2 moody v blanchard place apartments p suffered

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2. Moody v. Blanchard Place Apartments – P suffered electric shock from a stove in an apartment he rented from D. He received neck injuries related to the shock. Lost past and future wages: economists testified for both P and D. i. Reasoning: Awards for loss of future income/future earning capacity are inherently speculative and cannot be mathematically calculated. Since neither of the math calculations were unreasonable, gave deference to the jury. ii. Factors to consider: hourly wage, years of work ahead of him, fringe benefits (healthcare insurance), discounting, rehab & retraining. iii. Best way to calculate: take base pay, add seniority increases (if it applies) and factor in inflation. Generally you run one number, then add 7% seniority and 3% inflation. 3. Kaczkowski v. Bolubasz – Wrongful death and survival actions were based upon automobile accident in which passenger was fatally injured. i. Issue in case: did trial court err in excluding reliable economic testimony showing the impact of inflation and increased productivity on decedent’s earning power. ii. Three approaches which court uses to consider impact of future inflation and productivity on lost future earning capacity: a. Traditional – ignores effects of future productivity and future inflation as being “too speculative.” Has been rejected by Commonwealth. b. Middle Ground – permits factfinder to consider the effects of productivity and inflation, but prohibits expert testimony on either (argue expert testimony is speculative, facts are within “common experience” so jurors can use own knowledge) i. Expert evidence is essential to accurate econ forecasting – do not accept c. Evidentiary approach – factfinder can consider productivity & inflation – adopted by the court. i. Offset Present Value Method – subtracted the estimated inflation rate from the discount rate to calculate the inflation adjusted “real” rate of interest. ii. Total Offset Method – no adjustment for the interest rate b/c inflation will offset it. 3. Punitive Damages a. BMW case – Supreme Ct tried this case on the constitutionality of punitive damages. 1. Doctor in Miss buys brand new BMW, and nine months later takes it to decal shop, where they discover that the car had been repainted before he purchased it. Dealer admitted to painting, saying that it had suffered minor paint damage due to weather when it was being transferred. BMW admitted that this happened to 25% of their cars, and they never told the buyers. 2. Jury awarded him $4,000 in compensatory damages, and $4 million in punitive damages. These punitive damages are not about the doctor – it’s about punishing and deterring BMW 3. S. Court overruled the damages, and said that the 1000:1 ratio was too high. Therefore, we are in a post-BMW damages world.
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Christopher Reinemann
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