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Strub v. Stillmunkes Salvage and Trucking

6/25/2003

Defendant appeals jury verdict of punitive damages and future medical expenses, and certain jury instructions. AFFIRMED IN PART, REVERSED IN PART, AND REMANDED.


Stillmunkes Salvage and Trucking, Inc. appeals from a jury award of punitive damages and future medical expenses and certain jury instructions. We affirm in part, reverse in part, and remand.


Background Facts


On September 1, 1999, a collision occurred on a rural gravel road between a car driven by Terry Strub (Strub) and a semi tractor-trailer driven by James Gerlach (Gerlach) while employed by Stillmunkes Salvage and Trucking, Inc., (Stillmunkes). Gerlach was following Stillmunkes owner Mark Stillmunkes to a job site on a gravel road. Because conditions were dry, the first semi tractor-trailer was producing dust on the road impairing Gerlach's view. When he saw Strub's car, Gerlach applied the breaks but the vehicles nonetheless collided. Strub's vehicle turned one hundred and eighty degrees in the air and came to rest in the ditch. Strub was taken by ambulance from the scene. Deputy Sheriff Ward arrived on the scene about twenty-five minutes after the accident occurred.


Strub suffered a dislocated and fractured hip, rib contusions, facial fracture, and a herniated disk. Along with taking anti-inflammatory medication, Strub participated in physical therapy and received cortisone injections in his spine.


Gerlach was first hired as a truck driver by Stillmunkes in December 1998. Stillmunkes's insurance carrier covered Gerlach on a probationary status as his driving record raised some concerns. Gerlach had a valid Iowa commercial driver's license but also had numerous citations for speeding, accidents, and driving while suspended. Gerlach's most recent citation was a little over two years before this initial hire. Stillmunkes's insurance carrier informed Stillmunkes that should Gerlach receive any new moving violation, the carrier would revoke coverage. In January 1999, within a week of each other, Gerlach hit a cow with a semi tractor-trailer and ran a stop sign. Because of these incidents, insurance as to Gerlach was revoked and he was terminated as a Stillmunkes employee.


About six months later in August 1999, Stillmunkes rehired Gerlach as a driver. Though Mark Stillmunkes testified he called the insurance carrier to ensure Gerlach was included in its policy, at the time of the accident Gerlach was not covered by the insurance carrier. When Gerlach was terminated in January, the carrier excluded Gerlach from all coverage under Stillmunkes's policy. The exclusion had not been lifted when Gerlach was rehired in August. The collision in question occurred two weeks after the second hiring.


Following trial, the jury awarded Strub compensatory damages of $177,491.74, including $35,000 for future medical expenses. The jury further awarded punitive damages of $30,000 finding Stillmunkes's conduct a willful and wanton disregard for the rights or safety of another. Stillmunkes filed a motion for judgment notwithstanding the verdict and for a new trial challenging, inter alia, the award of future medical expenses and punitive damages, as well as several jury instructions. The motions were denied. Stillmunkes appeals.


Scope of Review


We review the denial of a motion for new trial for correction of errors at law. Iowa R. App. P. 6.4; Johnson v. Knoxville Cmty. Sch. Dist., 570 N.W.2d 633, 635 (Iowa 1997). However, if the motion is based on a discretionary ground, we review for abuse of discretion. Condon Auto Sales & Serv., Inc. v. Crick, 604 N.W.2d 587, 594 (Iowa 1999). We review a claim that the district court erred in limiting cross-examinat

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