Julius T. Malone Et Al. v. ASF Intermodal, LLC - 2022 - Vance Testified - Economic Damages for Personal Injury Upheld

JULIUS T. MALONE ET AL. v. ASF INTERMODAL LLC
Appeal from the Circuit Court for Shelby County
No. CT-000503-16 Mary L. Wagner, Judge
IN THE COURT OF APPEALS OF TENNESSEE AT JACKSON
No. W2020-00430-COA-R3-CV
Filed 02/07/2022

Robert Vance testified as a forensic economist in this jury trial.

Appellant (ASF) stipulated that its employee was the at-fault driver in a motor vehicle accident involving Appellee (Malone). Appellee and his wife filed suit against Appellant for personal injuries and the issue of damages was tried to a jury, which returned a verdict in favor of Appellees. Appellant appealed, arguing that the jury’s award of damages for loss of earning capacity, future medical expenses, permanent injury, and loss of consortium is contrary to the law and evidence. Because there is material evidence to support the jury’s verdict, the Appellate Court affirmed the trial court’s judgment on same.

Under the Damages section, Steven Zimmerman estimated cost the future medical expenses and presented testimony to same. In addition to Zimmerman, the Malones called Robert Vance, a forensic CPA and economist, and business valuation analyst, to calculate the present-day value of Mr. Malone’s future medical expenses. Using Mr. Zimmerman’s life care plan and adjusting for inflation, Mr. Vance testified that the future medical expenses totaled $469,186. ASF did not object to Mr. Vance’s testimony regarding the future medical expenses. Therefore, based on the recommendations of Dr. Rubin, Dr. Ramundi, and Dr. Dalal, and the unopposed testimony of Messrs. Zimmerman and Vance, the Appellate Court ruled that there was sufficient proof to establish both the need for future medical treatment and the reasonable costs thereof. The jury’s award of $400,000 in future medical expenses was within the range of reasonableness and was supported by material evidence.

Under the Loss of Earning Capacity section, Dr. David Strauser estimated the loss of earning capacity and presented testimony to same. In addition to Dr. Strauser, the Malones also elicited testimony from Mr. Vance on Mr. Malone’s future loss of earning capacity. Like Dr. Strauser, Mr. Vance predicated his opinion on total disability. Mr. Vance began his analysis with a salary of $34,320 to $40,560, which was comparable to the range used by Dr. Strauser, i.e., $34,000 to $40,000. Using this range, Mr. Vance testified that the present-day value of Mr. Malone’s loss of earning capacity was between $385,000 and $455,000. Unlike Dr. Strauser, Mr. Vance also included calculations for the present-day value of Mr. Malone’s loss of fringe benefits.

Mr. Vance explained that, in view of the types of jobs Mr. Malone worked, which offered “the lowest amount of fringe benefits,” his calculations included only “legally required benefits,” i.e., “social security, Medicare, workers’ compensation insurance, and unemployment insurance.” Mr. Vance’s calculation omitted other fringe benefits “such as health insurance, and life insurance, and disability, and . . . supplemental pay, paid leave, vacations . . . .” Using data from the Bureau of Labor Statistics, Mr. Vance calculated the present-day value of Mr. Malone’s lost fringe benefits at $42,000 to $50,000. Although ASF’s counsel cross-examined Dr. Strauser and Mr. Vance, ASF did not tender its own expert on the loss of income analysis. So, from the evidence, a reasonable jury could have awarded Mr. Malone $377,520 to $446,160 under Dr. Strauser’s calculations, or could have awarded Mr. Malone $427,000 to $505,000 (inclusive of lost fringe benefits) based on Mr. Vance’s calculations. The jury awarded $375,000, which was slightly lower than either expert’s range and, thus, well within the range of reasonableness based on the material evidence adduced at trial.