FABE, Justice.
In November 2010 Stevie Lander was unable to complete a right turn on an icy road, and her vehicle slid into a car driven by Bonnie Luther. Although Luther reported no injuries at the scene of the accident, that evening she went to the emergency room for head and neck pain, and within weeks she began to suffer from lower back pain that prevented her from returning to her job as a flight attendant. Luther attributed her pain to the accident and sued Lander for negligence in 2012. Lander admitted negligence and made an offer of judgment, which Luther did not accept. The case proceeded to trial in 2014, and the jury awarded Luther a total of $3,259 for past medical expenses, past wage and benefit loss, and past non-economic losses.
The superior court granted attorney's fees to Lander under Alaska Rule of Civil Procedure 68(b) and denied Luther's motion for a new trial. Luther appeals, arguing that the superior court erred by denying her a new trial based on inadequate damages and by excluding evidence of the amount of payments for medical treatment made by Luther's insurer. She also challenges the superior court's decision to grant attorney's fees based on billing records that were filed under seal. We conclude that it was error to exclude evidence of payments made for Luther's medical treatment by her insurer. But because that error was harmless, we affirm the final judgment entered by the superior court.
In November 2010 Bonnie Luther was stopped at a red traffic light, traveling southbound on Spenard Road in Anchorage. Stevie Lander was traveling westbound on Northern Lights Boulevard and attempted to make a right turn. Lander was unable to complete the turn on the icy road, and her SUV slid into the front driver's side of Luther's car. Photographic evidence revealed that the accident caused only minor damage to Luther's car: a small dent above the front driver's side tire. And there was no damage to Lander's SUV. The airbags did not deploy in either vehicle.
At the accident scene, Luther told a police offer that she was "fine" and did not require medical attention. But she went to the emergency room that evening because her head hurt and her neck was feeling "tight." At the hospital she was diagnosed with a cervical strain, prescribed pain medication, and discharged. Luther did not complain of lower back pain on the day of the accident, and no diagnosis was made regarding her back. Luther testified that the symptoms she experienced immediately after the accident — head pain and tightness in her neck and shoulder — subsided within a few weeks to a month.
Luther had worked as a flight attendant for Alaska Airlines since 2007, and though she was not working at the time of the accident, as she was recovering from recent surgery, she was scheduled to return to work in December 2010. But two days after the accident, Luther was flying as a passenger on a flight to Hawaii when she first experienced pain in her back and into her left buttock. When she arrived home in Alaska near the end of November, Luther was diagnosed as "likely ha[ving] a muscle and ligament strain of her lower back ... [and having possibly] wrenched the sacroiliac joint." An x-ray showed "no evidence of fracture," and Luther was referred to Orthopedic Physicians Anchorage. Sharon Sturley, a physician assistant at the practice, found no "acute fracture or dislocation" and noted that the x-rays showed evidence of "mild degenerative disc and joint disease."
Luther continued to experience lower back pain and to see Sturley for monthly visits through November 2011 with little notable change in her condition. In April 2011, an orthopedic specialist in the same practice as Sturley diagnosed Luther with a "small annular tear and a tiny disc protrusion" but noted that Luther's "bigger symptoms" were due to trochanteric bursitis and irritation of her sacroiliac joint. This doctor did not comment on the cause of either condition and suggested a steroid injection, which Luther declined. Between November 2011 and July 2012 Luther worked for the State of Alaska
In July 2012 Luther returned to Anchorage and continued her work for the State. Luther was evaluated by James Glenn, another physician assistant in the orthopedic practice, in December 2012. Glenn reported that he was "somewhat perplexed" as to why Luther was still pursuing treatment two years after the accident without seeking "more aggressive" measures. He suggested various treatment options including injections, a new MRI, and x-rays, and he noted that Luther might consider a disc replacement in order to return to work as a flight attendant. Glenn refused to provide Luther with a work status report to indicate that Luther had a "full disability" that prevented her from returning to work. After her appointment with Glenn, Luther appears to have stopped seeking medical treatment, and in December 2012 she resigned from her position with Alaska Airlines.
In October 2012 Luther filed a complaint in the superior court alleging that Lander was negligent and that her negligence had caused Luther to incur injuries resulting in ongoing medical expenses, lost wages, and pain and suffering. Lander admitted negligence and in December 2013 served an offer of judgment for $28,500 plus prejudgment interest, allowable Alaska Civil Rule 79 costs, and Alaska Civil Rule 82(b)(1) attorney's fees. Luther did not accept the offer, and the case proceeded to trial in March 2014.
At trial, Luther testified that the accident had left her unable to perform her duties as a flight attendant, but she did not call any of her own doctors or other expert medical witnesses. Instead, Luther relied on her own testimony about her treatment and on her medical records. In support of her claim for damages for past medical expenses, Luther introduced evidence of the treatment she received after the accident. Some of the evidence she sought to introduce revealed that Luther's insurer, GEICO, paid some of Luther's medical expenses after the accident. The superior court granted Lander's request that the evidence be excluded. The superior court also excluded all evidence of the costs of the various treatment charges paid for by GEICO. But Luther was permitted to introduce evidence of the treatments themselves.
Luther testified that her total unpaid medical expenses amounted to $6,745.86. Lander, relying on the report and testimony of Dr. Bald, an independent medical examiner retained by Lander, asked the jury only to award Luther $809 for past medical costs, the amount Luther paid for treatment incurred with Orthopedic Physicians Anchorage in November 2011 and her acupuncturist in June 2011. Dr. Bald reported that Luther "did not incur anything more significant than a muscular strain-type injury" as a result of the car accident and that given the delay in the onset of symptoms, the accident could not have injured her sacroiliac joint or her lumbar spine. While Dr. Bald believed that the treatment Luther received during the year following the accident was "reasonable, appropriate, and necessary for treatment of injuries incurred in [the] accident," he concluded that it was improbable that Luther's persistent pain was attributable to the accident. He also found that by the time he examined Luther in 2013, she was "doing objectively very well" and should have been able to return to work, and that Luther's pre-accident surgery and inconsistent attendance at physical therapy could have slowed her recovery.
Luther also claimed lost wages and benefits of more than $50,000 for the time between the accident and November 2011. She testified that her base pay for the relevant time period would have been $28,872. But according to her W-2s, she made considerably less than that in the years preceding the accident because she was subject to furloughs
Lander argued that the maximum Luther should be awarded for lost wages was $9,000, the average of Luther's annual earnings in 2008, 2009, and 2010. And Lander asserted that, because Luther had not worked enough hours in 2010 to qualify for medical insurance coverage from Alaska Airlines, she had already been paying for COBRA at the time of the accident. Lander argued that even if the accident had not occurred and Luther had returned to her job as a flight attendant in December 2010 as planned, she would have to have continued paying for her own insurance until she had worked long enough to qualify for coverage.
At the conclusion of the trial, the jury returned a verdict awarding Luther $809 for past medical expenses, $1,700 for past wage and benefit loss, $750 for past non-economic losses, and no amount for future non-economic losses, for a total award of $3,259. Lander moved for attorney's fees under Alaska Rule of Civil Procedure 68(b)(2)
Luther moved for a new trial under Alaska Rule of Civil Procedure 59(a),
The superior court awarded Lander $8,590.75 in attorney's fees and entered final judgment, offsetting Luther's damages award and prejudgment interest such that Luther owed Lander a total of $6,494.17.
Luther appeals, arguing that the superior court erred by (1) denying her request for a new trial on the ground of inadequate damages, (2) excluding evidence of $10,000 in medical expenses paid by Luther's insurer, GEICO, and (3) allowing Lander to file her billing records under seal.
"We review the superior court's evidentiary rulings for abuse of discretion."
"We review the decision to award attorney's fees for abuse of discretion and [will] overturn it only where the award is manifestly unreasonable."
Luther argues that the superior court erred by excluding evidence of the cost of her medical treatment paid by GEICO, Luther's insurer. Lander sought to exclude the evidence of Luther's medical bills on the ground that our decision in Ruggles v. Grow would prevent Luther from recovering any portion of the medical expenses paid by GEICO.
The superior court ruled on the issue from the bench at the beginning of the trial, granting Lander's request to exclude the evidence. The superior court not only prohibited evidence of the source of the payments, but also prevented any evidence of the amounts charged for Luther's various treatments. For instance, one of Luther's exhibits was a chronological treatment history prepared by her orthopedic specialist, and the superior court's ruling required redaction of any treatment payments shown in that exhibit that were covered by GEICO. Luther argued for "either an exhibit or an instruction demonstrating what the costs were for each treatment" and suggested that Luther's inability to recover those expenses could be explained in a jury instruction. But the trial court confirmed that "payments by GEICO, costs, the amount of money paid by GEICO, billings paid by GEICO, mention of insurance, all that is disallowed."
The superior court did not elaborate on the basis for excluding even the amounts of the treatment costs, noting only that "based upon the previous rulings [the court had] already made, [the amount of the GEICO payments] should be taken out." Presumably, the superior court was mindful of the rule we set out in Ruggles v. Grow, where we held that once an insurer requests that a plaintiff "not ... present its claim for medical expenses," the plaintiff "los[es] the right to present the claim" because "the subrogated claim belongs to the insurer."
In this case, there is no question that GEICO requested that Luther refrain from including the insurer's medical-payment claim in her lawsuit and that under Ruggles, Luther therefore could not recover any portion of the $10,000 paid by GEICO. But while Luther recognizes that she could not have recovered any of the $10,000, she contends that exclusion of the evidence of the cost of her treatment was prejudicial because it "appeared [to the jury] that [Luther] only incurred medical exp[e]nses in the amount of $809," the amount she paid out of pocket. Lander argues that evidence of the cost of Luther's treatment paid by GEICO was "irrelevant, misleading, and unfairly prejudicial." But Luther maintains that the cost incurred for treatment was relevant to the jury's determination of the severity of Luther's injuries and that without that information, the jury could have assumed that "the injuries must have been minor."
The definition of relevant evidence under Alaska Rule of Evidence 401 is broad.
Courts in other jurisdictions have addressed this issue and concluded that evidence of medical expenses is admissible when it is relevant to the severity of an injury. For example, the Georgia Supreme Court has held that "the amount of medical bills may be admissible on a claim of pain and suffering to show the seriousness of the injury."
In Ruggles we went on to hold that a plaintiff may not bring a claim that the insurer sought to control.
Because evidence of the amount of medical bills is relevant to the severity of a plaintiff's injury, we conclude that such evidence cannot be excluded solely on the ground that the plaintiff cannot recover the money. Thus, our decision in Ruggles does not preclude the introduction of evidence of the amounts of insurance payments for the purpose of demonstrating the severity of an injury.
Given that Luther's evidence of the amounts charged for medical treatment was relevant, the next step in the analysis is whether the evidence of the amount of the payments should have been "excluded [because] its probative value [was] outweighed by the danger of unfair prejudice, confusion of the issues, or misleading the jury, or by considerations of undue delay, waste of time, or needless presentation of cumulative evidence."
In support of her argument that the evidence could have misled and confused the jury, Lander relies on our decision in Loncar v. Gray.
The superior court could have taken several approaches to ensure that the jury did not erroneously award Luther any portion of the subrogated claim. First, the superior court could have instructed the jury not to award damages for the medical expenses that had already been paid by Luther's insurer. This was the remedy that Luther suggested to the superior court.
Second, the superior court could have instructed jurors not to award damages for treatment undertaken after a particular date, which would necessarily preclude an award for expenses covered by the insured party's medical-payment coverage.
Third, the superior court could have allowed the jury to determine the total medical expenses attributable to the accident and then reduced that award to prevent recovery for payments made by GEICO. We have concluded that this approach is appropriate in the context of a damages cap. In Kodiak Island Borough v. Roe, we determined that the superior court improperly instructed the jury on a statutory noneconomic damages cap in an intentional tort case: While "[t]he legislature may limit the amount of damages that can be awarded, ... it is for the jury to determine the extent of the plaintiff's injury and the damage award that will make [him or] her whole."
Any of these approaches would allow a plaintiff to introduce evidence of the full cost of medical treatment without allowing the plaintiff to recover any costs precluded by Ruggles, leaving the insurer free to pursue its separate litigation.
Having concluded that the superior court erred by excluding the evidence of the cost of Luther's medical treatment covered by GEICO, we must next consider whether that error warrants a new trial. Unless we can determine that the exclusion of the evidence had a "substantial effect" on the outcome of the trial,
In light of the evidence presented and the trial strategies employed in this case, we cannot conclude that admission of the amount of the GEICO payments would have had a substantial effect on the outcome of the trial.
Luther also argues that the superior court should have granted her motion for a new trial because the jury did not award adequate damages and "[t]he result reached by the jury was manifestly unfair." But because there was sufficient evidence to support the jury's verdict, we affirm the trial court's ruling.
Luther has failed to establish that the circumstances in this case constitute the type of "exceptional circumstances" in which we will reverse a trial court's denial of a new trial "to prevent a miscarriage of justice."
Luther relies on several decisions in which we reversed a superior court's denial of a new trial because of inadequate damage awards, but those cases are unpersuasive here. For example, in Pugliese v. Perdue, we reversed an award of no damages where evidence that the accident had caused the injury was indisputable.
First, Luther challenges the jury's decision to award her only $809 for past medical expenses, arguing that she should have been awarded $1,578.86, the "undisputed total of past medicals due for that year." But the jury was free to make its own assessment of the amount of medical expenses that were attributable to the accident. As Lander points out, Dr. Bald qualified his statement that one year was a reasonable treatment period by observing that he was "[g]iving Ms. Luther quite a bit of benefit of the doubt." And the jury could have relied on Dr. Bald's testimony that he "[could not] attribute [Luther's] complaints of intermittent pain in her buttock to [the] accident." The jury could also have determined that
Second, the jury awarded Luther $1,700 in lost wages and benefits despite her claimed loss of $51,122.52. Given the variable nature of Luther's compensation as a flight attendant, a broad range of awards could have been supported by the evidence. We need only determine whether there was sufficient evidence to support the jury's award, and we conclude that there was. In light of the testimony and evidence presented at trial, it is plausible that the jury's award reflected its belief that the accident did not actually prevent Luther from returning to work for the full year. Dr. Bald testified that Luther could return to work "[i]f she so desired," and Glenn refused to sign her "total disability" work status reports. And again, the jury may have considered evidence presented by Lander of Luther's failure to mitigate and the possibility raised by Lander at trial that even if Luther had returned to work in December 2010, she could have been placed on additional furloughs. Similarly, the jury's decision not to compensate Luther for her COBRA payments was supported by evidence that her variable work schedule may not have entitled her to employer-provided health insurance. Thus, there was sufficient evidence to support the jury's award of $1,700.
Finally, Luther claims that the amount awarded for her pain and suffering resulting from the accident was inadequate. But given the subjective nature of a jury's award of non-economic damages, we cannot conclude that the award was unsupported by the evidence. While Luther testified that her injuries have caused interrupted sleep and pain when sitting for long periods of time, Dr. Bald testified that "her examination was completely and totally normal," and Glenn was "perplexed" by the fact that she was still requesting disability status two years after the accident.
Because there was evidence to support the jury's award of damages and our precedent does not warrant a reversal of the superior court's denial of Luther's motion for a new trial, we affirm that denial.
Finally, Luther argues that the superior court erred in granting Lander attorney's fees under Rule 68 because Lander filed the documents supporting her request for fees under seal. But while the billing records were filed "under seal," the court promptly redesignated them as "confidential" in April 2014, providing the parties with access to the documents.
Luther makes a persuasive policy argument against the ability of a prevailing party to designate as confidential billing records in support of a motion for attorney's fees: She argues that this practice could place an undue burden on parties opposing those fees by preventing them from mentioning the confidential information in their opposition to the
Luther also argues that "as a general principle, court proceedings are open" and that there is no reason documents supporting a motion for attorney's fees should be treated differently. She maintains that the information should be public as a matter of policy because knowledge of the prevailing hourly rate for attorneys may be useful in future cases. This may be true, but Luther does not suggest that the trial court has considered or denied any request for access to these documents. And the trial court "may, by order, limit access to public information in an individual case record by sealing or making confidential the case file [or] individual documents in the case file."
For the reasons discussed above, we AFFIRM the final judgment of the superior court.
WINFREE, Justice, not participating.