CHRYSLER GROUP, LLC v. WALDEN et al.
S17G0832
Supreme Court of Georgia
March 15, 2018
303 Ga. 358
FINAL COPY
We suspect that bench and bar have become accustomed to hearing the familiar recitation from this Court that Georgia‘s “new” Evidence Code has changed the rules. Although the new Evidence Code became law in January of 2013, meaning that it is not so very new in its application, cases can take some time to make their way to this Court on appeal. Accordingly, we still have work to do in interpreting the new Code, and this case gives us that opportunity. We hold today not that compensation evidence is always admissible to show the bias of an employee witness, or that it is never admissible, but that such evidence is subject to
I.
Construed to support the jury‘s verdict, see Citizens & Southern Nat. Bank v. Haskins, 254 Ga. 131, 136 (327 SE2d 192) (1985), the evidence shows that on March 6, 2012, Bryan Harrell was driving his pickup truck at more than 50 miles per hour when he rear-ended the 1999 Jeep in which four-year-old Remington Walden was a rear-seat passenger, with his aunt behind the wheel. The impact left Harrell and Remington‘s aunt unhurt, but fractured Remington‘s femur. The impact also caused the Jeep‘s rear-mounted gas tank to rupture and catch fire. Remington burned to death trying to escape; he lived for up to a minute as he burned, and witnesses heard him screaming.
At trial, in March and April of 2015, Appellees challenged the Jeep‘s vehicle design, arguing that Chrysler should not have used a rear-mounted fuel tank. To avoid the operation of Georgia‘s ten-year statute of repose, Appellees were required to show not just that the gas tank was dangerous, but that Chrysler had acted with “willful, reckless, or wanton disregard for life or property.”
Chrysler, on the other hand, presented evidence that the vehicle met or exceeded all applicable Federal Motor Vehicle Safety Standards and that many other vehicles of the era used rear-mounted fuel tanks. Marchionne testified, and denied any inappropriate political influence; he stressed that the NHTSA investigation of the alleged defect ultimately resulted in a conclusion that Chrysler‘s design did not pose an unreasonable risk to safety. Appellees’ counsel pressed him to admit that he had persuaded NHTSA to resolve its investigation without finding a defect in order to avoid a drop in car sales, but Marchionne refused.
When questioning Chrysler Chief Operating Officer Mark Chernoby at trial, Appellees’ counsel asked about CEO Marchionne‘s salary, bonus, and benefits; Marchionne himself was never questioned about his income and benefits. Chernoby detailed Marchionne‘s annual pay, stock options, and cash awards, which together totaled over $68 million. The trial court overruled Chrysler‘s repeated relevance and wealth-of-a-party objections to this line of questioning. Evidence was also admitted, this time without objection, to the fact that had Remington survived to adulthood he “could even have been the
The jury determined that Chrysler acted with a reckless or wanton disregard for human life and failed to warn of the hazard that killed Remington. In returning its award of $120 million in wrongful death damages and $30 million in pain and suffering damages, the jury found Chrysler 99 percent at fault and Harrell 1 percent at fault. The trial court reduced these damages to $30 million and $10 million respectively when it denied Chrysler‘s motion for a new trial.
In its opinion affirming the trial court‘s order, the Court of Appeals approved the admission of Marchionne‘s compensation evidence, stating that “evidence of a witness‘s relationship to a party is always admissible” and that Marchionne‘s compensation “made the existence of [Marchionne‘s] bias in favor of Chrysler more probable.” Chrysler Group, LLC v. Walden, 339 Ga. App. 733, 734, 743 (792 SE2d 754) (2016). The Court of Appeals also rejected
II.
The question at trial was who, if anyone, was liable for Remington Walden‘s death. As the case comes to us on appeal, however, the first question is about Georgia‘s Evidence Code, which was more fairly characterized as “new” at the time of the trial than it is now. In considering whether evidence of Marchionne‘s compensation was properly admitted, the Court of Appeals interpreted
A. We first establish our parameters of interpretation. Georgia‘s new Evidence Code was modeled in large part on the Federal Rules of Evidence, “and when we consider the meaning of such provisions, we look to decisions of the federal appellate courts construing and applying the Federal Rules, especially the decisions of the United States Supreme Court and the Eleventh Circuit.” Glenn v. State, 302 Ga. 276, 280 (806 SE2d 564) (2017) (citation and punctuation omitted); see also Davis v. State, 299 Ga. 180, 185 (787 SE2d 221) (2016); State v. Frost, 297 Ga. 296, 299 (773 SE2d 700) (2015). Then, there are provisions that “were carried over from our old Evidence Code, and when courts consider the meaning of those provisions, they may rely on Georgia decisions under the old Code.” Frost, 297 Ga. at 299 (citing Bradshaw v. State, 296 Ga. 650, 654 (769 SE2d 892) (2015)).2
But again, not all of our new Evidence Code is “new.” One “holdover” provision from the old set of rules with no federal counterpart is Rule 622, which was applied by the Court of Appeals to uphold the admission of the compensation evidence in this case. See
Proper applications of
The new Evidence Code addresses old common law rules in
When we consider our prior decisions applying Georgia‘s common law rule barring party-wealth evidence, we can see that it has indeed been modified by passage of the new Evidence Code. The old rule, by its very language, permitted party-wealth evidence “where position or wealth [was] necessarily involved,” and was, at its core, a rule of relevancy. See Satilla, 152 Ga. at 545 (emphasis supplied). And this Court repeatedly framed our consideration of the rule in terms of relevance, or lack thereof: “We are of the opinion that this evidence was irrelevant and ought to have been excluded.” Id. (emphasis supplied); see also Bailey v. Edmundson, 280 Ga. 528, 534 (630 SE2d 396) (2006) (“[T]estimony regarding the amount of attorney‘s fees and their effect on [party‘s] current and post-trial financial condition was irrelevant.“) (emphasis supplied); Brackin v. Brackin, 222 Ga. 226, 229 (149 SE2d 485) (1966) (quoting Satilla in holding that court erred in admitting evidence of party‘s financial status because it “was not related to the issue before the court“) (emphasis supplied); Northwestern University v. Crisp, 211 Ga. 636, 641 (88 SE2d 26) (1955) (citing Satilla and finding “[w]e are wholly unable to perceive the relevancy of such testimony to any issue made in this case“)
Accordingly, because the new Evidence Code borrowed federal language for its generally-applicable relevance rules—Rules 401 and 402—Georgia‘s common law rule relating to the relevance of party-wealth evidence is no longer independently in force. We recognized a similar principle in State v. Jones, 297 Ga. 156, 159 n.2 (773 SE2d 170) (2015) when we cautioned that “[a]lthough the Court of Appeals recognized the applicability of the new Georgia Evidence Code, it overlooked
Because the common law party wealth rule was itself a rule of relevance, and because there is no specific exclusionary rule in the new Evidence Code carrying forward the common law‘s general exclusionary rule for that type of evidence, Georgia courts must consider party-wealth evidence under the parameters of the new Evidence Code. This is yet another example of the “new evidence world” in which we live. Davis v. State, 299 Ga. at 192.
In any event, the common law evidentiary rule against party-wealth evidence would not settle the issue before us for a simple reason: Marchionne is not a party. See Black‘s Law Dictionary (10th ed. 2014) (defining “party” as “[o]ne by or against whom a lawsuit is brought; anyone who both is directly interested in a lawsuit and has a right to control the proceedings, make a defense, or appeal from an adverse judgment; litigant“). The Court of Appeals has recognized that “great caution should be exercised by the court in disregarding the corporate entity” in holding that even the sole managing
Nor does this case establish that the kind of compensation evidence at issue here always comes in—it often doesn‘t. But the proper objection is made
We also note that despite a relative lack of decisions from the federal circuit courts addressing the specific issue before us, multiple federal district courts have dealt with the issue, and although these cases are not binding, their analyses highlight the varying outcomes that may be appropriate depending on the facts of a case. Some have allowed financial evidence as relevant to show the bias of a witness. See, e.g., Avondale Mills, Inc. v. Norfolk S. Corp., No. 1:05-2817-MBS, 2008 WL 6953958, at *1 (D.S.C. Jan. 16, 2008) (allowing evidence of defendants’ executives’ compensation “for the limited purpose of showing bias“); see also Mendenhall v. American Booksellers Assn., No. 88 Civ. 8998 (KTD), 1990 WL 422415, at *1-2 (S.D. N.Y. May 1, 1990) (plaintiff permitted to question defendant‘s chairman, at deposition, regarding compensation and retirement benefits because they were “germane to the loyalty he may feel toward the organization and hence to potential bias. Furthermore, it is the magnitude and not merely the fact of such compensation that would bear on credibility“).
Others have banned such evidence as too prejudicial underWhen evaluating the trial court‘s admission of the compensation evidence in this case, we ordinarily would determine whether, under the facts of the case, the trial court had abused its discretion. Cooper Tire & Rubber Co. v. Crosby, 273 Ga. 454, 456-457 (543 SE2d 21) (2001); see Anglin v. State, 302 Ga. 333, 335 (806 SE2d 573) (2017). But here, when the compensation evidence was admitted, Chrysler made only a general objection, arguing that its pretrial motion in limine to exclude evidence of Chrysler‘s wealth also applied to evidence of Marchionne‘s compensation, and also objecting that the
Chrysler did not specify
B.
For that reason, we can only analyze whether the admission of this evidence constituted plain error, not whether it was an “ordinary” abuse of discretion. This is yet another innovation of our new Evidence Code—before,
Although this Court has thus far applied the plain error standard only in criminal cases, our Evidence Code does not distinguish between the two, and
To meet the plain error standard, an appellant must show an error or defect that has not been “affirmatively waived” by the appellant, that is “clear or obvious,” and that “affected the appellant‘s substantial rights” by “affect[ing] the outcome of the trial court proceedings“; if these three requirements are satisfied, we have the discretion to remedy the error but should do so only if
That is not to say that we would make the same decision de novo, or even necessarily under the ordinary “abuse of discretion” standard of review. But the exclusion of evidence under
In the end, we hold that determinations of whether a non-party witness‘s compensation, like other wealth evidence, “is relevant under [Georgia]
For all these reasons, we affirm the judgment of the Court of Appeals.
Judgment affirmed. All the Justices concur, except Boggs and Peterson, JJ., who concur specially in Division II B, and Hines, C. J., Hunstein and Blackwell, JJ., who concur in judgment only in Division II B.
Even when considered in light of the concurrence from Justice Peterson, I agree with the analysis in the majority opinion. I write separately only to emphasize that, while this case was certainly easier to decide under a plain error standard, the outcome here could very well have been different had Chrysler made the proper
For example, the fact that a witness is employed full time with a particular company, alone, could show that the witness may be biased in favor of that place of employment. The employee‘s source of income, rather than the level of income itself, may be more relevant to one‘s potential bias in a particular case. However, a focus on the employee‘s income may show not only the witness’ bias, but may bias the jury against an employer to use the
I concur fully in Divisions I and II A of the majority opinion. Although I concur in the judgment in Division II B, I write separately because I do not agree with all that is said in that division.
I agree with the actual holding of the majority‘s opinion. Properly understood, that holding has three parts: (1) as explained in Division II A, the trial court‘s admission of evidence of Chrysler CEO Sergio Marchionne‘s compensation ought to have been evaluated under
I am authorized to state that Justice Boggs joins in this concurrence.
