*1 Mary SMITH, Appellee/Cross- Jo HOTEL, Appellee, MADISON Appellant, HOTEL AND RESTAURANT WASHINGTON SHERATON EMPLOYEES, LOCAL 25 CORPORATION, Appellant/Cross- AFL-CIO, Appellant. Appellees.
No. 96-7270. 96-7228, Nos. 96-7238. Appeals, United States Court of Appeals, United States Court of District of Columbia Circuit. District of Columbia Circuit. 20, Argued Nov. 1997. 28,
Jan. 1998. Decided Feb. EDWARDS, WALD, Judge; Before Chief SILBERMAN, WILLIAMS, GINSBURG,
SENTELLE, HENDERSON, RANDOLPH,
ROGERS, GARLAND, TATEL and Circuit
Judges.
ORDER
PER CURIAM.
Upon appellant’s Sugges- consideration of Banc, Rehearing response
tion For
thereto, by majority and the vote of the
judges regular, of the court in active service suggestion,
in favor of the it is suggestion grant-
ORDERED that the be
ed. This case will be reheard court
sitting Wednesday, in banc on March at 10 AM. The herein filed 7,1997
on November is vacated. It is parties
FURTHER ORDERED that thirty copies
shall file an additional
briefs, joint appendix, and of the and do so 11,1998. February
on or before *2 Lopata, Baltimore, MD,
Edward J. argued *3 the cause and filed the appel- briefs for lant/cross-appellees. Wehner,
Stephen DC, Washington, V. ar- gued the cause and appel- filed the for briefs lee/cross-appellant. WALD, WILLIAMS,
Before: RANDOLPH, Judges. Circuit Opinion for the Court filed Circuit Judge RANDOLPH. opinion
Dissenting Judge filed Circuit STEPHEN F. WILLIAMS.
RANDOLPH, Judge: Circuit 2, 1993, plaintiff, On June Mary Jo Smith, injuries sustained head when she fell ramp leading off a parking garage from a lobby into a of the Washington Sheraton Invoking Hotel. diversity the district court’s jurisdiction, § 28 U.S.C. Smith named responsible as defendants for the condition ramp Corporation; of the ITT Sheraton Washington Corporation; Sheraton Operating Corporation; Woodley Road Asso- ciates, Inc.; John Hancock Mutual In- Life Company; surance and Sumitomo Life Real- ty.1 evidence, At the close of all the attorney jointly representing these six defen- judgment dants moved for as a matter of 50(a). law. See Fed. R. Civ. P. The district granted court except respect the motion Washington Corporation, which remaining became the sole defendant. The Corpora- found guilty negligence tion and awarded Smith $175,000.
Thereafter, Washington Corpora- judgment tion renewed its motion for as a remittitur, matter of law or a new trial or arguing present any that Smith had failed to showing who owned controlled 50(b) ramp. Fed. R. P. and 59. Civ. The district court denied the motion. granted judgment Parking Garage. appeal 1. The district court aas matter Smith does not this defendant, Doggett of law in favor of a seventh order. Inc., Enterprises, operator of the Sheraton (D.C.Cir.1964); Corpo- Hilleary Earle Restau- appeal, In its Inc., (D.D.C.1952). and, rant, sufficiency F.Supp. of the evidence A ration raises alternative, operates trial on party premises seeks a new who but nei- in the also “egregious conduct” ther the owner nor the lessee have basis duty at 17. Smith Appellant for of reasonable care. See F.W. Wool- Brief counsel. (D.C. Stoddard, judgment in favor of from the worth Co. v. 156 A.2d cross-appeals 1959). other defendants. the five legal are well principles governing I court deci- review of district
known. Our
up
willWe
take
first Smith’s claim
as a matter of
on motions
sions
granting judg
that the district court erred
all evidence in
is de novo. We consider
law
*4
Corporation.
Operating
ment for Sheraton
nonmoving
to the
light most favorable
the
for the six
told the court:
Counsel
defendants
Columbia, 101
v. District
party. See Scott
of
move
as a
would
for
matter
(D.C.Cir.1996).
“[W]e
748,
We do not
F.3d
752-53
all
of law as to
six of the defendants that I
evidence, only
weight of the
its
assess the
complete
representing
am
there is a
because
jury’s
will stand un-
sufficiency. The
verdict
plaintiffs
of
case
lack
the
as to
infer-
all reasonable
less “the evidence and
which,
any,
corporations
if
own”
these
are
can be drawn therefrom
so
ences that
Trial Transcript
hotel.
at 967. Defense
men and women
one-sided that reasonable
acknowledged
counsel then
that one witness
disagree on the verdict.” Id. at
could not
working
testified to
for the
had
Sheraton
“more than
But the evidence must be
Corporation
Operating
and so he assumed
colorable”;
“significantly
it
merely
must be
defendants,
“for all the other five
our motion
Corp.,
Siegel
Motor
probative.”
v. Mazda
granted.”
should be
Id. at 1014. The court
(D.C.Cir.1989).
435, 437
responded:
only possible
“[T]he
defendant
case,
diversity
Because this is a
brought
have
[sic]
tort law of the District of Colum
substantive
jury may
Washington
attention of the
be the
Joy
Helicopter Tex
controls. See
v. Bell
bia
Corporation
everyone
...
Sheraton
other
(D.C.Cir.1993).
Inc.,
tron,
549,
F.2d
999
553
Washington
Corporation
than
Sheraton
out
by
of care owed
an owner or
The standard
of the case.” Id. at 1079-80.
occupier of land is “reasonable care under all
exchange,
this
court must
Given
have
As
of the circumstances.”
v.
Sandoe
Lefta
keep
Operating Corpora-
meant to
Sheraton
(D.C.1988).
socs.,
A.2d
To re
559
738
grant judgment
tion in the ease and to
for
occupier
or
against
cover
either an owner
defendants, including Washing-
the other five
land,
plaintiff must show “that the defen
Corporation.
only
ton Sheraton
evi-
notice —either actual or construc
dant had
ownership
brought
dence
or control
present
allegedly
of an
tive —of the
existence
Operat-
jury’s attention
related
Sheraton
Hall,
dangerous condition.”
Croce
ing Corporation.
A witness for the
(D.C.1995).
generally
A.2d
While
a
testified that
had
he was the director of
responsible
injuries
is not
for
landlord
caused
engineering at the Washington Sheraton Ho-
by
developing after
conditions
lessee
employed by
was
Operating
tel and
Sheraton
a
possession,
party
third
recover
takes
Corporation. He
further testified
property
or
against the lessor
landlord of
department
engineering
responsible
was
public purposes
party
if the
dem
leased for
ramps leading from
the maintenance of
injury
that the
was caused
onstrates
garage to the hotel.
existing
pos
took
“condition
when the lessee
that the
“knew or
there
session” and
lessor
should
Because
was evidence
Corporation’s
prem-
Operating
have known of the condition and realized or
control of the
ises,
risk”
it
removed
should have realized the unreasonable
should
have been
from
(Second)
the case for lack of
evidence. The
involved.
such
court
Restatement
ToRts
(1965);
remain,
Daly
Toomey,
§
212 plainly
although
see also
intended for it to
(D.D.C.1963),
F.Supp.
something quite
478-79
sub
the order stated
different.
aff'd
for a
Daly,
nom. Muldrow v.
jury.
appeal, Washington
On
Sheraton Cor-
proof’
basis that there was a “total lack of
poration argues that the district court erred
its
or control of the hotel. Trial
submitting
the case to the
because
1003;
Transcript at
see
Appel
also Brief for
Smith “failed to introduce evidence of who
ignores
lant at 9. But
pretrial
this
order
ramp.”
owned or controlled the
Brief for
ease,
in the
designed
an order
to “control the
Appellant
at 7.
Sheraton Cor-
subsequent course of the action.” Fed. R.
out,
points
correctly,
only
poration
that the
16(e).
pretrial
Civ. P.
Smith’s
statement de
testimony
defendant mentioned in trial
owners,
scribed the defendants as “all either
Operating Corporation.
Id. at 5.
operators,
parent
corporations of the
words,
impli-
In other
because the evidence
*5
Washington Sheraton
The
Hotel.”
Sheraton
only
Operating Corporation,
Sheraton
cated
pretrial
defendants’
statement
stated that
against Washington
the verdict
Sheraton
Operating Corporation “operates
Sheraton
Corporation cannot stand.
Washington
the Sheraton
pursuant
Hotel
to
Washington
We believe
Sheraton
management
agreement
a
Woodley
Corporation’s post-trial
judgment
motion for
Woodley
Road Associates.
Road Associates
granted,
as a matter
law should have been
Washington
leases the Sheraton
Hotel from
just
but for a reason other than the one
Woodley
2660
Road Joint Venture.” The
mentioned. Smith’s case failed not on the
Joint Venture consists of John Hancock Mu
ownership
element of
or control —as we shall
Company,
tual Life Insurance
in a
discuss
moment —but
the element of Realty,
Washington
Corporat
and
Sheraton
knowledge.
presented no
Smith
evidence
ion.2 See Defendants’ Answer
to First
Washington
Corporation
knew
Complaint.
heading
Amended
Under
allegedly
known of the
should have
dan
Defenses,”
“Statement of
the Sheraton de
Croce,
gerous
ramp.
condition
See
657 fendants listed four
which
defenses
are so
Judgment
at 311.
a
A.2d
as matter
law
they may
entirety.
brief
be set out in their
may
party
present
if
be rendered
one
fails to
by
1. Plaintiffs claim is barred
her con-
Ferguson
on a
material issue. See
tributory negligence
failing
in
to see and
Co.,
v. F.R.
GMBH &
ported
ma facie element
case
statements,
exchanging
pretrial
these
After
dispute
from
in this manner.
be removed
pretrial confer-
appeared for a
parties
Enter., Inc.,
Reyes
Romero
v. Marine
5, 1995,
weeks
seven
be-
ence. On October
(1st Cir.1974). Furthermore,
and other III attorney certifying that of factual “denials respect cross-appellees With John Han- on the contentions are warranted evidence Insurance, identified, or, cock Mutual Life specifically reasonably if are so Associates, Realty, Woodley a lack of information or Road we based on belief.” also vacate the in their favor and May The Defect in Proof be Remedia- C. judg- remand for a new trial. The court’s ble proposition ment rested that Smith no had introduced their owner- ordering trial Our final reason new *7 ship or control of the hotel. As we have judgment Washington rather than Shera- discussed, by that issue was conceded Corporation ton is that we believe Smith’s parties’ pretrial pretrial statements and the proof failure of on the element of whether pretrial Defendants’ statement order. de- defendants knew or should have known about may part- Hancock as ramp’s condition be remedied. scribed John Sumitomo and, Co., Venture, Neely Eby Woodley v. Martin K in 2660 Road Joint Construction ners Complaint alleged: 3. Plaintiff's First Amended The Sheraton Defendants submitted two An- swers, following paragraphs: identical in the Corporation 11. The defendant ITT Sheraton 11. Admitted. Corpo- Washington owns defendant Sheraton Washington & Sheraton Hotel 13. The is Operating Corpora- ration and the Sheraton Associates, Woodley by leased Road Inc. and tion. by Operating Corporation. operated Washington Corpo- 12. Defendant is a tenant .under a lease from ration, [sic] The leasee defendant John Hancock Mutual Life Woodley 2660 Road Joint Venture which is Company, Insurance and defendant Sumitomo comprised of John Hancock Mutual Life Insur- Realty partners entity are in an known as Life Realty, Venture, Company, and ance Woodley through 2660 Road Joint Corporation. Washington Sheraton The re- they Washington which own the Sheraton Ho- allegations mainder of the are denied. Parking Garage. tel and the Sheraton Woodley 13. 2660 Venture Joint leases course, negligence against a Washington 4. Of action lie Hotel to defendant Associates, Inc., Woodley who is the lessor rather than the own- defendant Road which in property. joint agreement Operating er of And an admission that one is with Sheraton Cor- poration, operates property a denial that also the Sheraton lessor of is not one is property. Hotel. the owner of the District “Woodley Associates Public Service Commission Road stated and of of Columbia, (D.C.1987), Washington Hotel from 520 A.2d the Sheraton leases Appeals Thus for the District of Columbia Woodley Road Joint Venture.” Court of gave judgment holding company for its that a which owned the court ruled the reasons . corporations parent it. all the stock in three had support do not legal no interest in the taxicabs which were complete lack of ease did suffer Smith’s property corporations. of those The these defen- on the element explained: court there allegedly of the defective had notice dants ramp, for reasons al- corporation of the but Ownership condition one stock appropriate to we it ready identity mentioned believe not create an another does trial. Had district corporate remand for a new com- interest between the two absence of evidence to the stockholding court been alerted com- panies, nor render the grant the defen- knowledge property and decided pany owner of the of the 50(a) ground, motion on ownership dants’ Rule complete other. Even of all grant instead corporation would have had discretion not outstanding stock of a is prejudice. without ownership a dismissal equivalent of a subsid- R. MIL- assets, A. par- 9A iary’s property because a & ARTHUR WRIGHT CHARLES subsidiary comprise wholly ent and two Procedure LER, Federal Practice 318; Virgi- § see also Cone v. West at separate proper- entities with individual Co., 212, 217, 67 Pulp Paper 330 U.S. nia & ty rights. (1947). 752, 755-56, L.Ed. 849
S.Ct.
Corpora-
(quoting
Id. at 18A Am.Jur.2d
§
ITT
(1985)).
tions
Thus
judgment in favor of
grant
despite
Corporation,
its
matter
ITT
is another
operated
companies that leased and
the ho-
because,
entirely.
affirm that
We
tel, did not own the hotel.
corporate owner of
Shera
as a
Operating
Corporation and Sheraton
ton
IV
¶ 11,
Answer
Corporation, see Defendants’
Corporation is not liable for
ITT Sheraton
reject
points of
We
the additional
property
by a condition on
be
harm caused
parties. Only
error raised
one of the
As Smith con
longing to its subsidiaries.
points warrants discussion —the defense con
attempt
argument,
oral
no
ceded at
contributorily negli
tention that Smith was
pierce
corporate
veil.
made at trial to
gent
theory
as a matter of law. The
is that a
District of Columbia is that
The law the
posted
sign
opening
on the door
to the
corporate
obligations of the
“the acts and
ramp reading
Step”
“Caution Watch Your
—
entity
recognized
as those of a
will
be
sufficiently
pointing
with arrows
down—
party seeking to
particular person until the
great
to exercise a
alerted
the need
Smith
corporate entity
proved by
has
disregard the
degree
er
of care
that her failure to do
(1) unity
affirmative evidence
there
*8
contributorily negligent
her
as a
so rendered
(2)
use of the
and interest and
Appellant
matter of law.
Brief for
at 13.
See
corporate
perpetrate
-form to
fraud or
Furr,
811,
Contributory negligence is almost al
wrong.”
v.
482 A.2d
815
Vuitch
(D.C.1984);
jury.
ways
question
of fact for the
see also Camacho v.
Rhode
1440
(D.C.
Columbia,
528,
242,
410 A.2d
Corp., 620 A.2d
248
Rich v. District
Island Ave.
(D.C.1979).
cases,
1993).
“Only
exceptional
in
ITT
532
Nor can
undisputed
property
facts are
and where
be
as an owner of the
wheré the
held liable
drawn,
injury
but one reasonable inference can be
is
where the
occurred.
It is a funda
justified
holding
negli
in
that
principle
corporate law that
the trial court
“[t]he
mental
company
gence
contributory negligence
in
is
has been
owner of the shares of stock
Singer
corporation’s property.”
established as a matter of law.”
v.
not the owner of the
(D.C.1967);
436,
see also
Hosp.
Doughton, Doyle,
Rhode
236 A.2d
Island
Trust Co.
87,
69, 81,
Corp.,
Dev.
70 L.Ed.
v. Potomac
U.S.
46 S.Ct.
Jeffries
(D.C.Cir.1987).
(1926).
People’s
In
Counsel v. 90
Office of
against
The verdict
Corporation relies
Washington Sheraton
(D.C.1997), Corporation
judgments
The
in
is vacated.
Loftus,
head So ordered. testimony, Poyner, who according to his own eight in front of him and six to feet could see WILLIAMS, F. Judge, STEPHEN Circuit handicap, did not look aware of his was dissenting: Poy- A.2d at 71. going.” he was where Except myself I for one issue find full ner, however, not alter District of Co does majority. Unfortunately agreement with the law; Appeals reiterated the Court of lumbia contributory negligence dis- issue— —is exceptional ease is evi “[o]nly in the that If, believe, jury I positive. as no reasonable unambiguous that contrib clear and dence so contributory plaintiff could find the free of a matter utory negligence should be found as negligence, then all the other issues are Johnson, (citing Tilghman of law.” Id. Accordingly moot. I dissent. (D.C.1986)). 1350, 1351 513 A.2d Senator, plaintiff, wife of a U.S. drove sign posted on warning was The fact that at with friends to a lunch the Shoreham ramp not mean leading to the does the door Lady. Hotel in honor of the First Because of her failure fall was the result that Smith’s full, parking at the Shoreham was she ordinary counsel care. Smith’s to exercise there, park and went to left her friends off sign did not argued to the nearby Washington. her car at the person’s at- adequately direct a reasonable parking To exit from the structure to far of a closed anything on the side tention proper, pass through hotel she had Transcript at 1107. The Trial door. See opinion in Exhibit 1 to this Exit door shown pointing ar- cautionary words with downward (a photocopy of Defendant’s black-and-white person to have led a reasonable rows could photograph). Trial Exhibit # a color On danger at the that the doorsill believe handle, it, below the door perhaps two inches a reasonable beyond, than or at least rather warning sign saying, appears a know, jury could so conclude. Smith did door, approached the at the time she CAUTION ramp. opened onto a Even had she been ramp, “[kjnowledge alone of a aware WATCH YOUR charge insufficient to [her] condition is STEP contributory negligence a matter of law.” as Corp., Trust v. pointing down. with five arrows (D.C.1969). Trust, 21, 22 the Court A.2d is a hotel side of the door there On the Appeals although held ramp appears roughly symmetrical to prior step of a to her had noted the existence (Plaintiff’s garage Mo- the one on the side. fall, granting judg- the trial court erred Summary Judgment as to tion for Partial Id. When n.o.v. to the defendant. ment Sheraton, ITT Liability as to Defendants people which reasonable there is evidence on *9 Mutual Realty, John Hancock differ, might see District Columbia v. Coo- of Operat- Company, Life Insurance (D.C.1982), of per, the issue 445 A.2d Woodley Road Associ- ing Corporation and contributory negligence should be submitted C.) ates, person going through A Exhibit jury. here. to the So (i.e., per- directly pursuing a course the door doorway) plane to the of the
pendicular Beyond ramp. the step onto the far a of law in favor would The as matter doorway, the directly aligned with the affirmed. area ITT visibility, jury ramp vertically arguing fell to floor instead to the that it edge the far anyone level, stepped who to the that for any danger so failed to direct attention to on entering the hotel there was a side while transcript the other side of the door. Trial inches —the record does not drop of several this depends at 1107. But on an odd con- many least at the end of how make clear sign. —at struction of the Counsel’s idea evident- It ramp the door frame. the nearest ly was that it directed the reader’s attention ramp, of the the configuration this and/or door, only to hazards before the which she handrail, jury found absence of a it, perhaps before see she touched and could dispute not Defendant does negligent. door, directly to but not hazards beneath reasonably do so. it could just beyond all I at to hazards the door. sign anything cannot see how the means her fall as follows: Plaintiff described patron proceed other than for the to my opened the door ... with left I ... caution approaches both as she and as she my shoulder and probably and left hand steps through the This includes door. well, foot my leg left and as because was steps first she takes on the other side. Of door, very heavy pushed open and a course, special under circumstances a reason- my right proceeded in with foot. door and person might disregard warning, say able My right off that right foot fell side of if pursued by thug. plaintiff she were a But catapulted ramp I was into the metal suggested no such extreme circumstances. the [elevator]. framework of Poyner Loftus, In its recent in decision (“J.A.”) Appendix passage In a Joint (D.C.1997), Ap- A.2d 69 D.C.’s Court deposition into from her read evidence at peals proof made clear that in its view trial, she said contributory negligence as a matter of law is stepped through doorway expecting I just not a event. once-in-a-blue-moon ramp there to be the other side and Poyner, plaintiff, legally blind but able to my just only into —I can foot went describe him, eight see six feet in about front abyss. it as an walkway was on a elevated four feet above According Id. at 267. testimo- lacking guardrails. the street level and ny, sign by she was able to see “Exit” (modest) normally Shrubs as acted barrier “easily,” lighting door and the on the hotel persons’ falling walkway, off the but on brighter” “much side the door was even day question missing, one was as transcript than that. Trial at 1027. Poyner noticed. Distracted someone call- name, ing failing out his to take the I do not believe a reasonable could precautions indicated the absence of the leaving parking have found someone shrub, protective Poyner walked over the garage through this exit could have suffered edge injuries. and suffered The court found the accident that if she exer- befell contributorily negligent his conduct a mat- as light promi- cised reasonable care in case, similarly, plaintiff ter of law. In our First, sign. person nent “Caution” exercis- “failed either to look at all or to look obser- ing sign, right reasonable care would see the vantly plainly and see what should have been next very to the door handle and bold Poyner, visible.” (Plaintiff (quoting 694 A.2d at lettering.1 testified that she did (D.C. 270.) Singer Doyle, A.2d seeing it. Plain- remember J.A. 1967)). evidently sign’s tiffs counsel assumed the photo Ap- sign’s
1. In the color contained in the Joint overstated the salience. black-and- pendix sign gives glow, appears photocopy off an white iridescent but to cancel that over- testimony trial indicates that this well have statement. *10 law, substantive course, To be true to the District’s is, correct majority are contributory negligence review of the district which controls our negligence law, a matter of rarely established as only for a directed court’s decision on the motion (citing Singer v. Maj. Op. at 786-87 see verdict, Ferguson F.R. & Winkler GMBH (D.C.1967)), Doyle, 236 A.2d (D.C.Cir.1996), KG, 1221, 1224 Co. change in District Poyner wrought no grant should reverse for failure we law, Poyner dra- But id. at 787. Columbia motion. of rea- the District’s idea matically illustrates real, its insistence care and sonable jury.
rubber-stamp, superintendence
Exhibit
