Case Title: DEWITZ BY NUESTEL v. Emery

Citation: 508 N.W.2d 334

Docket Number: 930096

State: north-dakota

Court: North Dakota Supreme Court

Date: 1993-11-10T00:00:00Z

Document:
508 N.W.2d 334 (1993) Jon DEWITZ, by his Guardian Ad Litem Kent NUESTEL, Richard Dewitz and Lynn Dewitz, Plaintiffs and Appellees, v. Regina EMERY, Defendant and Appellant. Civ. No. 930096. Supreme Court of North Dakota. November 10, 1993. *335 A. William Lucas of Lucas Law Office, Bismarck, for defendant and appellant. David L. Peterson of Wheeler Wolf, Bismarck, for plaintiffs and appellees. SANDSTROM, Justice. Regina Emery appeals from a judgment against her in favor of the plaintiffs, Jon Dewitz, and his parents Richard and Lynn Dewitz. We affirm, holding: (1) The record does not support Emery's claims of judicial bias; (2) The district court's decision to exclude evidence of Jon Dewitz's failure to obtain a motorcycle license was not prejudicial error; (3) The district court's exclusion of one of Emery's expert witnesses was not an abuse of discretion; and (4) The district court did not err in refusing to reduce the verdict under the collateral source reduction provisions of N.D.C.C. § 32-03.2-06. Jon Dewitz and his parents sued Regina Emery following a September 18, 1989, accident involving Emery's car and Dewitz's motorcycle. At the time of the accident, Dewitz was fifteen years old. The accident occurred as Dewitz was driving north on the Tappen exit overpass of I-94 and Emery was exiting I-94. The case was twice tried to a jury, with District Judge William F. Hodny presiding over both trials. At the end of the first trial, the jury found Dewitz 60 percent negligent and Emery 40 percent negligent. Dewitz and his parents moved for a new trial. The trial court granted the motion, concluding: Prior to the second trial, Emery requested Judge Hodny recuse himself. The judge refused. In response, Emery petitioned this Court for a supervisory writ. We denied the petition. The second trial resulted in a jury verdict finding Dewitz 30 percent negligent, and Emery 70 percent negligent. The jury awarded the plaintiffs $165,804 in damages, which resulted in a damage judgment of $116,062.80. Emery moved for a new trial under Rule 59(b), N.D.R.Civ.P., claiming irregularity in the proceedings of the court, and error in law. The motion for a new trial was denied and this appeal followed. Emery claims the trial court was biased against her, denying her a fair trial. In support of her position, Emery cites several statements made by the judge. We have reviewed Emery's examples, along with the complete transcript of the proceedings. Only two of the judge's comments merit discussion. At both the first and second trial, Emery was represented by A. William Lucas. At the second trial, Dewitz was represented by David L. Peterson. During Lucas's cross-examination of Dewitz, the following exchange took place between Lucas and Dewitz: Similarly, during Lucas's direct-examination of Regina Emery, the following exchange occurred. A trial judge appropriately may admonish attorneys when they stray into improper areas and use improper questioning techniques. Admonishment that could influence *337 the jury in its consideration of the case should take place out of the jury's hearing. As we explained in Haugen v. Mid-State Aviation, Inc., 144 N.W.2d 692, 696 (N.D.1966): If a party does not object to the trial court's allegedly prejudicial remarks, the party waives the issue of error and cannot later complain. Kern v. Art Schimkat Construction Co., 125 N.W.2d 149, 154 (N.D.1963); Gleson v. Thompson, 154 N.W.2d 780, 785 (N.D.1967); Sabot v. Fargo Women's Health Organization, Inc., 500 N.W.2d 889, 894 (N.D.1993). Although Lucas mentioned in chambers he disagreed with the court's conclusion that he was misrepresenting evidence, Lucas never objected to specific comments and cannot now claim reversible error. Further, the record indicates the court, on its own initiative, added the following additional cautionary instruction at the close of the trial: Considering the record as a whole, Emery has failed to substantiate her claim of judicial bias. Emery challenges the trial court's decision to exclude from evidence Dewitz's lack of a valid motorcycle license at the time of the accident. At the first trial, Emery was allowed to introduce into evidence, over Dewitz's objection, Dewitz's lack of a valid motorcycle license at the time of the accident. In its memorandum decision granting Dewitz's motion for a new trial, the court concluded that allowing Emery to introduce evidence of Dewitz's failure to have a license was prejudicial error, and at the next trial, such evidence would be excluded under Rule 403, N.D.R.Ev. Before the second trial, Dewitz made a motion in limine to exclude all reference to his license status. The court granted the motion, concluding Dewitz's lack of a motorcycle license was evidence of general negligence, which was not admissible to prove Dewitz was negligent at the time of the accident. Emery contends the trial court's decision "doomed her from the beginning." Under Rule 402, N.D.R.Ev., "[a]ll relevant evidence is admissible, except as otherwise provided...." Relevant evidence is "evidence having any tendency to make the existence of any fact that is of consequence *338 to the determination of the action more probable or less probable than it would be without the evidence." Rule 401, N.D.R.Ev. Relevant evidence may be excluded if its "probative value is substantially outweighed by the danger of unfair prejudice, confusion of the issues, or misleading the jury, ..." Rule 403, N.D.R.Ev. As we explained in State v. Huwe, 413 N.W.2d 350 (N.D.1987), "[w]hether evidence is too remote to be relevant and whether the probative value of such evidence is outweighed by the risk of unfair prejudice are questions for the trial court to resolve in the exercise of its sound discretion." Huwe at 352. We will not disturb the trial court's exercise of discretion, unless there has been an abuse of discretion which affected substantial rights of the parties. Swiontek v. Ryder Truck Rental, Inc., 432 N.W.2d 893, 896 (N.D.1988); see also Rule 103(a), N.D.R.Ev., ["Error may not be predicated upon a ruling which admits or excludes evidence unless a substantial right of the party is affected, ..."]. Emery's defense was Dewitz could have avoided the accident if he had correctly operated his motorcycle. According to this theory, Dewitz did not correctly operate his motorcycle because he had not been properly trained to safely drive a motorcycle. In an effort to prove her case, Emery questioned Dewitz on his motorcycle training and experience, and on the actions he took to avoid the accident. Additionally, Emery offered expert testimony on proper motorcycle operation, and on the skills Dewitz would have been taught if he had taken the mandatory motorcycle safety course. Whether or not Dewitz competently operated his motorcycle was a question of fact for the jury to resolve. The jury was given considerable evidence as to Dewitz's competence to operate a motorcycle, and whether or not he was competently operating the motorcycle at the time of the accident. Because Emery was allowed to introduce considerable evidence as to Dewitz's actual competence, including that Dewitz had not completed the mandatory safety course, we conclude the trial court's exclusion of Dewitz's license status did not affect Emery's substantial rights, nor was it an abuse of discretion. Emery claims the trial court committed reversible error when, as a discovery violation sanction, it excluded her expert, Charles Coons, from testifying at trial. We conclude the trial court did not abuse its discretion by excluding Coons. On May 19, 1992, in preparation for the second trial, the plaintiffs served "Request to Supplement Interrogatory Answers" on Emery. On July 2, 1992, plaintiffs' counsel sent a letter to Emery's counsel reminding him of the request for supplemental interrogatory answers. The letter said the answers were ten days overdue. On July 7, 1992, Emery's counsel responded by letter acknowledging receipt of the request for supplementation, and added: On November 4, 1992, 39 days before trial, Emery served Dewitz with "Defendant's Supplemental Answers to Interrogatories and Requests to Defendant, Set No. 1 and Supplemental Disclosure of Expert Witnesses and Expert Witness Opinions." The supplemental disclosure indicated for the first time that Emery intended to call Charles W. Coons as an additional expert witness. The disclosure provided, in part: The disclosure then listed the same 25 items listed for Emery's other two expert witnesses. *339 Dewitz moved to exclude Coons from testifying, arguing the disclosure was not timely, Coons' testimony would be cumulative, and Coons' opinions had not been fully disclosed because Coons' opinions had not been fully developed. The trial court granted the motion and excluded Coons from testifying at the second trial. The court explained: Emery was under a duty to disclose Coons' opinions. Under Rule 26(e), N.D.R.Civ.P.: Rule 26(c) does not establish a fixed time prior to trial within which interrogatories must be supplemented so as to be seasonable. The determination as to seasonableness is necessarily a case by case determination, within the sound discretion of the trial judge. To be seasonable, however, the supplemental response must be made a reasonable time before trial taking into account the purpose of the rule which is the elimination of surprise at trial. See Hudson v. Parvin, 582 So. 2d 403, 412 (Miss.1991); Olson v. A.W. Chesterton Co., 256 N.W.2d 530, 539 (N.D.1977). No sanction is specified under Rule 37, N.D.R.Civ.P., for a party's failure to adequately supplement interrogatories. A trial court, however, has discretionary authority to determine an appropriate sanction for a party's failure to supplement interrogatories: Benedict v. St. Luke's Hospitals, 365 N.W.2d 499, 504 (N.D.1985) (quoting Wright & Miller, Federal Practice and Procedure: Civil § 2050, pp. 325-26 (1970)). See Rule 11.5, N.D.R.O.C. A court abuses its discretion when it acts in an arbitrary, unreasonable, or unconscionable manner. Dakota Bank & Trust Co. of Fargo v. Brakke, 377 N.W.2d 553, 555 (N.D.1985). Before an aggrieved party can challenge the propriety of a discovery sanction which excludes evidence, the party must have made an offer of proof, demonstrating prejudice from the court's refusal to allow the evidence. Wagner v. Peterson, 430 N.W.2d 331, 332 (N.D.1988); Rule 103(a)(2), N.D.R.Ev. Here, Emery made no offer of proof as to the facts Coons would testify to, or how Coons' testimony would be different from the other two expert defense witnesses. Emery did, however, say Coons was an engineer, and at the first trial Dewitz had argued to the jury his expert was an engineer, and Emery's were not. The record does not support finding the trial court abused its discretion in excluding Coons' testimony. Trial judges are given wide discretion to determine appropriate *340 sanctions. Although exclusion of a witness is a drastic measure, we cannot say it was unwarranted in this case. The court acted reasonably in concluding the disclosure was not "seasonable," and in concluding the disclosure was not complete. Emery's case was not clearly and materially prejudiced by the court's exclusion of Coons. Emery was able to present two expert witnesses to the jury. We are not convinced the outcome of the trial would have been different if Emery had introduced the same expert testimony through Coons. Emery contends the trial court erred in not reducing the jury award for "collateral source payments" under N.D.C.C. § 32-03.2-06. N.D.C.C. § 32-03.2-06, provides: Emery's first two claims concern benefits received by the Dewitz family through their health insurance contract with Blue Cross Blue Shield. Emery argues the jury award should be reduced by $54,076.29, the amount paid to Dewitz and his parents by Blue Cross Blue Shield. Emery contends the exception in the statute for insurance benefits purchased "by the party recovering economic damages" does not apply because Dewitz did not pay for the insurance. In the alternative, Emery claims the jury verdict should be reduced by $4,842.15, to take into account the "service benefit" agreement Blue Cross Blue Shield has with the Dewitzes' health care providers. Under the agreement, the health care providers agree to charge Blue Cross Blue Shield a reduced amount for services performed for persons covered under a Blue Cross policy. The legislative history of N.D.C.C. § 32-03.2-06 indicates the personal insurance exception was included in the statute to encourage people to secure personal insurance. See House Judiciary Committee, Report of Tort Reform Subcommittee, HB 1571, February 16, 1987, p. 3. Based on this legislative history, we conclude the personal insurance exception in N.D.C.C. § 32-03.2-06 includes insurance purchased for a minor by a parent. Richard and Lynn Dewitz were responsible for providing medical care to their son during his minority. Additionally, because of their son's minority, Richard and Lynn Dewitz were named parties in this lawsuit. Because we believe the legislature did not intend to penalize parents for buying health insurance for their children, to benefit negligent defendants, we hold the Dewitzes' insurance contract with Blue Cross Blue Shield falls within the personal insurance exception of N.D.C.C. § 32-03.2-06. We also conclude, to the extent the Dewitz family benefited from the service benefit agreement between Blue Cross Blue Shield and health care providers, the benefit is traceable to Dewitzes' insurance policy. Therefore, the benefit is properly included in the personal insurance exception of § 32-03.2-06. Finally, Emery contends the jury award should be reduced by $1,500, the amount given to Dewitz, and his parents, by the Aid Association for Lutherans. Because the money received from the Aid Association for Lutherans was given as a gift, we hold it is not included in the statutory definition of "collateral source payment." Prior to the passage of § 32-03.2-06, North Dakota followed the common law rule on collateral source payments. Under the common law rule, a negligent defendant was held responsible for the plaintiff's damages and could not take advantage of the fact the injured party received assistance or compensation from independent sources. Ostmo v. *341 Tennyson, 70 N.D. 558, 565, 296 N.W. 541, 545 (1941); Nelson v. Trinity Medical Center, 419 N.W.2d 886, 893 (N.D.1988). Under this rule, gifts, such as the money received by the Dewitzes from the Aid Association for Lutherans, were treated no differently than other collateral source payments. See Ostmo 70 N.D. at 565, 296 N.W. at 543; Van Waters & Rogers, Inc., v. Keelan, 840 P.2d 1070, 1075 (Colo.1992). We believe the legislature did not change the common law rule as to charitable gifts when it passed N.D.C.C. § 32-03.2-06. The legislative history of N.D.C.C. § 32-03.2-06 indicates the legislature's intent, as part of tort reform, was to change the collateral source rule to eliminate double recovery from sources such as Workers Compensation and Social Security. See House Judiciary Committee, Report of Tort Reform Subcommittee, HB 1571, February 10, 1987, p. 4. The legislative history does not mention charitable gifts. We hold, for the purposes of N.D.C.C. § 32-03.2-06, a charitable gift is not a sum "paid or to be paid to cover an economic loss." Unlike insurance proceeds which are paid on account of a legal obligation triggered by economic loss, charitable gifts are given out of love and a sense of community. We conclude the legislature did not intend to treat charitable gifts as a "collateral source." Such gifts are intended to compensate families for expenses which have not and cannot be paid from any other source. The judgment of the trial court is affirmed. VANDE WALLE, C.J., and SANDSTROM, NEUMANN, LEVINE and MESCHKE, JJ., concur.