from page 1 - Missouri Organization of Defense Lawyers
Transcription
from page 1 - Missouri Organization of Defense Lawyers
MODL Quarterly Report A Publication of the Missouri Organization of Defense Lawyers Spring, 2015 In this issue ... MODL President’s Message President’s Message ............................. 1 MODL Young Lawyers Activities Update .................................. 2 MODL’s 30th Annual Meeting John Dean and the Watergate Break‐In .............................. 3 Legislative Report ................................. 4 Where Are They Now? A Review of 2014 Cases in Which MODL Filed an Amicus Brief ............................ 9 Reservation of Rights in Missouri .......................................... 10 What is Sepulcher? ............................. 12 Understanding and Applying Missouri Approved Jury Instructions (MAI): A Primer .............. 14 MODL Contact Information: 101 East High Street, Suite 200 P.O Box 1072 Jefferson City, MO 65102 Phone: 573‐636‐6100 Web Site: www.MODLLAW.com John S. Farmer, MODL President Thompson Coburn LLP s St. Louis, Mo. The Defense Bar of the Future Another column, another road trip. As part of my official MODL duties I recently attended the Defense Research Institute’s leadership conference in Chicago with defense bar officers from all fifty states. The purpose was to share ideas for dealing with challenges we all have in common — How do we recruit younger members? How can we get more people to attend our events? How do we remain viable and relevant to our member firms and their clients? DRI’s keynote speakers focused on futurology and innovative thinking. New York Times "Futurist‐In‐Residence" Michael Rogers shared high‐tech forecasts from Google and Apple: intelligence software, smart goggles, flying cars, etc. (incidentally, a futurist, I learned, is prognosticator who predicts future trends and advises on potential outcomes). Executive coach and innovation specialist Laura Goodrich urged us to focus on positive outcomes in order to be effective innovators. She also discussed the concept of disruptive innovation — when a new player or widget is so revolutionary, it creates a new market and changes behavior (think Netflix or Amazon). These are the real “game changers.” Lawyers are not typically credited with being on the cutting edge of innovation — we follow longstanding rules and precedents. Ideally, we learn a thing or two from history along the way. Executive Director Our business clients, on the other hand, are more often the inventive types (the risk‐takers, the visionaries striving to build better mousetraps). Nevertheless, the defense lawyer and the Futurist have much in common — we help clients assess risks, evaluate options and predict future scenarios and opportunities. Certainly, there is a little futurist in all of us. Randy J. Scherr Email: [email protected] So what futuristic innovations can MODL offer you and your clients? Here's a sample (some are new, and some old school): “President’s Message” >p2 President’s Message (from page 1) MODL Young Lawyers Activities Update1 1. High‐Tech Gadgetry: As promised, our web site is undergoing a complete makeover. Stay tuned for list serves, on‐line payment capability, a smart phone app, and an expert database. 2. Skills Training: Our Trial Academy (March 25‐27, 2015 in Columbia, Missouri) is fabulous training for young trial lawyers. We offer live voir dire, rulings by a sitting federal judge, and step‐by‐step mock trial experience with seasoned trial attorneys. A few seats are still available. KANSAS CITY: Unfortunately, the Kansas City MODL Young Lawyers Committee failed at navigating the Kansas City Royals’ miracle October run in coordinating a Young Lawyers Happy Hour during the Fall. And by the time that Pablo Sandoval’s glove had closed on the pop‐fly that shattered the dreams of every post‐1985 KC Royals fan, the KC Bar holiday parties were ramping up. Do not fear, we have plans for a Spring Happy Hour in April or May to get people excited about the MODL Annual Meeting and are also working with the CLE Committee to line up an event in conjunction with the Second KADC/MODL joint CLE at Sporting KC. Keep your eyes open for invitations and opportunities at these events in the coming months! 3. Top Shelf Representation in the Legislature: MODL is the business lawyer’s voice in Jefferson City. Legislative issues affecting your practice, your business clients, and the judiciary are MODL’s specialty. Call us if you'd like to be part of the process. Finally, when it comes to learning from history, at times we've been forced as a profession to innovate by necessity. Take for example our featured speaker at the upcoming MODL Annual Meeting this June, former White House Counsel John Dean. Mr. Dean’s involvement as counsel to President Nixon during the Watergate era and subsequent testimony before Congress led the ABA to mandate ethics education for law students and lawyers. And thus, the mandatory ethics credit was born. Though Mr. Dean surely never set out to be an ethics credit “game changer,” his experience nevertheless led to a disruptive innovation of sorts for our profession — an enduring silver lining. ST. LOUIS: The St. Louis MODL Young Lawyers Committee had a Happy Hour on November 20, 2014 at the Wheelhouse in Clayton. Despite the uneasy tension in the Clayton area at that time due to the pending Darren Wilson grand jury decision, we had a great turnout with approximately 25 lawyers from the St. Louis area in attendance. The event was sponsored by Midwest Litigation Services and a great time was had by all. We hope to have another Happy Hour in March or April. Mr. Dean's CLE focuses on representing organizations and the inherent responsibilities faced by business lawyers under the Model Rules of Professional Conduct — it’s surely among the most relevant CLE opportunities we've ever offered our members. I hear the presentation is fantastic (and 3.6 hours of ethics credit to boot!) … We'll see you there in June. SPRINGFIELD: e The Springfield MODL Young Lawyers Committee hosted a Young Lawyers reception in October at Ebbet's Field. We had a great turn out and enjoyed the evening. The event was sponsored by For the Record and Ebbet's Field provided some good specials. We plan on having another event as soon as the warmer weather allows us to enjoy an evening on the patio. MODL Quarterly Report The MODL Quarterly Report is a publication of the Missouri Organization of Defense Lawyers. If you have any comments or questions, please contact our Publications Committee. Co‐Editor Jennifer Baumann [email protected] 1 Co‐Editor Justin Chapell [email protected] ~2~ Contributions by: Jason Scott; Shook, Hardy & Bacon; Kansas City, MO; Rachel Riso; Baird Lightner Millsap, PC; Springfield, MO; and Matt Noce; HeplerBroom LLC; St. Louis, MO MODL's 30th Annual Meeting: John Dean and the Watergate Break‐In by Brian Waller s Shelter Insurance s Columbia, Mo. THE LEGACY OF WATERGATE Ethics of Representing an Entity Under the Current Model Rules Join us June 4‐6, 2015, in Branson, Missouri, for the Missouri Organization of Defense Lawyer’s signature event – the 30th Annual Meeting! Members who want to learn something, earn ethics credit hours, and meet a lawyer who played a central role in one of the last century's watershed moments in American history will enjoy this year’s stellar CLE program. MODL is proud to offer, "The Watergate CLE Program," a nationally renowned program featuring former Nixon White House Counsel John Dean, co‐ presenting with attorney Jim Robenalt. This popular and acclaimed CLE program includes select clips from White House tapes and historic video from the Senate hearings and the Frost/Nixon interviews. The Watergate CLE will take place on Friday morning and will qualify for 3.6 hours of ethics credits. We are also excited to again host two panels of distinguished judges. The Honorable Zel Fischer will moderate a panel of appellate judges which include the Honorable Patricia Breckenridge, the Honorable Paul ~3~ Wilson, the Honorable Dwayne Benton, the Honorable Roy Richter, and the Honorable Sherri Sullivan. The Honorable Doug Harpool will moderate the trial judge panel featuring the Honorable Michael Cordonnier, the Honorable Wes Dalton, the Honorable James Kanatzar, the Honorable Ellen Levy Siwak, and the Honorable Gloria Reno. This year’s Annual Meeting will be held at the Hilton Branson Convention Center Hotel (a 12‐story, AAA, Four Diamond hotel). Beyond CLE, the Annual Meeting continues to feature MODL favorites like Thursday night's President’s Welcome Reception, Friday afternoon's golf tournament and sporting clays shoot (do not worry, these are separate events!), and Friday night's Awards Dinner and Banquet. The Annual Meeting will continue to have a family friendly focus and will again include fun activities for children and contacts for babysitting services. We hope you will join your MODL colleagues June 4‐6, 2015, for another first class Annual Meeting! Legislative Report by Mimi Doherty s Deacy & Deacy LLP Kansas City, Mo. The Missouri Legislature is currently in session and considering a number of bills which are of interest to members of MODL. Those bills include: SB 192 This bill would modify Missouri’s product liability law. MO. REV. STAT. § 537.765. It provides that when the trier of facts determines in a products liability case that the harm was caused solely as a result of the plaintiff’s fault then the defendant shall not be liable for the harm caused solely as a result of such fault. The definition of the term “fault” is modified to include the use of the product in a manner inconsistent with a specification or standard applicable to the product, use of the product in a manner contrary to an instruction or warning and use of the product in a manner determined to be improper by a federal or state agency. SB 233/HB 697 These bills would modify the expert witness statute Missouri Revised Statute section 490.065 to make it identical to the federal court expert witness rules, Federal Rules of Evidence 702 and 703. The MODL Board of Directors voted to support these bills and expects some of its members to testify in favor of their passage. The MODL Board of Directors supports passage of this bill. SB 140 HB 596/SB 227 This bill would modify the statute on joint and several liability. MO. REV. STAT. § 537.067. Currently in tort actions when a defendant is found to bear 51% or more of the fault then the defendant is jointly and severally liable for the entire compensatory judgment amount. Currently a defendant is only severally liable for the percentage of punitive damages for which fault is attributed to that defendant. This bill if passed would provide that the liability of each defendant for both compensatory and punitive damages is several and not joint. Each defendant would be liable only for the amount of damages in direct proportion to the defendant’s percentage of fault. These bills would modify the collateral source statute. MO. REV. STAT. § 490.715. Currently the statute provides that no evidence that a collateral source made payments to a plaintiff is admissible other than allowed by this statute. The bill if passed would specify that no evidence of collateral sources pertaining to the cost of medical treatment shall be admissible except as provided in the statute. The bill provides that the parties may introduce evidence of the cost, rather than the value of the medical treatment rendered and repeals a provision of the current law which provides that there is a rebuttal presumption that the value of the medical treatment provided is represented by the dollar amount necessary to satisfy the financial obligation to the healthcare provider. The cost of any medical treatment shall not exceed the actual dollar amount paid for such treatment plus any unpaid for projected amounts to be paid by any source or combination of sources to satisfy the financial obligation to the healthcare provider. Evidence presented regarding medical treatment or to be Additionally this bill provides that the trier of fact shall consider the fault of all persons who contributed to the plaintiff’s injury regardless of whether the person is a party to the lawsuit. Furthermore the fault of a non‐party may be considered if the plaintiff entered into a settlement with the non‐party or if the defendant gives notice before trial that a non‐party was at fault. Findings of fact regarding the fault of a non‐party shall not subject the non‐party to liability or be introduced as evidence of liability in any action. The MODL Board of Directors supports passage of this bill. “Legislative Report” >p5 ~4~ Legislative Report (from page 4) offer of settlement of a claim shall not be introduced unless the demand or offer meets certain criterion. That criterion includes sending a written demand or offer by certified mail return receipt requested; including an affidavit of claimant describing the claim, the injuries, prior injuries and damages (with supporting documentation); providing a list of names and addresses of medical providers and copies of available medical bills, a list of employers if seeking lost wages and written medical and employment authorizations; the offer provides a complete release of the insurer’s insureds against whom the demand or offer is made for a payment of a sum certain that is at or below the applicable policy limits; indicates the settlement proceeds shall be subject to any liens, subrogation claims or rights to reimbursement; and reference this statute and states the offer/demand shall be left open for 90 days from day of receipt by insurer. Upon receipt of such an offer or demand, the insurer may seek clarification regarding any relevant information and such an attempt to seek clarification shall not be deemed a counteroffer. rendered shall be presented in terms of the actual cost necessary to satisfy the cost of such treatment and without reference to any billed charges in excess of such costs. Additionally the bill proposes to modify current Missouri Revised Statute sections 490.715.2 and 490.715.3 to provide that the pretrial payment by or on behalf of defendant of some or all of plaintiff’s special damages shall not be admissible or recoverable from that defendant and that a defendant who makes such payment of specific damages shall not be able to receive a credit or deduction of that amount from the final judgment unless such payments have been included in the plaintiff’s claim for special damages at trial. The MODL Board of Directors supports passage of these bills. HB 31/HB 719 These bills address several claims handling issues that frustrate insurers in Missouri by: a) Abrogating the case law that permits an insured to reject a defense pursuant to a reservation of rights; Since this bill was not introduced until after the Board of Directors meeting, the Board has not formally voted on whether to support its passage, but it is likely the Board will vote to support it at its next meeting and that MODL members may testify in support of it. b) Abrogating the decision in Columbia Casualty Co. v. HIAR Holdings, LLC, 411 S.W.3d 258 (Mo. 2013) which makes the entire judgment (without regard to policy limits) the measure of damages where a court finds an insurer has breached its duty to defend; SB 239/HB 118/HJR 22 These bills would amend Missouri Revised Statute section 1.010 by excluding from the adoption of the English common law a cause of action for medical malpractice. In exchange, the bills adopt a statutory cause of action for medical malpractice causing either bodily injury or death. MO. REV. STAT. § 538.210. The statutory cause of action would be subject to the cap on non‐economic damages that currently only applies to wrongful death claims. The Missouri Supreme Court in Sanders v. Ahmed, 364 S.W.3d 195 (2012) held that the legislature can adopt damage caps on statutory causes of action. These bills, if enacted, would provide limits on exposure for medical malpractice defendants and their insurance carriers for claims of non‐ economic damages. c) Authorizing an insurer that is providing a defense to intervene in an action; d) Permitting an insurer under certain circumstances to challenge an uncontested judgment that is the subject of an equitable garnishment under Missouri Revised Statute section 379.200; e) Limiting the addition of other claims to actions brought under Missouri Revised Statute section 372.200; and f) Clarifying that an insurer cannot be required to be a party to an agreement under Missouri Revised Statute section 537.065 and that such an agreement cannot require the protected party to take any future action. The MODL Board of Directors voted to support these bills. The MODL Board of Directors voted to support this bill. Likewise the MODL Board of Directors voted to support HJR 22 which proposes a constitutional amendment limiting liability for non‐economic damages and authorizes the General Assembly to modify the limits of liability as necessary. Subsequent to the MODL Board of Directors meeting, HB 719 was introduced. It includes a provision abrogating the decision in Columbia Casualty Co. It also provides that in an action against an insurer based on any tort or breach of contract, evidence of a demand for payment of a claim or an “Legislative Report” >p6 ~5~ Legislative Report (from page 5) SJR 7 SB 246 This proposed constitutional amendment if approved by the voters in November 2016 would adopt the current punitive damages statute Missouri Revised Statute section 510.265 and would provide that the rights to the determination of punitive damages by a jury shall remain inviolate, except that no award for punitive damages shall be greater than $500,000 or five times the net amount of the judgment awarded to the plaintiff against the defendant. Further such limitations may be reduced by law and shall not apply if the defendant pleads guilty to or is convicted of a felony arising out of the acts or omissions pled by the plaintiff. This bill provides that a Supreme, Appellate or Circuit Court judge who is appointed shall be disqualified from hearing a case when an attorney or party to the case being heard served on the Appellate or one of the Circuit Judicial Commissions that nominated the judge. The MODL Board of Directors opposes the passage of this bill. HB 576 This bill provides that any person over the age of 70 may provide written notice to the Board of Jury Commissioners that he wishes to be disqualified from serving on a petit or grand jury and that the board of jury commissioners must honor the request and disqualify the person from jury service. The MODL Board of Directors supports the concept of this bill; but has reservations about including a specific dollar amount in the Constitution. HB 270/SB 36 The MODL Board of Directors opposes passage of this bill. Other bills that may be of interest to MODL members and which the MODL Board of Directors will monitor include: These bills if enacted would also add to the Missouri Human Rights Act, Missouri Revised Statute section 213.010, a provision defining “because” or “because of” as it relates to an unlawful employment or discrimination practice to mean “a protected criterion was a motivating factor in the defendant’s unlawful employment or discriminatory practice.” HB 108 This bill would amend Missouri Revised Statute section 516.105 to specifically include causes of action for malpractice, negligence, error or mistake against “mental health professionals licensed under chapter 337” as subject to the two year statute of limitations for such actions against health care providers. These bills also provide a framework for summary judgment motions in employment cases. In summary judgment pleadings where plaintiff submits direct evidence of discrimination, the burden would shift to the employer to provide evidence that the same employment decision would have occurred regardless of the direct evidence presented by plaintiff. If the court determines that the employer would have taken the same action regardless of the evidence submitted by the plaintiff, then the court shall rule in favor of the employer. HB 407 This bill would modify the law applying to the Missouri Human Rights Act. The bill would add to the definition of discrimination unfair treatment based on sexual orientation and gender identity and expands the protection of the act to include sexual orientation and gender identity. SB 66/SJR 4 Additionally in summary judgment pleadings, if the plaintiff does not submit direct evidence of discrimination, the burden is on plaintiff to establish an allegation of discrimination. The employer may then produce evidence of non‐discriminatory reasons for the employment decision. If the employer does so, then the plaintiff shall present facts to show the employer’s explanation is insufficient or illegitimate. If the court determines that the employer relied upon nondiscriminatory reasons for the employment decision, the court shall rule in favor of the employer. This bill and resolution propose that Article VII, Section 2 of the Missouri Constitution be amended to require that all impeachments (except the Governor) be tried by the Senate. The Missouri Supreme Court would try any impeachment of the Governor. HB 26/HB 512/HB 564 Two of these bills (HB 26 and HB 512) would establish the Civil Justice Funding Act. The Act provides a regulatory The MODL Board of Directors voted to support passage of these bills. “Legislative Report” >p7 ~6~ Legislative Report (from page 6) framework for companies that make loans to consumers in consideration for an assignment by the consumer of a contingent right in the potential proceeds of a legal claim. HB 224 This bill would establish a “Legal Settlements Fund” which would receive any settlement funds collected by a statewide official (including but not limited to the Attorney General’s office, the Secretary of State’s office and the ethics commission) other than funds for restitution to victims or for contracted attorney fees. The funds deposited into the “Legal Settlements Fund” would be deposited into the general revenue fund at least annually by the state treasurer. The third bill (HB 564) would prohibit civil justice funding in Missouri. HB 128 This bill seeks to modify Missouri Revised Statute section 571.107 and changes the laws regarding tort liability associated with the concealed carry of firearms. It would add a provision providing that irrespective of the fact that a private owner or entity may prohibit the concealed carry of firearms on its premises that does not grant any type of immunity; in tort law or in other civil actions, for the act of prohibiting the concealed carry of firearms. Further irrespective of the fact that certain persons may consent to the carrying of firearms in areas where such carrying is otherwise prohibited by this statute, nothing in this statute shall be construed as imposing any type of duty, in tort or other civil actions, on such person to consent to the carrying of firearms. HB 335 This bill would establish procedures regarding litigation by vexatious litigants. A “vexatious litigant” is defined as a pro se plaintiff who has 1) commenced or maintained at least five lawsuits (small claims court is excepted) in the prior seven year period that have been finally determined adversely to the person or permitted to pend at least two years without trial or hearing, or 2) repeatedly re‐litigates or attempts to re‐litigate the validity of prior litigation, or 3) repeatedly files unmeritorious motions, pleadings, conducts unnecessary discovery, or engages in other tactics that are frivolous or solely intended to cause unnecessary delay. HB 145 This bill proposes to change Missouri Revised Statute section 434.100 regarding indemnity agreements for construction contracts. It would broaden the definition of “construction work” and include a definition of “person” and “party.” It would also require every party entering into a contract for construction work to be responsible for any liability or damages arising from the party’s own negligence, wrongdoing or recklessness and prohibits the transfer, delegation, or assigning of responsibility to another person and would repeal the provision allowing an exemption if the party has specified limits of insurance to insure the indemnity obligation. A party’s agreement to insure for liability, defend against liability, indemnify or hold harmless another person from that person’s own negligence, wrongdoing, or recklessness would be void against public policy and unenforceable. The defendant would be allowed under certain circumstances to seek an order requiring a vexatious plaintiff to furnish security or for an order dismissing the litigation. The court could also enter a pre‐filing order prohibiting a vexatious litigant from filing any new litigation in the courts pro se without obtaining leave of the presiding judge in the court where the litigation is proposed to be filed. HB 337 Currently only construction industry employers are deemed employers for workers compensation if they have one or more employees; all other non‐construction industry employers are deemed employers for workers compensation purposes only if they have five or more employees. This bill would require employers in the following industries to have workers compensation insurance if they have one or more employees: healthcare and social assistance activities, manufacturers, retail trade activities, transportation and warehousing activities, geophysical surveying and mapping services activities, and engineering services activities. HB 167 This bill would modify Missouri Revised Statute sections 516.371, 537.046, 556.037 and 568.060 to eliminate the current 10‐year statutes of limitations to recover damages relating to child abuse and sexual abuse offenses committed against a child and would allow criminal prosecutions for child abuse to be commenced at any time (eliminating the current limitations period of 30‐years after the victim reaches the age of 18). “Legislative Report” >p8 ~7~ Legislative Report (from page 7) HB 374 SB 14 This bill provides that any person who disseminates false information relating to a perishable food product implying that the product is not safe for consumption will be liable to the food product producer. This bill would require all state departments and divisions to post on Missouri’s Accountability Portal copies of contracts entered into with outside law firms for the provision of legal services. HB 375 SB 81 This bill proposes to modify the Recreational Use Act, Missouri Revised Statute section 537.345, et. seq. This bill would create a new statute (Missouri Revised Statute section 478.330) which authorizes an additional circuit judge in circuits with a population exceeding 100,000 when the annual judicial performance report indicates for three consecutive years that the circuit needs four or more full time judges. It adds trapping, paddle sports, aviation activities for personal or private use and swimming to the activities included under the definition of “recreational use” as it applies to the provisions regarding landowners’ liability for recreational use of land and specifies that liability is not limited for a landowner who intentionally injures a participant, knowingly provides unsafe equipment or devices or fails to use a degree of care that an ordinary person would use. SB 37 This bill would create new statutes (Missouri Revised Statute sections 511.800, 511.804, 511.808 and 511.812) which provide that when a settlement offer which meets the requirements specified in these statutes, is rejected and the judgment rendered is significantly less favorable to the rejecting party than what was offered by the settlement then the offering party shall recover litigation costs from the rejecting party. Litigation costs include court costs, reasonable fees of no more than two testifying experts, and reasonable attorney fees. The offering party may only recover litigation costs incurred after the date that the rejecting party rejected the settlement. The bill also proposes to expand the limited liability for injuries or death from accidents associated with equine activities found in Missouri Revised Statute section 537.325 to livestock sponsors, owners, facilities and auction markets for injuries or death from accidents associated with livestock activities. HB 467/SB 209 These bills, if passed would extend the equine activity liability found in Missouri Revised Statute section 537.325 to livestock activities. This bill would also create a new statute (Missouri Revised Statute section 514.075) which would provide that when a court rules on a motion to dismiss for failure to state a claim the court may award costs and reasonable attorney’s fees to the prevailing party as the court determines are equitable and just. HB 414 This bill would add a new statute (Missouri Revised Statute section 316.260) that would prohibit an action against an amusement park owner or operator for damages or injuries sustained due to a defect or unsafe condition unless written or verbal notification has been given to the owner or operator within two business days of the alleged damage or injury and written notification has been given within 30 days of the damage or injury. The amusement park would be required to post a sign at the main entrance stating that notification of injuries and potential claims must be made within two business days of the injury. As of the time of the last MODL Board meeting (January 26, 2015) the deadline for introducing new bills had not passed. The MODL Board will continue to monitor the bills mentioned above as well as any later filed bills and may testify in support or opposition to bills that are particularly relevant to the defense bar or their clients. e e www.MODLLAW.com ~8~ e ? ?? ?? ?? Where Are They Now? A Review of 2014 Cases in Which MODL Filed an Amicus Brief n by Emily Little s Ford, Parshall & Baker s Columbia, Mo. n Dutton v. American Family Mutual Insurance Co., SC94075. Attorneys Dale Beckerman and Mimi Doherty of Deacy & Deacy authored an Amicus brief on behalf of MODL supporting the proposition that the Motor Vehicle Financial Responsibility Law (MVFRL) does not require an "owner's policy" to extend automobile liability insurance for a vehicle that is owned by the insured but not designated as a covered vehicle in the policy. In an opinion issued on February 3, 2015, the Missouri Supreme Court affirmed the judgment in favor of American Family and held that the MVFRL only requires coverage of "specifically designated vehicles and of other vehicles used by the insured but that are not owned by the insured." n Decormier v. Harley‐Davidson Motor Co. Group, 446 S.W.3d 668 (Mo. banc 2014). Attorneys Jill Jackson and Michael Robertson of Ford, Parshall & Baker filed an Amicus brief on behalf of MODL advocating that an executed Release discharged the defendants from liability for negligence. The Supreme Court affirmed the trial court's grant of summary judgment and held that the plaintiff failed to demonstrate a genuine dispute regarding whether the defendants acted in "reckless disregard" for the plaintiff's safety, and failed to show that the release was unenforceable. Id. at 669. n Nail v. Husch Blackwell Sanders, LLP, 436 S.W.3d 556 (Mo. banc 2014). Templemire v. W&M Welding, Inc., 433 S.W.3d 371 (Mo. banc 2014). Attorneys Gary Willnauer, Peggy Wilson and Michael Kelly of Morrow, Willnauer, Klosterman, Church filed an Amicus Brief on behalf of MODL urging the Missouri Supreme Court to uphold the "exclusive cause" standard for retaliatory discharge claims pursuant to Missouri Revised Statute section 287.780. The Supreme Court decided to overrule prior cases and held that an employee need only demonstrate that the filing of a workers' compensation claim was a "contributing factor" in order to make a submissible case under section 287.780. Id. at 373 (overruling Hansome v. Northwestern Cooperage, Co., 679 S.W.2d 273 (Mo. banc 1984) and Crabtree v. Bugby, 967 S.W.2d 66 (Mo. banc 1998)). Attorney Bryan Nickell of Blanton, Rice, Nickell, Cozean & Collins filed an Amicus brief on behalf of MODL encouraging the Missouri Supreme Court to uphold the law regarding the burden of proof to establish causation and damages in legal malpractice claims. The Supreme Court affirmed the trial court's grant of summary judgment in favor of Husch Blackwell on the grounds that the plaintiff failed to prove that the firm's alleged negligence caused his damages. Id. at 558. If your firm would like to request MODL amicus assistance, please go to www.modllaw.com, click on "Amicus Briefs," download the Amicus Committee Request form and email it to the Chair of the Amicus Committee, Elizabeth Raines, [email protected]. The submission of Amicus Curiae briefs is governed by Missouri Rule of Civil Procedure 84.05(f). ~9~ Reservation of Rights in Missouri by Libby Weber and James Howard s Rogers, Ehrhardt, Weber & Howard, LLC s Columbia, Mo. On September 2, 2014, the Missouri Western District Court of Appeals handed down its decision in Advantage Buildings & Exteriors, Inc. v. Mid‐Continent Casualty Company.1 This case will have a significant impact on the handling of Reservation of Rights (“ROR”) letters in Missouri, and all insurance defense counsel and insurers must take note of this decision. It is essential to understand that in this case even though the insurer’s coverage position was correct and the insurer won its declaratory judgment action, the insurer was still liable for bad faith because of an improper Reservation of Rights and improper handling of the claim. Facts of Advantage Buildings Case Advantage Buildings & Exteriors was the manufacturer and supplier of exterior wall panels for a State Farm office building being constructed by general contractor Walton Construction Company. Alsation Land Company was the owner of the building. Alsation sued Advantage Buildings, along with Walton Construction Company, claiming that the exterior panels were defective and installed incorrectly. Advantage Buildings was insured by Mid‐Continent Casualty Company. Mid‐Continent sent a ROR letter to Advantage Buildings shortly after the suit was filed. The ROR letter was typical in that it contained long quotations from the insurance policy and advised Advantage Buildings that there may not be coverage for the claim. Mid‐Continent also advised that it would continue its investigation and let Advantage know of its decision and other pertinent facts it discovered. A second ROR letter sent one month later was nearly identical. Shortly after sending the second ROR letter, Mid‐Continent determined that its policy only provided coverage for a limited amount of the claimed damages; namely, the interior damage to the building. Mid‐Continent also knew that Advantage faced significant damages (in the millions of dollars) and that the overwhelming majority of the damages would not be covered by the policy. However, Mid‐Continent did not advise Advantage of this determination. A mediation was held approximately two years into the case, by which time Mid‐Continent still had not advised Advantage Buildings that most of the damages would not be covered by the policy or explained why the policy excluded coverage for most of those damages. Nor did Mid‐Continent advise Advantage Buildings that they should attend the mediation so as to negotiate regarding the uncovered portion of damages. Five days after the mediation (and only four days prior to trial), Mid‐Continent finally advised Advantage Buildings of its coverage determinations and the fact that most of the damages would not be covered. The Plaintiff made settlement demands within policy limits and Mid‐Continent failed to respond to those demands, likely because Mid‐ Continent believed it only covered a very small portion of the damages. Just before the trial was to begin, Mid‐Continent filed a declaratory judgment action arguing that its policy did not cover the damages claimed by Alsation Land Company. The Plaintiff and Advantage Buildings then entered into a Missouri Revised Statue section 537.065 agreement, in which Advantage Buildings agreed to sue Mid‐Continent for bad faith and to give Alsation Land Company the proceeds of the suit. Alsation Land Company agreed to accept those damages as full satisfaction of its claim against Advantage Buildings. The parties then held a bench trial that resulted in a judgment of $4,604,000 (with credits to be applied for a $2,400,000 settlement the plaintiff had entered into with Walton Construction Company and the third party defendant who actually installed the panels). Advantage Buildings brought its bad faith action against Mid‐Continent in the form of a counterclaim in the declaratory judgment action already filed by Mid‐Continent. The Trial Court Outcome Mid‐Continent won the declaratory judgment portion of the case on summary judgment, with the Court declaring that its policy did not provide coverage for the claim filed against Advantage Buildings by Alsation Land Company. Due to the existence of a disputed fact, however, the bad faith portion of the case proceeded to trial. The jury found in favor of Advantage Buildings on the bad faith claim and awarded $3,000,000 in compensatory damages and $2,000,000 in punitive damages. ~ 10 ~ “Reservation of Rights” >p11 Reservation of Rights (from page 10) The Appellate Court Decision On appeal, the Western District affirmed the finding that Mid‐Continent was liable for compensatory damages. However, due to an error in the jury instructions, the court remanded the case for re‐trial on the issue of the amount of the compensatory damages, as well as liability for, and amount, of punitive damages. The issue of liability for compensatory damages for bad faith was not remanded, which means the Western District’s decision on the bad faith issues remains in place. Problems with the Reservation of Rights Letter In affirming the decision that Mid‐Continent is liable for compensatory damages for bad faith, the Court stressed that Mid‐Continent’s ROR letter did not properly reserve its rights. Because Mid‐Continent did not properly reserve its rights, it was estopped from denying coverage even though the declaratory judgment action had been resolved in its favor. Furthermore, because Mid‐Continent did not properly reserve its rights, the full amount of its insurance policy limit was in play, and its refusal to settle within that policy limit amounted to bad faith. According to the Court, Mid‐Continent’s ROR letter was not timely, clear, unambiguous, and did not fully inform the insured of Mid‐Continent’s position. It also did not explain how specific policy provisions were relevant and how they applied. Mid‐Continent also failed to send a follow up when new coverage determinations were made and its investigation was complete. The ROR letter sent by Mid‐Continent was very typical for the industry. The letter quoted specific policy language, gave a summary of the facts of the case, and advised the insured that there may not be coverage. Most ROR letters are very similar to this as most insurers have been following the previously understood wisdom, that as long as all applicable policy provisions appear in the ROR, the insurer preserves its defenses. Advantage Buildings dictates that this process is no longer sufficient. the mediation, the failure to split the coverage/defense files until just before trial, failure to respond to settlement demands, and intentional disregard of the financial interests of its insured. Future Handling of Reservation of Rights While the Advantage Buildings decision certainly calls into question long‐held ROR practices, the decision does little to explain what adjustments are necessary to avoid a similar outcome in the future. Without clarification from the Court, there is a wide spectrum of available actions on how to handle ROR letters going forward. On one side of this spectrum is simply to do nothing, and make no changes to ROR handling. This reaction is based on a view that the extreme facts of the Advantage Buildings case alone, and not the ROR letters, were the basis for the bad faith decision. At the far other end is the view that the Court’s decision specifically targeted the ROR letters, their contents (or lack thereof), and the insured’s understanding of the coverage decision. This view necessitates a complete overhaul and expansion of the ROR process to include more detailed ROR letters, continued monitoring of the suit by coverage counsel, ROR supplements and follow‐ups with the insured throughout discovery, before mediation, and before trial, all in an effort to ensure the insured has been thoroughly advised of coverage defenses and understands how they apply, how they affect the defense of the case, and the insured’s own potential liability. Ultimately, until these issues are clarified by the Court, the exact method required to avoid bad faith will remain unknown. Coverage counsel and in‐house attorneys will be called upon to use their experience and knowledge to determine the wisest course of action in handling ROR’s, in spite of this uncertain environment. Other Problems with the Handling of the Claim The Western District mentioned several other actions of Mid‐ Continent that it appeared to find troubling. These included the failure to notify Advantage Buildings that it should attend ~ 11 ~ In an effort to aid these dicussions, MODL’s new website will include a Defense Topic section where comments can be left relating to important defense issues. Once launched, ROR letters will be a listed topic. MODL members are encouraged to leave their comments on the ROR process and how any adjustments are received by the Courts going forward. What is Sepulcher? by Chris Rackers Schreimann, Rackers, Francka & Blunt, L.L.C Jefferson City, Mo. Most of the cases I am working on arise out of a motor vehicle accident or an injury that allegedly occurred on someone’s property. However, every five years or so, I am involved in a case alleging a breach of the right of sepulcher. The first thing I do is try to remember is how to pronounce it — a feat I still have not accomplished.1 Then I have to hit the books again, as I do not deal with it frequently enough to remember exactly what the cause of action is or all of its elements. Apparently sepulcher does not show up often in appellate decisions either — a search of Missouri State Court cases shows only 17 reported appellate decisions that even mention the word “sepulcher.” Missouri courts have long recognized a common law right of sepulcher, which they have defined as “the right of the next of kin to perform a ceremonious and decent burial of the nearest relative and an action for the breach of that right.”2 The deprivation of the right of sepulcher typically involves a physical intrusion, mishandling, or manipulation of the deceased’s body or interference with the deceased’s visitation, funeral, or burial.3 Sepulcher is not a property damage claim, as Missouri courts have abandoned the "early fiction that the cause of action [for interference with the right of sepulcher] rested on the infringement of a quasi‐property right of the nearest kin to the body."4 Instead, it is a tort claim.5 The damages are the emotional distress and anguish to the next of kin for the negligent handling or mistreatment of the body.6 Since the cause of action arises out of tort law, the first question is who has a duty to allow the next of kin to control the final disposition of the remains. Clearly those who undertake that duty (funeral directors, cemeteries, etc.) owe that duty to the next of kin. In McGathey and Augustine v. Davis, 281 S.W.3d 312 (Mo. Ct. App. W.D. 2009), the Western District addressed whether an individual who was not contracted to handle the final arrangements has a duty under the common law right of sepulcher. Defendant Matthew Davis was using drugs with Amber McGathey when he found Ms. McGathey dead.7 Several hours after finding her dead, he wrapped her body in a mattress cover, secured it with duct tape and speaker wire, and placed the body in his vehicle.8 Three days later he contacted his attorney about the issue, and his attorney contacted the police.9 Ms. McGathey’s father was not allowed to view her body because of decomposition.10 Her funeral services were closed casket.11 Ms. McGathey’s mother wanted her daughter to be buried in a nightgown and wearing a family ring, which was not possible due to the condition of the body.12 The deceased’s parents sued Mr. Davis for interference with the right of sepulcher.13 A jury returned a verdict for Plaintiffs, awarding them each $250,000.14 On appeal, Mr. Davis argued that he had no duty of care toward Ms. McGathey’s body or her parents.15 The Court of Appeals disagreed.16 Citing Maloney v. Boatmen’s Bank, 232 S.W. 133, 139 (Mo. 1921), the Court of Appeals explained Mr. Davis’ duty: “Sepulcher” >p13 1 2 3 4 5 6 Pronunciation of sepulcher: [sep‐uh l‐ker]. Galvin v. McGilley Mem’l Chapels, 746 S.W.2d 588, 591 (Mo. Ct. App. W.D. 1987). Riley v. St. Louis County of Missouri, 153 F.3d 627, 630 (8th Cir. 1998). Lanigan v. Snowden, 938 S.W.2d 330, 332 (Mo. Ct. App. W.D. 1997). See McGathey v. Davis, 281 S.W.3d 312, 317 (Mo. Ct. App. W.D. 2009). Id.; Jackson v. Christian Hosp. Ne.‐Nw., 823 S.W.2d 137, 138 (Mo. Ct. App. E.D. 1992) ("The dominant determinant of the cause of action is the mental anguish occasioned by the sight or knowledge of the trespass on the body."). 7 8 9 10 11 12 13 14 15 16 ~ 12 ~ Id. at 315. Id. Id. at 316. Id. Id. Id. Id. Id. Id. at 317. Id. at 317‐18. Sepulcher (from page 12) There is a duty imposed by the universal feelings of mankind to be discharged by someone towards the dead; a duty, and we may also say a right, to protect from violation; and a duty on the part of others to abstain from violation …. and it would be discreditable to any system of law not to provide a remedy in such a case.17 on the basis of the child's age and such child's legal or natural guardian, if any, shall be entitled to serve in the place of the child unless such child's legal or natural guardian was subject to an action in dissolution from the deceased. In such event the person or persons who may serve as next‐of‐kin shall serve in the order provided in subdivisions (5) to (9) of this subsection; The Court of Appeals made clear that everyone has a duty to avoid violating the right of sepulcher. 5. (b) If the deceased is a minor, a surviving parent who has custody of the minor; or In 2003, Missouri codified the long‐standing common law right of sepulcher by enacting Missouri Revised Statute section 194.119, which states, in pertinent part: “The next of kin of the deceased shall be entitled to control the final disposition of the remains of any deceased human being consistent with all applicable laws, including all applicable health codes.”18 The statute defines “right of sepulcher” as “the right to choose and control the burial, cremation, or other final disposition of a dead human body.”19 (c) If the deceased is a minor and the deceased's parents have joint custody, the parent whose residence is the minor child's residence for purposes of mailing and education; Chapter 194 also makes clear who has the right to assert a claim of sepulcher. The statute requires that the person be at least eighteen years old, mentally competent, and willing to assume responsibility for the costs of disposition.20 The statute then provides that the following persons are “next‐ of‐kin” in the priority listed in all cases relating to the custody, control, and disposition of deceased human remains, including the common law right of sepulcher: 1. At attorney in fact designated in a durable power of attorney wherein the deceased specifically granted the right of sepulcher over his or her body to such attorney in fact; 2. For a decedent who was on active duty in the United States military at the time of death, the person designated by such decedent in the written instrument known as the United States Department of Defense Form 93, Record of Emergency Data, in accordance with P.L. 109‐163, Section 564, 10 U.S.C. Section 1482; 3. The surviving spouse; 4. Any surviving child of the deceased. If a surviving child is less than eighteen years of age and has a legal or natural guardian, such child shall not be disqualified (a) Any surviving parent of the deceased; or 6. Any surviving sibling of the deceased; 7. The next nearest surviving relative of the deceased by consanguinity or affinity; 8. Any person or friend who assumes financial responsibility for the disposition of the deceased's remains if no next‐of‐kin assumes such responsibility; 9. The county coroner or medical examiner; provided however that such assumption of responsibility shall not make the coroner, medical examiner, the county, or the state financially responsible for the cost of disposition.21 Thus, like a claim for wrongful death, Missouri has defined the class of people who may allege damages for violation of the right of sepulcher, and the highest priority class member is in the class entitled to assert the claim (e.g., if there is no attorney in fact under section 194.119.2(1) and no designee under section 194.119.2(2) but there is a surviving spouse, the surviving spouse may assert a claim for violation of the right of sepulcher). The Missouri General Assembly provided protection for a funeral director or establishment (it did not define “establishment” but presumably this is a funeral home). When “there is more than one person in a class who are equal in priority, and a funeral director has no knowledge of any objection by other members of such class, the funeral “Sepulcher” >p14 17 18 19 McGathey, 281 S.W.3d at 317. MO. REV. STAT. § 194.119.3 (2014). Id. at § 194.119.1 20 21 ~ 13 ~ Id. at § 194.119.2. Id. at § 194.119.2 (1) ‐ (9). Sepulcher (from page 13) director or establishment shall be entitled to rely on and act according to the instructions of the first such person in the class to make arrangement” as long as that “person assumes responsibility for the costs of disposition and no other person in such class provides written notice of his or her objection.”22 Common defendants are funeral homes, cemeteries, and other people or entities in the funeral and burial business. Section 194.119.4 gives a funeral director or establishment a comparative fault defense, providing that they may “rely on and act according to the lawful instructions of any person claiming to be the next‐of‐kin of the deceased,” and “the relative fault … of such funeral director or establishment may be reduced if such actions are taken in reliance upon a person’s claim to be the deceased person’s next‐of‐kin.” While the word “sepulcher” and the cause of action itself are unusual, it is essentially a claim for emotional distress. Anyone who comes into contact with a deceased person may owe the next‐of‐ kin a duty under the next‐of‐kin’s right of sepulcher. And, like wrongful death cases, there is a priority of claimants. Finally, some defendants may be able to assert familiar defenses, such as comparative fault. e 22 e e Id. at § 194.119.7. Understanding and Applying Missouri Approved Jury Instructions (MAI): A Primer by Mary L. Reitz s Greensfelder, Hemker and Gale, PC s St. Louis, Mo.1 INTRODUCTION The use of the Missouri Approved Jury Instructions (“the MAI”)2 can be a daunting task for those not familiar with it or more comfortable with federal jury instructions where there tends to be more flexibility. Many trial attorneys dislike preparing jury instructions in Missouri state court. There are a variety of reasons for this, which this article will not address. Drafting instructions is not something that falls only to plaintiffs’ counsel. Defense counsel must be familiar with what instructions are required, how to object, if appropriate, to the instructions plaintiff submits, and be adept at drafting appropriate converse and affirmative defense instructions. To do these things, defense counsel must be familiar with the MAI. The purpose of this article is to provide a primer on the use of the MAI by giving a general outline of the types of instructions generally given in a civil case. It is intentionally broad and non‐specific rather than directed to instructing a jury in a specific case so the reader may, hopefully, use the article as a guideline of the types of instructions to consider when preparing for a particular case. “MAI Primer” >p15 1 Mary L. Reitz is an officer at Greensfelder, Hemker and Gale, P.C. in the litigation department. Her practice is concentrated in the areas of medical negligence, products liability defense and representing professionals before the Board of Registration for the Healing Arts. She is also the author of the Missouri Jury Instruction Handbook and the Missouri Trial Objections, published by ThomsonWest. 2 ~ 14 ~ All references to “the MAI” or “MAI #__” are to Missouri Approved Jury Instructions, Seventh Edition and its current pocket part. MAI Primer (from page 14) THE RULES AND THE MAI TEXT Certain items should be considered required reading before preparing instructions pursuant to the MAI or participating in a state jury instruction conference. Counsel should read Missouri Rules of Civil Procedure 70.01, 70.02, and 70.03, which govern instructions. Additionally, the sections “How to Use This Book” and the “Why and How to Instruct a Jury” at the front of the MAI text, should be reviewed. If a case involves multiple claims or parties, it is helpful to review MAI 2.00, the general comment on submissions in multi‐party and multi‐claim litigation. These items provide significant information and help the practitioner become familiar with the law and purpose of instructing the jury. There are a few key features of Rule 70.02 that are necessary to any discussion relating to the preparation of instructions. First, the use of MAIs is mandatory. If there is no instruction applicable to your case, then you must either modify an existing MAI or draft a not‐in‐MAI instruction. In the author’s experience, it is easier to draft a modified MAI than a not‐in‐ MAI. Rule 70.02 requires that where an MAI must be modified or the use of a not‐in‐MAI is required, then “such modifications or such instructions shall be simple, brief, impartial, free from argument, and shall not submit to the jury or require findings of detailed evidentiary facts.” Mo. R. Civ. Pro. 70.02(b). Rule 70.02 also states that “[t]he giving of an instruction in violation of the provisions of this Rule 70.02 shall constitute error, its prejudicial effect to be judicially determined, provided that objection has been timely made pursuant to Rule 70.03.” Mo. R. Civ. Pro. 70.02 (c). Rule 70.03 governs making objections to instructions. Objections must be specific “stating distinctly the matter objected to and the grounds of the objection . . .” and must be made prior to the jury retiring to deliberate. Mo. R. Civ. Pro. 70.03. Each instruction is set forth, followed by “Notes on Use”, a “Committee Comment”, and Research References and annotations, if they exist. The “Notes on Use” contain important information about such things as when that particular instruction is appropriate, what other instructions must accompany a particular MAI, and occasionally, even the order in which that instruction should be given within the others being submitted. The “Committee Comment” may provide information on the origin of the instruction, how a revision to it may impact the need for other instructions, and relevant case or statutory data. The “Research references” and annotations provide guidance to relevant cases on topics specifically related to a specific instruction. Reading these sections helps prevent the practitioner from using the instruction in an inappropriate circumstance or failing to submit another required instruction. Reviewing the sections in the “Table of Instructions” at the front of the MAI text, helps the reader find other helpful instructions he or she may not have thought to use. THE INSTRUCTIONS Before the Trial Begins Instructions are the building block of a case. Verdict directors provide information on what must be plead and proven to obtain a judgment. This is valuable to the plaintiff and the defendant. The damages instructions provide the language the jury will hear when asked to award an amount to the plaintiff. The instructions lay out the burden of proof and how many jurors are required to agree on a verdict, something that is not consistent in every state or even between state and federal courts in the same state. Instructions are both the building blocks for a case and a road map to discovery if referenced throughout the case. The basic anatomy of the MAI text is very simple and is covered in the “How to Use this Book” section of the MAI. ~ 15 ~ In 2013, the Missouri Supreme Court approved MAI 2.00 (A), a Recommended Explanatory Instruction for Before Jury Selection. This instruction is not mandatory, but the author believes the practitioner should always consider requesting the court give it. As technology becomes more and more advanced, it becomes increasingly difficult to keep outside influences from tainting your jury. This instruction reminds members of the venire panel that they should not use their electronic devises to send information about the trial or research the parties, attorneys, or other information about the case. In 2013, the Missouri Supreme Court also approved MAI 2.00(B), a general comment on recommended admonitions at recess or adjournment. (It was revised in April 2014 and the new version became applicable on January 1, 2015.) Each trial judge has his or her own admonition at breaks and the end of the day. While this is just a general comment and does not create a mandatory instruction the judge must give, its presence in the book creates a tool for counsel to discuss with the judge the content of the admonition to be given in their case. “MAI Primer” >p16 MAI Primer (from page 15) At The Beginning of Trial MAI 2.01, INSTRUCTION FOR ALL CASES: This is the introductory instruction read at the beginning of all civil trials. While it is not read to the jury again at the close of all of the evidence, it goes to the jury with the remainder of the instructions when they retire to deliberate. It is therefore important that it be included in the package of instructions in the same format as read to the jury. Paragraphs 12 on “Notetaking” and 13 on “Juror Questions” are optional and the parties should discuss with the court at the pretrial conference whether those paragraphs will be included. The judge will often have their own copy of this instruction ready to use, but to the parties should have one ready for the court at the beginning of the trial. This practice ensures that the current version of MAI 2.01 is being used, and that it is prepared and ready to include with the final package of instructions. At The Close of The Evidence Instructions at the close of the case must submit the claims and issues the jury is being asked to decide. If there are multiple parties or multiple claims, consideration must be given to packaging the instructions. Packaging is done at the discretion of the court and is designed for complex cases. Cases may be complex for a variety of reasons. The most common reasons a case is complex is that there are multiple defendants who have different claims against them. A case is especially complex if the plaintiffs seek different damages from each defendant or some of the claims require intent (such as fraudulent misrepresentation) and others do not (such as negligence). While most trial attorneys prefer to think only about winning their case when they are in the midst of preparing jury instructions, it is wise to look ahead to whether instructing the jury in a particular way will cause or encourage reversible error. MAI 2.00 provides an informative section on “Packaging”. GENERAL INSTRUCTIONS FOR ALL CASES MAI 2.01, INSTRUCTION FOR ALL CASES: As mentioned above MAI 2.01 is included in the package sent to the jury, but is not reread at the close of the evidence with the other instructions. MAI 2.03, ORDER OF INSTRUCTIONS: This is always the first instruction read to the jury at the close of the ~ 16 ~ evidence and before closing arguments. It always follows MAI 2.01 in the instruction package. MAI 2.01 and MAI 2.03 are the only two instructions that must be given in a particular order according to the “Notes on Use.” Many other instructions are typically given in a particular order, but the trial judge has discretion as to the order in which the other instructions are numbered and read. MAI 2.02, FACTS NOT ASSUMED: This instruction must be given in every case. If there are multiple claims being packaged, it must be given with the general instructions before the first MAI 2.05, commonly known as the packaging instruction. MAI 2.04, RETURN OF VERDICT: Again, this instruction must be given in every case, and like MAI 2.02 it should be included with the general instructions before the first MAI 2.05 if the instructions are packaged by claim. MAI 3.01, GENERAL BURDEN OF PROOF: This is the most commonly used burden of proof instruction and should be used unless a burden of proof instruction specific to your case is available in the MAI. This instruction includes the optional language for when punitive damages are to be submitted to the jury. Unless there are multiple claims being submitted with differing burden of proof instructions, the MAI 3.01 should be included with the general instructions in front of the MAI 2.05 packaging instruction. MAI 4.01, DAMAGES, PERSONAL AND PROPERTY: This is the most commonly used damages instruction in civil tort cases. The instruction contains optional language for future damages. It also addresses submission of the affirmative defense of Mitigation of Damages. Unless there are multiple claims being submitted with differing damages instructions, the MAI 4.01 should be included with the general instructions in front of the MAI 2.05 packaging instruction. Other damage instructions are available throughout the MAI for specific types of case. The appropriate damages instruction for the particular case to be tried should be selected when preparing the instruction packet. MAI 2.05, MULTI‐CLAIM SUBMISSIONS‐DESIGNATION OF APPLICABLE INSTRUCTIONS, if needed: Not all multi‐ claim submissions must be packaged. For example if the damages are identical for each claim, packaging would not be needed. Multiple verdict directors, one for each claim, could be given in one package with a modified verdict form. “MAI Primer” >p17 MAI Primer (from page 16) CASE SPECIFIC INSTRUCTIONS VERDICT DIRECTORS: There are numerous approved verdict directors and the practitioner should be familiar with those applicable to the case from the time the petition is drafted or the answer is prepared. The verdict directors deserve a great deal of attention throughout the case and especially when determining the wording of the specific instructions given at trial. Verdict directors have the most opportunity for original drafting and create the greatest risk for error. The categories of verdict directors that can be found in the MAI address a variety of topics. When looking for the verdict directors suitable to your case, a review of the Table of Instructions is invaluable as it may provide ideas for claims or affirmative defenses that would not necessarily come to mind otherwise. It is important to review the pocket part of the MAI for instructions approved since the most recent edition was published. Also review the Supreme Court Website for new instructions that may have been approved since the current pocket part was last published. There are a number of instructions available to modify other instructions when appropriate. One of the most commonly used is MAI 19.01, the modification for a verdict director when there are multiple causes of damage that combined to cause injury. If there is a case in which a plaintiff wants to make this modification and provides legal support for it, MAI 4.01 should also be modified per the “Notes on Use”, Number 3, citing Carlson v. K‐Mart, 979 S.W. 2d 145 (Mo. banc, 1998). Another example of an instruction available to modify verdict directors is MAI 18.01, which provides the directions for preparing a verdict director when agency is in issue. DEFINITIONS: Many terms used in instructions, especially verdict directors, require definition. As a general rule, if an MAI includes a term that must be defined, the “Notes on Use” will indicate that requirement and direct the practitioner to the appropriate definition. Most definitions are found between MAI 11.01 and MAI 16.01. An example of terms requiring definition are “negligence” and “negligent”. Any time the words “negligence” or “negligent” are used in an instruction, the term must be defined. However, the exact definition of “negligence” to be used depends on whose conduct is at issue. See MAI 11.01, et. seq. for the various definitions of “negligence”. As mentioned, if an MAI includes a term that must ~ 17 ~ be defined, the “Notes on Use” will indicate that requirement and direct the practitioner to the appropriate definition. See MAI 17.01, “Notes on Use” 2, and MAI 33.03, “Notes on Use” 1 for examples. CONVERSES: A defendant is entitled to one converse for each verdict directing instruction submitted against it. Defendants should use true converses and not affirmative converses, because the appellate courts tend to dislike affirmative defenses. A true converse simply allows the defendant to remind the jury a part of plaintiff’s burden is not met. A true converse begins with the language “Your verdict must be for the defendant, unless you believe” and then parrots that portion of the plaintiff’s verdict upon which the defendant contends plaintiff did not meet its burden. Alternatively, affirmative converses place a burden on the defendant to provide evidence to support a hypothesized ultimate issue, which, if true, defeats plaintiff’s claim. See Hiers v. Lemley, 834 S.W.2d 729 (Mo. banc 1992) and MAI 33.05(1) “Notes on Use” and “Committee Comment.” An affirmative converse instruction is not an affirmative defense and is only appropriate where the verdict director assumes as true or omits a disputed ultimate issue. It is important to remember that the defendant has the burden of producing the evidence to support the affirmative converse and bears the burden of persuasion on it. See MAI 33.01, the General Comment on Converse instructions for a more complete discussion of the use of converse instructions in Missouri. See MAI 33.02, et. seq. for other examples of conversing instructions. If plaintiff’s verdict director is modified by MAI 19.01, the defendant’s converse instruction must be modified by the same language. See Hiers v. Lemley, 834 S.W. 2d 729, (Mo. banc, 1992). AFFIRMATIVE DEFENSES: Whether an affirmative defense instruction is given in a particular case depends on the facts, the law, and to some degree, the defense strategy. MAI 32.01 is the “General Comment” on affirmative defense instructions. When an affirmative defense instruction is given, it is important to distinguish between complete affirmative defenses and those that essentially submit comparative fault. This distinction impacts whether the verdict director must be modified. If there is a complete affirmative defense, then it is appropriate for the verdict director to be modified with the “unless you believe plaintiff is not entitled to recover by reason of Instruction Number ____ (here insert number of the “MAI Primer” >p18 MAI Primer (from page 17) affirmative defense instruction)” seen in brackets at the end of most verdict directors. However, if the affirmative defense actually asserts comparative fault, then the plaintiff’s verdict director should be modified to begin, “In your verdict you must assess a percentage of fault to the defendant [whether or not plaintiff was partly at fault] if you believe:” See MAI 37.01. VERDICT FORMS: Most verdict forms can be found at MAI 36.01, et. seq. Some specific verdict forms applicable to only very specific actions, such as will contests and uninsured motorist claims, have been moved into the particular sections of the MAI. See MAI 15.10, MAI 12.07 and MAI 12.08. Additionally, the forms of verdict for Comparative Fault claims are MAI 37.07 and MAI 37.09. If a case involving multiple claims or multiple parties is not packaged, the verdict form will generally need to be modified to include multiple lines for finding for or against plaintiff on each claim in one verdict form. See MAI Illustration 35.05, Verdict A, for an example of such a modification. If the claims or actions against separate defendants are packaged, multiple verdict forms will be needed. MAI 10.06: MAI 10.07: MAI 10.08: MAI 35.19: Withdrawal Instructions MAI 34.02: MAI 34.06: Punitive damages instructions MAI 10.00: MAI 10.01: MAI 10.02: MAI 10.03: MAI 10.04: MAI 10.05: General Comment on Exemplary Damages Outrageous Conduct ‐ Intentional torts Negligence constituting conscious disregard for others Exemplary Damages, Multiple Defendants Strict Liability, either product defect or failure to warn submitted Strict Liability, both product defect and failure to warn submitted Issues and evidence Limiting Instruction Explanatory Instruction MAI 2.07: Explanatory – Insurance Benefits Instructions for Apportionment Between Defendants MAI 2.05: Packaging MAI 4.12, MAI 4.13, or MAI 4.14 modified: Damages MAI 36.15 modified See also Illustration MAI 35.05 and Illustration MAI 35.02 Comparative Fault Instructions MAI 37.01: MAI 37.03: MAI 37.05: MAI 37.08: OTHER INSTRUCTIONS OF WHICH TO BE AWARE The MAI contains many instructions and verdict forms as well as introductory material that is not addressed in this article. Some of the instructions not mentioned may never be used by a particular attorney due to the limitations of their practice areas. However, there are a number of other instructions, which may not be generally used or globally applicable, that may be helpful to be aware of in any litigation practice. Below is a list of these instructions, without specific discussion, which would be helpful to review to increase a general knowledge of the instructions available in the MAI: Negligence and Strict Liability submitted Modification of MAI 10.02 for submission of specific acts and knowledge Penalty and Attorneys Fees, Vexatious refusal to pay by insurance company Illustration, Punitive Damages, Bifurcated Trial Under Section 510.263 Verdict directing Modification Damages Converse Verdict form Inconsistent or Erroneous Verdict MAI 2.06: Inconsistent or Erroneous Verdict INSTRUCTION CONFERENCES Counsel must be well‐prepared for the instruction conference. If the judge has not required plaintiff to provide draft instructions before trial, it is advisable to ask the Court near the beginning of trial when the plaintiff is to provide their instructions. Objections to instructions are covered by Missouri Rule of Civil Procedure 70.03. Objections must be specific and made on the record before the jury retires to deliberate to be preserved for appeal. The objections must also be reasserted in the Motion for New trial. See MO. R. CIV. PRO. 78.07. Counsel must object not only to the instructions given, but to the failure to give a particular instruction. The objection “MAI Primer” >p19 ~ 18 ~ MAI Primer (from page 18) must be clear, specific and identify the exact instruction to which it is made. For this reason, it is advisable to read as many cases involving objections to instructions as possible so that the key language the courts have used in finding instructions objectionable can be included in your argument on the record. Judges will usually have a minimum of two instruction conferences. The first is informal. Objections to the submitted instructions are discussed off the record to see if any of the issues can be resolved. At this conference, general matters regarding the introductory instructions, typographical errors, and packaging are addressed. The final conference will be on the record after the court has been through the instructions with the parties, numbered them, and essentially ruled upon which instructions will be given. It is important to remember that any objections to the instructions made before the court reporter is present are not on the record and not preserved for appeal. Additionally, any instruction that is not submitted or rejected at this last conference is also not preserved for appeal. For example, if the plaintiff’s counsel voluntarily modifies the verdict director to resolve objections, but does not submit the unmodified version so the court rejects it, no error relating to the original instruction is preserved. Counsel should cautiously identify before the final conference the instructions to which he or she will challenge and specifically note the objections to be made so that nothing the attorney intends to say on the record is overlooked. Failure to make an objection on the record is fatal to an appeal based on the instructions. CONCLUSION Preparing instructions is not easy, but spending time to become familiar with the MAI should hopefully reduce the anxiety it sometimes causes. MAIs are complicated, but that is only because the law is complicated. The MAI is voluminous, but still cannot address every situation. However, the MAI is user friendly. Gaining knowledge of what the MAI contains and the rules require should reduce the risk of creating error when drafting and objecting to instructions. Preparing instructions will never be easy. A necessary part of dealing with instructions is the instruction conference. Knowing the procedure for the conference and how to preserve the specific objections needed to successfully appeal on the basis of instructional error is key. Hopefully, however, the guidelines in this article will make addressing instructions less daunting. e e e Save the Date! Missouri Organization of Defense Lawyers 30th Annual Meeting June 4‐6, 2015 Hilton Branson Convention Center Branson, MO ~ 19 ~