S. Dist. LEXIS 6243, 1994 WL 440726
CourtDistrict Court, D. Minnesota
DecidedApril 1, 1994
DocketCiv. 3-87-676
StatusPublished
Cited by4 cases

This text of 860 F. Supp. 640 (THS Northstar Associates v. WR Grace & Co.-Conn.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
THS Northstar Associates v. WR Grace & Co.-Conn., 860 F. Supp. 640, 1994 U.S. Dist. LEXIS 6243, 1994 WL 440726 (mnd 1994).

Opinion

MEMORANDUM OPINION AND ORDER

RENNER, Senior District Judge.

INTRODUCTION

The above-entitled action came on for trial before the undersigned and a jury between October 26 and December 21, 1993. On December 17, the jury returned a verdict finding that defendant W.R. Grace (“Grace”) failed to use reasonable care in designing Monokote 3, an asbestos-containing material used to fireproof the Northstar Center, and breached a duty to warn T.H.S. Northstar (“Northstar”) of the hazards associated with Monokote 3. The jury found that W.R. Grace did not commit fraud against North-star. The jury awarded Northstar $6,240,-000 in compensatory damages. On December 21, following a separate proceeding, the jury awarded Northstar $13,500,000 in punitive damages.

Now before the Court are (1) W.R. Grace’s motion for judgment as a matter of law, reduction of the verdict, or, alternatively, a new trial, pursuant to Federal Rules of Civil Procedure 50(b), 59 and 60; (2) Northstar’s motion for judgment as a matter of law; and (3) Northstar’s motion for pre-judgment interest.

DISCUSSION

I. W.R. GRACE’S MOTION FOR JUDGMENT AS A MATTER OF LAW

Rule 50 of the Federal Rules of Civil Procedure governs the entry of judgment as a matter of law. A court may grant a motion for judgment as a matter of law where “a party has been fully heard with respect to an issue and there is no legally sufficient evidentiary basis for a reasonable jury to have found for that party with respect to that issue.” Fed.R.Civ.P. 50(a)(1). Where the court for any reason denies a motion for judgment at the close of the evidence, the court is deemed to submit the action to the jury subject to a later determination of the legal questions raised by the motion; the party seeking judgment as a matter of law may renew the motion not later than ten (10) days after entry of judgment. Fed.R.Civ.P. 50(b).

Following a jury verdict, the court may grant judgment as a matter of law only when a reasonable jury could not have reached the result based on the evidence presented. See Western American, Inc. v. Aetna Cas. and Sur. Co., 915 F.2d 1181, 1183 (8th Cir.1990); City of Omaha Employees Betterment Ass’n v. Omaha, 883 F.2d 650, 651 (8th Cir.1989). The standard required before a court may set aside a jury’s verdict is a “rigorous” one. Western American, 915 F.2d at 1183. In evaluating a motion for judgment as a matter of law, the Court must:

“(1) resolve direct factual conflicts in favor of the nonmovant, (2) assume as true all facts supporting the nonmovant which the evidence tended to prove, (3) give the nonmovant the benefit of all reasonable inferences, and (4) deny the motion if the evidence so viewed would allow reasonable jurors to differ as to the conclusions that could be drawn.”

City of Omaha, 883 F.2d at 651 (citations omitted).

A. Punitive Damages

On December 21, 1993 the jury returned a verdict awarding Northstar $13,-500,000 in punitive damages. W.R. Grace now moves to vacate the judgment entered on this verdict and dismiss the punitive damage claim as a matter of law based on a recent decision of the Minnesota Supreme Court, Independent School District No. 622 v. Keene Corp., 511 N.W.2d 728 (Minn.1994) (“I.S.D. 622 ”), reh’g denied, (Feb. 25, 1994).

W.R. Grace previously moved to dismiss the punitive damage claim under Eisert v. Greenberg Roofing & Sheet Metal Co., 314 N.W.2d 226, 228 (Minn.1992). At that time the Court distinguished Eisert, which held that a plaintiff could not recover punitive damages for property damage without personal injury under a strict liability theory, from the present action, which involved liability theories in addition to strict liability. Rather, the Court followed the court of ap *645 peals’ decision in I.S.D. 622 which, also distinguishing Eisert, affirmed a punitive damages award on a property damage claim where no personal injury was alleged. 495 N.W.2d 244 (Minn.Ct.App.1993), aff'd in part and rev’d in part, 511 N.W.2d 728 (Minn. 1994). Accordingly, the Court submitted the punitive damages claim to the jury.

Before the Court entered judgment in this case, however, the Minnesota Supreme Court reversed the court of appeals in I.S.D. 622, holding that punitive damages are not available to a plaintiff who suffers only property damage, regardless of the theories of liability alleged in the case. I.S.D. 622, 511 N.W.2d at 732-33. The supreme court’s ruling was rendered final on February 24, 1994, when the supreme court, en banc, denied the petition for rehearing.

As Minnesota law governs the claims in this case, the Court, sitting in diversity, is bound by the decisions of the Minnesota Supreme Court. Because this case involved only property damage and no personal injury, the Court must, under I.S.D. 622, set aside the punitive damages award in the amount of $13,500,000 and dismiss the punitive damages claim as a matter of law.

B. Primary Assumption of Risk

Grace contends that it is entitled to judgment as a matter of law under the primary assumption of risk doctrine; alternatively, Grace argues that the Court erred by failing to instruct the jury on primary assumption of risk, thus warranting a new trial.

The primary assumption of risk doctrine relates to whether the defendant had a duty initially to protect the plaintiff from harm. Henkel v. Holm, 411 N.W.2d 1, 4 (Minn.Ct.App.1987). Primary assumption of risk applies “only where parties have voluntarily entered a relationship in which plaintiff assumes well-known, incidental risks. As to these risks, the defendant has no duty to protect the plaintiff and, thus,' if the plaintiffs injury arises from an incidental risk, the defendant is not negligent.” Wagner v. Thomas J. Obert Enter., 396 N.W.2d 223, 226 (Minn.1986) (quoting Olson v. Hansen, 299 Minn. 39, 216 N.W.2d 124, 127 (1974)).

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Bluebook (online)
860 F. Supp. 640, 1994 U.S. Dist. LEXIS 6243, 1994 WL 440726, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ths-northstar-associates-v-wr-grace-co-conn-mnd-1994.