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Opinion
Sukhsagar Pannu suffered a severe spinal injury, resulting in quadriplegia, when his Land Rover Discovery (Series 1) sport utility vehicle rolled over following a chain of collisions on the 118 Freeway near Simi Valley. Pannu sued Land Rover North America, Inc., Jaguar Land Rover North America, LLC, and Terry York Motor Cars, Ltd., doing business as Land Rover Encino (collectively Land Rover) alleging claims, among others, for strict liability based on defective design.
Following a bench trial, the court entered a judgment for $21,654,000 against Land Rover, finding stability and roof defects in the Discovery had caused Pannuâs injury. On appeal Land Rover contends a new trial is warranted because the trial court erred as a matter of law in applying the âconsumer expectationâ test for product liability, misapplied the alternative ârisk-benefitâ test, and abused its discretion in excluding certain evidence proffered by Land Rover. Land Rover also contends the courtâs ruling was not supported by substantial evidence because no skid marks were found at the accident site, evidence it asserts necessarily must have been present had the rollover been caused by the alleged stability defect. We affirm.
FACTUAL AND PROCEDURAL BACKGROUND
1. The Accident and Pannuâs Injury
On December 14, 2003 Pannu was driving his 1998 Discovery westbound on the 118 Freeway, travelling about 65 miles per hour. Although a light mist
Pannu suffered a bilateral facet dislocation of the C-6 and C-7 vertebrae, resulting in quadriplegia, as well as a fracture of the fifth spinous process and a teardrop fracture of the C-7 vertebra. At the time of the accident Pannu was 47 years old and physically fit; he was an active runner and field hockey player. He had a college degree, was married with three children and owned two 7-Eleven stores and two Subway stores he and his wife personally managed. Pannu also managed two 7-Eleven stores owned by his parents. He worked eight to 10 hours a day, seven days a week.
As a result of his injuries Pannu is paralyzed below his chest, has limited mobility or dexterity of his arms and hands, cannot drive or groom himself and suffers from spasms, fevers, urinary tract infections, pressure sores, incontinence and constant pain. He requires the daily care of an attendant who dresses him, cares for his medical needs and drives him to his stores. Although he visits one store a day, he is no longer involved in the personal management of his familyâs stores. After the accident, Pannuâs older son abandoned his studies at medical school to care for his father and the family stores. Pannuâs daughters attend local colleges in order to be close to their father.
According to a forensic economist who evaluated his lost earning capacity, Pannuâs postdisability worklife expectancy is only one to six years due to his deteriorating medical condition and his inability to perform the necessary functions of most jobs. During those years he will be able to maintain about 19 percent of the original open market value of his preaccident earning capacity. In essence, he is incapable of contributing to the value of his businesses, and his earning capacity is limited to a return on his preaccident investment in the family stores.
a. Pannuâs evidence
California Highway Patrol Officer Diane Nunes investigated the accident. By the time Officer Nunes arrived at the scene, the light mist had turned to rain. Using a roll meter to estimate distances, she measured several points of physical evidence, including a scuff mark on the center divider she attributed to the Acura hitting the divider after colliding with the Discovery; tire marks in the dirt of the embankment she attributed to the Blazer running up the embankment after colliding with the Discovery; a shallow, foot-long scrape on the shoulder adjacent to the far right lane; and a scrape and green paint transfer within the far right lane of the roadway, 20 feet in length and surrounded by broken glass, she attributed to the Discovery sliding on its roof near the end of its roll. She observed no tire marks and reported no other gouges or scrapes in the vicinity.
Based on Officer Nunesâs measurements and observations, his inspection of the Discovery and his 2007 visit to the accident site, Ted Kobayashi, Pannuâs accident reconstruction expert, opined the Discovery rolled because of friction between the tire and the roadway. Kobayashi asserted the impacts between the Discovery and the Acura and the Discovery and the Blazer were insufficient to cause the Discovery to roll and, in the absence of a tripping mechanism, he concluded the vehicle rolled as a result of a tire slip. Explaining why the roll occurred, he posited that Pannu began a series of five rapid steering maneuvers in an attempt to control his vehicle after it was struck by the Acura. The first maneuvers came in a failed effort to avoid colliding with the Blazer in the far right lane. The collision between the Discovery and the Blazer sent the Blazer to the right toward the embankment, while the Discovery rebounded to the left. Additional steering inputs by Pannu caused the Discovery to yaw. The resulting tire friction caused the left side wheels to lift from the ground, and the vehicle rolled three and a half times before coming to rest on its roof.
In support of Kobayashiâs reconstruction, Pannu presented another expert, Ed Heitzman, who had devised a protocol to test vehicles for stability. Using a comparable production Discovery, Heitzman equipped it with outriggers to prevent rollover and a steering mechanism to replicate steering inputs and drove it through a test course. Pursuant to the test protocol, the Discovery accelerated to a speed of 50 miles per hour, the speed Kobayashi estimated
Pannu also called a stability and handling engineering expert, John Marcosky, who opined that, when a vehicle traveling on a smooth roadway rolls over as a result of steering input and not as a result of a tripping mechanism, the vehicle is defective. Under steering duress a vehicle should have sufficient rollover resistance to slide out rather than roll over.
b. Land Roverâs reconstruction of the accident
Land Roverâs reconstruction expert, Lee Carr, agreed with Pannuâs experts that the impacts between Pannuâs vehicle and the Acura and Blazer were insufficient to cause the Discovery to roll over. According to Carr, however, the Discovery rolled not because of tire friction but because of a tripping mechanism. In other words, Carr concluded the roll was triggered when the right rear tire of the Discovery hit the asphalt curb of the shoulder after colliding with the Blazer.
Reconstructing the vehicle movements that led to the Discovery striking the curb, Carr postulated a series of movements and speeds just as had Kobayashi. Where Kobayashi accepted Officer Nunesâs measurements, however, Carr determined she must have made several sizeable errors in locating the vehicle marks she described in her report. In particular, on his second visit to the site in October 2006, nearly three years after the accident, Can-located what he believed to be the scrape in the asphalt of the shoulder described by Nunes, approximately 90 feet west of the point measured by
Carr was especially critical of Kobayashiâs reconstruction based on his assertion that tire friction rolls always leave skid marks. The lack of evidence of any skid marks indicated to Carr that the Discovery necessarily rolled because of some triggering mechanism, most likely the curb, and did not roll as a result of severe steering inputs by Pannu.
Following his testimony, Carr was impeached by a witness who located and measured the distance between the curb gouge and the scrape described by Carr. According to the impeachment witness, the distance between the two marks was 160 inches, not the 100 inches described by Carr. Carr then retook the stand and admitted he had erred in his testimony and concurred the correct measurement was 160 inches. He did not explain how this error would affect his reconstruction of the accident.
3. The Alleged Roof Defect
a. Pannuâs evidence
As a result of the accident, the roof of the Discovery suffered 13 inches of plastic deformation at the A pillar on the driverâs side. Elastic deformation, that is the extent of dynamic deformation during the rollover, ranged from 16 to 17 inches of intrusion into the occupant space. To measure the crush resistance of the Discoveryâs roof, Pannuâs expert, Brian Herbst, performed a drop test on a comparable production Discovery. Using factors gleaned from
Having established the weak points of the roof structure, Herbst reinforced the roof pillars and roof bows of a second production Discovery with tubular sections of steel and strengthened some of the steel plating on the roof, integrating the additions into the existing support structure of the roof. As Herbst explained, he added approximately 109 pounds of steel tubing, sheet metal and rigid polyurethane foam filling at a cost of $116. The reinforced Discovery was then dropped from the same position as the first Discovery. This time, the roof deformation was limited to three inches at the A pillar, instead of the 16 to 17 inches of deformation suffered by the unreinforced Discovery. Assuming economies of scale and manufacturing, Herbst estimated the true cost of modifying the roof design of the Discovery as approximately $76 and the additional weight to be in the range of 72 pounds.
Pannu then called a medical expert, Joseph L. Burton, to describe his injury and opine as to its cause. According to Dr. Burton, Pannu suffered a bilateral facet dislocation of the C-6 and C-7 vertebrae, as well as a fracture of the fifth spinous process and a teardrop fracture of the C-7 vertebra. Dr. Burton opined that these injuries demonstrated that Pannuâs neck was hyperflexed into his chest by the deforming roof (and corresponding loss of occupant space), which caused the spinal injury that paralyzed him.
b. Land Roverâs evidence
Land Roverâs defense of the alleged roof defect focused primarily on causation.
4. The Trial Courtâs Statement of Decision and Judgment
The trial court issued an 11-page proposed statement of decision finding in Pannuâs favor. After reviewing the evidence related to the cause of the rollover, the court concluded it was more likely than not the rollover occurred as described by Pannuâs expert, Kobayashi. The court based its conclusion on several factors: Kobayashiâs acceptance of Officer Nunesâs measurements, which had been rejected in whole by Land Roverâs expert, Carr; the impeachment of Carr as to the distance between the scrape and gouge he had claimed matched the Discoveryâs wheelbase; and the courtâs conclusion Carrâs curb-trigger theory was âtoo speculative.â In particular, the court rejected Carrâs premise that tire skid marks would necessarily still be visible at the site when he inspected it more than two years after the accident.
Applying the consumer expectation test to these facts, the court concluded Land Rover was liable for both stability and roof defects because the Discovery âdid not perform as safely as an ordinary consumer would have expected at the time of the accident.â As the court explained, âConsumers reasonably expect that manufacturers will anticipate negligent accidents occurring that can put the automobile into uncontrollable movements. If those dynamics result in causing harm, then there is a design defect and there is strict liability under the [c]onsumer [e]xpectation test.â The court rejected Land Roverâs attempt to attribute full responsibility for the accident and Pannuâs injuries to Lusis, the driver of the Acura, and apportioned 5 percent fault to Lusis and 95 percent to Land Rover.
Applying the alternate risk-benefit test, the court ruled Pannu had carried his burden of proving the roof and stability design of the vehicle was a substantial factor in causing his injury, and Land Rover had failed to establish the benefits of the design outweighed its inherent risks: Options to strengthen the roof were available at reasonable cost, and, although there is no way to
The court identified the dispute between Drs. Burton and Raphael as to the timing of Pannuâs injury as âthe most interesting part of defendantâs caseâ and acknowledged this issue has engendered âan ongoing debate among experts.â Nonetheless, the court concluded Pannuâs injury was most likely caused by the roof crushing inward during the rollover, producing flexion and fracture. The court noted that Land Roverâs position necessarily assumed the weakness of the roof (and defective design) and, by focusing on the timing of the injury, challenged only its causation.
The court also found Land Rover strictly liable for a failure to warn of the dangerous propensities of the Discovery. According to the vehicleâs window sticker, Pannu was informed the Discovery had a âsteel inner body cageâ and a âsteel roof panel,â among other things. Based on earlier testing of the Discovery, Land Rover had sufficient knowledge about the possibility of rollovers and roof crush that it should have warned consumers, including Pannu, of these risks. Instead, Land Rover highlighted these aspects of the vehicle as safety features.
The court assessed damages in the amount of $21,654,000, including $11,654,000 in economic damages and $10 million in noneconomic damages. Although Land Rover submitted objections to the proposed statement of decision, the court issued an order on May 18, 2009 adopting the proposed statement of decision as the final decision and entered judgment in Pannuâs favor. Land Rover moved for a new trial, which the court denied on July 10, 2009.
CONTENTIONS
Land Rover contends the trial court erred as a matter of law in applying the consumer expectation test and misapplied the alternate risk-benefit test by failing to undertake the considered analysis required to impose liability. Land Rover also argues Pannu failed to carry his burden of proof in establishing his injury was caused by stability and crashworthiness defects and that the trial courtâs findings were not supported by substantial evidence. Land Rover further contends it was prejudiced by the improper exclusion of certain expert testimony, including information concerning the Malibu and CRIS rollover tests, and that a new trial should therefore be granted. Finally, Land Rover claims the trial courtâs award of economic damages was not supported by the record.
1. The Trial Court Properly Imposed Strict Liability on Land Rover for Stability and Roof Defects
a. The governing standards
A manufacturer may be held strictly liable for placing a defective product on the market if the plaintiffâs injury results from a reasonably foreseeable use of the product. (Soule v. General Motors Corp. (1994) 8 Cal.4th 548, 560 [34 Cal.Rptr.2d 607, 882 P.2d 298] (Soule).) Products liability may be premised upon a theory of design defect, manufacturing defect or failure to warn. (Anderson v. Owens-Corning Fiberglas Corp. (1991) 53 Cal.3d 987, 995 [281 Cal.Rptr. 528, 810 P.2d 549].) A design defect exists when the product is built in accordance with its intended specifications, but the design itself is inherently defective. (Barker v. Lull Engineering Co. (1978) 20 Cal.3d 413, 429 [143 Cal.Rptr. 225, 573 P.2d 443] (Barker).)
As we explained in McCabe v. American Honda Motor Co., Inc. (2002) 100 Cal.App.4th 1111, 1120-1121 [123 Cal.Rptr.2d 303] (McCabe), â[T]he Supreme Court [has] recognized two tests for proving design defect. The âconsumer expectation testâ permits a plaintiff to prove design defect by demonstrating that âthe product failed to perform as safely as an ordinary consumer would expect when used in an intended or reasonably foreseeable manner.â [Citation.] This test, rooted in theories of warranty, recognizes that implicit in a productâs presence on the market is a representation that it is fit to do safely the job for which it was intended. [Citations.] If the facts permit an inference that the product at issue is one about which consumers may form minimum safety assumptions in the context of a particular accident, then it is enough for a plaintiff, proceeding under the consumer expectation test, to show the circumstances of the accident and âthe objective features of the product which are relevant to an evaluation of its safetyâ [citation], leaving it to the fact finder to âemploy â[its] own sense of whether the product meets ordinary expectations as to its safety under the circumstances presented by the evidence.â â [Citations.] Expert testimony as to what consumers ordinarily âexpectâ is generally improper. [Citation.] [Fn. omitted.]
âThe second test for design defect is known as the ârisk-benefit test.â Under this test, products that meet ordinary consumer expectations nevertheless may be defective if the design embodies an â âexcessive preventable danger.â â [Citations.] To prove a defect under this test, a plaintiff need only demonstrate that the design proximately caused the injuries. Once proximate cause is demonstrated, the burden shifts to the defendant to establish that the benefits of the challenged design, when balanced against such factors as the
b. Liability under the consumer expectation test
Land Rover contends the trial court erred in applying the consumer expectation test to the alleged stability and roof defects, arguing the question of defect under the facts of this case is far too complicated to decide based on the perceptions of the ordinary driver. (See Soule, supra, 8 Cal.4th at pp. 562, 567 [because â â â[i]n many situations . . . the consumer would not know what to expect, because he would have no idea how safe the product could be made,â â â the consumer expectation test is âreserved for cases in which the everyday experience of the productâs users permits a conclusion that the productâs design violated minimum safety assumptions, and is thus defective regardless of expert opinion about the merits of the designâ].) In a footnote that has spawned substantial debate rather than quelled it, the Soule court remarked, âthe ordinary consumers of modem automobiles may and do expect that such vehicles will be designed so as not to explode while idling at stoplights, experience sudden steering or brake failure as they leave the dealership, or roll over and catch fire in two-mile-per-hour collisions.â (Id. at p. 566, fn. 3.)
While the mishaps described in this footnote certainly fall within the ambit of the consumer expectation test, we doubt it states the outer boundaries of activities that may be found subject to the test. As we observed in McCabe, supra, 100 Cal.App.4th 1111, 1124, âThe critical question, in assessing the applicability of the consumer expectation test, is not whether the product, when considered in isolation, is beyond the ordinary knowledge of the consumer, but whether the product, in the context of the facts and circumstances of its failure, is one about which the ordinary consumers can
The trial court concluded the rollover here was subject to the consumer expectation test on the ground the vehicle was used as intended, and it was reasonably foreseeable that freeway accidents occur and unpredictable forces can cause a vehicle to âact erratically.â Although the trial courtâs observation about the foreseeability of accidents is undoubtedly true, in our view the applicability of the consumer expectation test to the alleged stability defect under the circumstances of this case is an exceedingly close question.
We need not resolve these difficult questions, however. The trial courtâs alternative finding of strict liability under the risk-benefit test is amply supported by the record and fully justifies the judgment in favor of Pannu.
c. Liability under the risk-benefit test
The risk-benefit test for defective product design requires the fact finder to â âconsider, among other relevant factors, the gravity of the danger posed by the challenged design, the likelihood that such danger would occur, the mechanical feasibility of a safer alternative design, the financial cost of an improved design, and the adverse consequences to the product and to the consumer that would result from an alternative design.â â (Merrill v. Navegar, Inc. (2001) 26 Cal.4th 465, 479 [110 Cal.Rptr.2d 370, 28 P.3d 116].) âIn such cases, the jury must consider the manufacturerâs evidence of competing design considerations [citation], and the issue of design defect cannot fairly be resolved by standardless reference to the âexpectationsâ of an âordinary consumer.â â (Soule, supra, 8 Cal.4th at p. 567.) Once the plaintiff has made a prima facie showing that his or her injury was caused by the productâs
Land Rover first asserts the trial court committed legal error by failing to consider the necessary factors in applying the risk-benefit test. Although its analysis is not detailed, the trial courtâs statement of decision adequately addresses the factual basis for the courtâs findings under this theory of strict liability.
Land Rover argues on appeal that the trial courtâs finding on this point improperly eliminated Pannuâs burden of proving causation because, without skid marks, Kobayashiâs reconstruction of the accident is pure speculation. In other words, according to Land Rover, the lack of evidence of skid marks precluded the court from finding in Pannuâs favor.
Land Roverâs argument fundamentally misperceives the nature of Pannuâs burden.
Land Rover also contests causation with respect to Pannuâs injury and the alleged roof defect, asking us in effect to reweigh the evidence that injury occurred because of axial loading rather than hyperflexion. Again, the trial court reviewed the conflict between Pannuâs and Land Roverâs medical experts and concluded it was more likely than not that Pannuâs injury resulted from hyperflexion of the neck caused by deformation of the roof. That finding, too, was supported by substantial evidence; and we may not disturb it.
In sum, substantial evidence supports the trial courtâs findings of strict liability on Pannuâs claims of stability and roof defects.
2. Substantial Evidence Supports the Failure to Warn Finding
âGenerally speaking, manufacturers have a duty to . warn consumers about the hazards inherent in their products. [Citation.] The requirementâs purpose is to inform consumers about a productâs hazards and faults of which they are unaware, so that they can refrain from using the product altogether or evade the danger by careful use. [Citation.] Typically, under California law, we hold manufacturers strictly liable for injuries caused by their failure to warn of dangers that were known to the scientific community at the time they manufactured and distributed their product.â (Johnson v. American Standard, Inc. (2008) 43 Cal.4th 56, 64 [74 Cal.Rptr.3d 108, 179 P.3d 905]; accord, Brown v. Superior Court (1988) 44 Cal.3d 1049, 1065-1066 [245 Cal.Rptr. 412, 751 P.2d 470]; Anderson v. Owens-Corning Fiberglas Corp., supra, 53 Cal.3d at p. 1000.) To establish strict liability for failure to warn, the plaintiff must prove the defendant âdid not adequately warn of a particular risk that was known or knowable in light of the generally recognized and prevailing best scientific and medical knowledge available at the time of the manufacture and distribution. . . . [T]he reasonableness of the defendantâs failure to warn is immaterial.â (Anderson, at pp. 1002-1003, fh. omitted; accord, Sailer v. Crown Cork & Seal Co., Inc., supra, 187 Cal.App.4th at p. 1239.)
Contrary to Land Roverâs argument no evidence at trial supported the trial courtâs finding that Land Rover had failed to warn of the stability and roof defects in the Discovery, Pannu proved not only that the defects existed, but also that Land Rover knew of the dangers of rollover by the time his vehicle was manufactured in 1998 and corrected them in the redesign of the Discovery Series II, whic