U-Haul International, Inc. v. Waldrip

322 S.W.3d 821, 2010 Tex. App. LEXIS 7118, 2010 WL 3399033
CourtCourt of Appeals of Texas
DecidedAugust 31, 2010
Docket05-08-01172-CV
StatusPublished
Cited by12 cases

This text of 322 S.W.3d 821 (U-Haul International, Inc. v. Waldrip) 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
U-Haul International, Inc. v. Waldrip, 322 S.W.3d 821, 2010 Tex. App. LEXIS 7118, 2010 WL 3399033 (Tex. Ct. App. 2010).

Opinion

OPINION

Opinion By

Justice FRANCIS.

Talmadge Waldrip suffered catastrophic injuries when a rented U-Haul truck he was exiting began to roll backward, knocked him to the ground, and rolled over him. Experts agreed the truck had an inoperable parking brake and damaged transmission, although they disagreed about the extent and cause. After hearing three weeks of testimony, a jury found U- *829 Haul International, Inc. (UHI) and U-Haul Co. of Texas, Inc. d/b/a U-Haul Co. of Dallas (UHT) negligent and grossly negligent and East Texas Fork Enterprises, Inc. d/b/a Jot ’Em Down (JED) negligent and awarded more than $84 million in compensatory and exemplary damages. The trial court reduced the exemplary damage award under chapter 41 of the Texas Civil Practice and Remedies Code and rendered a $45 million judgment.

The U-Haul defendants appealed separately from JED. All raise issues related to the legal and factual sufficiency of the evidence to support the liability and damage findings, admission and exclusion of certain evidence, and charge error. After reviewing the record, we conclude there was not clear and convincing evidence to support a gross negligence finding against UHI and reverse the $11.1 million punitive damage award against UHI. We affirm the trial court’s judgment in all other respects.

UHI is a Phoenix, Arizona-based equipment rental company that began operating in 1945. UHI has forty-nine subsidiaries operating throughout the United States and Canada. These subsidiaries, one of which is UHT, own and operate rental centers and oversee the operations of independent dealers renting U-Haul trucks to consumers. At the time of trial, there were more than 15,450 rental locations renting a fleet of more than 100,000 trucks. Of these, some 1,450 locations were company-owned centers staffed by U-Haul personnel while 14,000 were independent dealers authorized to rent trucks by contract. JED is an antique store that operates as an authorized independent dealer of U-Haul equipment.

On September 20, 2006, Waldrip’s daughter, Annabeth Boyd, 1 rented a U-Haul jumbo hauler (JH 6097) from JED to move some of her belongings to a warehouse in Forney, Texas. 2 The truck, a 1988 International jumbo hauler with a five-speed standard transmission, had logged more than 233,000 miles. Because Annabeth did not know how to operate a standard transmission vehicle, she asked her father to drive.

After Annabeth loaded the truck with her belongings, Waldrip drove it the seven miles to Forney without problem. He pulled up next to the warehouse, which was on a slope, turned off the ignition, put the truck into first gear, and set the parking brake. As he began stepping out, the truck began to roll and the open door hit him in the back. Waldrip tried to get back into the truck to stop the rolling, but he was knocked to the ground. The 26-foot, 12,000-pound truck rolled over Waldrip, crushing his mid-section, and dragged him down the slope about sixty feet. When Annabeth arrived at the scene about five minutes later, she found her father lying beside the truck with his head pointed to the rear. The truck was parallel to the building.

Waldrip was taken from the scene by helicopter and was hospitalized' for eight months with massive, life-threatening injuries. After the scene was cleared, Matthew Nichols moved the U-Haul truck next to the warehouse. Nichols had difficulty putting the truck in gear and said the *830 truck rolled with the parking brake engaged. Two days later, a mechanic inspected the truck for the Waldrip family and found the parking brake was inoperable. Later inspections revealed damage to the transmission.

Waldrip, his wife, and two daughters sued appellants for negligence and gross negligence, alleging the circumstances leading up to the accident were the result of a systemic pattern of “mismanagement and poor inspection, conflicting inspection policies and/or practices, negligent fleet replacement patterns, maintenance, repair practices and woeful incompetence.” At trial, the evidence focused on U-Haul’s policies with respect to the inspection, maintenance, and repair of its vehicles and how those policies were applied to the truck in this case.

Witnesses testified UHI developed and controlled the policies for inspection, repair, and maintenance of the vehicles while UHT was responsible for actually implementing the UHI policy for trucks in Texas, including the JH 6097. The system relied on mileage- and time-based inspections as well as customer feedback. First, UHI required a Preventive Maintenance inspection every 5,000 miles (PM-5). Among other items, a PM-5 inspector was supposed to functionally and visually inspect the parking brake system, check the transmission fluid level, and check for any signs of leakage. If the truck passed, a second inspector would drive the truck and, among other things, check the parking brake. U-Haul witnesses testified that if a road test was not done, the inspection was not considered complete.

Because some trucks were driven less miles than others and consequently would be subject to fewer PM inspections, UHI also required that all trucks periodically undergo a less-involved safety certification inspection. UHI had designated JH 6097 as a rotation, or in-town, truck. Rotation trucks were generally older and had higher mileage. The frequency of safety certification inspections on rotation trucks was in dispute. Some U-Haul documents required rotation trucks be safety-certified every thirty days. Other company documents, however, suggested the thirty-day requirement applied only to rotation trucks at company-owned centers while rotation trucks assigned to independent dealers were to be safety-certified every sixty to ninety days.

Area field managers, employed by U-Haul companies, performed the safety certifications on equipment at independent dealers. The inspection included the same functional test of the parking brake required in the PM-5 inspection. The inspection also required the field manager to check the transmission fluid in automatic transmission trucks, but no such inspection was required on standard transmission vehicles. In addition to the safety certification inspection, U-Haul required a federal Department of Transportation (DOT) inspection annually. U-Haul witnesses testified that a PM-5 inspection covered all items required by the DOT inspection.

Finally, in between the mileage- and time-based inspections, U-Haul relied on customer feedback by way of a receipt and dispatch tag (R & D). When a customer returned a truck either to a center or independent dealer, the U-Haul agent was supposed to ask whether the customer had any braking, engine, or electrical problems and then record that information on the tag. The tag also required the agent to note whether a PM inspection or safety certification inspection was needed. Finally, before every rental, the agent was supposed to check (1) the lights, (2) for leaks, (3) fluid levels, and (4) tire pressure and tread, and also was to (5) clean the windshield and cab box and record so on the tag. No check of the parking brake was *831 required. The agent was to sign the tag, certifying the truck was customer ready.

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322 S.W.3d 821, 2010 Tex. App. LEXIS 7118, 2010 WL 3399033, Counsel Stack Legal Research, https://law.counselstack.com/opinion/u-haul-international-inc-v-waldrip-texapp-2010.