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Smith v. Myers12/29/1994
ct generated the lawsuit or the person who insures the culpable party and so stands in his place for this purpose").
Defendants claim that by declaring the periodic payment statutes unconstitutional we contradict our holding in Eastin v. Broomfield, 116 Ariz. 576, 570 P.2d 744 (1977). We disagree. Eastin established that juries may consider plaintiffs' collateral benefits in determining damages. Id. at 585, 570 P.2d at 753. We decided that such evidence informs fact finders of the true extent of plaintiffs' economic loss and discourages windfalls. Id. In a very real sense, therefore, Eastin supports today's holding. Permitting payments to be terminated on the demise of injured victims or wrongful death beneficiaries bestows upon tortfeasors and their insurance carriers significant economic benefits, neither earned nor bargained for, that would simply not be available under the traditional lump sum system. Furthermore, in Eastin we noted that
admission into evidence of plaintiffs' collateral benefits in no way guarantees any reduction in the damages awarded by the trier of fact. The jury may still choose to ignore the collateral benefits in making its decision as to the damages sustained by the plaintiffs.
Once the court decides to apply periodic payment laws, however, jurors are not free to disregard them in awarding damages.
The plaintiffs make two additional arguments. First, they assert that the statutes in question violate Ariz. Const. art. 18, § 6, which also contains a prohibition against limits on damage recoveries. Second, they argue that these laws are contrary to the equal protection clauses of both the state and federal constitutions. Although the court of appeals considered these issues, because we vacate its opinion and find that article 2, § 31 provides sufficient basis for our decision today, we do not address them.
Conclusion
A promise of future installment payments is not the equivalent of a lump sum award. We therefore hold that Arizona's periodic payment scheme is effectively a damage limitation prohibited by Ariz. Const. art. 2, § 31. The opinion of the court of appeals is vacated, and the trial court's ruling is affirmed. The case is remanded for further proceedings consistent with this opinion.
Thomas A. Zlaket, Justice
CONCURRING:
Stanley G. Feldman, Chief Justice
James Moeller, Vice Chief Justice
Robert J. Corcoran, Justice
Frederick J. Martone, Justice
Page 1 2 3 4 5 6 Arizona Personal Injury Attorneys
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