GULF, COLORADO & SANTA FE RAILWAY COMPANY
v.
MOSER, ADMINISTRATRIX
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A widow brought suit under the Federal Employers' Liability Act to recover damages for her husband's death while working as a railroad brakeman. The Supreme Court held that the trial court erred in failing to instruct the jury that damages for lost future pecuniary benefits must be calculated based on their present value, accounting for the earning power of money through appropriate interest rates, rather than allowing the jury to award damages without a specific formula for discounting future payments.
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Mr. Justice McReynolds delivered the opinion of the ' Court.
Mrs. Moser, administratrix of her husband’s estate, brought suit under the Federal Employers’ Liability Act (c. 149, 35 Stat. 65; c. 143, 36 Stat. 291) to. recover damages consequent upon his death while employed by. petitioner as a brakeman. The point for consideration is whether the trial court, charged the jury concerning estimation of damages according to the rule approved by this Court.
The cause went to the jury upon special issues framed as • questions. Answers thereto constitute the verdict. Relevant parts of Special Issue No. 7 follow—
“ Regardless of what your answers may be to the questions submitted in this charge, you will assess damages, and you will arrive at the amount thereof by assessing-the same at such sum of money as., if paid in cash at this ‘ time would be sufficient to fairly compensate the surviving wife and child for such actual pecuniary loss as you may believe from the evidence that they had a reasonable expectation of receiving from said John H. Moser, if any, from and after the death of the said John H. Moser, if he had not. died on the date alleged. By pecuniary loss is meant such loss as may be compensated for in money. In answering special issue No. 7, you will take into consideration the contribution of,money and other pecuniary benefits, if any, which the evidence may show that said surviving wife and child would have received from him after the time of his death, if he had continued to live; . . . In assessing the damages, if any, you will confine yourselves solely to the determination of-the pecuniary and monetary interest, if any, that the plaintiff and her child had in the continued life of deceased. ...
“ Bearing in mind the foregoing definitions and instructions on the measure of damages, you will answer special' issue No. seven.
“What amount of money, if paid now, will fairly and reasonably compensate the surviving widow and child of the deceased, John H. Moser, for the actual pecuniary loss which they respectively suffered by reason of his death, if any? This question you will answer by stating the aggregate amount of such pecuniary loss or damage, and you will answer in the space below the amount you find from the evidence.”
Petitioner seasonably objected to the charge as “ generally too broad and not definite and specific enough and the jury should be limited in their consideration of the measure of damages, and the damages to be awarded, and should be further and more in detail instructed as to matters they can consider and the way their verdict should be arrived at more fully shown and in line with defendant’s requested charges on the issue of damages.” Also to Special Issue No. 7 because si it does not give the jury any rule or formula by which the jury may determine the amount of money that if paid now will fairly' and reasonably compensate the surviving widow and child for the actual' pecuniary loss.” And it requested the following special instruction.
“ In considering of your verdict on the • question of damages, and under the special-issues submitted to' you in that connection, and thereunder 'in determining ‘ such sum of money as if paid in cash at this time would be sufficient to fairly-compensate the. surviving wife and child,’ for their pecuniary loss, you are instructed that in determining the present value of such contributions as •plaintiff would probably have received from the continued life of . the deceased you will make your calcular-tións on the basis of the amount-of your award, bearing • interest at the highest net rate of interest that the tésti-mony shows can be had on money safely invested, and secured as shown by the testimony in this case.”
, This action sufficed to raise the point now presented. Refusal to grant the request was material error. Chesapeake & Ohio Railway Company v. Kelly, 241 U. S. 485, 491, and Chesapeake & Ohio Railway Company v. Gainey, 241 U. S. 494, announce the applicable rule. In the first, we distinctly stated that “ in computing the damages recoverable for the deprivation of future benefits, the principle of limiting the recovery to compensation requires that adequate allowance be made, according to circumstances, for the earning power of money; in short, that when future payments or other pecuniary benefits are to be anticipated, the verdict should be made upon the basis of their present value only.” The interpretation approved by us has become an integral part of the statute. It should be accepted and followed.
The judgment below is reversed; and the cause will be remanded to the Court of Civil Appeals, Third Supreme Judicial District, State of Texas, for further-proceedings not inconsistent with this opinion.
Reversed.
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Boys Mkts., Inc. v. Retail Clerks Union, 398 U.S. 235 (U.S. 1970)…erence that this Court owes to the primary responsibility of the legislature in the making of laws. Of course, when this Court first interprets a statute, then the statute becomes what this Court has said it is. See Gulf, C. & S. F. R. Co. v. Moser, 275 U. S. 133, 136 (1927). Such an initial interpretation is proper, and unavoidable, in any system in which courts have the task of applying general statutes in a multitude of situations. B. Cardozo, The Nature of the Judicial Process 112-115 (1921). The Court u…
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S. Pac. Co. v. Guthrie, 186 F.2d 926 (9th Cir. 1951)…said to be “grossly excessive”, or as stated in the Affolder case, “monstrous”. We think that the verdict in this case cannot be so characterized. The judgment is affirmed. . The requested instruction approved in Gulf, C. & S. F. R. Co. v. Moser, 275 U. S. 133, 135, 48 S.Ct. 49, 50, 72 L.Ed. 200, referred to “the highest net rate of interest”. The most recent opinion on the question of an appropriate interest is Virginian Ry. Co. v. Armentrout, 4 Cir., 166 F. 2d 400, 407, 4 A.L.R.2d 1064, which called 3%…1 / 2
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Mellon v. Goodyear, 277 U.S. 335 (U.S. 1928)…Porto Rico v. Didricksen, 227 U. S. 145, 149; Gulf, Colorado & Santa Fe Ry. Co. v. McGinnis, 228 U. S. 173; C. & O. Ry. Co. v. Kelly, Admx., 241 U. S. 485; C. & O. Ry. Co. v. Gainey, Admr., 241 U. S. 494; Gulf, Colorado & Santa Fe Ry. Co. v. Moser, 275 U. S. 133. Neither statute defines the nature of the damages to be recovered; this was left for interpretation; We followed the construction' given the earlier one when it became necessary to interpret and apply the • later and similar act. The judgment of t…
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- Chesapeake & Ohio Ry. Co. v. Kelly, 241 U.S. 485 (U.S. 1916)
- Chesapeake & Ohio Ry. Co. v. Gainey, 241 U.S. 494 (U.S. 1916)