McKEE, Circuit Judge.
Peter Ponzini and Miryem Barbaros, co-administrators of the estate of Mumun Barbaros (collectively "Plaintiffs"), appeal the District Court's order granting PrimeCare Medical, Inc.'s Motion for Judgment Notwithstanding the Verdict which reversed the jury's award of $8,000,000 in punitive damages. PrimeCare, Paul James, Patricia Bauer, Christina Rowe, Wendy Johnson, and Grace Ramos (collectively, the "PrimeCare Defendants") cross-appeal the District Court's denial of their Motion for a New Trial based on allegedly misleading jury instructions. For the reasons that follow, we will reverse the Court's order granting JNOV and we will affirm the order denying the PrimeCare Defendants' motion for a new trial.
Under Pennsylvania law, "[p]unitive damages may be awarded for conduct that is outrageous, because of the defendant's evil motive or his reckless indifference to the rights of others."
The Pennsylvania Supreme Court has held that the determination of whether a defendant's actions are reckless lies within the sound discretion of the fact finder.
In overturning the jury's award of punitive damages, the District Court concluded, "[v]iewing all the evidence in the light most favorable to the Plaintiffs, no reasonable jury could find PrimeCare's conduct sufficiently recklessly indifferent so as to warrant punitive damages under Pennsylvania law."
Plaintiffs introduced more than sufficient evidence to support their claim for punitive damages. From the moment Barbaros entered MCCF, every person who interacted with him or was involved in his "care" violated policies and procedures intended to ensure proper communication and patient safety. The record is filled with evidence of policies ignored, medical records not reviewed, medical orders not followed, medication prescribed but not given (after verification), and PrimeCare ignoring nursing staff complaints about insufficient staffing and doctors not visiting MCCF sufficiently frequently. The evidence is clearly sufficient to allow a reasonable juror to conclude that PrimeCare recklessly disregarded Barbados's welfare; and the jury here did just that.
Viewing the evidence in the light most favorable to Plaintiffs (as we must), we conclude that the jury could easily find that PrimeCare is a company that regularly misrepresents its operational structure, fails to properly supervise its staff, and takes affirmative steps to mislead the public and the government. Therefore, the record supports the jury's conclusion that PrimeCare's actions were "of such an outrageous nature as to demonstrate intentional, willful, wanton or reckless conduct."
As noted at the outset, the District Court should only have set the punitive damages award aside if "no reasonable inference from the facts alleged support[ed] [the] award of punitive damages."
The PrimeCare Defendants argue that they are entitled to a new trial because the District Court erroneously charged the jury on negligence per se. Federal Rule of Civil Procedure 59 provides that a new trial may be granted "after a jury trial, for any reason for which a new trial has heretofore been granted in an action at law in federal court." Although Rule 59 does not enumerate specifics, "[a] court may grant a new trial on the grounds of: (1) improper admission or exclusion of evidence; (2) improper instructions to the jury; (3) misconduct of counsel; (4) newly discovered evidence; or (5) a finding that the jury's verdict is against the weight of the evidence."
In evaluating a motion for a new trial, we must first determine whether an error was in fact made, and then decide "whether that error was so prejudicial that refusal to grant a new trial would be inconsistent with substantial justice."
When the motion is based on the court's jury instructions, a new trial is warranted only if the instructions, taken as a whole, "fail[ ] to `fairly and adequately' present the issues in the case without confusing or misleading the jury."
"We generally review jury instructions for abuse of discretion to determine whether they are misleading or inadequate. However, when the question is whether the instructions misstate the law, our review is plenary."
Here, "[a]s the Court stated on the record, Plaintiffs requested a negligence per se instruction on two grounds, but the Court declined to give that instruction. Instead, the Court, upon Plaintiffs' request, directed the jury to an uncontroversial definition contained in Pennsylvania's statutes and nursing regulations."
We review the instruction for an abuse of discretion because the issue is not whether the trial judge misstated the law, it is whether his instruction was confusing and thereby misleading.
When the mention of negligence per se is viewed in context with the instruction as a whole, we are satisfied that the Court never actually instructed the jury on negligence per se. Instead, the Court gave the statutory definition of practical nursing but labeled it as: "D. Negligence Per Se. Violation of Statute."
An error is harmless when there is a "high probability" that the discretionary error did not contribute to the verdict.
The PrimeCare Defendants' claim of error requires us to view the jury instruction titled negligence per se in the limited scope of the statements before and immediately after the erroneously inserted title rather than viewing the entirety of the charge. The phrase "negligence per se" was merely a title. It was an extraneous phrase in the midst of a legally correct instruction. We do not believe that it created a sufficient probability of jury confusion to negate the jury's verdict. It was simply not that confusing or misleading. It was a recitation of the nursing statute; it was not a negligence per se instruction, and we doubt that a reasonable jury could have interpreted it as anything other than that. The PrimeCare Defendants do not argue that it contained an inappropriate definition of the practice of practical nursing.
Given the totality of the charge, inclusion of the phrase negligence per se "was harmless because `it is highly probable that [it] did not affect the outcome of the case.'"
For the foregoing reasons, the judgment entered by the District Court on August 30, 2017 will be vacated in part and affirmed in part. The grant of JNOV will be reversed and the denial of PrimeCare Defendants' motion for a new trial will be affirmed.
ROTH, Circuit Judge, concurring in part and dissenting in part.
I agree with my colleagues that the District Court erred in granting PrimeCare's renewed motion for judgment as a matter of law on the issue of punitive damages. I disagree, however, with their conclusion that the District Court's negligence instruction was not capable of confusing or misleading the jury. I would reverse the judgment against PrimeCare on that issue and remand this case for a new trial.
After the close of evidence, the District Court charged the jury, including on the question of PrimeCare's negligence. That section, numbered as 17, provided an overview about theories of negligence:
The District Court provided detailed explanations of those three theories of negligence under the headings "A. Respondeat Superior," "B. Liability for Independent Contractor," and "C. Corporate Liability of PrimeCare Medical, Inc."
Following those three headings, under the heading "D. Negligence Per Se. Violation of Statute," the statutory definition of "Practical Nursing" was set out.
After the verdict was returned, PrimeCare filed a Rule 50(b) motion for judgment as a matter of law and a new trial. In relevant part, the District Court denied the motion for a new trial because "the Court cannot say that either providing the definition of the practice of practical nursing to the jury (which was not a negligence per se instruction) or permitting Plaintiffs to argue that PrimeCare failed to comply with the regulation[ ] was in error."
Jury instructions are reviewed for legal accuracy de novo. Misleading and inaccurate instructions are reviewed for an abuse of discretion.
There is no dispute over the accuracy of the quotation of the Practical Nursing Statute. However, in view of the heading "Negligence Per Se-Violation of Statute," the instruction was sufficiently misleading that even the District Court and the parties could not agree whether negligence per se had been charged. All parties fully briefed the issue on appeal as if negligence per se had actually been charged. The District Court had taken the opposite position in its memorandum opinion, stating that "[i]t is apparent that the Court did not charge the jury in accordance with a negligence per se instruction (despite the label of the instruction stating `Negligence Per Se-Violation of Statute')."
The substance of the instruction fares no better. The majority emphasizes that "the totality of the instructions and not a particular sentence or paragraph in isolation" needs to be considered.
The District Court's reliance on Prum v. Crisante
The instruction in Prum made it clear what the jury should do with the applicable law provided to it.
Here, the only guidance the jury received along with the statutory definition was the heading "Violation of Statute. Negligence Per Se."
For the above reasons, I would reverse the judgment of the District Court and remand this case for a new trial.