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Pescatore v. Pan American World Airways, Inc.

District Court, E.D. New York
1995 U.S. Dist. LEXIS 7474, 887 F. Supp. 71 (1995)
ELI5:

Rule of Law:

A jury's damage award in a wrongful death action for pecuniary loss and loss of society will not be overturned as excessive if the verdict is supported by credible evidence presented at trial, including expert financial projections and testimony regarding the nature of the decedent's relationships.


Facts:

  • Michael Pescatore was killed in December 1988 at age 33 in the terrorist bombing of Pan Am Flight #103 over Lockerbie, Scotland.
  • At the time of his death, Pescatore was married to Faith Pescatore.
  • He held degrees from Harvard and the University of Chicago and had risen to become the youngest Vice President in the history of his employer, British Petroleum (BP).
  • Pescatore was a participant in BP's honors program for exceptionally able young executives and was preparing to start a new, high-level position at BP's international headquarters in London.
  • Extensive and uncontradicted testimony established that Pescatore had a deep, loving, and affectionate relationship with his wife.

Procedural Posture:

  • Faith Pescatore sued Pan Am World Airways, Inc. and Alert Management Systems, Inc. in federal district court for the wrongful death of her husband, Michael Pescatore.
  • A first jury found that wilful misconduct by Pan Am was a proximate cause of the bombing of Pan Am Flight #103.
  • A second jury was then empaneled in the same court for the sole purpose of determining the amount of damages.
  • The second jury awarded the plaintiff a total of $19,059,040, which included amounts for financial loss, loss of society, loss of services, and interest.
  • The defendants subsequently filed a motion for a new trial pursuant to FRCP 59(a), arguing that the damages awarded for financial loss and loss of society were excessive.

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Issue:

Is a jury's multi-million dollar damage award for financial loss and loss of society excessive as a matter of law, warranting a new trial, when it is supported by expert testimony on future earnings and uncontradicted testimony about the decedent's character?


Opinions:

Majority - Platt, District Judge

No. A jury's damage award is not excessive if it is supported by credible evidence. The $9 million award for financial loss was reasonable, as it was well below the $25.5 million minimum estimated by the plaintiff's expert, whose projections were based on the decedent's rapid career advancement, actual earnings history, and bonus growth. The court also took notice of high executive compensation in similar industries. The $5 million award for loss of society was also reasonable, supported by extensive, moving, and uncontradicted testimony about the decedent's character and the deep affection in his marriage, and it was comparable to awards upheld in other wrongful death cases.



Analysis:

This decision underscores the significant deference courts give to jury verdicts on damages, establishing a high bar for a defendant to prove an award is excessive. It affirms that even a record-setting award in an aviation disaster case will be upheld if it has a rational basis in the evidence presented. The court's methodology, which considers expert projections, comparable industry salaries, and powerful personal testimony, provides a roadmap for plaintiffs on how to substantiate large damage claims and demonstrates the substantial evidence needed to successfully challenge such an award.

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