OPINION
Plaintiff-appellee Erik Conte successfully sued defendant General Housewares Corp. (“GHC”) and defendant-appellant Dayton Power and Light Co. (“DP & L”) in connection with severe personal injuries that he received as a result of a large electrical shock and obtained a verdict of $3.5 million. DP & L now appeals several of the district court’s rulings with respect to that verdict and with respect to the award of prejudgment interest against DP & L. Because there was no error in the district court’s decisions to award prejudgment interest against DP & L and to deny DP & L’s motions for judgment as a matter of law, a new trial, and relief from the award of prejudgment interest, we AFFIRM those rulings of the district court, and we REMAND for recalculation of DP & L’s liability in light of the partial satisfaction of the judgment by GHC and the accrued postjudgment interest.
I. BACKGROUND
Erik Conte, an employee of Kessler Tank Co., was sent, along with two other Kessler employees, to paint an elevated water tank on the premises of General Housewares Corp. in Sidney, Ohio on June 10, 1995. The water tank was surrounded
The facts surrounding this accident were disputed. It seems that GHC’s maintenance manager, Don Doll, contacted Dayton Power & Light to inquire about having some power lines de-energized in preparation for the painting. The DP & L employees who initially inspected the GHC site recommended a total power outage, but a GHC representative told Mikе Now-icki, a supervisor at DP & L, that GHC was not willing to undergo a total outage, because it needed to have enough power to run the computers and other devices in its factory building. All the parties agree on these facts, but they do not agree on what happened next. There was conflicting testimony at trial concerning which power lines were to be left energized and who made that decision. Ultimately, Mike Large, a technician from DP & L, appeared at GHC on June 10, 1995, and de-energized only those secondary wires attached to the legs of the water tank, leaving the primaries and the other secondaries energized.
Conte filed suit against GHC and DP & L in federal court on November 29, 1995, for negligence, misrepresentation, and breach of contract.
Meanwhile, on September 28, 1998, GHC settled with Conte for $3,675 million. DP & L therefore filed a motion pursuant to Federal Rule of Civil Procedure 60(b)(5) for relief from the judgment to the extent of the settlemеnt amount. The district court denied the order as superfluous. DP & L then appealed that order.
On appeal, DP & L makes several claims of error. First, it argues that the district court abused its discretion in granting prejudgment interest to Conte. It also claims that the district court erred in denying DP & L’s motion for judgment as a matter of law and abused its discretion in denying DP & L’s motion for a new trial. Finally, DP & L contends that the district court’s denial of DP & L’s motion for relief from the judgment was in error.
II. ANALYSIS
A. Prejudgment Interest
In a diversity case, state law governs the district court’s decision whether to award prejudgment interest, see Diggs v. Pepsi-Cola Metro. Bottling Co.,
Under Ohio law, a plaintiff is entitled to prejudgment interest if the court determines “that the party required to pay .the money failed to make a good faith effort to settle the case and that the party to whom the money is to be paid did not fail to make a good faith effort to settle the case.” Ohio Rev.Code ANN. § 1343.03(C) (Banks-Baldwin 1994). The Ohio Suprеme Court has held that a party has not failed to make a good-faith effort to settle under the statute if that party has
(1) fully cooperated in discovery proceedings, (2) rationally evaluated his risks and potential liability, (3) not attempted to unnecessarily delay any of the proceedings, and (4) made a good faith monetary settlement offer or responded in good faith to an offer from the other party. If a party has a good faith, objectively reasonable belief that he has no liability, he need not make a monetary settlement offer.
Kalain v. Smith,
The district court held that DP & L failed to make a good-faith effort to settle, because it did not rationally evaluate its risks and potential liability, nor did it make a good-faith settlement offer or respond in good faith to Conte’s offer. DP & L claims that the district court abused its discretion, because DP & L maintained a good-faith, reasonable belief that it was not liable for Conte’s injuries throughout this litigation. DP & L points first to the magistrate judge’s recommendation to grant summary judgment in DP & L’s
We hold that the district court did not abuse its discretion in awarding prejudgment interest to Conte. DP & L does not dispute that it never made a real settlement offer to Conte, despite Conte’s efforts to negotiate.
DP & L maintains that it reasonably believed throughout the litigation that it could not be held liable, because it had never undertaken a duty to de-energize the primary lines, and because it did not own those lines and therefore was not authorized to de-energize them unless GHC so instructed it. Those defenses were simply no longer valid, however, in light of the district court’s rulings, in denying DP & L’s motion for summary judgment, that DP & L had undertaken a duty (the scope of which was unclear), that there was an issue of fact as to who had decided which lines would be de-energized, and that DP & L’s lack of ownеrship of the power lines was not dispositive. Therefore, DP & L could not maintain a reasonable belief in its own nonliability on the theory it describes. See id. at 1361 (holding that the defendants’ reliance on “faulty defenses” could not constitute a good faith, objectively reasonable belief that they were not liable).
Furthermore, DP & L’s argument that it could have had a reasonable belief that it was not liable because the factual issues were strongly disputed, see Cooper v. Metal Sales Manufacturing Corp.,
DP & L is correct that the magistrate judge’s recommendation in its favor is some evidence that DP & L could have had a reasonable, good-faith belief that it was not liable. However, DP & L was not entitled to rely on this initial belief throughout the litigation, especially since subsequent events should have undermined that belief. Cf. id. at 351 (“If [the defendаnt] ever had a good faith, objectively reasonable belief that he had no liability, the fact that the ‘arbitration’ panel unanimously found against [him] should have apprised him that a finding of liability at trial was possible, if not probable.”). In the cases cited by DP & L for the proposition that the magistrate judge’s recommendation demonstrates its good faith, there were no subsequent events that undermined the defendant’s belief in its lack of liability, and therefore those cases are inapposite.
DP & L is also correct that, as a matter of logic, its counsel’s statement that hе believed that there was less than a fifty percent chance that DP & L would be held liable for more than $500,000 does not mean that he therefore believed that there was more than a fifty percent chance that it would be held liable for an amount up to $500,000. Nonetheless, in light of the substantial evidence supporting the district court’s decision, this minor error in the court’s argumentation is not sufficient to demonstrate an abuse of discretion. We therefore uphold the award of prejudgment interest to Conte.
B. DP & L’s Motion for Judgment as a Matter of Law
1. Standard of Review
This court reviews de novo the district court’s disposition of a motion for a judgment as a matter of law under Federal Rule of Civil Procedure 50. See K & T Enters., Inc. v. Zurich Ins. Co.,
2. Appropriateness of the District Court’s Denial of the Motions
To make out a claim for negligence, a plaintiff must show the existence of a duty. See Estates of Morgan v. Fairfield Family Counseling Ctr.,
The district court was correct to find that DP & L owed a duty of ordinary care to Conte, because DP & L voluntarily undertook to perform services for the benefit of Conte and the other Kessler painters. The Court of Appeals of Ohio adopted the position of the Restatement (Second) of Torts § 323 in Wissel v. Ohio High School Athletic Association,
One who undertakes, gratuitously or for consideration, to render services to another which he should recognize as necessary for the protection of the other’s person or things, is subject to liability to the other for physical harm resulting from his failure to exercise reasonable care to perform his undertaking, if
(b) the harm is suffered because of the other’s reliance upon the undertaking.
Restatement (Second) of ToRTS § 323 (1965); see Wissel,
It is undisputed in this case that DP & L undertook to aid GHC in making its workplace safe, and it is undisputed that Conte relied on the joint actions of GHC and DP & L when performing his job of painting the water tower. In order to show reliance under § 323(b), the Ohio Court of Appeals has held, the plaintiff must show “actual or affirmative reliance, i.e., reliance ‘based on specific actions or representations which cause the persons to forego other alternatives of protecting themselves.’ ” Wissel,
Furthermore, the fact that DP & L did not own or exercise control over GHC’s power lines does not affect the existence of DP & L’s duty. A utility may still owe a duty to guard the safety of customers and others, regardless of who actually owns or controls the power lines. See Fortman v. Dayton Power & Light Co.,
Having determined that DP & L did owe a duty to Conte, we have no difficulty in concluding that the jury could reasonably find that that duty included de-energizing the primary wires, and that DP & L exhibited negligence with respect to that duty. Based on the testimony of Nowicki, Large, and William Hershfeld, a maintenance supervisor at GHC, the jury could have concluded that DP & L had explicitly agrеed to de-energize the primary lines; or it could have found that DP & L agreed to de-energize those lines that had to be de-energized in order to render the workplace safe; or it could have found that DP & L undertook together with GHC to decide which lines should be de-energized. If it found any of those duties to be included within the scope of DP & L’s underbaking, the jury clearly could have found that DP & L performed negligently by only de-energizing — or by only agreeing to de-energize — the secondary lines attached to the legs of the tank. Therefore, the district court did not err in denying DP & L’s motion for judgment as a matter of law.
C. Motion for a New Trial
DP & L claims that the district court should have granted its motion for a nеw trial under Federal Rule of Civil Procedure 59. DP & L contends that it was entitled to a new trial for three reasons: first, the verdict was contrary to the weight of the evidence; second, the district court erred in excluding some of DP & L’s evidence as hearsay; and third, the district court incorrectly modified the jury’s verdict under Federal Rule of Civil Procedure 49(b). All of these claims are without merit.
In a diversity case, federal law governs the district court’s decision whether to grant a new trial on the basis of the weight of the evidence, which is reviewed by this court for an abuse of discretion. See J.C. Wyckoff & Assocs., Inc. v. Standard Fire Ins. Co.,
In arguing that the verdict was against the weight of the evidence, DP & L relies on the same arguments that it employed in contending that the district court should have granted its motion for judgment as a matter of law. For the reasons discussed above in Part B.2., we hold that the jury’s verdict in this case is one that could reasonably have been reached, and thereforе that the district court did not err in denying DP & L’s motion for a new trial on this ground.
DP & L also argues that the district court should have granted it a new trial, because it was prejudiced by the erroneous exclusion of certain evidence. In particular, DP & L attempted to have Don Doll testify that Stan Fraliek (one of the Kessler painters) told Doll after the accident that he knew “the wires were hot, but not that hot.” The district court refused to admit this testimony as hearsay. DP & L argues that this testimony was admissible under Federal Rule of Evidence 613(b) as extrinsic evidence of a prior inconsistent statement, used to impeach Fralick’s tеstimony at trial that he did not know that the primaries were energized.
Applying federal law to determine the admissibility of Doll’s testimony, we conclude that the evidence was erroneously excluded. See Barnes v. Owens-Corning Fiberglas Corp.,
Finally, DP & L argues that it was entitled to a new trial because it was prejudiced by the district court’s erroneous amendment of the judgment under Federal Rule of Civil Procedure 49(b).
In a diversity case, federal law governs most issues surrounding the utilization of special interrogatories and the problem of inconsistent answers, including the effect of inconsistency between a general verdict and one or more special interrogatories. See Jewell v. Holzer Hosp. Found., Inc.,
DP & L’s objection to the amended judgment is without merit. As the district court correctly found, DP & L and GHC were jointly and severally liable as a matter of Ohio law, because they were joint tortfeasors, and Conte was not contribu-torily negligent. See Ohio Rev. Code Ann. § 2315.19; Eberly v. A-P Controls, Inc.,
DP & L argues that the interrogatory answers and the general verdict were consistent when construed in light of the district court’s “proximate cause” charge, which instructed the jury that “[e]ach defendant must rеspond for only those losses and injuries which are the direct and proximate result of its negligent act.” J.A. at 2239 (Jury Charge). This argument is without merit. The requirement of proximate causation does not eliminate joint and several liability: joint and several liability implies that the joint acts of both defendants proximately caused the plaintiffs injuries. See 18 Ohio Jur.3d Contribution, Indemnity, and Subrogation §§ 83, 84 (1980). Therefore, under joint and several liability, both defendants are held responsible for all of the plaintiffs injuries, because their joint acts were the proximate cause of all of those injuries.
For these reasons, we hold that the district court correctly amеnded the judgment under Rule 49(b), and therefore that it did not abuse its discretion in refusing to grant the defendant’s motion for a new trial on this basis.
D. Motion for Relief from the Judgment
Applying federal law, this court reviews for an abuse of discretion the district court’s decision to grant or deny a Rule 60(b) motion in a diversity case. See Davis v. Jellico Community Hosp. Inc.,
First, DP & L argues that it should now be relieved of liability for the prejudgment interest, because, due to GHC’s payment of the full amount of the underlying $3.5 million judgment, there is no longer a judgment on which prejudgment interest may be based. Although
Additionally, DP & L claims that it is entitled to a reduction of the judgment against it based on GHC’s settlement with Conte, in partial satisfaction of the judgment, for $3,675 million. Given our holding that DP & L is required to pay prejudgnent interest, the parties do not appear to disagree about the amount for which DP & L remains liable: the entire judgment of $3.5 million, plus the prejudgment interest on that amount ($958,-904.10), minus the $3,675 million paid by GHC, plus the appropriate postjudgment interest. Since we are remanding the case to the district court for the calculation of postjudgment interest, we suggest that the district judge amend the judgment to reflect the payment of $3,675 million by GHC and the revised amount of DP & L’s liability, consistent with this opinion.
III. CONCLUSION
For the foregoing reasons, we AFFIRM the district court’s judgment and REMAND for recalculation of DP & L’s liability in light of the accrued postjudgment interest and the partial satisfaction of the judgment by GHC.
Notes
. As explained by Nowicki, the difference between primary lines and secondary lines is that "primaries” are generally uninsulated and carry between 7200 and 12,500 volts of electricity, and "secondaries” are generally insulated and carry less than 600 volts.
. Since Conte is a citizen of Massachusetts, GHC is a Delaware corporation with its principal place of business in Ohio, DP & L is an Ohio corporation with its principal place of business in Ohio, and the amount in controversy was jurisdictionally adequate, the district court properly assumed jurisdiction under 28 U.S.C. § 1332.
. The only act on the part of DP & L that could be characterized аs a "settlement" was its offer of $3.00 to Conte on the day prior to trial. As DP & L explains, however, this "offer" was part of a scheme to convince Conte to dismiss DP & L from the case: DP & L explained to Conte that it would be to Conte's advantage to have DP & L out of the case for a number of reasons — including that DP & L intended to employ "kamikaze” and "scorched earth” tactics and that DP & L was more prepared than GHC and would bolster GHC's defense.
. One exception is the unpublished case Barna v. Randall Park Associates, No. 66751,
. The Wissel court noted that the Ohio Supreme Court had not expressly adopted § 323, but that it had cited that section with approval. See Wissel,
. Rule 49(b) states, in pertinent part:
The court may submit to the jury, togеther with the appropriate forms for a general verdict, written interrogatories upon one or more issues of fact the decision of which is necessary to a verdict.... When the answers are consistent with each other but one or more is inconsistent with the general verdict, judgment may be entered pursuant to Rule 58 in accordance with the answers, notwithstanding the general verdict, or the court may return the jury for further consideration of its answers and verdict or may order a new trial.
Fed.R.Civ.P. 49(b).
. Indeed, DP & L's argument, carried to its logical conclusion, would appear to allow a party always to avoid paying prejudgment interest merely by paying the underlying judgment in full and then claiming that there was no longer a judgment on which to pay interest.
