Facts

Defendant AAA Propane Services Inc. is in the business of delivering propane by way of commercial trucks to residential and commercial businesses. According to the officers and owners of AAA Propane, John Simpson and Hulon Simpson, they hire ex-cons on parole to drive the trucks to save some money because the State pays for the required drug testing.

AAA Propane hired ex-con Silas Carpenter. AAA Propane knew that Carpenter had a significant and well-documented history of crime, violence and mental illness. Carpenter had 25 separate arrests, ranging from public intoxication to assault with a deadly weapon and battery. Carpenter had also been convicted of numerous violent crimes – he slashed a cab driver's face with a box cutter, punched and knocked-out a manager of a Denny's, and had a standoff with the police, which led to the SWAT team extricating and arresting him.

In 2005, the Ventura Superior Court found Carpenter mentally incompetent to stand trial, and he was committed to Patton State Hospital and transferred to Metropolitan State Hospital in Norwalk. Carpenter was on anti-psychotic medications to treat what the Oxnard District Attorney's office understood to be a bipolar disorder.

An officer of AAA Propane admitted that he never trusted Carpenter from the date of hire through the date of his death.

In the morning of Dec. 23, 2009, Carpenter arrived at the AAA Propane facilities, met with John Simpson, took the keys to the truck he drives, and was expected to drive his route of pickups and deliveries in Valencia. Later that day, John Simpson learned from customers that Carpenter was not on his route and instead had stolen some propane tanks and money from one customer in the Oxnard area. John Simpson later received a call from a grocery store saying that Carpenter was wearing a Vikings jersey and was singing Purple Rain. John Simpson conferred with his brother Hulon Simpson and decided to call the police and report the truck stolen.

Later that day, the police caught up to Carpenter who refused to pull over and a police chase ensued. During that chase, plaintiff Terry Fitch was lawfully stopped at a red light in his 1997 Ford Ranger on Victoria Avenue in Oxnard when Carpenter, operating the AAA Propane truck, attempted to run the red light and while doing so, swiped plaintiff's Ford Ranger and also collided with a vehicle driven by Yasmin Galicia.

Ultimately, Carpenter was surrounded by police in a McDonald's parking lot and was resisting arrest. Instead of exiting the truck, Carpenter attempted to drive the vehicle into the police cars at which point the police opened fire and killed him. During that shoot out, Officer Kevin Gormley suffered a shoulder injury.

Plaintiffs Terry and Sarah Fitch brought a lawsuit against AAA Propane and the Estate of Silas Carpenter alleging negligence and negligent entrustment and sought, in addition to the ordinary recoverable damages, punitive damages.

Plaintiff Yasmin Galicia brought an identical lawsuit against the same defendants.

Officer Kevin Gormley and his wife brought a lawsuit against AAA Propane alleging negligence and negligent entrustment.

PLAINTIFF'S CONTENTIONS:
Plaintiffs contended that AAA Propane was vicariously liable for Carpenter's negligence for causing the auto accident and was directly liable for its negligent hiring of him. Plaintiffs also contended that AAA Propane acted with conscious disregard for the safety and welfare of plaintiffs by hiring Carpenter to drive around a highly flammable propane truck.

DEFENDANT'S CONTENTIONS:
Defendants argued that Carpenter was outside the course and scope of his employment at the time of the auto accident.

Defendants also contended that the subject incident did not cause Fitch's any back injuries and, consequently, the June 24, 2010 back surgery was not necessitated by the subject incident.

Settlement Discussions

AAA Propane had a primary $1 million policy per incident and a $1 million umbrella/excess policy. At mediation with retired Judge Russell Bostrum, the three injured parties made a joint policy limits demand for $2 million. Several days after the mediation, the underlying policy offered its $1 million policy.

Specials in Evidence

$371,562

Injuries

Immediately after the sideswipe collision, Fitch claimed anxiety and chest pains. He went to the emergency room where he reported the same. Several days later, Plaintiff went to his primary care physician where he reported anxiety and chest pains. Seven days after the accident, Plaintiff had a back spasm and pain. Plaintiff had a long history of back pain and fractured his back 10 years prior. Fitch had made multiple workers' compensation claims prior to this incident involving back injuries. Fitch underwent a L2 corpectomy and L1-3 fusion on June 24, 2010. Galicia suffered some soft tissue injuries and claimed a mild traumatic brain injury. No significant medical expenses had been incurred. Officer Gormley was out of work for six months during which time he had an arthroscopic shoulder surgery. He required an additional surgery to repair a torn labrum, which had not yet taken place at the time the case settled. Officer Gormley claimed a seven-figure loss of earnings potential because under the Oxnard Police Department collective bargaining agreement, if an officer is out of work for one year total for an injury sustained on the job, the Oxnard Police Department could force retirement. The second surgery may cause Officer Gormley to be out of work for an aggregate of one year.

Result

The case settled for $1.5 million ($32,500 to Yasmin Galicia; $1,004,052 to Terry and Sarah Fitch; $463,448 to Kevin and Bella Gormley).

Other Information

The court denied AAA Propane's motion to strike punitive damages allegations from the complaint. The case resolved one day prior to the hearing on AAA Propane's motion for summary judgment or summary adjudication. MEDIATORS: Hon. Russell Bostrom and Jeffrey Krivis. FILING DATE: Oct. 25, 2010.