Brandy Andler v. Clear Channel Broadcasting, Inc
670 F.3d 717, 87 Fed. R. Serv. 1095, 2012 WL 638485 (2012)
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Rule of Law:
A tort plaintiff can recover for loss of earning capacity, which may include expert projections of future earning potential that reasonably depart from historical earnings if supported by reasonable certainty and not unduly speculative. Under Ohio premises liability, a landowner owes a duty of ordinary care to an invitee, a status that can extend to visitors of paying guests, and the “open and obvious” danger doctrine does not apply if reasonable minds could differ on whether the danger was reasonably observable.
Facts:
- In July 2004, Brandy Andler and her boyfriend, Eric Heitzer, attended the annual Jamboree-in-the-Hills country music festival in Belmont County, Ohio.
- On the evening of July 13, Andler and Heitzer visited friends who were staying at a nearby campground owned and operated by Clear Channel Broadcasting, Inc. as part of the festival.
- Later that night, around 10:00 p.m., Andler and Heitzer left their friends' campsite and walked around the grounds, first stopping to listen to music and then heading towards the restrooms.
- On her way to the restrooms, Andler stepped off the path she was walking on and fell into a six-to-eight-inch grass-covered hole, breaking several bones in both of her feet.
- Andler contended that the hole was not visible because the grass growing in it reached the same height as the surrounding land, and she fell at night.
- As a result of her fall, Andler developed arthritis in her feet.
- Prior to her injury, Andler worked part-time at a childcare center, earning between $9,000 and $10,000 annually.
- Following her injury, Andler switched to full-time work as a manicurist and pedicurist, earning approximately $10,000 in 2006 and $25,000 in 2008.
- Andler testified that she took the childcare job after her divorce because it was located in her children's school district and allowed her to be present for them before and after school, and that her post-injury switch to cosmetology was what she had 'already wanting to do.'
Procedural Posture:
- Brandy Andler brought suit against Clear Channel Broadcasting, Inc. in the United States District Court for the Southern District of Ohio, asserting claims under Ohio tort law for personal injury damages, including medical expenses and loss of earning capacity.
- Clear Channel moved for summary judgment, arguing Andler was a licensee and the hole was an 'open and obvious danger.'
- The district court denied Clear Channel’s summary judgment motion, concluding Andler was a business invitee and that genuine issues of fact existed regarding Clear Channel's duty of care and the 'open and obvious danger' doctrine.
- At the first trial, the jury awarded Andler $200,000, including $148,000 for future economic damages.
- Clear Channel appealed the first jury verdict to the United States Court of Appeals for the Sixth Circuit (Andler v. Clear Channel Broad., Inc., 342 F. App’x 100 (6th Cir. 2009)).
- A prior panel of the Sixth Circuit reversed the district court's judgment, finding an error in refusing to instruct the jury on the 'open and obvious danger' doctrine, and remanded for a new trial.
- Prior to the start of the second trial, the district court granted Clear Channel’s motion in limine to exclude the testimony of Andler's expert witness, Daniel Selby, regarding loss of earning capacity, deeming it unduly speculative.
- The district court subsequently refused Andler’s offer to have Selby testify in person and rely solely on Andler’s actual historical earnings.
- During the second trial, the district court instructed the jury that it could not award any damages for loss of earning capacity.
- Clear Channel moved for judgment as a matter of law, reiterating arguments that Andler was a licensee and the hole was open and obvious.
- The district court denied Clear Channel's motion for judgment as a matter of law.
- The jury in the second trial awarded Andler $10,000, which did not include any recovery for lost earning capacity (the original $20,000 award was reduced by 50% for Andler's comparative negligence).
- Andler timely appealed the exclusion of Selby’s testimony to the United States Court of Appeals for the Sixth Circuit.
- Clear Channel timely cross-appealed the denial of its motion for judgment as a matter of law to the United States Court of Appeals for the Sixth Circuit.
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Issue:
1. Does a district court abuse its discretion by excluding expert testimony on lost earning capacity when the expert's projections use statistical averages for pre-injury earning capacity that are higher than the plaintiff's historical earnings, if such projections are not unduly speculative? 2. Was the plaintiff an invitee to whom the landowner owed a duty of ordinary care, and was the danger that caused the plaintiff's injury not an “open and obvious” one as a matter of law?
Opinions:
Majority - Karen Nelson Moore
Yes, the district court abused its discretion by excluding the expert testimony because the proffered expert testimony regarding loss of future earning capacity was not unreasonably speculative as a matter of law, and the district court appears to have misunderstood the concept of lost earning capacity. No, Andler was an invitee under Ohio law to whom Clear Channel owed a duty of ordinary care, and genuine issues of fact existed as to whether the hole was an 'open and obvious danger,' thus the district court properly denied Clear Channel's motion for judgment as a matter of law. The court reasoned that 'lost earning capacity' is distinct from 'lost earnings'; it focuses on what the injured plaintiff could have earned over their working life without the injury, not merely what they did earn or will earn in any given year. Therefore, an expert's calculations are not automatically 'unreasonably speculative' just because they use statistical averages higher than the plaintiff's historical earnings or assume full-time employment, especially when the plaintiff's past part-time work was due to temporary circumstances (e.g., childcare responsibilities) or there's an intent to change careers. The court found that expert Daniel Selby's methodology, which included projections for full-time work and an increased likelihood of workforce exit, was not 'unrealistic speculation' that warranted exclusion under Federal Rule of Evidence 702 and Daubert. The factual basis for using full-time averages, while potentially weak, did not 'clearly contradict the evidence,' and the jury should have been allowed to weigh the testimony, informed by cross-examination. Regarding Clear Channel's cross-appeal, the court affirmed the denial of judgment as a matter of law. Under Ohio premises liability law, Andler was an invitee because, as a visitor of paying guests at a commercial campground, she provided an indirect economic benefit to Clear Channel (a campground that accommodates visitors is more attractive to paying guests). Her activities within the campground, such as listening to music and walking to restrooms, did not exceed the scope of this invitation in a social festival setting. Finally, on the 'open and obvious danger' doctrine, the court determined that conflicting evidence existed regarding the hole's visibility, especially considering the nighttime conditions and witness testimony that it was 'very difficult to see.' This conflicting evidence made the observability of the danger a question of fact for the jury, not a matter of law for the court.
Analysis:
This case offers crucial clarification regarding the assessment of damages for lost earning capacity, distinguishing it from mere lost earnings. It affirms that expert testimony can reasonably project a plaintiff's future earning potential beyond their historical wages, especially when justified by factors like temporary career choices or future aspirations, thereby allowing juries more flexibility in calculating comprehensive damages. Furthermore, the decision broadens the scope of 'invitee' status in premises liability, extending a landowner's duty of ordinary care to visitors of paying guests in commercial settings like campgrounds, and reinforces that the 'open and obvious' doctrine is a highly fact-specific inquiry often best left to a jury.
