Contemporary Business and Online Commerce Law 7th Edition by Henry R Cheeseman

Exercise 1

Negligence

Clancy v. Goad

858 N.E.2d 653, Web 2006 Ind. App. Lexis 2576 (2006) Court of Appeals of Indiana

“Although the amount of the award in this case is sizeable, we cannot conclude that it is unreasonable given the evidence.”

—Judge Vaidik

Facts

One morning, after being awake part of the night at work, Tim Clancy was driving a Chevrolet S-10 pickup truck on State Road 231. Clancy fell asleep at the wheel of the truck. Robert and Dianna Goad, husband and wife, were riding separate motorcycles on the other side of the road. Clancy’s truck crossed the center line of the road and, after narrowly missing two other vehicles and Robert’s motorcycle, collided with Dianna’s motorcycle. The collision immediately severed Dianna’s leg above the knee, and she was thrown from her motorcycle into a water-filled ditch at the side of the road. Clancy was awakened by the sound of the impact, and the truck veered into the ditch as well. Robert stopped his motorcycle, ran back to the scene of the accident, and held Dianna’s head out of the water-filled ditch. Clancy called 911, and when the paramedics arrived, she was taken to the hospital. Dianna remained in a coma for two weeks. Her leg had to be amputated. In addition, Dianna suffered from a fractured pelvic bone, a fractured left elbow, and a lacerated spleen, which had to be removed.

Dianna sued Clancy to recover damages based on his negligence. The jury returned a verdict finding Clancy 100 percent at fault for the accident and awarded Dianna $10 million in compensatory damages. Clancy appealed, arguing that the damages were excessive.

Issue

Were the damages awarded to Dianna Goad excessive?

Language of the Court

The record indicates that before the accident, Dianna was an active and athletic person. She was an avid runner, often jogging three-and-a-half miles a day. She belonged to a health club where she regularly trained with free weights. Dianna enjoyed rollerblading, hiking, and cross country skiing. Dianna also worked full-time in a managerial accounting position where she earned approximately $45,000per year and where she planned to work until she retired.

The injuries Dianna received in the accident as a result of Clancy’s accident were catastrophic. She spent two weeks in a coma. Surgeries were performed to medically amputate her leg above the knee and to set her broken pelvic bones and her broken elbow. Dianna’s spleen could not be repaired and was inevitably removed, resulting in an increased lifetime risk of infection. Dianna has endured multiple skin graft procedures. At the time of the trial, Dianna had undergone seven surgeries, taken more than 6,800pills, and her medical expenses totaled more than $368,000. Furthermore, Dianna’s medical expenses and challenges continue and are expected to continue indefinitely. In addition, Dianna has been fitted with a “C-leg,” a computerized prosthetic leg. A “C-leg” needs to be replaced every three to five years at full cost. The trial court took judicial notice that Dianna’s life expectancy is 35.4 years.

We see no tangible indication that the jury acted out of prejudice, passion, or partiality to punish Clancy. Although the amount of the award in this case is sizeable, we cannot conclude that it is unreasonable given the evidence.

Decision

The court of appeals affirmed the judgment of the trial court, finding Clancy liable for negligence, and upheld the jury verdict awarding Dianna $10 million in damages.

Case Questions

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Critical Legal Thinking Was Clancy liable for negligence in this case? What is negligence?

Ethics Was it ethical for defendant Clancy to appeal the damage award in this case? Why or why not?

Contemporary Business Was the award of $10 million to plaintiff Dianna Goad reasonable? Would you have awarded these damages? Or would you have awarded more or less?

Step 1 of 5

Negligence:

When any person omits to do something leads to arm to another person, this act is termed as negligence. It can be referred as an unintentional tort in which a person is liable for the act done by him as it harms others interest

For the enactment of negligence lawsuit the plaintiff must prove that:

1. The perpetrator owed a responsibility of care to the plaintiff.

2. The perpetrator’s negligent act caused the plaintiff’s injury

3. The perpetrator’s negligent act was the nearby cause of the plaintiff’s injuries.