Wade Clark Mulcahy LLP

<p style="text-align: justify;">In<em> <a href="https://www.wcmlaw.com/wp-content/uploads/2019/10/Orientale-v.-Jennings.pdf">Orientale v. Jennings</a>,</em> the Supreme Court of New Jersey took the occasion to reexamine the current practices of additur and remittitur.  By way of background, additur references when a jury's award is so grossly inadequate that its shocks the judicial conscience, and the trial judge increases the award to an amount, in the judge's view, that could be sustained by the evidence.  Conversely, remittitur references when a jury's damages award is so grossly excessive that it shocks the judicial conscience, and the trial judge lowers the award to the highest amount, in the judge's view, could be sustained by the evidence.</p>
<p style="text-align: justify;">In<em> Orientale</em>, plaintiff brought a personal-injury action against defendant.  The parties settled for the $100,000 policy limit and plaintiff brought an underinsured motorist claim against her auto insurer.  The case went to trial against the insurer whereupon the jury awarded only $200.  Because the jury award did not exceed the $100,000 settlement with defendant, the insurer’s underinsured motorist coverage policy was not triggered.  Thus, the judge entered a no cause of action and dismissed the suit.</p>
<p style="text-align: justify;">Plaintiff moved for an additur.  The judge vacated the damages award, finding that it constituted a miscarriage of justice, and granted an additur in the amount of $47,500.  This amount likewise did not exceed $100,000 so the judge again no caused the case.</p>
<p style="text-align: justify;">Ultimately, the New Jersey Supreme Court established new rules on remittitur and additur to bring these practices in line with “basic notions of fair play and equity.”  It is now the law that when a judge deems an award a miscarriage of justice, both parties must consent to the additur or remittitur.  If both parties do not consent, then, upon a finding that a jury award is a miscarriage of justice, a new jury trial must be conducted.  However, if the parties consent, then the matter is listed as settled.</p>
<p style="text-align: justify;">These new rules will have a significant effect on trial defense counsel who is faced with a decision on whether or not to accept a higher award than the jury awarded, as failure to consent to the additur will necessitate a another lengthy, and costly, trial.</p>
<p style="text-align: justify;">Thank you to Michael Noblett for his contribution to this post.  Please email <a href="mailto:chayes@wcmlaw.com">Colleen E. Hayes</a> with any questions.</p>