in the supreme court of florida case no. sc12 ......fort lauderdale, fl 33316 ph: (954) 525-5885 -...
TRANSCRIPT
IN THE SUPREME COURT OF FLORIDA
CASE NO. SC12-1714
Florida Bar No. 184170
NATIONWIDE MUTUAL FIRE ) INSURANCE COMPANY, a foreign ) corporation,
Petitioner, )
v. 1 1
MARK W. DARRAGH,
Respondent.
ON PETITION FOR DISCRETIONARY REVIEW FROM THE FIFTH DISTRICT COURT OF APPEAL
BRIEF OF PETITIONER ON JURISDICTION NATIONWIDE MUTUAL FIRE INSURANCE COMPANY
(With Appendix)
Law Offices of RICHARD A. SHERMAN, P.A. Richard A. Sherman, Esquire James W. Sherman, Esquire Suite 302 1777 South Andrews Avenue Fort Lauderdale, FL 33316 PH: (954) 525-5885 - Broward FAX: (954) 764-7807
and
Sonya S. Wesner, Esquire Law Offices of PATRICIA E. GARAGOZLO Lake Mary, FL
LAW OFFICES OF RICHARD A. SHERMAN, P.A.
SUITE 302 - 1777 SOUTH ANDREWS AVE. . FORT LAUDERDALE. FL 33316 * TEL (954) 525-5885
TABLE OF CONTENTS Panes
Table of Citations . . . . . . . . . . . . . . . . ii
Points on Appeal . . . . . . . . . . . . . . . . . iii
Introduction . . . . . . . . . . . . . . . . . . . iv
. . . . . . . . . . Statement of the Facts and Case 1-2
Summary of Argument . . . . . . . . . . . . . . . . 2-4
Argument :
I. THE DISTRICT COURT'S OPINION IS IN EXPRESS AND DIRECT CONFLICT WITH THYSSENKRUPP ELEVATOR CORPORATION v. LASKY, 868 So. 2d 547 (Fla. 4th DCA 2003); COOPERATIVE LEASING v. JOHNSON, 872 So. 2d 956 (Fla. 2nd DCA 2004) ; NATIONWIDE v. HARRELL, 53 So. 3d 1084 (Fla. lSt DCA 2011) ; AND DURSE v. HENN, 68 So. 3d 271 (Fla. 4th DCA
. . . . . . . . . . . . . . . . . . . . 2011) 4-8
11. THE RULING IN DARRAGH CONFLICTS WITH AIR FLORIDA, INC. v. HOBBS, 477 SO. 2D 40 (FLA. 3RD DCA 1985); AND WITH FLORIDA CASELAW HOLDING THAT ISSUES WHICH ARE INEXTRICABLY INTERTWINED SUCH AS (ECONOMIC AND NON-ECONOMIC DAMAGES IN THE PRESENT CASE) REQUIRE A NEW TRIAL ON BOTH ISSUES AND OTHER ERROR AS TO FUTURE ECONOMIC DAMAGES, SINCE THE ADMISSION OF GROSS MEDICAL BILLS LIKELY INFLATED DAMAGES AND WARRANTS A FULL NEW
. . . . . . . . . . . . . . . . . . . . TRIAL 8
Conclusion . . . . . . . . . . . . . . . . . . . . 10
Certification of Type . . . . . . . . . . . . . . . 11
Certificate of Service . . . . . . . . . . . . . . 11-12
Appendix . . . . . . . . . . . . . . . . . . . . . A1-7.
LAW OFFICES RlCHARD A. SHERMAN, P. A.
SUITE 3 0 2 , 1777 SOUTH ANDREW5 AVE., FORT LAUDERDALE, FLA. 3 3 3 1 6 .TEL. ( 9 5 4 ) 5 2 5 - 5 8 8 5
TABLE OF CITATIONS
P a s e
Air Florida, Inc. v. Hobbs, 477 So. 2d 40 (Fla. 3rd DCA 1985) . . . . . . . . . . . . . . . . Brantlev v. Hamilton, 354 So. 2d 955 (Fla. 3rd DCA 1978) . . . . . . . . . . . . . . . . Casper v. Melville Corporation, 656 So. 2d 1354 . . . . . . . . . . . . . . . . (Fla. 4th DCA 1995)
Cooperative Leasinq, Inc. v. Johnson1872 So. 2d 956 la. 2nd DCA 2004) . . . . . . . . . . . . . . . . 21 31 41 5, 6
Durse v. Henn, 68 So. 3d 271 (Fla. 4th DCA 2011) . 2, 3, 7, 8
. . . Goble v. Frohman, 901 So. 2d 830 (Fla. 2005) 2, 4, 5, 6, 7
Nationwide Mutual Fire Insurance Company v. Harrell, 53 So. 3d 1084 (Fla. lSt DCA 2011) . . . . . . . . 3, 4, 6, 7
Lindenfield v. Dorazio, 606 So. 2d 1255 (Fla. 4th DCA 1992) . . . . . . . . . . . . . . . . 9-10
Nationwide v. Harrell, 53 So. 3d 1084 (Fla. lSt DCA 2011) . . . . . . . . . . . . . . . . 2
Thvssenkrup~ Elevator Cor~oration v. Laskv, 868 So. 2d 547 (Fla. 4th DCA 2003) . . . . . . . . 2, 3, 4, 5, 6
REFERENCES
. . . . . . . . . . . . . . . . . . . . § 768.76(1)
LAW OFFICES RICHARD A. SHERMAN, P. A.
SUITE 302, 1777 S O U T H ANDREWS AVE., FORT LAUDERDALE, FLA. 33316 .TEL. (954) 525-5885
POINTS ON APPEAL
THE DISTRICT COURT'S OPINION IS IN EXPRESS AND DIRECT CONFLICT WITH THYSSENKRUPP ELEVATOR CORPORATION v. LASKY, 868 So. 2 d 547 (Fla. 4th DCA 2 0 0 3 ) ; COOPERATIVE LEASING v. JOHNSON, 872 So. 2 d 956 (Fla. 2"d DCA 2004) ; NATIONWIDE v. HARRELL, 53 So. 3 d 1084 (Fla. lSt DCA 2 0 1 1 ) ; AND DURSE v. HENN, 6 8 So. 3 d 2 7 1 (Fla. 4th DCA 2 0 1 1 ) .
THE RULING IN DARRAGH CONFLICTS WITH A x FLORIDA, INC. v. HOBBS, 477 SO. 2D 40 (FLA. 3RD DCA 1 9 8 5 ) ; AND WITH FLORIDA CASELAW HOLDING THAT ISSUES WHICH ARE INEXTRICABLY INTERTWINED SUCH AS (ECONOMIC AND NON-ECONOMIC DAMAGES IN THE PRESENT CASE) REQUIRE A NEW TRIAL ON BOTH ISSUES AND OTHER ERROR AS TO FUTURE ECONOMIC DAMAGES, SINCE THE ADMISSION OF GROSS MEDICAL BILLS LIKELY INFLATED DAMAGES AND WARRANTS A FULL NEW TRIAL.
LAW OFFICES RICHARD A. SHERMAN, P. A.
SUITE 3 0 2 , 1777 SOUTH ANDREWS AVE.. FORT LAUDERDALE, FLA. 33316 'TEL. (954) 525 - 5885
INTRODUCTION
The Petitioner/~efendant, NATIONWIDE MUTUAL FIRE
INSURANCE COMPANY, will be referred to as Nationwide
and/or Defendant.
The ~espondent/Plaintiff, MARK W. DARRAGH, will be referred
to as Darragh and/or Plaintiff.
The Record on Appeal will be designated by the letter I1R.l1
The Appendix to the Brief will be designated by the letter
I1 A . 11
All emphasis in the Brief is that of the writer, unless
otherwise indicated.
LAW OFFICES RICHARD A. SHERMAN, P. A .
SUITE 3 0 2 , 1 7 7 7 SOUTH ANDREWS AVE., FORT LAUDERDALE, FLA. 33316 'TEL. (954) 525- 5885
.. STATEMENT OF THE FACTS
The underlying facts are that the Plaintiff was injured in a
car accident, and the Defendant admitted liability and proceeded
to trial on damages. The Defendant moved in Limine to prevent
the Plaintiff from submitting the gross amount of his medical
bills, and to limit the amount of medical bills submitted to the
jury to the amount actually paid by the insurer after the
contract rates had been applied, rather than the gross amount
billed. The trial court denied this Motion and allowed the gross
amount of medical bills to be presented to the jury. The
appellate courts are crafting the proper rule of law on the
setoff issues and as a result the cases announce three separate
rules of law, and one even abrogates common law. The Opinions
also create confusion as to whether they are talking about the
evidentiary issue of the amount submitted to the jury, or the
amount of post-Verdict setoff, and whether these amounts should
be the same.
The Defendant also moved in Limine to have Jury Instruction
6.10 on reduction of future economic damages to present value
given to the jury, which the trial court also denied.
After the Verdict of $3.99 million dollars was entered in
favor of the Plaintiff, the Court of Appeal awarded a new trial
as to future economic damages only; holding that the failure to
give Jury Instruction 6.10 was reversible error; that the
Plaintiff should not have been allowed to calculate his own
retirement benefits from a website; and the Court of Appeal also
LAW OFFICES RICHARD A. SHERMAN, P. A.
SUITE 3 0 2 , 1777 SOUTH ANDREWS AVE., FORT LAUDERDALE, FLA. 33316 WTEL. (954) 525 - 5885
held that the trial court properly admitted the gross amount of
medical bills into evidence rather than the amounts actually paid
by the Defendant's insurer.
Summary of Aruument
There is express and direct conflict on the face of the
Opinion in the present case with the cases of Thyssenkrupp,
infra; Cooperative Leasinq, infra; Goble v. Frohman, infra;
Nationwide v. Harrell, infra; and Durse v. Henn, infra.
The legal situation is that the Courts of Appeal are seeking
to craft a rule of law for interpreting setoff statute
5 768.76(1) as to whether the Plaintiff should use at trial the
total amount of gross medical payments billed, or the amount
actually paid which is much smaller and often only 10% the amount
billed; and also the amount of post-Verdict setoff in different
situations; and whether the evidentiary rule is the same as the
post-Verdict setoff rule.
In the process of crafting the rule of law there are three
separate rules of law in six cases.
In fact, in the most recent case Durse, infra, the Court of
Appeal abrogated common law and apparently is the first case back
to and including common law which has held that the collateral
source rule applies when there is no insurance, and creates
express and direct conflict.
Due to the fact that this is an issue in every personal
- 2 -
LAW OFFICES RICHARD A. SHERMAN, P. A.
SUITE 3 0 2 , 1777 SOUTH ANDREWS AVE., FORT LAUDERDALE, FLA. 33316 .TEL. (954) 525 - 5885
injury case that goes to trial, and will result in substantially
different verdicts not only as to future medical expenses, but
also as to past and future non-economic damages, since it is well
known that juries use past-medical expenses as a gauge for future
medical expenses and also as to non-economic damages, it is
submitted this Honorable Court should accept jurisdiction and
determine how this set-off issue should be applied at trial.
Thvssenkru~~ and Coo~erative Leasinq, infra, hold that the
amount accepted should be used; Harrell, infra, holds that if
Medicare is involved the amount accepted should be used, but if
there is no Medicare and a private insurer pays the bills, the
gross amount billed should be used; Durse, infra, holds that the
collateral source rule applies even if there is no insurance and
if the Plaintiff himself negotiates the bills down to a smaller
amount the gross amount of the bills should be used; Goble rules
on the post-Verdict setoff amount without discussing any
different rule at trial; and Darrash which is the present case
holds that if the Plaintiff's private health insurer negotiates
the bills down the full amount is used at trial. Therefore,
there are three separate rules of law in five cases.
Further, the Opinion is in express and direct conflict with
the case of Air Florida v. Hobbs, 477 So. 2d 40 (Fla. 3rd DCA
1985), which holds that when the issues of liability and damages
are intertwined the new trial should be on all issues. In the
present case, the total Verdict was $3.99 million and a new trial
was granted on all future economic damages. The amount of future
LAW OFFICES RICHARD A. SHERMAN, P.A.
SUITE 3 0 2 , 1777 SOUTH ANDREWS AVE., FORT LAUDERDALE, FLA. 33316 'TEL. (954) 525 - 5885
medical expenses and future lost wages is intertwined with future
non-economic damages, since it is well-known that juries use
medical expenses as a gauge to non-economic damages, so the new
trial should be on all issues.
ARGUMENT
I. THE DISTRICT COURT'S OPINION IS IN EXPRESS AND DIRECT CONFLICT WITH THYSSENKRUPP ELEVATOR CORPORATION v. LASKY, 868 So. 2d 547 (Fla. 4th DCA 2003) ; COOPERATIVE LEASING V. JOHNSON, 872 So. 2d 956 (Fla. 2nd DCA 2004); NATIONWIDE v. HARRELL, 53 So. 3d 1084 (Fla. lSt DCA 2011); AND DURSE v. HENN. 68 So. 3d 271 (Fla. 4th DCA 2011) .
Express and direct conflict exists on the face of the
Opinion in the present case with the cases of Thvssenkru~p,
supra; Cooverative Leasinq, supra; Nationwide v. Harrell, supra;
and Durse v. Henn, supra. Section 768.76(1) provides:
"In any action to which this part applies . . . the court shall reduce the amount of such award by the total of all amounts which have been paid for the benefit of the claimant . . . from all collateral sources; however, there shall be no reduction for collateral sources for which a subrogation reimbursement or right exists."
The issue of the proper amount of medical bills to be
submitted to the jury was first addressed in Thvssenkrup~
Elevator Corporation v. Laskv, 868 So. 2d 547 (Fla. 4th DCA
2003), in which it was held that when a provider charges for
medical services, but accepts an amount less than the amount
billed in full satisfaction, only the amount accepted as payment
LAW OFFICES RICHARD A. SHERMAN, P. A.
SUITE 302. 1777 SOUTH ANDREWS AVE., FORT LAUDERDALE, FLA. 33316 *TEL. (954) 525 - 5885
should be admitted into evidence. The main opinion appeared to
be making a ruling regarding the amount of the post-Verdict
setoff, but on Rehearing the Court stated it was only making an
"evidentiary ruling," and not a ruling as to the amount of the
setoff, and the setoff rule might be different.
After Thvssenkru~~, the Second District adopted the
Thvssenkru~~ rule in Coo~erative Leasinq. Inc. v. Johnson,872 So.
2d 956 (Fla. 2nd DCA 2004), and also held that the appropriate
measure of damages for past medical expenses was the amount
actually paid and accepted as full payment, not the amount
initially billed. The opinion concluded that since only the
written-down amount could be recovered, only the written-down
amount should be presented to the jury.
While both Thvssenkrup~ and Coo~erative Leasinq involved
Medicare, nothing in the opinions state that the holding is
restricted to Medicare cases.
The next case was the Supreme Court case of Goble v.
Frohman, 901 So. 2d 830 (Fla. 2005), which yielded three separate
Opinions from the Supreme Court. This was reviewed on a
Certified Question as to whether it was appropriate to provide a
post-trial setoff for the written down amount when private
insurance is involved, and this Honorable Court held that a party
is not entitled to a windfall for the difference between the
amount billed and the amount actually accepted in full
satisfaction of the payment, so that a full post-Verdict setoff
LAW OFFICES RICHARD A. SHERMAN, P. A.
SUITE 3 0 2 , 1777 SOUTH ANDREWS AVE., FORT LAUDERDALE, FLA. 33316 .TEL. (954) 525- 5885
was appropriate.
It should first be noted that no issue was presented nor
discussed by the Supreme Court as to the amount submitted to the
jury. However, it would seem that the amount submitted to the
jury should be the same amount as the amount of setoff, which is
what Cooperative Leasinq, supra, held.
In a specially concurring opinion, Justice Bell wrote that
the proper amount of compensatory damages is limited to the
actual damages sustained by the aggrieved party, indicating that
the only relevant amount is the written down amount and not the
gross amount:
. . .The amount of the full (prediscount) bill that was written off pursuant to the contractual agreement between Goblels HMO and Goblets medical-services provider was an amount that Goble never was obligated to pay. This amount, therefore, does not represent Goblefs actual damages. To allow for the recovery of this full amount, under the guise of "compensatory damages," would allow for the recovery of what the district court aptly described as "phantom damages ." Goble v. Frohman, 848 So.2d 406, 410 (Fla. 2nd DCA 2003) .
It has long been established as a fundamental principle of Florida law that the measure of compensatory damages in a tort case is limited to the actual damages sustained by the aggrieved party (Emphasis added) .
Frohman, 833-834.
The next case was Nationwide Mutual Fire Insurance Company
v. Harrell, 53 So. 3d 1084 (Fla. lst DCA 2011) which limited the
rules in Thvssenkru~~, supra, and Cooperative Leasinq, supra, and
LAW OFFICES RICHARD A. SHERMAN, P. A .
SUITE 3 0 2 . 1777 SOUTH ANDREWS AVE., FORT LAUDERDALE, FLA. 33316 .TILL. (954) 525 - 5885
specifically created an exception for Medicare, and held that the
amount accepted was only used when there was Medicare, but if
there was no Medicare the plaintiff is entitled to submit the
gross amount of damages to the jury.
It should be recalled that the Supreme Court in Goble only
answered the certified question as to the post-Verdict setoff and
did not comment on the evidentiary issue, that the Harrell
opinion took this as a holding that the gross amount should be
submitted to the jury.
In the present case, Darraqh, the Fifth District appears to
have adopted the First District's holding:
. . . We find no error in the trial court's decision to allow testimony of the full amount of Darragh's past medical bills pursuant to section 768.76, Florida Statute (2009) and Goble v. Frohman, 901 So.2d 830 (Fla.2005). The trial court properly treated the lesser amount negotiated for payment by Darragh's private health insurer as a collateral source set-off to be made by the judge after trial. See Nationwide Mut. Fire Ins. Co. v. Harrell, 53 So.3d 1084 (Fla. lSt DCA 2010).
Darraqh, 1.
Finally, in Durse, supra, the Fourth District created a
collateral source rule which is in express and direct conflict
with every case from common law to the present by applying the
collateral source rule when there is no insurance. Durse
exacerbated the confusion by holding that if a plaintiff is
uninsured, but negotiates down the medical bills himself, he is
LAW OFFICES RICHARD A. SHERMAN, P. A.
SUITE 3 0 2 . 1777 SOUTH ANDREWS AVE., FORT LAUDERDALE, FLA. 33316 .TEL. (954) 525 - 5885
entitled to present the gross amount of the bills into evidence:
Here, Dursels medical bills were reduced by the medical providers Durse received treatment from as a result of the injuries he sustained in the accident. Unlike the appellees in Thyssenkrupp and Nationwide, Durse did not have health insurance. Although Durse did not pay the premiums for his health insurance, like the appellee in Nationwide (because he had no health insurance), by negotiating a lower amount, Durse "earned in some way," within the meaning of Nationwide, the lowered final amount of his medical bills. The trial court erred by excluding the medical bills showing the full amount of the charges.
Durse, 277.
Three different rules exist concerning the rules of law to
which amount of medical bills should be presented at trial. In
view of the express and direct conflict and confusion in the law,
and since this arises in every personal injury trial, this
Honorable Court should accept jurisdiction.
11. THE RULING IN DARRAGH CONFLICTS WITH AIR FLORIDA, INC. v. HOBBS, 477 SO. 2D 40 (FLA. 3RD DCA 1985); AND WITH FLORIDA CASELAW HOLDING THAT ISSUES WHICH ARE INEXTRICABLY INTERTWINED SUCH AS (ECONOMIC AND NON-ECONOMIC DAMAGES IN THE PRESENT CASE) REQUIRE A NEW TRIAL ON BOTH ISSUES AND OTHER ERROR AS TO FUTURE ECONOMIC DAMAGES, SINCE THE ADMISSION OF GROSS MEDICAL BILLS LIKELY INFLATED DAMAGES AND WARRANTS A FULL NEW TRIAL.
Below, this Petitioner argued that because there is to be a
new trial on future economic damages, and because a jury relied
upon the inflated past medical bills and inflated future medical
expenses, and these are used by juries in formulating pain and
LAW OFFICES RICHARD A. SHERMAN, P.A.
SUITE 3 0 2 . 1777 SOUTH ANDREWS AVE., FORT LAUDERDALE. FLA. 3 3 3 1 6 .TEL. (954) 525 - 5885
suffering awards, the issues of future economic and non-economic
damages are so intertwined that a new trial was required on non-
economic damages as well.
The Court of Appeal disagreed and granted a new trial solely
on future economic damages. The Court of Appeal failed to
appreciate that the issues were inextricably intertwined.
Numerous cases in Florida have held that where issues are
inexplicably intertwined they require a retrial on all issues.
The case of Air Florida, Inc. v. Hobbs, 477 So. 2d 40 (Fla.
3rd DCA 1985) also holds that where several aspects of damages
are inextricably intertwined, the new trial should be on all
elements of damages:
Because the specific jury awards are not predicated on any apparent record support and because the issues of loss of support, loss of services, and other intangible damages, and the issue of loss of net accumulations are inextricably intertwined, see Equitable Life Assurance Society v. Fairbanks, 400 So. 2d 550 (Fla. 4th DCA 1981) ; Lawson v. Swirn, 258 So. 2d 458 (Fla. lSt DCA), cert. denied, 263 So. 2d 235 (Fla. 1972), the only way in which damages can appropriately be assessed is by a new trial on both damage elements. See Brantley v. Hamilton, 354 So. 2d 955 (Fla. 3d DCA 1978) .
Hobbs, 42.
See also Brantlev v. Hamilton, 354 So. 2d 955 (Fla. 3rd DCA
1978)(Holding that the excessiveness of a wrongful death award
required reversal where the only way to properly assess the
damages was to conduct a new trial on all elements of damages);
see also Lindenfield v. Dorazio, 606 So. 2d 1255 (Fla. 4th DCA
LAW OFFICES RICHARD A. SHERMAN, P. A.
SUITE 3 0 2 , 1777 SOUTH ANDREWS AVE., FORT LAUDERDALE, FLA. 3 3 3 1 6 'TEL. (954) 525 - 5885
1992); and Cas~er v. Melville Cor~oration, 656 So. 2d 1354 (Fla.
4th DCA 1995) . Since past and future medical damages are intertwined with
non-economic damages, and since there is to be a new trial
regardless as to future economic damages, and future non-economic
damages are intertwined with this, there should be a new trial on
all issues.
CONCLUSION
The decision is the present case is in express and direct
conflict with the cases cited in the Summary of Argument, and
this Honorable Court should accept jurisdiction.
Law Offices of RICHARD A. SHERMAN, P.A. Richard A. Sherman, Esquire James W. Sherman, Esquire Suite 302 1777 South Andrews Avenue Fort Lauderdale, FL 33316 PH: (954) 525-5885 - Broward FAX: (954) 764-7807
and
Sonya S. Wesner, Esquire Law Offices of PATRICIA E. GARAGOZLO Lake Mary, FL
LAW OFFICES RICHARD A. SHERMAN, P.A.
SUITE 3 0 2 , 1777 SOUTH ANDREW5 AVE., FORT LAUDERDALE, FLA. 33316 . TEL. (954) 525 - 5885
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy of the
foregoing was mailed this 29th day of Ausust , 2012 to:
Sonya S. Wesner, Esquire Law Offices of PATRICIA E. GARAGOZLO 200 E. Robinson Street Suite 510 Orlando, FL 32801
Jeffrey M. Byrd, Esquire 2620 East Robinson Street Orlando, FL 32803
CERTIFICATION OF TYPE
It is hereby certified that the size and type used in this
Brief is 12 point Courier, a font that is not proportionately
spaced.
CERTIFICATE OF EMAIL TO COURT
It is hereby certified that a copy of the Brief has been
emailed to the Court.
LAW OFFICES RICHARD A. SHERMAN, P. A.
SUITE 3 0 2 , 1777 SOUTH ANDREWS AVE., FORT LAUDERDALE, FLA. 33316 OTEL. ( 9 5 4 ) 525 - 5 8 8 5
Law Offices of RICHARD A. SHERMAN, P.A. Richard A. Sherman, Esquire James W. Sherman, Esquire Suite 302 1777 South Andrews Avenue Fort Lauderdale, FL 33316 PH: (954) 525-5885 - Broward FAX: (954) 764-7807
and
Sonya S. Wesner, Esquire Law Offices of PATRICIA E. GARAGOZLO Lake Mary, FL
LAW OFFICES RICHARD A. SHERMAN, P. A.
SUITE 3 0 2 . 1777 SOUTH ANDREWS AVE., FORT LAUDERDALE, FLA. 33316 STEL. (954) 525 - 5885
INDEX TO PETITIONER'S APPENDIX
Opinion of F i f t h D i s t r i c t Court of Appeal, dated June 8 , 2012
LAW OFFICES RICHARD A. SHERMAN, P.A.
SUITE 3 0 2 , 1777 SOUTH ANDREWS AVE., FORT LAUDERDALE, FLA. 33316 .TEL. (954) 525 - 5885
Pases
A 1-7
IN THE DISTRICT COURT OF APPEAL OF THE STATE OF FLORIDA FIFTH DISTRICT JANUARY TERM 2012
NATIONWIDE MUTUAL FIRE INSURANCE COMPANY,
Appellant,
v.
MARK W, DARRAGH,
Appellee.
Case No. 5D10-3188
Opinion filed June 8, 2012
Appeal from the Circuit Court for Seminole County, Michael J. Rudisill, Judge.
Richard A. Sherman, Sr., of Richard A. Sherman, P.A., Fort Lauderdale and Sonya S. Wesner, of the Law Ofice of Patricia E. Garagozlo, Orlando, for Appellant.
Jeffrey M. Byrd, of Jeffrey M. Byrd, P.A., Orlando, for Appellee.
LAWSON, J.
Nationwide Mutual Fire Insurance Company appeals from a final judgment
entered following a $3.99 million jury verdict entered in favor of Nationwide's insured,
Mark W. Darragh. Nationwide provided uninsured motorist coverage in the amount of
$200,000 to Darragh. We agree with Nationwide that the trial court erred in refusing to
instruct the jury to reduce future economic damages to present value in rendering its
verdict. See Dupuis v. Heider, 152 So. 659, 686 (Fla. 1934); Florida East Coast Ry. Co.
v. Young, 140 So. 467 (1932); Florida East Coast Ry. Co. v. Lassiter, 50 So. 428
(1909). Milton v. Reyes, 22 So. 3d 624, 624-25 (Fla. 3d DCA 2009); Howell v. Woods,
489 So. 2d 154, 155 (Fla. 4th DCA 1986); Seaboard Coast Line R.R. Co. v. Burdi, 427
So. 2d 1048, 1050 (Fla. 3d DCA 1983); Seaboard Coast Line R. R. Co. v. Garrison, 336
So. 2d 423, 425 (Fla. 2d DCA 1976); Norman v. Mullin, 249 So. 2d 733, 734 (Fla. 2d
DCA 1971).' Accordingly, we reverse the portion of the verdict awarding future
economic damages, and remand for a new trial as to future economic damages only.
See, e.g., Milton, 22 So. 3d at 625. We find no error in the trial court's decision to allow
testimony of the full amount of Darragh's past medical bills pursuant to section 768.76,
' At trial, Nationwide requested that the jury be instructed as to this issue using Standard Jury Instruction 6.10. The trial court declined to give the instruction after hearing argument from Darragh's counsel, who believed that the case law requiring a trial court to instruct the jury to reduce future economic damages to present value had been superceded by an amendment to section 768.77, Florida Statutes, in 1999. See Ch. 99-225, $7, Laws of Fla. Contrary to Darragh's argument, the requirement that a jury be instructed, upon request, to reduce future economic damages to their present value was a common law requirement that pre-dated the enactment of section 768.77, Florida Statutes, by many decades -- as can be seen from the cases cited above dating back to 1909. Section 768.77(1) was originally enacted as part of the Tort Reform Act of 1986, see Ch. 86-160, $ 56, Laws of Fla., and required the trier of fact in negligence actions to itemize its verdict into economic losses, noneconomic losses and punitive damages. Subsection two required further itemization between past and future losses, and required future economic losses to be "computed [on the verdict form itself] before and after reduction to present value." Id. The 1999 amendment simply removed the requirement for an itemized verdict form reflecting the present value calculation. Ch. 99-225, $7, Laws of Fla. Contrary to Darragh's argument, the legislature's decision to remove the requirement that a jury detail its present value calculation on an itemized verdict form cannot be read as abrogating the longstanding common law requirement that a jury be instructed to reduce future economic damages to present value. See, e.g., Essex Ins. Co. v. Zota, 985 So. 2d 1036, 1048 (Fla. 2008) ("A statute . . . designed to change the common law rule must speak in clear, unequivocal terms, for the presumption is that no change in the common law is intended unless the statute is explicit in this regard.") (quoting Carlile v. Game & Fresh Water Fish Comm'n, 354 So. 2d 362,364 (Fla. 1977)).
Florida Statutes (2009) and Goble v. Frohman, 901 So. 2d 830 (Fla. 2005). The trial
court properly treated the lesser amount negotiated for payment by Darragh's private
health insurer as a collateral source set-off to be made by ,the judge after trial. See
Nationwide Mut. Fire Ins. Co. v. Harrell, 53 So. 3d 1084 (Fla. 1st DCA 2010).
For the benefit of the parties and the trial court on retrial, we address one other
evidentiary issue relating to Darragh's future economic damages claim. Over
Nationwide's many and various objections, Darragh was allowed to personally testify as
to the value of future pension benefits that he claims to have lost from the United States
military as a result of injuries sustained in the underlying automobile accident. It
appears that Darragh based this testimony exclusively on information he gleaned from
websites maintained by the United States government. Copies of pages from these
websites were also introduced into evidence over Nationwide's objections. We agree
with Nationwide that the trial court erred in permitting this testimony and admitting
printed copies of the website pages into evidence, on this record.
The website materials attempt to simplify and explain in lay terms how one can
estimate the amount of future potential military retirement benefits, with the following
cautions:
These results are based on your assumptions. The future will differ from these assumptions and actual results will differ correspondingly. Remember these results are not guaranteed; they are merely estimates. This point cannot be emphasized too heavily -- there is no guarantee that the assumptions will all prove correct. This is why you should "play" with the assumptions.
The intent of this analysis is to help you to make a fairly simple and direct estimate of the financial flow resulting from your retirement and be able to investigate some of the factors that influence the result.
Nationwide's objections to the admission of these documents at trial included a hearsay
objection and an objection that the documents had not been properly authenticated.
Darragh countered the hearsay objection by arguing that the website pages fell within
the hearsay exception for public records and reports in section 90.803(8), Florida
Statutes, but made no attempt to authenticate them as such. See, e.g., Jacksonville
Elec. Auth. v. DepY of Rev., 486 So. 2d 1350, 1354 (Fla. 1 st DCA 1986) ("Public
records and reports are admissible as an exception to the hearsay rule, section
90.803(8), provided they are authenticated, section 90.901, by a custodian, sections
90.902(4) and 90.955."); see also St. Lukes Cataract and Laser Inst., P.A. v.
Sanderson, 2006 WL 1320242 (M.D. Fla. Nov. 4, 2006) ("Web-sites are not self-
authenticating. To authenticate printouts from a website, the party proffering the
evidence must produce 'some statement or affidavit from someone with knowledge [of
the website] . . . for example [a] web master or someone else with personal knowledge
would be sufficient.'") (citations omitted). Darragh's argument below and on appeal also
fails to recognize that section 90.803(8) limits admissibility of public records to those
"setting forth the activities of the office or agency, or matters observed pursuant to duty
imposed by law as to matters which there was a duty to report . . . ." The government
website printouts admitted below do not simply set forth the activities of a government
agency or matters observed pursuant to a duty to report. Cf. Sikes v. Seaboard Coast
Line R.R. Co., 429 So. 2d 1216 (Fla. 1st DCA 1983) (finding Florida Driver's Handbook
did not fall under either category of public record admissible under section 90.803(8)).
Accordingly, the trial court erred in admittirlg these website printouts under the public
records exception.
Darragh alternatively argues that the government website information was
admissible under section 90.202(12), which allows a court to take judicial notice of facts
"that are not subject to dispute because they are capable of accurate and ready
determination by resort to sources whose accuracy cannot be questioned[.]" We agree
that some of the factual tables copied from the website would qualify for judicial notice
under section 90.202(12). However, to rule the basic attempt to explain and simplify
into lay terms the assumptions and calculations necessary to estimate future potential
retirement benefits admissible pursuant to section 90.202(12) would be inconsistent
with the principles underlying our jury system. As explained in Maradie v. Maradie, 680
So. 2d 538 (Fla. 1 st DCA 1996).
In our justice system, the practice of taking judicial notice of adjudicative facts should be exercised with great caution. This caution arises from our belief that the taking of evidence, subject to established safeguards, is the best way to resolve disputes concerning adjudicative facts. When a matter is judicially noticed "it is taken as true without the necessity of offering evidence by the party who should ordinarily have done so." Thus, historically, "judicial notice applies to self-evident truths that no reasonable person could question, truisms that approach platitudes or banalities."
Id. at 541 (internal citations omitted) (quoting Makos v. Prince, 64 So. 2d 670, 673 (Fla.
1953) and Hardy v. Johns-Manville Sales Corp., 681 F.2d 334, 347-48 (5th Cir. 1982)).
In short, if this authoritative source can be admitted into evidence simply because the
trial court can readily verify that it is an authoritative source, the same rule should apply
to other authoritative sources. It does not. Rather, under our evidence code
"[sltatements of facts or opinions on a subject of. . . specialized knowledge contained in
a published treatise . . . or other [authoritative] writing may [only] be used in cross-
examination of an expert witness . . . ." § 90.706, Fla. Stat. (2010). "Section 90.706
does not permit statements in a learned treatise to be used as substantive evidence
since the treatise would be hearsay if offered as substantive evidence." Donshik v.
Sherman, 861 So.2d 53, 56 (Fla. 3d DCA 2003). "This is so because 'the opposing
;,arty cannot cross-examine and impeach the source of the hearsay."' Duss v. Garcia,
80 So. 3d 358, 364 (Fla. 1st DCA 2012) (quoting In re S.E., 946 So.2d 620, 622 (Fla. 2d
DCA 2007)). This was one of the primary arguments that Nationwide made to the trial
court, and repeated on appeal -- that by admitting the website information into evidence
and allowing Darragh to testify from it, Nationwide had no way to test the methods,
assumptions and underlying explanations for Darragh's ultimate conclusions. On this
record, we agree.
Finally, Darragh alternatively argues that his testimony on this issue was based
upon formulas easily gleaned from federal statutes, and that the trial court properly took
judicial notice of these statutes. Clearly, a trial court is authorized to take judicial notice
of a federal statute. See 5 90.201(1), Fla. Stat. (2009). The problem here is that we
cannot find the information forming the basis of Darragh's testimony in any of the
statutes Darragh cites. Although Darragh's counsel argued that the website information
mirrored federal law, he did not provide copies of the statutes themselves -- only
citations. And, the information is simply not readily apparent from the cited statutes. If,
on remand, Darragh can locate a statute that plainly lays out a mathematical formula for
calculation of his claimed retirement benefit, we would agree that Darragh could "plug
the numbers" into that formula without the aid of an expert witness -- thus providing a
basis for the jury's consideration of this element of future economic damages. But, on
this record, we agree with Nationwide that simply admitting the website pages, and
allowing Darragh to testify from them, was improper.
As to all other issues, we affirm the jury's verdict and the trial court's final
judgment.
AFFIRMED IN PART; REVERSED IN PART AND REMANDED.
COHEN and JACOBUS, JJ., concur.