Indalecio v. Mobil
CourtSupreme Court of The Commonwealth of The Northern Mariana Islands
Date FiledJanuary 20, 2020
Docket2017-SCC-0035-CIV
JudgeCastro
StatusPublished
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Full Opinion
E-FILED
CNMI SUPREME COURT
E-filed: Feb 10 2022 03:48PM
Clerk Review: Feb 10 2022 03:48PM
Filing ID: 67305085
Case No.: ADM-2022
Judy Aldan
IN THE
Supreme Court
OF THE
Commonwealth of the Northern Mariana Islands
HERMAN INDALECIO,
Plaintiff-Appellee,
v.
MOBIL OIL MARIANAS, INC.,
Defendant-Appellant.
Supreme Court No. 2017-SCC-0035-CIV
OPINION
Cite as: 2020 MP 1
Decided January 10, 2020
CHIEF JUSTICE ALEXANDRO C. CASTRO
ASSOCIATE JUSTICE JOHN A. MANGLOÑA
ASSOCIATE JUSTICE PERRY B. INOS
Superior Court Civil Action No. 14-0065
Appeal from Presiding Judge Roberto C. Naraja,
Indalecio v. Mobil Oil, 2020 MP 1
CASTRO, C.J.:
¶1 Defendant-Appellant Mobil Oil Marianas, Inc. (“Mobil Oil”) appeals the
trial court’s Order Regarding Present Cash Value and Remittitur (“Order”). It
argues: (1) there was insufficient evidence to compute the reduction of future
medical costs to present cash value; (2) the court abused its discretion in
admitting a certified public accountant as an expert witness; and (3) the court
abused its discretion in permitting a life care planner’s testimony to exceed the
scope of her expertise in enumerating medical costs in a life care plan. For the
following reasons, we AFFIRM the Order.
I. FACTS AND PROCEDURAL HISTORY
¶2 In December 2013, Herman Indalecio (“Indalecio”) sustained injuries
while working as a security guard assigned to Mobil Oil’s facility. While walking
a route, Indalecio stepped on a drainage ditch grating which had a broken support
bracket. He fell through a two-and-a-half foot concrete ditch, sustaining a
laceration to his lower left leg. Subsequent medical examinations revealed
degenerative disc disease. In February 2014, Indalecio sued Mobil Oil alleging
he sustained personal injuries.
¶3 Indalecio designated Bruce M. MacMillan (“MacMillan”) as an expert in
accounting to present testimony on lost future earnings. He designated Doris J.
Shriver (“Shriver”) as a life care planning expert, vocational expert, and
occupational therapy expert to present testimony on Indalecio’s life care plan and
the accompanying costs. Mobil Oil moved to exclude both Shriver and
MacMillan as experts based on Commonwealth Rule of Evidence 702 (“Rule
702”).1
¶4 The court did not exclude Shriver and MacMillan as expert witnesses. It
found MacMillan met the threshold requirements of Rule 702 to be “qualified as
an expert” and give testimony which is the “product of reliable principles and
methods.” NMI R. EVID. 702. In particular, it found: (1) MacMillan is “a
qualified expert as a certified public accountant consultant”; and (2) MacMillan’s
“methodology . . . to determine loss of earning capacity, based on the
conservative assumption that [Indalecio] has the potential to earn a minimum
wage income for his remaining work life, is sufficiently sound under Rule 702.”
1
Rule 702 states:
A witness who is qualified as an expert by knowledge, skill, experience, training,
or education may testify in the form of an opinion or otherwise if:
(a) 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;
(b) the testimony is based on sufficient facts or data;
(c) the testimony is the product of reliable principles and methods; and
(d) the expert has reliably applied the principles and methods to the facts of the
case.
Indalecio v. Mobil Oil, 2020 MP 1
Indalecio v. Mobil Oil Mariana Islands, Inc., Civ. Case No. 14-0065 (Sup. Ct.
Oct. 28, 2015) (Order Denying Defendant’s Motion to Exclude Expert
Testimony of Bruce M. MacMillan 3). The court found MacMillan’s expert
testimony admissible.
¶5 The court found Shriver’s testimony admissible for the purposes of Rule
702 but simultaneously concluded that “Shriver is not qualified to provide
medical diagnoses.” Indalecio, Civ. Case No. 14-0065 (Sup. Ct. Oct. 29, 2015)
(Order Denying Defendant’s Motion to Exclude Expert Testimony of Doris J.
Shriver at 3-4). “To the extent that [Shriver’s] expert testimony amounts to
crafting medical diagnoses—identifying the causes for medical treatment that
exceed the scope of the compiled reports and recommendations of physicians—
she is not qualified to give that testimony.” Id. at 4. Thus, any testimony as it
relates to medical diagnoses “fall[s] outside the scope of [Shriver’s] expertise.”
Id. at 3. Even still, the court found Shriver “sufficiently qualified” as an expert
in the areas of occupational therapy, vocational evaluation, and life care
planning, allowing her to testify as to Indalecio’s “ability to tolerate work and his
possibly diminished earning capacity.” Id. at 4. The court found Shriver’s
testimony reliable since her report relied on medical records from health
professionals, including doctors, and because she conducted “an extensive
analysis of [Indalecio’s] social, educational, and vocational history.” Id. Lastly,
Shriver’s testimony met Rule 702(d)’s fit requirement to “reliably appl[y] the
principles and methods to the facts of the case” insofar as she “evaluated
[Indalecio’s] measure for damages by reviewing his personal and medical
history, by consulting other professional opinions, and applying her own
professional experience.” Id.
¶6 Mobil Oil again attempted to exclude the testimonies in motions in limine.
In particular, Mobil Oil sought to exclude Shriver’s report and limit her
testimony. Mobil Oil additionally moved to exclude MacMillan’s lost income
analysis and report. The court denied both motions.
¶7 At trial, Shriver testified that she prepared Indalecio’s personal injury
evaluation and life care plan to determine a course of care for his injuries. Tr.
814, 873. To prepare her report, she reviewed a number of Indalecio’s medical
records. Tr. 816, 874. She testified on projected costs of treatments in the
proposed course of care. Shriver stated she did not calculate the costs for
unanticipated treatments because “lifetime and medical costs increase as much
as 18% per annum or per year.” Tr. 880. At trial, Dr. Grant E. Walker (“Dr.
Walker”), an orthopedic surgeon, also testified on Shriver’s life care plan. He
was asked: “you said that in summary the history and objective findings of the
examiners all make sense. Does that include [] Shriver’s report?” Tr. 946. Dr.
Walker responded: “Yes, sir.” Tr. 946.2
2
Dr. Walker provided a declaration in June 2016. See Indalecio, Civ. Case No. 14-0065
(Super. Ct. June 10, 2016) (Declaration of Grant E. Walker). He stated that the only
medical diagnosis listed by Shriver is PTSD. To this, Dr. Walker stated:
Indalecio v. Mobil Oil, 2020 MP 1
¶8 Indalecio sought MacMillan’s testimony to present calculations on
Indalecio’s lost future earning capacity based on “the date of birth, date of injury,
remaining work life and life expectancy,” and “the current minimum wage” rate.
Tr. 1025–26. Indalecio’s work expectancy was based on Social Security Life
Expectancy tables, and his retirement age was established at 67 years old. Tr.
1025, 1027. MacMillan explicitly indicated he did not know whether Indalecio
could or would work; rather, he assessed the lost future earning capacity based
on “a normal year without overtime based on the minimum wage” for 18 years.
Tr. 1032. He further explained that he assumed Indalecio to be disabled and “that
he wasn’t going to be able to work at all.” Tr. 1036. During cross-examination,
MacMillan admitted he did not: receive tax returns; look at Indalecio’s bank
accounts, paychecks, or work schedule; investigate Indalecio’s job history; have
any extensive conversation with Indalecio; and examine any medical records. Tr.
1037-1038.
¶9 During direct examination, MacMillan also testified on the present value
of Indalecio’s lost future damages. This present value was based on the idea that
“looking at income straightly going out 18 years . . . those dollars become less
valuable as they go—as you farther go out in time.” Tr. 1029. To calculate this,
he provided a discounted value of Indalecio’s potential income using the 10-year
Treasury bond, “assumed to be-it’s a risk free rate of return, no risk and as a basis
for capitalization rate.” Tr. 1029. The discounted rate, according to MacMillan,
is a “low risk safety rate” where the investor (Indalecio) would get paid the rate
of 2.1 percent. Tr. 1029. This discounted value was attributed to the present value
of Indalecio’s lost future earnings. Tr. 1030. (“[I]f his claim was that he didn’t
g[e]t paid a lumps sum at the date of the claim of the injury, the present value
would be the dollars he has received in his hand and he would have the
opportunity to turn around [and] have the opportunity to invest that money.
. . . [H]e most likely would want to invest in relatively low risk investments to
protect that money.”).
¶ 10 At the close of trial, the court provided Jury Instruction No. 30 without
objection from either party. Concerning future economic damages, Jury
Instruction No. 30 stated: “[a]ny award for future economic damages must be for
the present cash value of those damages.” Tr. 2326. The instructions defined
present cash value as “the sum of money needed now which when invested at a
reasonable rate of return will pay future damages at the times and in the amounts
that you find the damages would be incurred or would have been received.” Tr.
Shriver’s report is not diagnosing [] Indalecio with PTSD, but rather is
anticipating psychiatric evaluations, including that of PTSD. [] Shriver
was able to make a recommendation on future care and medications
consistent with her education, training, and experience. After I examined
the patient, I find no inconsistency between [] Shriver’s treatment plan
and my own.” Id. at 2.
As to the cost of surgery, Dr. Walker declared: “Shriver’s opinion is more conservative
than my opinion . . . .” Id. at 3.
Indalecio v. Mobil Oil, 2020 MP 1
2326. The jury instructions continued: “[t]he rate of return to be applied in
determining present cash value should be the interest that can be reasonably
expected from safe investment that can be made by a person of ordinary prudence
who has ordinary financial experience and skill.” Tr. 2326-2327. Finally, Jury
Instruction No. 30 informed the jurors that future inflation should be considered:
“[y]ou should also consider decreases in the value of money that may be caused
by future inflation.” Tr. 2327.
¶ 11 The jury rendered a unanimous verdict in favor of Indalecio. They
awarded Indalecio $681,000 in economic damages, and $600,000 in non-
economic damages. Pursuant to 7 CMC § 2922,3 the court reduced the non-
economic damages to $300,000 for a total award of $981,000.
¶ 12 Mobil Oil subsequently filed an omnibus motion for a directed verdict, or
in the alternative, a new trial and remittitur in the jury’s award for compensatory
damages. The court denied the motion but proposed several remedies for
remittitur with respect to Shriver’s estimated costs of treatment. It instructed the
parties to submit briefs “on the issue of reducing future medical costs to present
cash value, accounting for a reduction in $62,071.51 in future medical costs,
pursuant to Jury Instruction No. 30.” Indalecio, Civ. Case No. 14-0065 (Super.
Ct. Nov. 28, 2016) (Order Denying Defendant’s Omnibus Motion as to Motion
for Directed Verdict and Motion for New Trial, and Order for Additional Briefs
on the Remedy of Remittitur at 27).
¶ 13 The briefs were intended to assist the court in ascertaining “whether there
is a sufficient evidentiary basis indicating that the jury complied with Jury
Instruction No. 30’s mandate that future economic damages be reduced to their
present cash value.” Indalecio, Civ. Case No. 14-0065 (Super. Ct. Nov. 27, 2017)
(Order Regarding Present Cash Value and Remittitur at 3). It addressed “four
interlocking questions.” Id. at 4. Namely, whether there is substantial evidence
that: (1) “the $220,000.00 for future lost income represents the present cash
value”; (2) “the $150,000.00 for surgery represents the present cash value”; (3)
“the $311,000.00 for [] Indalecio’s life care plan represents the present cash
value”; and (4) whether the disposition of the prior questions affects the proposed
reduction of economic damages by $62,071.51. Id.
¶ 14 The court concluded that further reduction to present cash value was not
warranted for future lost income, the surgery, or the life care plan. The court did
determine that damages should be reduced by $62,071.51. This appeal followed.
II. JURISDICTION
¶ 15 We have jurisdiction over final judgments and orders of the
Commonwealth Superior Court. NMI CONST. Art. IV, § 3.
III. STANDARD OF REVIEW
¶ 16 There are three issues on appeal. First, we review whether there was
3
7 CMC § 2922 states that awards for non-economic damages may not exceed $300,000.
Indalecio v. Mobil Oil, 2020 MP 1
sufficient evidence to establish the present value of future damages de novo.
Ishimatsu v. Royal Crown Ins. Corp., 2010 MP 8 ¶ 12; see also In re Estate of
Deleon Castro, 4 NMI 102, 105 (1994) (“Whether sufficient evidence supports
a court’s finding is a legal conclusion reviewable de novo.”). On whether
MacMillan was properly admitted as an expert and whether Shriver exceeded the
scope of her testimony, we review for abuse of discretion. Commonwealth v.
Crisostomo, 2018 MP 5 ¶ 19.
IV. DISCUSSION
A. Present Cash Value
¶ 17 Mobil Oil argues that Indalecio, as the party seeking future damages, has
the burden “to present expert testimony as to an appropriate discount rate over
time, an appropriate inflation rate over time, and the interplay between the two.”
Reply Br. 3–4. It notes that while some courts suggest adjusting for present value
is a matter of common knowledge, other courts require expert testimony to guide
the jury. It maintains the latter practice is the superior one. Consequently, because
no testimony was presented as to future damages, these damages were
speculative and unsupported by evidence. We review sufficiency of the evidence
claims de novo. Ishimatu, 2010 MP 8 ¶ 12.
¶ 18 We have not yet determined whether expert testimony is necessary for
jurors to evaluate the present cash value of future lost income. See Bisom v.
Commonwealth, 2002 MP 19 ¶¶ 10–23 (focusing on whether expert testimony is
needed to establish the amount of future lost income rather than to compute the
reduction to present cash value of future lost income). Court practices vary
concerning expert testimony and present value.4 We do not reach that question
4
Some courts have implicitly held that expert testimony may be required for establishing
present value. See Schleier v. Kaiser Foundation Health Plan of Mid-Atlantic States,
Inc., 876 F.2d 174, 179 (D.C. Cir. 1989.) (“The formula for discounting lost future
income to present value is complicated and not one that a jury would be likely to
intuit. . . . We believe that discounting to present value falls within the class of tasks
which ‘lend [themselves] to clarification by expert testimony because [they] involve[]
the use of statistical techniques and require[] a broad knowledge of economics”).
Other courts find no expert testimony is needed to establish present value. See Castro
v. County of Los Angeles, 797 F.3d 654, 676 (9th Cir. 2015) (noting that despite the
common use of experts “no California court has ever held that expert testimony is an
absolute requirement in order to establish the present value of a future-damages
award.”); Brough v. Imperial Sterling Ltd., 297 F.3d 1172, 1180 (11th Cir. 2002)
(finding no error where the trial court “allow[ed] the jury to calculate damages without
the testimony of an expert on present value” since “[t]here is no requirement . . . that a
party introduce expert testimony” to establish present value); McKeown v. Woods Hole,
9 F. Supp. 2d 32, 48 n. 16 (D. Mass. 1998) (“The majority of courts also do not require
evidence, whether by expert testimony and/or annuity tables, suggesting to the jury a
method to reduce future loss of earnings to its present value.”); Sahrbacker v. Lucerne
Products, Inc., 556 N.E.2d 497, 498 (Ohio 1990) (“It is settled that reduction to present
value lies within the province of the jury. Expert testimony is not required to entitle a
plaintiff to recover future earnings. Either party is, of course, free to present proper
Indalecio v. Mobil Oil, 2020 MP 1
here because we determine it was Mobil Oil’s burden, not Indalecio’s, to provide
evidence to reduce Indalecio’s damages.
¶ 19 In CSX Transp. v. Casale, 441 S.E.2d 212 (Va. 1994), the Virginia
Supreme Court addressed “whether the court erred in instructing the jury on loss
of future wages.” Id. at 213. There, the plaintiff presented evidence to establish
future lost wages. The court then instructed the jury to consider “any loss of
earnings, fringe benefits, and lessening of earning capacity, or either, that [the
plaintiff] may reasonably be expected to sustain in the future.” Id. at 214. The
defendant argued that since the plaintiff did not offer evidence (such as future
interest rates) for the jury to reduce future damages to present cash value, the trial
court erred in its instructions to the jury. Id. Casale received guidance from the
U.S. Supreme Court’s decision in Chesapeake & Ohio Ry. Co. v. Kelly, which
posited that given the investment power of money over time, a plaintiff would be
overcompensated if awarded a lump sum now for future damages without
discounting the rate of return on investment. Id. at 215 (see 241 U.S. 485, 489
(1916). Having this guidance, the court explicitly reiterated Kelly’s proposition
that “[o]rdinarily a person seeking to recover damages for the wrongful act of
another must do that which a reasonable man would do under the circumstances
to limit the amount of the damages.” Id. at 216 (quoting Kelly, 241 U.S. at 489).
“Likewise, [the Virginia Supreme Court] has treated the reduction in a claim for
damages in an analogous situation as being in the nature of mitigation.” Id. at
215. Casale held that while the plaintiff has the “ultimate burden of proof upon
the quantum of damages . . . a defendant seeking reduction to present value of a
sum awarded for future lost wages has the burden of going forward with evidence
to enable the fact finder to make a rational determination on the issue.” Id. at 216.
Because the defendant did not introduce expert evidence to reduce damages to
present cash value, “the trial court correctly rejected defendant’s effort to
eliminate the plaintiff’s future lost wage claim.” Id.
¶ 20 In a similar vein, the defendant in Better Building Maintenance of the
Virgin Islands, Inc. v. Lee, 60 V.I. 740, 747-748 (V.I. 2014), argued that “the
Superior Court erred in instructing the jury to reduce [the plaintiff’s] future
damages to present value without any evidence that would allow the jury to make
that calculation.” There, the Virgin Islands Supreme Court noted “the inherent
absurdity in requiring a plaintiff to actively assist the jury in reducing her own
award. . . . [I]t is unjust to require a party to introduce evidence benefitting her
opponent, and instead [a court should] allocate the burden of proof according to
the parties’ interests.” Id. at 759. Where a defendant seeks to reduce the plaintiff’s
award, it must bear the burden to provide the appropriate discount rate; where
the plaintiff seeks an upward adjustment, such as to account for inflation, the
burden falls on the plaintiff. Id. This, the court determined, was the “sounder
expert testimony to assist the jury in performing the task of reducing future earnings to
present value.”); see also Kovacs v. Chesapeake & O.R. Co., 397 N.W.2d 169, 170–71
(Mich. 1986) (holding that plaintiffs are not required to introduce evidence on
inflation).
Indalecio v. Mobil Oil, 2020 MP 1
rule.” Id. at 760. Where “the defendant seeks the benefit of a reduction of future
damages to present value, it bears the burden of raising and proving this issue—
just as it has the burden to raise any other matter reducing a plaintiff’s recovery.”
Id. at 760–61.
¶ 21 We agree with Casale and Lee: the defendant has the burden to provide
expert testimony to reduce future damages to present cash value—not the
plaintiffs. Mobil Oil asserts Indalecio should have provided expert testimony to
reduce his own damages. This argument is misplaced precisely because of the
holdings in Casale and Lee. With respect to Shriver’s testimony on future
damages, it was Mobil Oil’s burden to provide expert guidance on the present
value of those future damages—not Indalecio’s. To the extent that Mobil Oil
argues there was insufficient evidence for the jury to reduce damages to present
value, we find such argument lacking. Again, it was not Indalecio’s burden to
present evidence as to the reduction of future damages to present value. But even
if it were, MacMillan testified as to a discount rate, using the Treasury bond rate
of approximately 2.1 percent. This rate represented a rate of return based on
conservative and low risk investments. Thus, the discounted value was a
considerably conservative estimate of the present value of lost future damages.
Furthermore, although MacMillan did not adjust for inflation, he based the lost
earnings only on the current minimum wage despite noting the likelihood of
future increase in the minimum wage. Bracketing the question of the soundness
of MacMillan’s methodology for determining the actual gross amount of future
damages, see infra Part IV. B., his testimony as to a discount rate provided an
evidentiary basis for the jury to calculate reduction to present value. Here,
sufficient evidence to conduct a calculation was provided to the jurors in the form
of expert testimony, enabling them to reduce future damages to present value.5
B. Expert Testimony
¶ 22 Mobil Oil argues the court abused its discretion in admitting MacMillan
as an expert witness under Rule 702 because his findings on lost income did not
meet the requisite Daubert standard. In particular, Mobil Oil claims that
MacMillan failed to account for actual historical hours and earnings in 2014 and
2015 following the injury, and MacMillan assumed Indalecio would never work
again. Accordingly, “[t]here was simply no factual foundation for the MacMillan
analysis.” Opening Br. 18. We review whether the court properly admitted expert
testimony under Rule 702 for an abuse of discretion. Crisostomo, 2018 MP 5
5
Mobil Oil touches on an additional issue; namely, because it is uncertain whether
certain medical treatments would be needed immediately, the costs could not be
reduced to present value. See Opening Br. 9 (“Without a time component to these
damages, it was impossible for the jury to calculate the present cash value in accordance
with Jury Instruction No. 30.”). However, since Dr. Walker’s testimony suggested
Indalecio might need surgery immediately, a reasonable jury could have concluded
costs might be incurred immediately and would not need to be reduced to present value.
Indalecio v. Mobil Oil, 2020 MP 1
¶ 19. An abuse of discretion exists when a court “based its ruling on an erroneous
view of the law or on a clearly erroneous assessment of the evidence.” Id.6
¶ 23 Rule 702 governs the admissibility of expert testimony. Under Rule 702,
an expert witness may provide opinion testimony if four requirements are
satisfied:
(a) 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; (b) the testimony is based on sufficient facts or data;
(c) the testimony is the product of reliable principles and methods;
and (d) the expert has reliably applied the principles and methods to
the facts of the case.
NMI R. EVID. 702. We elaborated on the Rule 702 standards in Crisostomo, 2018
MP 5, and Commonwealth v. Taitano, 2018 MP 12.
¶ 24 In Crisostomo, we analyzed Rule 702 under Daubert v. Merrell Dow
Pharmaceuticals, Inc., 509 U.S. 579 (1993). Acknowledging the flexible
approach articulated in subsequent U.S. Supreme Court case law, see generally
Kumho Tire Co. v. Carmichael, 526 U.S. 137 (1999), we still stated “[t]his
flexibility, however, has limitations: a court has broad discretion in fulfilling its
gatekeeping function, but it must not abandon this function or perform it
inadequately.” Crisostomo, 2018 MP 5 ¶ 20 (citing Kumho Tire, 526 U.S. at 159)
(Scalia, J., concurring). To avoid “abandoning [the court’s] gatekeeping function,
courts must allow presentation of evidence as to the relevance and reliability of
the expert’s proffered testimony.” Id. ¶ 21. This means allowing parties “to
explore the proposed testimony’s relevance and reliability.” Id. Further, “after a
proper inquiry into relevance and reliability, the court must make specific
findings regarding its evaluation of the expert.” Id. ¶ 23. This ensures the court
performs its duties adequately. Id. A court must assess the reliability and provide
“‘some kind of reliability determination’ to be made on the record.” Id. (quoting
United States v. Velarde, 214 F.3d 1204, 1209 (6th Cir. 2000)). “[S]ummarily
admitting or excluding testimony without assessing reliability is inadequate,” id.,
and “conclusory findings are [insufficient].” Id. ¶ 40. Without specific
determinations, the record is incomplete and we may find an abuse of discretion.
See id. ¶ 23.
¶ 25 In Taitano, we reiterated the standards mandated in Daubert and its
progeny when analyzing the admission or denial of expert testimony. Although
we recognized the Daubert standard as a liberal one, we still reiterated the
importance of the gatekeeping duty. In Taitano, the court found that the proferred
expert testimony was based on sufficient facts or data because “[h]e received
6
In Crisostomo, we announced that a motion in limine preserves a party’s Daubert
objection. See Crisostomo, 2018 MP 5 ¶ 39 (“Although Crisostomo failed to assert a
contemporaneous objection to the admission of [the expert’s] testimony, his claim is
preserved by his motion in limine, rendering our review for abuse of discretion.”).
Indalecio v. Mobil Oil, 2020 MP 1
various samples.” Taitano, 2018 MP 12 ¶ 16. Furthermore, “[o]ther case[s] have
established that the principle in order to take the samples of the DNA are reliable.
And then the expert has reliably applied those principles and methods to the facts
of the case.” Id. Where the court stated conclusively that the expert’s
methodology was reliable—without more—we determined “its cursory
statements d[id] not fulfill the mandate required to make ‘some’ kind of
determination . . . . The court provided mere conclusory statements, which
without any meaningful analysis or explanation, manifest an inadequate
performance of its gatekeeping duties.” Id. ¶ 17; see Pyramid Techs., Inc. v.
Hartford Cas. Ins. Co., 752 F.3d 807, 814 (9th Cir. 2014) (finding an abuse of
discretion where the court rendered “two conclusory sentences and without
analysis or explanation” of an expert’s admissibility). We thus found the court
abused its discretion when it failed to provide some kind of reliability
determination.
¶ 26 Here, the court acknowledged MacMillan’s qualifications as a certified
public accountant. However, it concluded in a single sentence that MacMillan’s
“methodology . . . to determine loss of earning capacity, based on the
conservative assumption that [Indalecio] has the potential to earn a minimum
wage income for his remaining work life, is sufficiently sound under Rule 702.”
Indalecio, Civ. Case No. 14-0065 (Sup. Ct. Oct. 28, 2015) (Order Denying
Defendant’s Motion to Exclude Expert Testimony of Bruce M. MacMillan at 3).
The court was compelled to render “some kind of determination”; that is to say,
the court should have provided reasoning such that we could review the record
meaningfully on appeal. However, the court did not provide “some kind of
determination” and instead rendered its finding in one conclusory statement. The
parties were precluded from discerning the court’s reasoning in admitting
MacMillan’s testimony, and so are we. Just as in Crisostomo and Taitano, the
court abdicated its gatekeeping duty based on an erroneous view of the law and
abused its discretion.
i. Sufficiency
¶ 27 Mobil Oil calls for further expanding our Rule 702 precedent by relying
on two federal circuit court cases discussing sufficiency: Boucher v. United
States Suzuki Motor Corp., 73 F.3d 18 (2d Cir. 1996), and Elcock v. Kmart Corp.,
233 F.3d 734 (3d Cir. 2000). Both Boucher and Elcock discuss expert testimony
based on assumptions unsupported in the record; in fact, both cases present facts
concerning future damages. In Boucher, the Second Circuit confronted a plaintiff
who maintained “a sporadic work history.” Boucher, 73 F.3d at 20. Despite this,
the expert rendered estimates based on full-time employment. The court
determined that testimony based on “assumptions that are so unrealistic and
contradictory as to suggest bad faith or to be in essence an apples and oranges
comparison,” is impermissible. Id. at 21. (citations omitted). “Where lost future
earnings are at issue, an expert’s testimony should be excluded as speculative if
it is based on unrealistic assumptions regarding the plaintiff’s future employment
prospects.” Id. The court ultimately found the expert’s projections were not
supported by the record. Similarly, in Elcock, the Third Circuit noted that
Indalecio v. Mobil Oil, 2020 MP 1
“although mathematical exactness is not required, [expert] testimony of post-
injury earning capacity must be based upon the proper factual foundation. Put
another way, an expert’s testimony [regarding future earnings loss] must be
accompanied by a sufficient factual foundation before it can be submitted to the
jury.” 233 F.3d at 754 (alteration in original). Despite reports that Elcock was 50
to 75 percent disabled, the expert economist based his findings of lost income on
an assumption that Elcock was 100 percent disabled. Id. at 755. The court
ultimately found the expert’s assumptions lacked sufficient factual foundation,
holding these sorts of assumptions are based in insufficiencies that render them
a “castle made of sand.” Id. (quoting Benjamin v. Peter’s Farm Condominium
Owners Ass’n, 820 F.2d 640, 643 (3d Cir. 1987)).
¶ 28 Although Crisostomo and Taitano stood for the proposition that trial
courts do in fact have gatekeeping responsibilities, we further elucidated in
Taitano that expert testimony need not be “based on perfect, or even the best
available, methodologies.” Taitano, 2018 MP 12 ¶ 22 (quoting Clark v. Edison,
881 F. Supp. 2d 192, 215 (D. Mass. 2012)). Daubert “caution[s] against being
‘overly pessimistic’ of a jury’s capabilities . . . . ‘[V]igorous cross-examination,
presentation of contrary evidence, and careful instruction on the burden of proof
are the traditional and appropriate means of attacking shaky but admissible
evidence.’” Id. ¶ 23 (quoting Daubert, 509 U.S. at 596); see also Barnett v. Pa
Consulting Group Inc., 35 F. Supp. 3d 11, 18 (D.D.C. 2014) (“Courts in this
district routinely permit expert testimony based on assumptions of fact and
‘shaky evidence,’ so long as the underlying methodology used is valid.”). It is
the “soundness” of the expert’s methodology, not the correctness of the expert’s
conclusions, that controls admissibility. Taitano, 2018 MP 12 ¶ 23. Once the
methodology meets Daubert’s liberal threshold, “challenges going to the weight
of the evidence” should be reserved for the jury. Id. “[G]aps or inconsistencies
in the reasoning leading to [the expert’s] opinion . . . go to the weight of the
evidence, not to its admissibility.” Id. (quoting Restivo v. Hessemann, 846 F.3d
547, 577 (2d Cir. 2017); see also Maiz v. Virani, 253 F.3d 641, 664 (11th Cir.
2001) (“Suffice it to say that while damages may not be determined by mere
speculation or guess, it will be enough if the evidence shows the extent of the
damages as a matter of just and reasonable inference.” (quoting G.M. Brod &
Co., Inc. v. U.S. Home Corp., 759 F.2d 1526, 1539 (11th Cir. 1985)).
¶ 29 Although Boucher and Elcock are not unpersuasive, we find that any
deficiencies in MacMillan’s methodology ultimately go to the weight and not
admissibility of his testimony, as they were curable by cross examination. Here,
Mobil Oil extensively cross-examined MacMillan as to the sufficiency of his
methodology. During cross-examination, MacMillan admitted he did not survey
Indalecio’s circumstances. He did not examine Indalecio’s tax returns, bank
accounts, paychecks, work schedule, job history, or anything of this nature.
Mobil Oil’s cross-examination thoroughly informed the jury of any and all
deficiencies. That the jury still awarded Indalecio the fullest amount possible
despite Mobil Oil’s cross-examination revealing certain deficiencies is within the
parameters of juror discretion. We do not find the court abused its discretion for
Indalecio v. Mobil Oil, 2020 MP 1
allowing the adversarial system to run its course.
ii. Harmless Error
¶ 30 We must still consider whether the court committed prejudicial error in
failing to render some kind of determination as to the reliability of MacMillan’s
methodology. We will find harmless error “if it is more probable than not that
the error did not materially affect the verdict.” Crisostomo, 2018 MP 5 ¶ 35
(quoting United States v. Cohen, 510 F.3d 1114, 1127 (9th Cir. 2007) (quotation
altered).
¶ 31 We do not find the abuse of discretion and error materially affected the
verdict. Just as we found with any deficiencies in MacMillan’s testimony, we
hold that such deficiencies in the Daubert determinations were cured through
cross-examination. Mobil Oil extensively cross-examined MacMillan, clarifying
the various factors that went into his analysis and methodology. Even Indalecio
thoroughly questioned MacMillan on his methodology, which worked to his
detriment rather than to his benefit. The jury was armed with a broad swath of
information, including testimony from Indalecio’s own expert that yielded a
conservative estimate of damages, and awarded Indalecio an amount not
inconsistent with the evidence. Where the court misapprehended the law and
impermissibly admitted an expert’s testimony without sufficient reasoning,
vigorous cross-examination and contrary evidence provided the jurors with the
means to come to their decision. It cannot be said that it is more probable than
not the error materially affected the verdict and therefore it was harmless error
when the court admitted MacMillan as an expert witness.
C. Scope of Expertise
¶ 32 Although Mobil Oil concedes that Shriver testified within the scope of her
expertise as to the cost of medical treatment, it maintains she did so on the basis
of her own opinion of Indalecio’s needed medical treatment rather than that of a
medical professional. In other words, while Shriver as a life care planner could
compile reports of physicians to estimate future projections, she must do so
“based on facts and opinions received from physicians.” Opening Br. 10
(quotation altered). Accordingly, “Shriver’s testimony should have been limited
to reflect her expertise as a life care planner and exclude other fields for which
she lacked the requisite specialized expertise.” Id. Additionally, Mobil Oil asserts
any argument that Dr. Walker supported Shriver’s estimates is unfounded. As
stated by Mobil Oil, “[Dr.] Walker never testified that he had reviewed and
supported Shriver’s Life Care Plan. He never testified that he reviewed any of
her proposed treatments and agreed with them.” Id. at 13.
¶ 33 The implications of an expert who exceeds the scope of permitted
testimony is discussed in Wheeling Pittsburg Steel Corp. v. Beelman River
Terminals, Inc., 254 F.3d 706 (8th Cir. 2001). Consistent with Daubert and its
progeny, the Eighth Circuit maintained that a trial court “has a gatekeeping
responsibility to ‘ensure that an expert’s testimony rests on a reliable foundation
and is relevant[.]’” Id. at 714–15 (quoting Kumho Tire, 526 U.S. at 141).
Critically, however, the court determined that once this is accomplished, the
Indalecio v. Mobil Oil, 2020 MP 1
court “must continue to perform its gatekeeping role by ensuring that the actual
testimony does not exceed the scope of the expert’s expertise[.]” Id. at 715.
Otherwise, the testimony may be rendered unreliable. Id. In Beelman, the
proffered expert’s testimony should have been confined to flood risk
management. However, despite being “eminently qualified to testify as an expert
hydrologist regarding matters of flood risk management, [the expert] sorely
lacked the education, employment, or other practical personal experiences to
testify as an expert specifically regarding safe warehousing practices,” which is
what was at issue. Id. Where the court permitted the expert to testify on the latter,
it permitted him “to testify beyond the scope of his expertise.” Id. The court
therefore found an abuse of discretion.
¶ 34 Whether a trial court abused its discretion in specifically permitting a life
care planner to testify beyond the scope of her expertise insofar as she failed to
seek the opinions of medical professionals was discussed in Rivera v. Turabo
Med. Ctr. P’ship, 415 F.3d 162 (1st Cir. 2005). There, the plaintiff’s life care
planning expert offered testimony on the cost of projected life care. The