Opinion ID: 1834194
Heading Depth: 1
Heading Rank: 1

Heading: The Jury's Authority

Text: In its brief, Burlington argues that the trial court should have granted its motions for a directed verdict and for a J.N.O.V. because the trial judge stated the following in his final order: Were it not for the Duckworth decision [ Ex parte Burlington Northern R.R., 470 So.2d 1094 (Ala.1985)], this court would grant the J.N.O.V. This judgment, set aside by the jury, was a pro ami judgment in which a Circuit Judge, in open court, after a hearing, approved the settlement as being in the best interest of the then-minor children of plaintiff, Nettie Duckworth [and the deceased, James Duckworth]. There was no contention, nor any evidence, that any fraud was committed on the court. Although it is not necessary for our determination in this case, we note that the January 2, 1980, hearing and subsequent judgment were insufficient to qualify as a pro ami proceeding under Alabama law. This Court has recognized the special nature of an attempted settlement of a minor's claim. Before such a settlement can be approved, there must be a hearing, with an extensive examination of the facts, to determine whether the settlement is in the best interest of the minor. Large v. Hayes, 534 So.2d 1101 (Ala.1988); Abernathy v. Colbert County Hospital Board, 388 So.2d 1207 (Ala. 1980); Tennessee Coal, Iron & R.R. Co. v. Hayes, 97 Ala. 201, 12 So. 98 (1892). Maryland Cas. Co. v. Tiffin, 537 So.2d 469, 471 (Ala.1988). (Emphasis added.) Based on the evidence presented at trial in this case, we conclude that the hearing conducted on January 2, 1980, failed to meet the standard set out above for determining whether the settlement was in the best interest of the deceased's children. There is no record of what the judge asked the plaintiff at the January 2, 1980, hearing, but at trial Burlington's lawyer and Byrd and the plaintiff all testified as to what the judge had asked her. The plaintiff testified that the judge merely asked her whether she understood that the settlement offer would be all of the money she could ever get from Burlington and Kershaw due to her husband's death. Byrd testified that the judge asked the plaintiff some additional questions regarding her age, her educational background, the number of dependents she had, and whether she had consulted an attorney. Burlington's lawyer testified that the judge also asked the plaintiff whether she wanted to settle the case for $150,000 and whether she had ever had any mental problems. There is no evidence in the record that the judge conducted a hearing with an extensive examination of the facts to determine whether the settlement was in the best interest of the minor[s]. Maryland Cas. Co., supra, at 471. The testimony in this case shows that the judge was concerned about the plaintiff but did not focus on whether the proposed settlement would be in the best interest of the children. The hearing was conducted in the judge's chambers, not open court, with only the plaintiff, Burlington's lawyer, Byrd, and the judge present. Moreover, there is no record of what transpired at the hearing in the judge's chambers. The January 2, 1980, settlement hearing, with the subsequent judgment, was not a valid pro ami proceeding conducted to determine whether the settlement would be in the children's best interest. The law requires a more extensive hearing than is indicated here to determine whether a settlement is in the best interest of the minor. [A] judgment entered on a compromise of an infant's claim is erroneous, and may be set aside where the court has made no examination or investigation of the facts to determine whether the compromise is for the best interest of the infant. Abernathy, supra, at 1209, quoting 42 Am.Jur.2d Infants § 47 (1978). There is nothing in the record to indicate that there was any investigation of the facts to determine whether the settlement would be in the best interest of the minors. Therefore, under Alabama law, the January 2, 1980, settlement proceeding was invalid as a pro ami proceeding on behalf of the children, and the consent judgment obtained as a result of that settlement would be voidable as to the four minor children. The outcome of this case, however, hinges upon the validity of the prior consent judgment as to the plaintiff, because she was the personal representative of the deceased and the authority to settle any FELA claim rested solely with her. Benoit v. Fireman's Fund Ins. Co., 355 So.2d 892, on remand, 361 So.2d 1332 (La.1978) (construing the Jones Act, 46 U.S.C.App. § 688 et seq., which incorporates portions of FELA). Burlington argues that the prior consent judgment acts as a bar to this suit. The jury, however, returned a general verdict in favor of the plaintiff for $460,000. We affirm. The issue regarding the validity of the consent judgment as to the plaintiff is whether there was sufficient evidence upon which the jury could find that the January 2, 1980, judgment was procured by fraud. The FELA gives a cause of action to any interstate railroad carrier's employee who is injured while the carrier is engaged in interstate commerce. If an employee is killed, the Act creates a cause of action on behalf of that employee's personal representative, for the benefit of the surviving widow ... and children. See, e.g., Hoffman v. Reading Co., 12 F.Supp. 1010 (D.N. J.1935). The personal representative is the proper plaintiff in FELA actions and acts as statutory trustee for the beneficiaries under the Act. St. Louis & Iron Mtn. Ry. v. Craft, 237 U.S. 648, 656, 35 S.Ct. 704, 705-706, 59 L.Ed. 1160 (1915); Lindgren v. United States, 281 U.S. 38, 41, 50 S.Ct. 207, 209, 74 L.Ed. 686 (1930); Friedman v. McHugh, 168 F.2d 350 (1st Cir.1948). Absent a conflict of interest, the authority to control the action or settle the claim rests solely with the personal representative. See, e.g., Benoit, supra ; Pittsburgh, C.C. & St. L. Ry. v. Collard's Adm'r, 170 Ky. 239, 249, 185 S.W. 1108, 1113 (1916); see also Rule 17(c), Fed.R.Civ.P. In this case the plaintiff was the deceased's personal representative. Therefore, the authority to enter the January 2, 1980, consent agreement rested with her alone. FELA allows an injured plaintiff to bring a suit in either federal or state court when the ordinary jurisdiction as prescribed by local laws, is appropriate to the occasion, and is invoked in conformity with those laws. In re Second Employers' Liability Cases, 223 U.S. 1, 57, 32 S.Ct. 169, 178, 56 L.Ed. 327 (1912). When a plaintiff files an FELA action in state court, the state court must apply the applicable principles of common law as interpreted and applied in the federal courts. Chesapeake & Ohio Ry. v. Kuhn, 284 U.S. 44, 47, 52 S.Ct. 45, 45, 76 L.Ed. 157 (1931). The stated goal of the federal courts in having the state courts apply federal law in state FELA actions is to achieve uniformity among the state court decisions. Bailey v. Central Vermont Ry., 319 U.S. 350, 352, 63 S.Ct. 1062, 1063, 87 L.Ed. 1444 (1943); Dice v. Akron, Canton & Youngstown R.R., 342 U.S. 359, 361, 72 S.Ct. 312, 314, 96 L.Ed. 398 (1952). To achieve this end, the United States Supreme Court has held that by enacting FELA Congress preempted the field regarding an employer's liability to injured employees in the area of interstate rail transportation and superseded all state laws upon that subject. Chicago, M. & St. P. Ry. v. Coogan, 271 U.S. 472, 474, 46 S.Ct. 564, 565, 70 L.Ed. 1041 (1926). This preemption extends to all substantive matters raised in deciding FELA cases, which must be decided according to federal law. New Orleans & Northeastern R.R. v. Harris, 247 U.S. 367, 371, 38 S.Ct. 535, 536, 62 L.Ed. 1167 (1918). The rights and obligations of parties to an FELA action are determined by applicable principles of law as interpreted and applied in federal courts. Pitcairn v. Perry, 122 F.2d 881 (8th Cir.), cert. denied, 314 U.S. 697, 62 S.Ct. 414, 86 L.Ed. 557 (1941). In other words, state courts trying FELA cases must apply the substantive law declared by the federal courts. However, most courts have held that state courts trying FELA cases should apply state procedural law. See, e.g., Central Vermont Ry. v. White, 238 U.S. 507, 511, 35 S.Ct. 865, 867, 59 L.Ed. 1433 (1915); Rodriguez v. Denver & R.G.W. R.R., 32 Colo.App. 378, 512 P.2d 652 (1973); St. Louis-San Francisco Ry. v. Dyson, 207 Miss. 639, 43 So.2d 95 (1949); Dice, supra; see also, A. Hill, Substance and Procedure in State FELA ActionsThe Converse of the Erie Problem?, 17 Ohio St.L.J., 384, 384 (1956). But see Illinois Cent. Gulf R.R. v. Price, 539 So.2d 202 (Ala.1988). [4] The issue before us now, however, does not involve the enforcement of the plaintiff's FELA claim. Rather, we must determine whether there was fraud committed upon an Alabama court in procuring the consent judgment. That issue does not involve a federally created cause of action, and Alabama law must define what constitutes a fraud upon one of its courts. See, e.g., Ex parte Edmondson, 451 So.2d 290 (Ala.1984). Ex parte Burlington Northern R.R., 470 So.2d 1094 (Ala.1985), based on an earlier proceeding in this same case, involved a petition by Burlington for a writ of mandamus. Burlington sought a writ ordering the trial court to strike the plaintiff's jury demand. In our opinion in that case, we recognized that under Alabama law an independent action brought to set aside or vacate a prior judgment procured by fraud is ordinarily an action in equity and that ordinarily there is no right to a jury trial in such actions. Id. at 1095. In that opinion, however, we held that because this is an FELA case a jury, and not a trial judge, must decide the validity of the January 2, 1980, consent judgment. Id. at 1095. Therefore, in this case the jury must determine the validity of the prior judgment, and it should apply Alabama law in making its determination. Compare Ex parte Burlington Northern R.R., supra (validity of prior judgment in FELA case a jury question) with Ex parte Edmondson, supra (in FELA case Alabama law applied to determine if fraud had been committed upon an Alabama court). In accord with our decision in Ex parte Burlington Northern R.R., the issue of the validity of the consent judgment was tried before a jury. The jury returned a verdict in favor of the plaintiff, thereby setting aside the prior consent judgment. The fact that the trial judge found no fraud upon the court is not grounds to overturn the jury verdict finding such fraud. The strength of the jury verdict is based upon the right to trial by jury, White v. Fridge, 461 So.2d 793 (Ala.1984), and a jury verdict is presumed to be correct. Alpine Bay Resorts, Inc. v. Wyatt, 539 So.2d 160, 162 (Ala.1988). Upon review of a jury verdict, we presume that the verdict was correct; we review the tendencies of the evidence most favorably to the prevailing party; and we indulge such reasonable inferences as the jury was free to draw from the evidence. We will not overturn a jury verdict unless the evidence against the verdict is so much more credible and convincing to the mind than the evidence supporting the verdict that it clearly indicates that the jury's verdict was wrong and unjust. Campbell v. Burns, 512 So.2d 1341, 1343 (Ala.1987). (Citation omitted.) See also Ashbee v. Brock, 510 So.2d 214 (Ala.1987); Jawad v. Granade, 497 So.2d 471 (Ala. 1986); and White, supra. A court, or in this case the jury, has an inherent power to set aside and vacate a prior judgment as invalid because it is based on fraud practiced upon the court. Crisco v. Crisco, 294 Ala. 168, 313 So.2d 529 (1975). Rule 60(b), A.R.Civ.P., provides that it does not limit the power of a court to entertain an independent action within a reasonable time and not to exceed three years after the entry of judgment to relieve a party from a judgment, order, or proceeding, or to set aside a judgment for fraud upon the court. See Brice v. Brice, 340 So.2d 792 (Ala.1976). This case was filed approximately 22 months after the consent judgment was entered. Therefore, the plaintiff must show fraud upon the court in order for the judgment to be set aside. Rule 60(b)(6). We find ample evidence in the record to support the jury verdict that the January 2, 1980, consent judgment was procured by fraud upon the court. It follows that the jury was not barred from considering the underlying FELA claim, and that the consequent verdict on that claim was not wrong or unjust. Fraud upon the court, as required to set aside a judgment under Rule 60(b)(6), has been defined as only that species of fraud which does or attempts to, defile the court itself, or is a fraud perpetrated by officers of the court so that the judicial machinery can not perform in the usual manner its impartial task of adjudging cases that are presented for adjudication. 7 J. Moore, W. Taggart & J. Wicker, Moore's Federal Practice ¶ 60.33 at 515 (2d ed. 1990), cited in Brown v. Kingsberry Mortgage Co., 349 So.2d 564, 568 (Ala. 1977). This Court has also held that where fraud is practiced upon a party to induce the party to enter into an agreement, and the wrongdoer intends that the court adopt that fraudulent agreement as part of a judgment, then there is fraud upon the court. Brice, supra; see also Hill v. Hill, 523 So.2d 425 (Ala.Civ.App.1987); Worthey v. Worthey, 491 So.2d 953 (Ala.Civ.App. 1986); Denton v. Sanford, 383 So.2d 847 (Ala.Civ.App.1980). There was testimony at trial that the plaintiff had a ninth-grade education and that because of her husband's death she alone was burdened with the responsibility of caring for her four children. The plaintiff testified that throughout the year following her husband's death Byrd led her to believe that he represented her interest and her children's interest in settling their claim with Burlington. The plaintiff testified that she did not consult a lawyer because of Byrd's constant assurances that he could get her all the money she was entitled to from Burlington and that he would not charge her anything for his representation. Over a year after James Duckworth died, Byrd told the plaintiff that all she could get from Burlington was $150,000. Byrd went to the probate court and petitioned for letters of administration on behalf of the plaintiff naming her as the administratrix of James Duckworth's estate. Byrd successfully used legal documents prepared by Burlington's lawyer to obtain the letters of administration and to have the plaintiff appointed administratrix. Byrd then took the plaintiff to the office of Burlington's lawyer, where all of the documents necessary to complete the settlement between the plaintiff and Burlington and Kershaw were prepared. Burlington's lawyer testified that he prepared a complaint on behalf of the plaintiff in order to make the settlement binding by obtaining it in the form of a final judgment. Burlington's lawyer had also prepared an answer and waiver on behalf of Burlington, as well as the proposed judgment that he wanted the judge to sign. Burlington's lawyer also testified that he explained to the plaintiff what the various documents were and that he, Byrd, and the plaintiff then went to the Walker County courthouse to see Judge Wilson for the purpose of having him sign a consent judgment. The plaintiff, however, testified that no one explained any of the documents or the procedure to her. She testified that she signed the documents because Byrd and Burlington's lawyer told her to. There was no evidence that the trial court or the plaintiff was ever aware of any possible conflict of interest Burlington's lawyer had in writing a complaint on behalf of the plaintiff and advising her as to the terms of the settlement, even though he represented Burlington. Likewise, there was no evidence regarding whether the trial court was aware that Burlington's lawyer had drafted the complaint, the probate documents, and the other settlement documents filed on behalf of the plaintiff. Nor was there any evidence that the trial court was aware that the plaintiff had forgone legal counsel because of the actions of Byrd to convince the plaintiff that she needed no other legal representation. Based on these facts, there was sufficient evidence to support a jury finding that the defendant had perpetrated a fraud upon the court. See Taylor v. Dorough, 547 So.2d 536, 541 (Ala.1989) ([i]f a release is obtained from one in a weak condition, without advisers, for a sum grossly less than would be a fair and just compensation, a jury question of fraudulent inducement is presented). In Brice, supra, this Court upheld the trial court's decision to set aside a prior judgment under Rule 60(b)(6) for fraud upon the court. In that case, the plaintiff brought an independent action under Rule 60(b)(6) to set aside the prior judgment, alleging as grounds that the defendant had fraudulently induced him to enter into an agreement that was made a part of a court judgment. The trial court in Brice found that fraud was practiced upon the Court in that Mrs. Brice asked the Court to make this agreement a part of the Court's decree and that a substantial period of time passed after the Court entered the decree before Dr. Brice discovered the [fraud]. Brice, 340 So.2d at 794. In this case, the jury could have reasonably found that Burlington had fraudulently induced the plaintiff to enter into the settlement. That fraudulent inducement would, as in Brice, support a finding of fraud upon the court when that fraudulent agreement was made the basis of the court's judgment. Viewing the evidence most favorably to the prevailing party, as we must do (see Campbell, supra ), we conclude that there was evidence from which the jury could have found that Burlington, through its agents, fraudulently obtained the plaintiff's consent to the settlement. Therefore, the prior consent judgment was voidable. We do not hold that a lawyer may never represent a client against a party who is not represented by legal counsel. An individual has a right to represent himself even though to do so might be ill advised. May v. Williams, 17 Ala. 23 (1849); see Jetton v. Jetton, 502 So.2d 756 (Ala.1987). However, in such cases a lawyer has an increased duty of disclosure to the pro se party. Although DR 5-105(c)(1), Alabama Code of Professional Responsibility, is limited to divorce or other domestic relations cases, we strongly recommend that a lawyer follow a similar procedure in cases where the opposing party has forgone legal counsel and agrees to enter into a settlement or consent judgment. See also, Rule 1.8(k), Alabama Rules of Professional Conduct (effective January 1, 1991). This course of conduct is especially prudent in cases where the pro se party is an unsophisticated individual who is in desperate circumstances. See, e.g., Taylor, supra . In this case, the plaintiff was aware that Burlington's lawyer represented only Burlington. Burlington's lawyer, however, was aware that the plaintiff had only a ninth-grade education. In addition he knew that she had been suddenly widowed and left to care for her four minor children without the financial and emotional support of her husband for over a year. Furthermore, the record indicates that Burlington's lawyer was also aware that the reason that the plaintiff did not have an attorney was Byrd's insistence that he would take care of her. In any similar case the lawyer involved should be prepared to document that the pro se party knew that the lawyer was not representing his or her interests, knew that counsel could be obtained to represent those interests, and, knowing that, voluntarily and intelligently chose to proceed without legal representation.