Conde v. Starlight I, Inc.

                  UNITED STATES COURT OF APPEALS
                      FOR THE FIRST CIRCUIT

No. 96-1089

                          JOAQUIM CONDE,

                       Plaintiff, Appellee,

                                v.

                        STARLIGHT I, INC.,

                      Defendant, Appellant.

                                           
                                                     

No. 96-1209

                          JOAQUIM CONDE,

                      Plaintiff, Appellant,

                                v.

                        STARLIGHT I, INC.,

                       Defendant, Appellee.

                                           
                                                     

          APPEALS FROM THE UNITED STATES DISTRICT COURT

                FOR THE DISTRICT OF MASSACHUSETTS

         [Hon. Robert B. Collings, U.S. Magistrate Judge]
                                                                  

                                           
                                                     

                              Before

                      Cyr, Boudin and Lynch,

                         Circuit Judges.
                                                 

                                           
                                                     


   Thomas  E.  Clinton, with  whom Kathleen  B.  Carr and  Clinton &
                                                                              
Muzyka, P.C. were on brief for Starlight I, Inc. 
                    
   David  F. Anderson, with whom  Latti Associates was  on brief for
                                                            
Joaquim Conde. 

                                           
                                                     

                         January 9, 1997
                                           
                                                     

                                2


          CYR, Circuit Judge.   Plaintiff-appellee Joaquim  Conde
                    CYR, Circuit Judge.
                                      

sustained a permanent injury to his left hand on August 13, 1988,

while serving as first mate aboard the commercial  fishing vessel

F/V  ALENTEJO  which was  navigating  in  rough  waters  east  of

Nantucket on the  Georges Bank.1   Two days  after the  accident,

Edward Monteiro, an adjuster for the ALENTEJO's insurer, obtained

an  oral statement from Conde  in Portuguese.   Since Conde could

speak little English and was unable to read it, Monteiro purport-

ed  to translate the written  English statement back  to Conde in

Portuguese.    Unbeknownst  to  Conde, the  statement  he  signed

indicated that  the ALENTEJO  had been  travelling at  slow speed

when  the  accident occurred  and it  makes  no mention  of other

critical facts  about which  Conde had  informed Monteiro in  his

interview.  For instance, the written statement  omits any refer-

ence  to the captain's refusal  to slow the  vessel and lower the

fishing net to  deck-level so  that Conde and  his fellow  worker

would not  have to stand  on the slippery deck,  from which tiles

were missing, while repairing the net.

          In September 1990, Conde brought the present action for

negligence and  unseaworthiness  against appellant  Starlight  I,

Inc., owner  of the ALENTEJO.   See 46 U.S.C.    688 (Jones Act);
                                             

Miles  v. Apex Marine Corp., 498 U.S. 19, 29 (1990) (unseaworthi-
                                     

ness).   At trial, the  defense relied heavily  upon the apparent

discrepancies  between  Conde's trial  testimony and  the written

                         
                                   

     1Almost  six  years  later,  Conde  obtained  a  nonmaritime
factory job at a reduced salary.

                                3


statement he unwittingly gave to Monteiro, the adjuster.   Conde,

on the other hand, contended that Starlight and Monteiro, antici-

pating  litigation,  had collaborated  to  misrepresent  the oral

statement Conde made to Monteiro.  

          After the  jury awarded Conde $350,000  in damages, the

district  court  granted  a new  trial  due  to  improper closing

argument  by Conde's  counsel.   The second  trial resulted  in a

$968,500  award  to Conde:    $118,500  for  past economic  loss;

$50,000 for pain and suffering;  and $800,000 for future economic

loss.  The  district court denied  Starlight's second motion  for

new  trial, subject to Conde's agreement to remit all damages for

future  economic loss  above $254,212.50.   On  appeal, Starlight

challenges both the denial of its second motion for new trial and

the amount of the remittitur.2  

I.   Second Motion for New Trial
          I.   Second Motion for New Trial
                                          

          Starlight  contends  that four  improper  statements by

Conde's  counsel in closing  argument warrant yet  a third trial.

First,  counsel  observed,   without  evidentiary  support,  that

Monteiro  and  defense  attorney  Thomas  Clinton,  Esquire, were

"friends"  and  had "been  working  together  for twenty  years."

Starlight argues that the  veiled reference to possible collusion

between Monteiro  and Clinton was wholly  immaterial and deliber-

ately inflammatory.   We find no abuse of  discretion.  See Ahern
                                                                           
                         
                                   

     2Since we deny Starlight's appeal, we need not reach Conde's
contingent  cross-appeal from the  district court  order granting
Starlight's first motion  for new  trial.  We  assume that  Conde
would opt for a reduced total remittitur of $364,736, rather than
reinstatement of the first jury award (i.e., $350,000).

                                4


v. Scholz, 85 F.3d 774, 780 (1st Cir. 1996).  
                   

          Monteiro  testified  on  redirect  examination  that he

asked  Conde  to sign  the August  15,  1988, statement  in three

places for  Conde's own  "protection," to prevent  its alteration

after  it left Monteiro's  possession.   Later in  his testimony,

however, Monteiro admitted that  he himself had given the  state-

ment directly  to Thomas  Clinton, Esquire, Starlight's  counsel.

When  asked whether  he had  known Clinton  well prior  to August

1988,  Monteiro  acknowledged that  they  were  on a  "first-name

basis," and had worked together previously.  

          We normally presume that a jury follows instructions to

disregard improper argumentation.  See Greer v. Miller,  483 U.S.
                                                                

756, 766 n.8  (1987); Sweeney  v. Westvaco Co.,  926 F.2d 29,  36
                                                        

(1st Cir.),  cert. denied, 502 U.S.  899 (1991).  So  it is here.
                                   

After  Clinton  objected  to the  remark  by  Conde's  counsel in

closing argument, the court promptly cautioned  the jury that the

evidence did  not establish  a "friendship" between  Monteiro and

Clinton.  Moreover, Monteiro's business relationship with Clinton
                                                              

was in evidence.   Finally, the Monteiro-Clinton relationship was

at  least somewhat  probative of  the plausibility  of Monteiro's

testimony concerning  why he  considered it necessary  that Conde

sign the August 15, 1988, statement in three places.  

          Second,  Starlight relies  on a  closing remark  to the

effect  that  the  captain's  consumption  of  several  alcoholic

beverages as late as the evening meal the day of the accident had

impaired his judgment, and likely explained his negligent refusal

                                5


to slow  the vessel  and lower the  net as  Conde had  requested.

Although another fishing vessel  captain testified that no vessel

captain should  consume alcohol while navigating  a vessel, Star-

light  insists that it was  necessary for Conde  to adduce expert

toxicological evidence as to how the particular  level of alcohol

consumption  established by  the evidence typically  would impair

human judgment. 

          The authorities cited by Starlight simply stand for the

thesis that expert toxicological testimony  may be used to estab-
                                                         

lish  the likely  effects of  alcohol.   See Armand  v. Louisiana
                                                                           

Power & Light Co., 482 So.2d 802, 804 (Ct. App. La. 1986) ("[A]ll
                           

experts agreed that .30% or .23% [blood alcohol] would impair the

motor abilities  and judgment  of anyone.");  see also People  v.
                                                                       

Modesto,  427 P.2d 788, 790  (Cal.), cert. denied,  389 U.S. 1009
                                                           

(1967), overruled  on other grounds, Maine v. Superior Court, 438
                                                                      

P.2d 372,  377 n.8 (Cal. 1968).   These authorities in  no manner

suggest that such  testimony is invariably required.   Cf., e.g.,
                                                                          

United  States v. Hillsberg, 812  F.2d 328, 333  (7th Cir.) ("The
                                     

jury  would likely have little knowledge of the effects of mental

diseases and defects.  Laymen do have occasion, however, to learn

the effects of alcohol."), cert. denied, 481 U.S. 1041 (1987). 
                                                 

          Third, Starlight contends  that repeated references  to

Monteiro as an "adjuster," during direct and redirect examination

and  in  closing remarks  by  Conde's  counsel, violated  Federal

Evidence Rule 411 ("Evidence that a person was or was not insured

against  liability is not  admissible upon the  issue whether the

                                6


person acted  negligently or otherwise wrongfully.").   We do not

agree.  

          For  one thing,  Starlight  did not  object to  Conde's

repeated  references  to  Monteiro  as  an "adjuster"  throughout

either the  first or second  trial.   Thus, the tardiness  of its

objection calls into serious  question whether the litigants, let

alone the jury, inferred that Monteiro  was an "insurance adjust-
                                                                   

er," cf., e.g., NLRB v. International Bhd. of Elec. Workers Local
                                                                           

340, 481  U.S. 573,  581 (1987)  (union's "grievance  adjuster or
             

collective  bargainer"); Ferguson  v. Skrupa,  372 U.S.  726, 732
                                                      

(1963)  ("debt  adjuster"),  let  alone  that  Starlight  carried

liability insurance.  In all events, Rule 411 does permit mention

of insurance coverage, not  to prove negligence, but collaterally

to show  the  possible "bias  or prejudice  of a  witness."   See
                                                                           

Pinkham  v. Burgess, 933 F.2d  1066, 1072 (1st  Cir. 1991) ("Rule
                             

411  itself contemplates  that  evidence that  the defendant  was

insured  may be  admissible on  issues other  than negligence.");

Charter v. Chleborad, 551  F.2d 246, 248 (8th Cir.)  ("[T]he fact
                              

that defendant's insurer employed  [a witness] was clearly admis-

sible to show possible bias of that witness."), cert. denied, 434
                                                                      

U.S.  856  (1977).     Starlight's  entire  defense  centered  on

Monteiro's  credibility  in regard  to  the  authenticity of  his

"translation" of Conde's August 15, 1988 statement.

          Finally,  Starlight argues  that Conde's  attorney once

again  argued  facts not  in evidence,  and  invited the  jury to

engage in rank speculation, by noting that the captain might have

                                7


been steaming the ALENTEJO full speed ahead in an attempt to flee

Canadian waters before Canadian patrol boats detected the vessel.

On  the contrary, according to Starlight's own expert, based on a

reverse extrapolation  of its known course  immediately after the

accident,  the ALENTEJO probably had been on the Canadian side of

the Hague Line just  prior to the accident.   This circumstantial

evidence  combined powerfully  with the  captain's  own testimony

that he previously  served aboard  a fishing vessel  seized by  a

Canadian patrol boat and that he knew on August 13, 1988 that the

same  Canadian  patrol  boat  was  within  one-half  mile  of the

ALENTEJO. II.  The Remittitur
                    II.  The Remittitur
                                       

          Starlight claims that the trial court miscalculated the

remittitur  at $254,212.50.3   Starlight  first projects  a total

future economic loss  as low  as $27,199, by  using Conde's  1987

income, rather than the  higher 1988 income figure, for  arriving

at a  base annual salary.   As  Conde was injured  in mid-August,

1988, however, the  jury reasonably could have looked  to Conde's

higher 1988  income projection as  a more accurate  reflection of

his  future  earning power  than the  1987  income.   See Eastern
                                                                           

Mountain Platform  Tennis, Inc. v. Sherwin-Williams  Co., 40 F.3d
                                                                  

492, 502 (1st Cir.  1994) (in ruling on remittitur  motion, court

examines evidence "in  the light most favorable to the prevailing

party");  see also Jones &  Laughlin Steel Corp.  v. Pfeifer, 462
                                                                      
                         
                                   

     3Once a district  court has decided to  exercise its discre-
tion  to grant a remittitur, appellant "must  show . . . that the
reduced  figure remains so extravagant as  to shock the appellate
conscience." Sanchez v.  Puerto Rico  Oil Co., 37  F.3d 712,  724
                                                       
(1st Cir. 1994).

                                8


U.S. 523,  538 (1983)  ("It is both  easier and  more precise  to

discount  the entire lost stream of earnings  back to the date of

injury  --  the  moment  from  which  earning  capacity  was  im-

paired.").4

          Starlight next argues that  the 3% per annum adjustment

for inflation  in "non-agricultural" workers' wages  from 1988 to

1995 (i.e., 20.25% in aggregate) was  excessive because a commer-
                    

cial  fisherman would  not be  classified as  a "non-agricultural

worker" and  recent federal restrictions upon  commercial fishing

on  Georges Bank  have  depressed fishermen's  wages.   Starlight

offers no evidentiary  support for its contention  that a commer-

cial fisherman  would not qualify as  a "non-agricultural" worker

(i.e., one who does  not cultivate land) for purposes of the 1995
               

Economic  Report of  the President,  which the  parties otherwise

stipulated  as  a  source of  the  applicable  "non-agricultural"

inflation rate.  Nor did Starlight  adduce any evidence as to how

its suggested offset  to the stipulated inflation rate  should be

calculated.    We  therefore  conclude  that  it  has  failed  to

demonstrate any "conscience-shocking"  adjustment in  calculating

an inflation rate.  See supra note 3. 
                                       

          Finally, Starlight argues that the trial court used the

$118,500  jury  award for  past  economic loss  to  calculate the
                         
                                   

     4Although Conde earned $35,930  in gross income during 1987,
he  incurred extraordinary  unreimbursed work  expenses ($19,404)
which effectively reduced his annual income to only $16,526.  See
                                                                           
Jones & Laughlin, 462 U.S. at 534 (recommending that unreimbursed
                          
work expenses be deducted before estimating future lost stream of
income).   This figure  is substantially lower  than Conde's pro-
jected 1988 gross income of $22,332.  See infra note 7. 
                                                         

                                9


relevant "base year" salary (i.e., Conde's lost income for  1995)
                                           

with which  to extrapolate his future  (i.e., post-1995) economic
                                                      

loss, rather than predicating the base figure calculation direct-

ly on the trial  evidence.5  Although neither we  nor the parties

have been able to reconstruct the exact mathematical calculations

utilized by  the district court,6  the trial evidence,  viewed in

the light most  favorable to  Conde, would  yield an  approximate

                         
                                   

     5The court explained its methodology as follows: 

          In determining  the figure  to which to  remit the
     award  for loss  of  future earning  capacity, I  shall
     endeavor to arrive at the maximum figure which the jury
     could have awarded using as a guide the amount the jury
     awarded the plaintiff  for lost wages from  the date of
     the  accident  to  the   date  of  the  verdict,  i.e.,
     $118,500.   For this purpose, I shall  assume the jury,
     in arriving at the  $118,500 figure, deducted an amount
     for what  was earned  and what  could have  been earned
     after the plaintiff reached  an end medical result.   I
     shall also take into account the fact that the wages of
     non-agricultural workers from 1988 to 1995 rose approx-
     imately 3%  a year  or 20.25%  over the entire  period.
     After  making  these  adjustments,  what  results is  a
     figure of expected earnings for  1995 in the amount  of
     $29,020.  I  shall then  apply a reduction  of 20%  for
     taxes  and a 1% discount  rate to arrive  at the amount
     the plaintiff would have earned over the 26 year period
     of his work expectancy reduced to present value.  Using
     this methodology,  the result is  $254,212.[50]. (Foot-
     notes omitted.)

     6As future loss calculations are multiplex, effective appel-
late review may be greatly inhibited by any lack of particularity
in  the trial  court's methodology.   Given these  latent ambigu-
ities, we could remand  to the district court for  clarification,
see Jones & Laughlin,  462 U.S. at 546, 552  (refusing invitation
                              
to adopt one calculation  methodology as "the exclusive method"),
but  for  reasons of  judicial economy  we  opt to  calculate the
maximum  future  economic loss  based  directly  on the  evidence
before the jury.  See infra note 7.
                                     

                                10


discounted future economic loss of $196,236.7  

          The  unknowable and unquantifiable  factors involved in

calculating  a future stream of lost  income (e.g., future infla-
                                                            

tion rates;  actual work  life), militate  against "a search  for

'delusive exactness,'" since "[i]t  is perfectly obvious that the

most detailed inquiry can at best produce an approximate result."

Jones  & Laughlin, 462 U.S. at 546,  552.  Even viewing the trial
                           

evidence most generously to Conde, however, the $254,212.50 award

for future economic loss effectively disregards a significant and

practicably  quantifiable  factor:   the  need  to reduce  future

economic loss to present value, even if  only by the most conser-

vative discount figure (1%), see supra note 7, particularly since
                                                

the parties stipulated below  that some "present value" reduction
                                

would be appropriate, albeit  reserving the precise discount rate
                         
                                   

     7Viewing the evidence most  favorably to Conde, the alterna-
tive remittitur amounts would work out as follows: 

Annual gross income from 1/88 to 8/88             $    14,106
Extrapolated income from 8/88 to 12/88            +     8,816
Unreimbursed work expenses                        -       590
                                                                       
Total projected gross income for 1988                  22,332
Inflation rate between 1988-95 (20.25)            +     4,522
                                                                       
Adjusted projected annual gross income (1995)          26,854
Actual gross income for factory job (1995)        -    15,080
                                                                       
Total loss of annual gross income (1995)               11,774
Taxes on lost income (@ 1988 rate of 16.97%)      -     1,998
                                                                       
Net annual lost income (1995)                           9,776
Remaining work life in 1995 (26 years)            x        26
                                                                       
Total lost future income stream                       254,176
Discounted to present value (@ 1%)                    196,236
Discounted to present value (@ 2%)                    151,890
Discounted to present value (@ 3%)                    117,860

     Although   the  $254,212.50  remittitur  calculated  by  the
district court  purportedly factored in  a 1% discount  rate, see
                                                                           
infra note 8, it actually approximates our pre-discount amount of
                                                        
$254,176.

                                11


(1% or  2%).  Cf. id.  at 548 (noting  that use of  discount rate
                               

between  1% and 3%  in Jones  Act case would  not be  an abuse of

discretion).8

III. Conclusion
          III. Conclusion
                         

          Given  these somewhat less  "elusive" circumstances, we

conclude that the 30% discrepancy between the $254,212.50 and the

$196,236 economic-loss figures  is sufficiently quantifiable  and

substantial that it ought not stand.   Sanchez v. Puerto Rico Oil
                                                                           

Co., 37 F.3d 712, 724 (1st  Cir. 1994); cf. Jones & Laughlin, 462
                                                                      

U.S. at 552 (noting that jury  awards for pain and suffering  are

"highly  impressionistic"); Ruiz v.  Gonzalez Caraballo, 929 F.2d
                                                                 

31,  34 (1st Cir. 1991) ("After  all, '[t]ranslating legal damage

[viz., physical effects  of post-traumatic stress  syndrome] into
               

money damages -- especially in  cases which involve few  signifi-

cant  items of measurable economic loss -- is a matter peculiarly

                         
                                   

     8Using a  "market  interest" rate  (e.g.,  6%) to  reduce  a
                                                       
future-earnings award to present  value recognizes that, at least
in an inflation-free economy, the plaintiff's immediate accession
to a lump-sum award  would enable him to  earn interest by  rein-
vestment, an opportunity not available to him had the same amount
been earned incrementally over  time.  See Jones &  Laughlin, 462
                                                                      
U.S.  at  536-37  n.20  ("present value"  reduction  premised  on
plaintiff's  duty  to  mitigate  damages).   In  an  inflationary
economy,  however, a discount rate (or  offset) below the "market
interest"  rate (e.g.,  1  or 2%,  instead of  6%)  may be  used,
                               
because  even though Conde did  not adduce specific evidence from
which  to forecast  actual inflation  rates in  future years,  it
nonetheless may be presumed  that anticipated future inflationary
trends will tend  to curtail investment  returns at levels  below
the market rate.  Id. at  538-39.  Although the Supreme Court has
                               
declined  to mandate  a  single "present  value"  reduction or  a
single  discount  methodology for  use in  all Jones  Act damages
calculations, see id. at  550, absent extraordinary circumstances
                               
the  factfinder normally  should essay  some measure  of "present
                                                      
value" reduction. 

                                12


within  a jury's  ken.'") (quoting Wagenmann  v. Adams,  829 F.2d
                                                                

196,  215 (1st  Cir. 1987)).   Accordingly,  we direct  a further

remittitur.  See Kolb v.  Goldring, Inc., 694 F.2d 869, 875  (1st
                                                  

Cir. 1982) (appellate court  may order a new trial,  in the event

claimant rejects  further remittitur, where trial  court error in

calculating remittitur was clear and mere "mechanical" correction

is required) (citing Stapleton v. Kawasaki Heavy Indus., 608 F.2d
                                                                 

571, 574 n.7  (5th Cir. 1979)); Everett v. S.H.  Parks & Assocs.,
                                                                           

Inc., 697 F.2d 250, 253 (8th Cir. 1983). 
              

          The district court ruling denying defendant-appellant's
                    The district court ruling denying defendant-appellant's
                                                                           

motion  for new  trial is  affirmed.   The remittitur  for future
          motion  for new  trial is  affirmed.   The remittitur  for future
                                                                           

economic loss is further  reduced to $196,236.  Upon  remand, the
          economic loss is further  reduced to $196,236.  Upon  remand, the
                                                                           

district court should fix an appropriate time within which plain-
          district court should fix an appropriate time within which plain-
                                                                           

tiff-appellee must either accept the revised remittitur or submit
          tiff-appellee must either accept the revised remittitur or submit
                                                                           

to a new trial on damages  for future economic loss.  The parties
          to a new trial on damages  for future economic loss.  The parties
                                                                           

shall bear their own costs.  
          shall bear their own costs.
                                    

          SO ORDERED.
                    SO ORDERED.
                              

                                13