DocketNumber: 2015-066
Judges: Reiber, Dooley, Skoglund, Robinson, Morse
Filed Date: 4/22/2016
Status: Precedential
Modified Date: 10/19/2024
¶ 1. Defendant Dylan Stinson appeals from a judgment finding him liable to plaintiffs Kevin and Linda Flanagan for damage to their vacation home from a fire started in an outdoor fireplace on their deck by a group of teenagers who were there without their permission. Stinson contends that: (1) there was insufficient evidence to find him liable for the damage under a concerted-action theory; (2) it was improper for the trial court to admit and rely on evidence of the actual cash value of the lost personal property; and (3) the pre- and postjudgment interest rate awarded by the trial court was unconstitutional under the U.S. and Vermont Constitutions. We affirm.
I. Sufficiency of Evidence as to Stinson’s Liability
¶ 2. On appeal from a denial of a motion for judgment as a matter of law, we view all the evidence in the light most favorable to the nonmoving party, excluding modifying evidence. See Monahan v. GMAC Mortg. Corp., 2005 VT 110, ¶ 2, 179 Vt. 167, 893 A.2d 298. When a defendant challenges the sufficiency of the evidence, we determine whether the plaintiff produced enough evidence to fairly and reasonably support all elements of the disputed claims. Id.; V.R.C.P. 50(a). The evidence in this case, viewed most favorably to the plaintiffs, reveals the following.
¶ 3. On May 26, 2009, a group of teenagers gathered at a vacation house owned by the Flanagans and located near the Okemo Mountain Resort in Ludlow. Stinson knew that the Flanagans had not given the teens permission to be there, and Stinson had previously gone to the same property with a friend to smoke marijuana.
¶ 4. The gathering began around 7:00 p.m. Defendants Kevin Spear and Nicholas Sweet went to the property to smoke marijuana. Sometime after arriving, Sweet called other teenagers and invited them to join him and Spear at the property. At some point, defendant Nathan Gritman heard about the gathering and called Stinson. Stinson got a ride there from Jessica Francis, who was accompanied by defendants Elizabeth Plude and Austin Lawson. They picked Stinson up sometime after 7:40 p.m. and arrived at the property around 8:00 p.m. Gritman arrived around
¶ 5. After Francis left, the teens mulled around in the driveway, drinking beer and chatting. Stinson was among the individuals who drank beer. As the night progressed, it became chilly. Having spotted an outdoor fireplace, or chiminea, on the Flanagans’ deck, the teens decided to build a fire.
¶ 6. Several witnesses testified about the building and lighting of the fire. Gritman testified that building the fire was a group effort, but he had no idea who lit the fire. Plude testified that most of the group gathered brush and dried leaves from the surrounding wooded area, and that Stinson was there at the time. She further testified that Lawson and Sweet were “the ones” who gathered the brush to start the fire. Plude testified that the fire was started with a lighter, but could not say whose lighter it was. Plude also testified that the fire was started by Sweet and Lawson.
¶ 7. Gritman, Plude, and Lawson all testified that Stinson was present on the deck partying with the group while the fire was burning. Gritman specifically testified that the fire was burning most of the time that Stinson was there, and Plude testified that Stinson participated in the party as much as the rest of the group. In addition, several witnesses testified that at some point during the evening Stinson got on the roof of the house and threw a brick or other object down while the others were sitting in front of the burning fire. Stinson himself denied that the fire was going while he was present at the house.
¶ 8. The fire they built was substantial. Gritman testified that when he put brush into the chiminea to feed the fire, flames would erupt from the top. In addition, the teens couldn’t get within two or three feet of the chiminea because it was so hot. Plude corroborated Gritman’s recollection, testifying that flames were shooting out of the top of the chiminea, and the fire was too hot for the teens to sit near. Plude testified that the fire got so hot that at one point she had to pull her chair back from the chiminea.
¶ 10. On May 27, 2009, at 4:09 a.m., a fire was discovered at the Flanagans’ property. The fire burned the house to the ground, leaving only the cement foundation, a driveway, and a cellar hole.
¶ 11. Two experts testified for plaintiffs about the mechanism of the fire. Lieutenant Nally, a fire investigator, testified that the probable cause of the house fire was the fire in the chiminea. He based his conclusion on the facts that the chiminea was putting off a great deal of heat, as evidenced by the facts that: the teens could not sit near the fire; the burn patterns suggested that the fire began on the deck; and he had eliminated every other possible source for the fire. Lieutenant Nally was not able to determine the precise mechanism by which the fire in the chiminea spread; he explained that the fire in the chiminea could have been so hot that it ignited the decking beneath it, or it may have ignited other consumable material, such as wood or brush located nearby.
¶ 12. Fire investigator David Eliason largely corroborated Lieutenant Nally’s testimony. Mr. Eliason acknowledged other possible causes of the fire, including a cigarette butt or an electrical fixture, but agreed with Lieutenant Nally that the fire originating in the chiminea was the probable source of the larger fire. He based this conclusion on the facts that: the entire deck was consumed, suggesting that the fire originated on the deck; there were no abnormalities in the gas or electrical heating systems at the home that might provide an alternate explanation; and, because the chiminea was made of cast iron, it had the capacity to retain heat for a “good while.” Like Lieutenant Nally, Mr. Eliason acknowledged multiple mechanisms by which the fire in the chiminea could have spread, including a coal falling onto the deck, or the chiminea itself becoming destabilized.
¶ 13. After the close of evidence, the court gave the following instruction regarding concerted action liability to the jury:
If you find that any of the six named defendants were negligent, and that the negligence caused Plaintiffs’*161 harm, you must determine whether one or more of the three remaining defendants, Dylan Stinson, Kevin Spear, and/or Nicholas Sweet acted in concert with that negligent Defendant. A person acts in concert with another when he either, A, does a negligent act himself and does it with another or according to a common plan with another; or, B, knows that the other’s conduct constitutes a breach of duty, and he gives substantial assistance or encouragement to the other who is acting negligently.
In sum, if you determine that any Defendant was negligent and that his or her negligence caused harm to Plaintiffs, and you determine that a remaining Defendant acted in concert with that negligent defendant, then you may find the remaining defendant liable on the basis of acting in concert with a negligent Defendant.
¶ 14. The special verdict form included three questions relating to Stinson’s liability. In response to the first, “Was Mr. Stinson negligent and did his negligence proximately cause damage to [plaintiffs],” the jury answered no. The jury answered the second and third interrogatories in the affirmative:
Were any of the following persons negligent, and did the negligence of such person proximately cause damage to [plaintiffs]: Nathan Gritman, Austin Lawson, Nicholas Sweet, Elizabeth Plude, Kevin Spear?
Is Mr. Stinson liable on grounds that he acted in concert with the person or persons you found negligent in [the preceding question]?
Accordingly, the jury found Stinson liable. Because the jury concluded that plaintiffs had not proven that Stinson himself had engaged in a negligent act that caused the damage, Stinson’s liability in this case is predicated on a “concerted-action” theory: namely, that he knew that one of the youths by the fire that night was negligent and gave substantial assistance or encouragement to him or her.
¶ 15. The trial court deferred ruling on Stinson’s motions for judgment as a matter of law until after the verdict, at which time the court denied the motion. On appeal, Stinson challenges the
¶ 16. We have adopted the definition of concerted action lability as stated in the Restatement (Second) of Torts § 876 (1979). See Montgomery v. Devoid, 2006 VT 127, ¶ 33, 181 Vt. 154, 915 A.2d 270. This section provides that a person is subject to liability for harm to a third person from the tortious conduct of another if the person:
(a) does a tortious act in concert with the other or pursuant to a common design with [the other person], or
(b) knows that the other’s conduct constitutes a breach of duty and gives substantial assistance or encouragement to the other so to conduct [himself or herself], or
(c) gives substantial assistance to the other in accomplishing a tortious result and [the person’s] own conduct, separately considered, constitutes a breach of duty to the third person.
Restatement (Second) of Torts § 876.
¶ 17. The jury’s verdict, and Stinson’s arguments on appeal, turn on the second of these three alternative bases for concerted-action liability. This theory of liability requires knowledge that another’s conduct constitutes a breach of duty, and substantial assistance or encouragement to the other. We recently considered this basis for liability. See Lussier v. Bessette, 2010 VT 104, ¶¶ 7-11, 189 Vt. 95, 16 A.3d 580. In Lussier several defendants were out hunting together, when one of them shot and killed a farmer who was sitting in the cab of his tractor in a nearby field. Id. ¶ 2. The shooter was convicted of involuntary manslaughter, and we affirmed his conviction. Id. The issue in Lussier was whether the remaining hunters, who had not in any way been involved in the shooting other than by being present in the hunting party, could be held liable under a concerted action theory. Id. ¶ 5. We concluded that they could not. Id. ¶ 15. In reaching our conclusion, we noted that a party must have “at least some level of knowledge or awareness of the pertinent attendant circumstances” in order to be liable under a concerted action theory. Id. ¶ 7. In that case, the other hunters in the group had
¶ 18. Knowledge alone will not result in liability under this strand of concerted-action liability. See Restatement (Second) of Torts § 876(b). The evidence must also support a finding that a defendant gave “substantial assistance or encouragement” to the person who breaches a duty to the third party. A defendant cannot be liable under § 876 unless his or her conduct is “more than benign” and the defendant actively does something “to facilitate another’s tortious conduct.” Simmons v. Homatas, 898 N.E.2d 1177, 1184 (Ill. App. Ct. 2008). See Rogers v. Reagan, 823 N.E.2d 1016, 1020 (Ill. App. Ct. 2005) (holding that prong two of concerted-action liability requires that “defendant . . . actively participate in the tortious conduct of another”). To determine whether a defendant’s conduct rises to the level of substantial assistance or encouragement, the Restatement calls for consideration of five factors: (1) the nature of the wrongful act; (2) the kind and amount of the assistance; (3) the relationship between the defendant and the actor; (4) the presence or absence of the defendant at the occurrence of the wrongful act; and (5) the defendant’s state of mind. Restatement (Second) of Torts § 876 cmt. d; see Khulumani v. Barclay Nat’l Bank Ltd., 504 F.3d 254, 288 (2d Cir. 2007) (Hall, J., concurring) (recognizing U.S. Court of Appeals for Second Circuit has adopted five factors for determining substantial assistance or encouragement (citing Halberstam v. Welch, 705 F.2d 472, 488 (D.C. Cir. 1983))); Halberstam, 705 F.2d at 488 (applying five factors in determining that wife, who helped move burglarized goods from family home, was liable under concerted action theory for wrongful death of homeowner when husband shot him in course of burglarizing home).
¶ 19. Applying this general framework, Stinson makes three arguments on appeal related to the sufficiency of the evidence at trial. First, there was insufficient evidence that he knew of any negligent conduct that could cause the Flanagans’ house to catch fire. Second, even if he did know of any negligent conduct, he did not give substantial assistance or encouragement in building the fire. Finally, there was insufficient evidence as to causation. We analyze each argument in turn.
¶21. Similarly, there was ample evidence that Stinson gave substantial assistance or encouragement to Plude, Lawson, and Gritman in connection with the management of the fire. First, Stinson testified that he had been drinking beer with Plude, Lawson, and Gritman on the night of the fire. Further testimony revealed that the teens had been drinking forty-ounce cans of beer, and that several cans had been found on the property. The jury could have reasonably inferred from these facts that the teenagers built, maintained, and ultimately left the fire while they were substantially impaired, and that Stinson was as much a part of this group endeavor as any other. Second, Stinson was present in the driveway when the other teens agreed to build the fire in the chiminea. Third, he was present with the group when they were collecting and gathering brush. Although Plude specifically identified Lawson and Sweet as the ones who gathered the brush for the fire, Gritman and Plude testified that it was a group effort
¶ 22. Stinson also argues that the jury could not find him liable under a concerted-action theory because the exact means by which the fire started could not be determined. Without evidence as to the exact mechanism of ignition, he argues, we cannot know whether anyone was actually negligent and, if so, who. This argument is unavailing because “in order for circumstantial evidence to be sufficient to sustain a finding in a civil case, such evidence need not rise to that degree of certainty which will exclude any and every other reasonable conclusion.” Grim, 440 P.2d at 624. Although plaintiffs’ experts described more than one possible mechanism of ignition, they testified that the fire in the chiminea was the likely cause. Given the evidence that the teens managed the fire while inebriated, burned the fire extremely hot, and left without fully extinguishing it, there is ample evidence from which a jury could connect the dots to conclude that negligence on the part of one or more of the teens likely caused the fire that burned down plaintiffs’ house. This is sufficient to meet the causation element. See Yount v. Deibert, 147 P.3d 1065, 1073-74 (Kan. 2006) (reversing trial court’s granting of summary judgment because plaintiff could not prove precise cause of fire within her home and stating circumstantial evidence was sufficient).
¶ 23. Over Stinson’s repeated objections, the Flanagans relied on an insurance adjuster to establish the value of the personal property the Flanagans lost in the fire. In calculating that value, the insurance adjuster first determined the post-fire replacement cost of each item, relying in part on estimates and supporting documentation provided by the Flanagans, and in part on insurance adjusting software. He then determined the “actual cash value” by applying a depreciation factor to each item to account for the age of each lost item relative to its expected life. On the basis of these calculations, the adjuster testified that the total value of the Flanagans’ lost personal property was $100,541. In addition to allowing the testimony, the trial court denied Stinson’s motion for judgment as a matter of law on the Flanagans’ claim for personal property damages. With respect to the value of the lost personal property, the trial court instructed the jury that the amount to be awarded “is the amount of loss of fair market value; that is, the property’s fair market value before the injury less the fair market value after the injury, if any.”
¶ 24. On appeal, Stinson argues that the trial court abused its discretion in admitting the testimony, and that the trial court’s calculation of the Flanagans’ personal property damage was unsupported by the evidence. In particular, he argues that the methodology relied upon by the Flanagans to establish the value of their lost personal property does not reflect the actual market value of those items — the amount a willing buyer would pay a willing seller for those items in their pre-fire state.
¶ 25. We review the trial court’s evidentiary ruling for abuse of discretion, Boehm v. Willis, 2006 VT 101, ¶ 12, 180 Vt. 615, 910 A.2d 908 (mem.), and its denial of Stinson’s motion for judgment as a matter of law nondeferentially. Smedberg v. Detlef's Custodial Serv., Ins., 2007 VT 99, ¶¶ 23, 26, 182 Vt. 349, 940 A.2d 674 (affirming trial court’s denial of motion for judgment as matter of law after applying de novo review to “legal conclusions underlying the trial court’s ruling”).
¶ 26. Generally, as the trial court properly instructed, the loss in value of a property as compared to its pre-injury value is the measure of damages in a negligence case. See Bartlett v. Menard, 126 Vt. 215, 215-16, 227 A.2d 300, 301 (1967). The
¶ 27. This Court has previously endorsed consideration of evidence of repair or restoration costs in determining loss in value. Id. at 215, 227 A.2d at 301 (endorsing instruction that allowed jury to consider repairs actually made and repair bills in determining “before and after” value of car). Moreover, in the context of restitution awards against individuals convicted of crimes, we have also held that where the items are of a modest cost and have no readily ascertainable market value, evidence of replacement cost of the items may be considered. State v. Tetrault, 2012 VT 51, ¶ 13, 192 Vt. 616, 54 A.3d 146 (mem.) (“[Although] fair market value is the proper measure for damages for items with a readily ascertainable value, there is no ‘blue book’ for used toasters or microwaves.”).
¶ 28. Accordingly, we conclude that the trial court did not abuse its discretion in allowing the insurance adjuster to testily to the value of the items lost in the fire with reference to their replacement cost less depreciation, and the jury’s determination of that category of damages was supported by the evidence. Evidence of replacement cost less depreciation may have been the most probative evidence available as to market value. Moreover, Stinson was free to present to the jury countervailing evidence or argument that the replacement-cost-less-depreciation valuation was excessive relative to the loss in market value of the items in question. He failed to do so.
III. Statutory Interest
¶ 29. Finally, Stinson argues that the trial court’s award of statutory interest pursuant to 9 V.S.A. § 41a(a) (prejudgment interest) and 12 V.S.A. § 2903(c) (postjudgment interest) is unconstitutional, because it deprives him of property without due process of the law in violation of Fifth and Fourteenth Amendments to the U.S. Constitution.
¶ 30. Generally, when reviewing a statute, we presume the statute to be constitutional and reasonable. See Badgley v. Walton, 2010 VT 68, ¶ 20, 188 Vt. 367, 10 A.3d 469. “[T]he proponent of a constitutional challenge has a very weighty burden to overcome.” Id. (citing Colchester Fire Dist. No. 2 v. Sharrow, 145 Vt. 195, 199, 485 A.2d 134, 137 (1984)).
¶ 31. All parties agree that the rational-basis test applies to Stinson’s federal constitutional claim. “[W]here ordinary commercial transactions are at issue, rational basis review requires deference to reasonable underlying legislative judgments.” Armour v. City of Indianapolis, Ind., 566 U.S. 673, 680, 132 S. Ct. 2073, 2080 (2012) (quotation omitted); see Kelo v. City of New London, Conn., 545 U.S. 469, 490 (2005) (Kennedy, J., concurring) (noting that where an economic regulation is challenged “under the Due Process and Equal Protection Clauses,” the rational-basis test is used).
¶ 32. Given the deferential standard of review applicable in this case, if there are “any reasonably conceivable state of facts that could provide a rational basis” for the 12% rate, the statute
¶ 88. The statutes providing for prejudgment and postjudgment interest encourage defendants to settle claims and make prompt payments after judgment, and ensure that a plaintiff is made whole. See Oden v. Schwartz, 71 A.3d 438, 457 (R.I. 2013) (upholding statutory prejudgment interest rate of 12% as reasonably related to “dual purpose of . . . encourage[ing] early settlement of claims and . . . compensating] an injured plaintiff’ (quotation omitted)); see also Heritage Farms, Inc. v. Market Ins. Co., 810 N.W.2d 465, 484 (Wis. 2012) (noting that where defendant is concerned about 12% postjudgment interest rate, defendant could “protect itself against such a financial burden by simply tendering payment ahead of appeal”).
¶ 84. The Legislature could reasonably conclude that a fixed rate of simple interest is a more efficient and predictable way to calculate prejudgment and postjudgment interest than a floating rate pegged to the national prime rate. Although Stinson argues otherwise, “there is no constitutional mandate that the statutory interest rate” be pegged to the national prime rate. Citibank, N.A. v. Barclays Bank, PLC, 28 F. Supp. 3d 174, 184 (S.D.N.Y. 2013); see also Newman v. Novartis Pharm. Corp., 50 F. Supp. 3d 394, 397 (E.D.N.Y. 2014) (“[T]here is nothing unconstitutional about New York [S]tate’s imposition of a nine percent prejudgment interest rate.”).
¶ 85. The argument that a fixed 12% rate creates a windfall to plaintiffs and is punitive to defendants in periods like the present
Affirmed.
Spear also left the property around that time, although the testimony about when Spear left the property was mixed. Gritman testified that Spear was driving away as Gritman was approaching the property, but Plude testified that he left after a discussion about starting a fire, but before the fire was actually built and started. Nobody testified that Spear was on the property when the fire was actually lit.
Given the trial court’s instructions and Stinson’s arguments on appeal, we do not consider whether he may be held liable on the basis of his participation in a concerted plan to trespass and build a fire on the Flanagans’ deck, without regard to any acts of negligence associated with the management of the fire.
We note that Stinson’s federal constitutional challenge came close to being inadequately briefed, and therefore not subject to review. See Trudell v. State, 2013 VT 18, ¶ 30, 193 Vt. 515, 71 A.3d 1235 (declining to review constitutional challenge where party failed ‘To present any substantive analysis or argument on state constitutional issues”). Rather than declining review, however, we allowed the claim