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Schaffer v. Curtis-Perrin3/25/2005
2005 Opinion No. 42
Order Amending Judgment is vacated in part and remanded.
Paula and William Schaffer appeal the district court's Order Amending Judgment, which reduced their jury award under I.C. § 41-1840. At issue are (1) whether respondent Misty Curtis-Perrin's insurance company paid the expenses for which she sought the credit; and (2) whether the district court erred in deducting medical expenses from a general verdict where those medical expenses were sought at trial.
I. BACKGROUND
Curtis-Perrin crashed her car into Paula Schaffer's car on July 20, 2001, and Schaffer was injured. Both Schaffer and Curtis-Perrin were insured by State Farm. Schaffer was paid $9,854.97 under her policy for certain of her medical expenses. Schaffer filed suit on August 16, 2002, seeking damages for her personal injuries. On November 26, 2002, Curtis-Perrin's claims representative received a subrogation claim from Schaffer's claims representative. On December 24, 2002, Curtis-Perrin's claims representative tendered a check in the amount of $7,500, which was accepted "in full settlement" of the subrogation claim.
The case was tried to a jury, which returned a verdict in Schaffer's favor on September 12, 2003. The jury found Curtis-Perrin 100 percent at fault and awarded Schaffer $100,000 in total damages. The jury did not, however, specify how much (if any) was for medical expenses. The district court entered a judgment on that verdict. Upon Curtis-Perrin's motion to reduce the verdict pursuant to I.C. § 41-1840, the court heard the parties' arguments. It concluded that Curtis-Perrin's insurance company was entitled to a credit under section 41-1840, and ordered that the entire $9,854.97 be deducted from the judgment. Schaffer appealed.
II. STANDARD OF REVIEW
We review orders on motions to amend judgments for an abuse of discretion. Slaathaug v. Allstate Ins. Co., 132 Idaho 705, 707, 979 P.2d 107, 109 (1999). This requires us to conduct a three-part inquiry: (1) whether the trial court correctly perceived the issues as ones of discretion; (2) whether the trial court acted within the outer boundaries of that discretion and consistent with the legal principles applicable to specific choices; and (3) whether the trial court's decision was a product of reasoned decisionmaking. Sun Valley Shopping Ctr. v. Idaho Power Co., 119 Idaho 87, 94, 803 P.2d 993, 1000 (1991). If the answers to those three queries are affirmative, we will not disturb the trial court's decision. Id., 803 P.2d at 1000.
III. DISCUSSION
A. Curtis-Perrin's Insurance Company "Paid" $7,500
Each party contends her insurance company paid the $9,854.97 in pre-verdict medical expenses. Idaho Code § 41-1840 provides:
(1) No payment or payments made by any person or by his insurer by virtue of an insurance policy, on account of bodily injury or death or damage to or loss of property of another, shall constitute an admission of liability or waiver of defense as to such injury, death, loss or damage, or be admissible in any action brought against the insured person or his insurer for damages, indemnity or benefits arising out of such injury, death, loss or damage unless pleaded as a defense to the action.
(2) All such payments shall be credited upon any settlement with respect to the same damage, expense or loss made by, or judgment or award rendered therefore in such an action against, the payor or his insurer, and in favor of any person to whom or on whose account payment was made.
If Schaffer's insurance company paid the medical expenses, Curtis-Perrin was not entitled to a credit. If, on the
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