Cheff v. BNSF Railway Co.
2010 MT 235
| Mont. | 2010Background
- Cheff, BNSF conductor, slipped on an icy walkway January 14, 2006, injuring his back in Whitefish, MT.
- Cheff signed a June 22, 2006 Release agreeing to $300,000 and extended medical coverage; he was not told he had a right to extended medical coverage beyond employment.
- Post-release, Cheff cancelled surgery but later learned his injury involved a pre-existing spinal condition, discovered after imaging.
- Cheff sued under FELA in August 2008, alleging the Release was void for mutual mistake, constructive fraud, and lack of consideration.
- The district court invalidated the Release on mutual mistake, also finding fraud and lack of consideration; it limited use of medical records for causation/impeachment.
- The jury awarded Cheff $1.6 million (reduced by 15% for Cheff’s contributory negligence); BNSF offset $300,000 from the verdict and sought interest offset.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of the Release based on mutual mistake | Cheff contends both parties were mutually mistaken about injury scope. | BNSF argues no mutual mistake; only a surgical outcome was mistaken, not injury nature. | Mutual mistake invalidates the Release; district court affirmed. |
| Admission of medical records to prove alternate causes or impeachment | Cheff argues Truman does not apply and records should be admissible for causation and impeachment. | BNSF contends records show alternate causes and impeach Cheff, without requiring divisibility. | Error to bar some medical records for causation; but overall exclusion upheld for lack of proper foundation. |
| Interest offset for settlement proceeds | Cheff argues no offset because settlement and verdict don’t overlap in damages. | BNSF argues prejudgment interest not recoverable in FELA offsets. | Offset of $300,000 allowed; prejudgment interest not awarded. |
| Contributory negligence submitted to jury | Cheff contends no contributory negligence evidence to support a jury finding. | BNSF contends there was evidence Cheff failed to avoid a dangerous condition. | Issue properly submitted to jury; contributory negligence affirmed at 15% against Cheff. |
| Adequacy of the Release and its scope of damages | Release encompassed broader damages and mischaracterized the injury scope. | Release addressed the injury as understood at signing and insufficiently linked to later findings. | Release invalidated; damages offset properly applied. |
Key Cases Cited
- Bevacqua v. Union Pac. R.R. Co., 289 Mont. 36, 960 P.2d 273 (1998 MT 120) (mutual mistake invalidates release in FELA actions)
- Wilson v. CSX Transp., Inc., 83 F.3d 742 (6th Cir. 1996) (mutual mistake and fraud considerations in releases)
- Graham v. Atchison, T. & S.F. Ry. Co., 176 F.2d 819 (9th Cir. 1949) (undisclosed physical condition defeats release under mutual mistake)
- S.W. Pump & Mach. Co. v. Jones, 87 F.2d 879 (8th Cir. 1937) (settlement cannot stand when undisclosed injury scope exists)
- Truman v. Eleventh Jud. Dist. Ct., 68 P.3d 654 (2003 MT 91) (divisibility and causation standards for evidence of alternate causes)
- Clark v. Bell, 353 Mont. 331, 220 P.3d 650 (2009 MT 390) (causation and apportionment in medical evidence)
- Palmer v. Farmers Ins. Exch., 761 P.2d 401 (1988 MT 2) (foundation required for medical records; authenticity considerations)
- Monessen S.W. Ry. Co. v. Morgan, 486 U.S. 330 (1988) (federal law governs damages in FELA actions; prejudgment interest generally not allowed)
- Hogue v. S. Ry. Co., 390 U.S. 516 (1968) (offset rules for settlements in injury actions)
- Taylor v. Burlington N. R.R. Co., 787 F.2d 1309 (9th Cir. 1986) (contributory negligence reduces damages; assumption of risk vs. contributory negligence distinction)