Goebel v. Denver & Rio Grande Western Railroad

                                                                        F I L E D
                                                                  United States Court of Appeals
                                                                          Tenth Circuit
                                    PUBLISH
                                                                         JUN 12 2000
                   UNITED STATES COURT OF APPEALS
                                                                      PATRICK FISHER
                                                                              Clerk
                                TENTH CIRCUIT



RICHARD W. GOEBEL,

       Plaintiff - Appellee,
vs.                                                     No. 99-1143

DENVER AND RIO GRANDE
WESTERN RAILROAD COMPANY,
a Delaware corporation,

       Defendant - Appellant.


          APPEAL FROM THE UNITED STATES DISTRICT COURT
                  FOR THE DISTRICT OF COLORADO
                        (D.C. No. 94-N-2206)


Steven M. Weisbaum (and Lawrence M. Mann, Alper, Mann & Weisbaum,
Washington, D.C. and Christopher B. Little, Montgomery, Little & McGrew,
Englewood, Colorado, with him on the briefs), for Plaintiff - Appellee

James W. Erwin (and Thomas R. Jayne, Thompson, Coburn, St. Louis, Missouri,
and Steven E. Napper, Union Pacific Railroad Co., Denver, Colorado, with him
on the briefs), for Defendant - Appellant.


Before BALDOCK, KELLY, and BRISCOE, Circuit Judges.


KELLY, Circuit Judge.


      This case requires us to explore the gatekeeper function of the district
court in determining the admissibility of expert witnesses under    Daubert v.

Merrell Dow Pharmaceuticals, Inc.     , 509 U.S. 579 (1993). Appellant Denver and

Rio Grande Western Railroad Company (hereinafter “Railroad”) argues that the

district court erred in admitting the testimony of Dr. Daniel T. Teitelbaum, which

purported to establish a causal link between Appellee Richard Goebel’s cognitive

brain damage and exposure to diesel exhaust at high altitude.      We reverse and

remand for a new trial.



                                      Background

      At the time of the incident giving rise to this case, Mr. Goebel was

employed by the Railroad as a locomotive engineer. On January 5, 1994, he was

instructed to operate two “helper” locomotives to help push a 5,900 foot long,

nine locomotive train through the Moffat Tunnel (“Tunnel”) in Colorado. The

Moffat Tunnel is 6.21 miles long and runs over the continental divide. At the

West Portal, the Tunnel is 9,084 feet above sea level, rises to 9,239 feet at its

apex, and then drops to 9,198 feet at the East Portal. The Tunnel is equipped

with an automatic ventilation system designed to clear the diesel fumes and

exhaust which accumulate with the passage of each train. There are also twenty-

one numbered “refuges” in the tunnel – spaces where the walls have been

widened to hold barrels containing emergency breathing equipment.


                                           -2-
      Mr. Goebel’s helper units met up with the train late on the night of January

5 and were attached as the rear locomotives to assist in pushing through the

Tunnel. Mr. Goebel was accompanied by Matthew Fletcher, a fireman/engineer.

The train entered the Tunnel through the West Portal shortly after 1:00 a.m. on

January 6, with all nine locomotives running full throttle in order to make it up

the hill to the apex of the tunnel. At approximately 1:15 a.m., the train suddenly

broke in half, the emergency brakes automatically applied, and the train came to a

stop in the Tunnel.

      Upon coming to a standstill, Mr. Goebel took a portable radio and left the

cab to inspect the “helper” locomotives. The air in the tunnel was dark and

smoky, but Mr. Goebel was able to determine that the locomotives were properly

running in idle. He also noticed that the rear of the train had stopped near

Refuge 5. Mr. Goebel went to the refuge to get the emergency breathing

equipment, but was unable to get the barrel open. He returned to the locomotive

cab after being outside between five to fifteen minutes. Mr. Goebel testified that

by the time he returned to the locomotive he had a headache, tightness in his

chest and nausea.

      Meanwhile, Mr. Fletcher had been on the radio, attempting to determine

the nature of the problem. After a few minutes of discussion, Mr. Goebel left the

cab again to get breathing equipment from the refuge. This time he managed to


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get the barrel open and returned to the locomotive with two Type “N” air

respirators. On returning to the locomotive for the second time, Mr. Goebel said

that his body was sore, his chest was tight and he was so disoriented that he

could not read the instructions on the respirators. After donning the respirator,

he went outside a third time in order to start one of the locomotives which had

shut down. He then returned to the cab, the train started, and finally reached the

East Portal around 2:07 a.m., almost one hour after entering the tunnel.

      Both Mr. Goebel and Mr. Fletcher did not feel well enough to continue.

They dropped off their helper locomotives at Rollins, Colorado and were picked

up by an ambulance around 2:50 a.m. and placed on pure oxygen. They remained

on oxygen until arriving at Lutheran Medical Center at 4:30 a.m. Blood tests for

carbon monoxide poisoning conducted on both men around 5:07 a.m. revealed

normal carboxyhemoglobin levels. Mr. Goebel and Mr. Fletcher were released

that morning and instructed to return in 24 hours for a follow-up.

      Mr. Fletcher received no further treatment and returned to work. Mr.

Goebel, however, continued to complain of dizziness, headache, abdominal pain,

and disorientation as a result of the incident. He was referred by his personal

doctor to Dr. Teitelbaum, a medical doctor specializing in toxicology, on

February 8, 1994. Dr. Teitelbaum reviewed Goebel’s medical history – including

the blood tests done at Lutheran Medical Center – and conducted a traditional


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physical examination. Based upon this examination, Dr. Teitelbaum wrote Mr.

Goebel a May 24, 1994 letter explaining his findings: “My diagnosis is acute

combustion products intoxication with a neuropsychological and neurological

syndrome possible . . . .” Aplt. App. at 53.

       When Mr. Goebel expressed concerns about his memory, Dr. Teitelbaum

referred him to Dr. Frederick Kadushin, a neuropsychologist, for further testing.

Dr. Kadushin determined that plaintiff had suffered cognitive deficits. This

conclusion was reinforced by a speech pathologist who also confirmed that Mr.

Goebel had cognitive deficits, probably from a mild brain injury. Mr. Goebel

also was examined by a clinical psychologist who determined that plaintiff was

suffering from severe depression and post traumatic stress disorder.

       Mr. Goebel brought suit against the Railroad under the Federal Employer’s

Liability Act, the Safety Appliances Act, and the Occupational Safety and Health

Act, alleging that his personal injuries resulted from the Tunnel accident.   1
                                                                                  The

district court granted summary judgment to plaintiff on the question of liability,

limiting the trial to issues of causation and damages. At trial, Dr. Teitelbaum

testified as to the causation of plaintiff’s injuries.


       1
        This was Count II of plaintiff’s complaint. Count I involved an injury to
plaintiff’s back which occurred during a railroad switch throwing incident. That
claim was tried to the jury, which returned a verdict in favor of the Railroad. Mr.
Goebel does not challenge that verdict, and we deal solely with Count II on
appeal.

                                            -5-
                    I believe that the cause of Mr. Goebel’s injury
             was his exposure to a unique environment, deficient in
             oxygen at low barometric pressure, contaminated with
             pulmonary irritants, which combined with the unique
             physiologic setting which takes place at high altitude
             produced an oxygen lack syndrome, which produced
             swelling in his brain, called cerebral edema, which
             resulted in small diffuse pressure injuries which resulted
             in his cognitive defect.
                    It’s a complicated chain of events, but one which
             is relatively simple to explain on the basis of the
             fundamental physiology. All of these pieces have been
             looked at in separate events. In this gentleman, they
             occurred at the same time and produced this result.

2 R. at 386. The jury found in favor of Mr. Goebel and awarded him $755,000 in

damages for lost wages, pain and suffering, and loss of enjoyment of life. The

district court denied the Railroad’s motion for judgment as a matter of law, and

this appeal followed.



                                 Procedural Context

      The Railroad argues that the district court improperly admitted Dr.

Teitelbaum’s testimony, which it characterizes as “junk science relying solely

upon the ipse dixit of the expert.” Aplt. Br. at 20. Defendant raised this issue on

three separate occasions before the trial court. First, the Railroad brought a

motion in limine seeking to exclude the testimony as unscientific and based

solely upon possibilities. On the morning of trial, the district court orally denied

this motion. We have no record of the district court’s decision; the court minutes

                                         -6-
indicate that no court reporter was present at the time the motion was denied.

See Aplt. App. at 7; D. Ct. doc. 77 (noting denial of motion in limine). Second,

when Dr. Teitelbaum was called during trial, defense counsel conducted voir dire

and objected, “on the basis of   Daubert .” 2 R. at 371. The trial court overruled

the objection, simply stating: “I believe there is sufficient foundation here for the

jury to hear this testimony.” 2 R. at 379.

      Finally, the Railroad argued in a post-trial motion for judgment as a matter

of law that Teitelbaum’s testimony should be stricken. This would consequently

make judgment for defendant appropriate because “[t]he      only evidence of a

medical and scientific connection between the diesel fumes and Plaintiff’s

condition was the testimony of Dr. Daniel T. Teitelbaum.” Aplt. App. at 179.

The district court denied this motion in summary fashion. “The motion seeks to

re-litigate an evidentiary issue concerning the qualifications of plaintiff’s primary

expert witness. The issue was raised by motion in limine, and the court fully

considered the matter when it denied that motion.”    Id. at 310.



                                   Daubert Analysis

      Daubert changed the law of evidence by establishing a “gatekeeper”

function for trial judges under Federal Rule of Evidence 702. “Faced with a

proffer of expert scientific testimony, then, the trial judge must determine at the


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outset . . . whether the expert is proposing to testify to (1) scientific knowledge

that (2) will assist the trier of fact to understand or determine a fact in issue.”

Daubert , 509 U.S. at 592. This gatekeeper function requires the judge to assess

the reasoning and methodology underlying the expert’s opinion, and determine

whether it is scientifically valid and applicable to a particular set of facts.         See id.

We review de novo the question of whether the district court applied the proper

legal test in admitting Dr. Teitelbaum’s testimony,        see Borawick v. Shay , 68 F.3d

597, 601 (2d Cir. 1995), and review the district court’s decision to admit the

testimony under an abuse of discretion standard,         see General Elec. Co. v. Joiner ,

118 S. Ct. 512, 515 (1997).

       It is within the discretion of the trial court to determine       how to perform its

gatekeeping function under      Daubert . See Kumho Tire Co., Ltd. v. Carmichael           ,

119 S. Ct. 1167, 1176 (1999) (“The trial court must have [discretionary] latitude

in deciding how to test an expert’s reliability, and to decide whether or when

special briefing or other proceedings are needed to investigate reliability . . . .”).

The most common method for fulfilling this function is a             Daubert hearing,

although such a process is not specifically mandated.          See Hynes v. Energy West,

Inc. , No. 98-8023, 2000 WL 525961, at *9 (10th Cir. May 2, 2000) (district court

held hearing); see also United States v. Charley , 189 F.3d 1251, 1266 (10th Cir.

1999) (district court granted great latitude in “deciding whether to hold a formal


                                              -8-
hearing.”); United States v. Call , 129 F.3d 1402, 1405 (10th Cir. 1997) (noting

that Daubert does not require a hearing). The district court may also satisfy its

gatekeeper role when asked to rule on a motion in limine, on an objection during

trial, or on a post-trial motion so long as the court has sufficient evidence to

perform “the task of ensuring that an expert’s testimony both rests on a reliable

foundation and is relevant to the task at hand.”        Daubert , 509 U.S. at 597.

       While the district court has discretion in the      manner in which it conducts

its Daubert analysis, there is no discretion regarding the actual      performance of

the gatekeeper function.    See Kumho Tire , 119 S. Ct. at 1179 (Scalia, J.,

concurring) (noting that the majority opinion “makes clear that the discretion it

endorses – trial-court discretion in choosing the manner of testing expert

reliability – is not discretion to abandon the gatekeeping function.”);      see also

United States v. Velarde , No. 99-2297, prop. op. at 12 (10th Cir. May 22, 2000)

(Anderson, J.). For purposes of appellate review, a natural requirement of this

function is the creation of “‘a sufficiently developed record in order to allow a

determination of whether the district court properly applied the relevant law.’”

United States v. Nichols , 169 F.3d 1255, 1262 (10th Cir. 1999) (quoting         Call ,

129 F.3d at 1405).    See also Velarde , No. 99-2297, prop. op. at 12 (10th Cir.

2000) (noting that “the court must, on the record, make        some kind of reliability

determination.”); Dodge v. Cotter Corp. , 203 F.3d 1190, 1200 n.12 (10th Cir.


                                            -9-
2000) (urging the district court to “vigilantly make detailed findings to fulfill the

gatekeeper role crafted in   Daubert ”); United States v. Lee , 25 F.3d 997, 999

(11th Cir. 1994) (encouraging district courts “to make specific fact findings

concerning their application of Rule 702 and        Daubert ”). Without specific

findings or discussion on the record, it is impossible on appeal to determine

whether the district court “‘carefully and meticulously’ review[ed] the proffered

scientific evidence” or simply made an off-the-cuff decision to admit the expert

testimony. Call , 129 F.3d at 1405 (citation omitted).

       A review of this case convinces us of the absolute necessity of district

court findings on the record. There is not a single explicit statement on the

record to indicate that the district court ever conducted any form of     Daubert

analysis whatsoever. The motion in limine was denied with no record of

explanation; the objection at trial was overruled on the single statement that there

was “sufficient foundation” for the testimony to go to the jury; and the post-trial

motion for judgment as a matter of law was denied on the basis of the previous

denial of the motion in limine. While we recognize that the trial court stated that

it had “fully considered the matter when it denied [the motion in limine],” this

single statement is insufficient as a basis for appellate review. We are unable to

discern whether the court was referring to the professional credentials of the

witness as opposed to assessing the reasoning and methodology relied upon by


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the witness. It is axiomatic that an expert, no matter how good his credentials, is

not permitted to speculate.    See DePaepe v. General Motors Corp.       , 141 F.3d 715,

720 (7th Cir. 1998).

       Our holding recognizes that the district court need not “recite the     Daubert

standard as though it were some magical incantation,”       Ancho v. Pentek Corp. ,

157 F.3d 512, 518 (7th Cir. 1998), or apply all of the reliability factors suggested

in Daubert and Kumho . The gatekeeper inquiry under Rule 702 is ultimately a

flexible determination.    Kumho Tire , 119 S. Ct. at 1175. But we specifically

hold that a district court, when faced with a party’s objection, must adequately

demonstrate by specific findings on the record that it has performed its duty as

gatekeeper.   2



       Here, the trial court did not have the benefit of    Kumho , but was

specifically alerted to the need for findings given the objections on the record. In



       2
        If there is no objection to the expert testimony, the opposing party waives
appellate review absent plain error. See Marbled Murrelet v. Babbitt, 83 F.3d
1060, 1066 (9th Cir. 1996); see also Christopher v. Cutter Labs., 53 F.3d 1184,
1192 (11th Cir. 1995); McKnight v. Johnson Controls, Inc., 36 F.3d 1396, 1407
(8th Cir. 1994). But see Padillas v. Stork-Gamco, Inc., 186 F.3d 412, 417-18 (3d
Cir. 1999) (holding that, in the context of a summary judgment motion, failure to
hold in limine hearing to decide disputed questions of fact related to expert
report, even when hearing was not requested, was abuse of discretion). When no
objection is raised, district courts are not required to make “explicit on-the-record
rulings” and, “we assume that the district court consistently and continually
performed a trustworthiness analysis sub silentio of all evidence introduced at
trial.” Hoult v. Hoult, 57 F.3d 1, 5 (1st Cir. 1995).

                                            - 11 -
the absence of such findings, we must conclude that the court abused its

discretion in admitting such testimony.       See Velarde , slip op. at 15. Performance

of the gatekeeping function on the record insures that a judgment in favor of

either party factors in the need for reliable and relevant scientific evidence. It is

not an empty exercise; appellate courts are not well-suited to exercising the

discretion reserved to district courts.

       There remains the question of the appropriate remedy. Several of our

recent cases have considered a trial court’s failure to make       Daubert findings. In

Velarde , we reversed and remanded for a new trial because the district court was

specifically alerted to the need for such findings after       Daubert and Kumho and

declined to make them.      See Velarde , slip op. at 12. In Kinser , we undertook a

Daubert analysis based upon the whole record, relying upon a Fifth Circuit case

indicating that the failure to make findings may be harmless error where the

appellate court can perform a     Daubert analysis on the pleadings.      See Kinser , 184

F.3d at 1271(citing Tanner v. Westbrook , 174 F.3d 542 (5th Cir. 1999)). In

Charley , the panel majority determined that the need for reliability determinations

had largely been waived, 189 F.3d at 1264 n.11, but stated: “Even though the

trial court in this case did not have the benefit of   Kumho Tire’s direction [and its

abrogation of Compton v. Subaru of America, Inc.           , 82 F.3d 1513 (10th Cir.

1996)], its evidentiary decisions do not warrant reversal if it determined, in some


                                             - 12 -
apparent manner, that the expert testimony was reliable.”    Charley , 189 F.3d at

1261.

        Mr. Goebel asks us to hold that the admission of Dr. Teitelbaum’s

testimony was harmless error.    See Kinser v. Gehl Co. , 184 F.3d 1259, 1271

(10th Cir. 1997) (holding that improper admission of expert testimony was

harmless). We decline to do so. “Erroneous admission of evidence is harmless

only if other competent evidence is ‘sufficiently strong’ to permit the conclusion

that the improper evidence had no effect on the decision.”   Lillie v. United

States , 953 F.2d 1188, 1192 (10th Cir. 1992). Mr. Goebel argues that there was

sufficient uncontroverted evidence of psychological injuries and post-traumatic

stress disorder to uphold the judgment, regardless of the admissibility of

Teitelbaum’s testimony. Aplee. Br. at 52. However, as the Railroad points out,

evidence of psychological injury does not account for Mr. Goebel’s claims of

physical injury, particularly organic brain damage. Dr. Teitelbaum’s testimony

was a large part of plaintiff’s case because it helped to establish the medical

causal link between the incident in the Moffat Tunnel and the alleged permanent

brain injury. We are unable to say that Dr. Teitelbaum’s testimony had no effect

on the decision of the jury in awarding damages for pain and suffering, and loss

of enjoyment of life, and therefore remand for a new trial. We express no

opinion on whether Dr. Teitelbaum’s testimony was admissible under       Daubert


                                          - 13 -
and Kumho .

      Our remand in this case is limited. Mr. Goebel did not appeal the jury

verdict as to Count I of his complaint (back injury from throwing railroad

switches), and because Dr. Teitelbaum’s testimony did not relate to that claim,

remand is not necessary. Moreover, the district court’s grant of partial summary

judgment to Mr. Goebel regarding liability occurred before the decision on the

Railroad’s motion in limine, and we do not disturb that ruling.

      REVERSED and REMANDED for a new trial in conformity with this

opinion.




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