$5-Million Jury Award in Fatal Accident Overturned

A state Court of Appeal on Tuesday overturned a $5-million jury award to a former truck driver whose employer’s insurance company balked at paying claims after a 1978 fatal accident for which he was held responsible.

Two years ago, a Los Angeles Superior Court jury awarded Joseph Stanton $60,000 in compensatory damages for emotional distress caused by the behavior of the insurer, Continental Casualty Co., and $10 million punitive damages. But the trial judge, Jack Tenner, halved the punitive damages, contending that the original amount was excessive.

On Tuesday, the 2nd District Court of Appeal ruled that Stanton was not entitled to any damages. Justice Lester W. Roth wrote in a 28-page opinion that Stanton had suffered no actual damages. Justices Lynn D. Compton and Morio L. Fukuto concurred.

“The judgment under review represents a gross miscarriage of justice,” Roth wrote.

“Based upon self-serving and uncorroborated evidence of emotional distress and job loss, Stanton was able to convince a jury that he had in fact suffered compensable damages and in addition (that) Continental acted in such bad faith that an award of punitive damages was required.

“The end result is that Stanton, who caused the death of Luis Zoque, has been awarded a judgment in excess of five million dollars,” Roth wrote. “Zoque’s widow and children have been paid less than 10% of that amount. . . .”

Stanton’s attorney, Thomas G. Stolpman, called Tuesday’s decision “outrageous and unbelievable” and said he would appeal to the California Supreme Court.

Stolpman said Stanton had formally agreed in 1981 to share any final judgment against Continental with the Zoques on the condition they not seize his personal assets as partial payment of damages.

Luis Zoque was killed Sept. 5, 1978, when his vehicle was hit on the 650 Freeway by a truck that Stanton was driving for Target Express.

Zoque’s widow and two small daughters sued Stanton, obtaining a court-approved settlement of $400,000 in 1981. Fireman’s Fund and Allstate, which insured Stanton as a driver and owner of the tractor, each paid $100,000. Stanton sued Continental as insurer of Target, which employed Stanton and owned the trailer, for the rest.

Continental subsequently paid the Zoques $150,000 in 1983, but Stanton pursued his suit for “bad faith,” claiming the insurer had caused him great worry and loss of his job with Target.