Farring v. Hartford Fire Insurance Company

Filing 77

ORDER Denying 52 Motion in Limine to exclude the testimony of Dr. Stan V. Smith. Signed by Judge James C. Mahan on 3/14/2014. (Copies have been distributed pursuant to the NEF - SLR)

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UNITED STATES DISTRICT COURT
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DISTRICT OF NEVADA
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LOUIS RANDOLPH FARRING,

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2:12-CV-479 JCM (PAL)

Plaintiff,

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v.

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HARTFORD FIRE INSURANCE
COMPANY,

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Defendant.

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ORDER

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This is a diversity action filed against defendant Hartford Fire Insurance Company by

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plaintiff Louis Randolph Farring. Presently before the court is a motion in limine filed by defendant.

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(Doc. # 52). Plaintiff filed a response in opposition to this motion. (Doc. # 56).

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I.

Legal Standard

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"Although the Federal Rules of Evidence do not explicitly authorize in limine rulings, the

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practice has developed pursuant to the district court's inherent authority to manage the course of

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trials." Luce v. United States, 469 U.S. 38, 41 n. 4 (1984) (citing Federal Rule of Evidence 103(c)).

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In limine rulings "are not binding on the trial judge, and the judge may always change his mind

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during the course of a trial." Ohler v. United States, 529 U.S. 753, 758 n. 3 (2000); accord Luce, 469

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U.S. at 41 (noting that in limine rulings are always subject to change, especially if the evidence

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unfolds in an unanticipated manner). The admissibility of expert testimony is governed by Federal

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Rule of Evidence 104, which provides for a court to decide "any preliminary question about whether

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James C. Mahan
U.S. District Judge

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a witness is qualified, a privilege exists, or evidence is admissible." Fed. R. Evid. 104(a).

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"In so deciding, the court is not bound by evidence rules, except those on privilege." Id. In

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order to satisfy the burden of proof for Rule 104(a), a party must show that the requirements for

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admissibility are met by a preponderance of the evidence. See Bourjaily v. United States, 483 U.S.

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171, 175 (1987) ("We have traditionally required that these matters [regarding admissibility

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determinations that hinge on preliminary factual questions] be established by a preponderance of

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proof.").

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Federal Rule of Evidence 702 provides that a qualified expert witness may provide testimony
in the form of an opinion if the court finds that:

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(a)

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the expert's scientific, technical, or other specialized knowledge will help the trier of
fact to understand the evidence or to determine a fact in issue;

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(b)

the testimony is based on sufficient facts or data;

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(c)

the testimony is the product of reliable principles and methods; and

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(d)

the expert has reliably applied the principles and methods to the facts of the case.

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Fed. R. Evid. 702. In 2000 this rule was amended in response to Daubert v. Merrell Dow

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Pharmaceuticals, Inc., 509 U.S. 579 (1993) and its progeny, including Kumho Tire Co. Ltd. v.

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Carmichael, 526 U.S. 137 (1999).

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II.

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Discussion
The court will address only those facts which are pertinent to resolution of the instant motion

in limine.

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In the instant motion, defendant argues that the court should exclude the testimony of

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plaintiff's hedonic damages expert, Dr. Stan V. Smith. Dr. Smith is an economist that uses the theory

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of "risk reduction value" to assist juries in monetizing damages in personal injury suits. His work

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on this case has included applying economic calculations estimating the value of human life and

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household services to the losses suffered by plaintiff.

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Defendant argues that Smith's testimony should be rejected under the Daubert standard,

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claiming that Smith's methodology is not reliable, it is not accepted by other economists, and it will

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James C. Mahan
U.S. District Judge

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not assist the jury in this matter.

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While economists have come to different conclusions regarding the value to ascribe to a

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human life using "risk reduction" or "willingness to pay" methodology, this paradigm is widely used

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by economists to determine monetary values associated with everyday risks. Economists using this

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theory study the reactions of individuals to risks, and how their choices to invest in risk-prevention

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measures correlate with the probability of suffering a serious injury. While it is clear that different

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individuals will associate different monetary values with risks, economists view aggregated data to

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determine how much the average individual would pay to avoid a certainty of an injury. Because this

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methodology determines conclusions through observations of large amounts of objective data, its

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reliability is not in doubt.

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Plaintiff correctly notes that Dr. Smith's work has been published in countless peer-reviewed

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academic journals, and that the particular theories he uses in this case are included in textbooks

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relied upon by numerous universities across the country. While some economists disagree with Dr.

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Smith's conclusions, his methodology has a strong following in the field.

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Defendant's claims that Dr. Smith's testimony would not assist the jury are unfounded.

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Without the assistance of an expert, the jury would be left to create a number as to the monetary

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value of plaintiff's hedonic damages without a basis in objective fact. Defendant will have an

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opportunity to cross-examine Dr. Smith and present to the jury any errors in his methodology or

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failures in applying the particular facts of this case. The jury will be free to accept or reject Dr.

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Smith's conclusions as it sees fit.

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Accordingly,

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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that defendant's motion in

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limine to exclude the testimony of Dr. Stan V. Smith (doc. # 52) be, and the same hereby is,

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DENIED.

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DATED March 14, 2014.

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UNITED STATES DISTRICT JUDGE
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James C. Mahan
U.S. District Judge

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