Facts

On July 24, 2016, 22-year-old Plaintiff Manisha Palla and twelve coworkers boarded a 24' boat rented from Defendant L M Sports, Inc dba Lakeside Marina. L M Sports also rented and charged the group for a tube for towing. The boat's propulsion system had dual counter-rotating propellers located approximately 17" from the swim ladder when deployed. L M Sports gave a set of instructions, known as the "spiel" to the two volunteer operators from the group. They were shown the propellers and admonished to turn the boat engine off when picking up people in the water. Plaintiff had been on a boat 4 or 5 times in her life and had never been tubing. She decided to take a turn tubing after watching 3 or 4 of her colleagues take uneventful turns before her. Plaintiff's co-worker, Defendant Paul Garcia, who represented that he had experience operating motor boats, was operating the boat. When Garcia circled around to retrieve Plaintiff, he attempted to shift the boat's throttle into neutral. He unknowingly missed neutral and left the boat in "idle reverse." Plaintiff attempted to re-board, but her left foot, and then right leg, contacted the propellers, drawing her right leg into and between the counter-rotating propellers. Plaintiff remained pinned between the propellers until first responders arrived. Members of the group took turns pulling her up by her life jacket to keep her face out of the water because she would have been submerged otherwise. Plaintiff was eventually freed by first responders, life-flighted to Renown Medical Center in Reno, Nevada where her right leg was amputated above the knee.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that L M Sports had a duty to provide safety instructions to the entire group, and not just the operators, about tubing and propeller strikes because they rented them a tube and knew the passengers could be getting into the water. Plaintiff also contended the boat was not fit for its particular purpose because it should have been fitted with low-cost safety devices such as a propeller guard or ladder interlock device. Plaintiff also contended that Garcia negligently operated the boat at the time of the accident.

DEFENDANTS' CONTENTIONS: Defendants denied the contentions. L M Sports and LT Leasing, Inc., who were not present at the time of the accident, contended that the sole cause of the accident was Garcia's action in reversing the boat. L M Sports contended that it instructed boat operators to shut the boat engine off when picking up a tuber from the water. Further L M Sports contended that it also instructed Garcia to never place the boat in reverse if there was somebody in the water. L M Sports contended it was not required to fit the boat with additional safety devices and it had no duty to warn the passengers. L M Sports argued that Garcia was entirely in control of the vessel once the group left the marina and that L M Sports had a clean safety record. L M Sports further contended that the location of the ladder next to the propellers was an open and obvious condition and that Plaintiff was comparatively at fault because she knew or should have known the propellers were in the back of the boat next to the ladder. L M Sports also argued Plaintiff assumed the risk of harm and the assumption of risk doctrine completely barred her recovery. Under Admiralty Rules and the Limitation of Liability Act, L M Sports argued it was entitled to limit its liability to the value of the vessel ($9,500) because the vessel owners had no privity or knowledge of the negligent act(s) that caused the injury. Lastly, L M Sports argued that joint and several liability should not apply in the recreational boating context.

Settlement Discussions

The parties participated in one failed mediation session before the damages trial.

Specials in Evidence

Past Meds: $305,762.03 Future Meds: $1,514,024

Injuries

Amputation of plaintiff's right leg above the knee. Lacerations to her left foot and left knee. Physical, emotional, and mental pain and suffering. Disfigurement, disability and loss of enjoyment of life. Plaintiff did not claim any damages for past or future loss of income/earnings.

Result

LT Leasing was exonerated from liability. The court found both Garcia and L M Sports' negligence caused Plaintiff's injuries and that L M Sports failed to show it lacked knowledge of the negligent conditions that gave rise to Plaintiff's injuries. The court awarded Plaintiff $21,819,786.03 in damages which comprised of $8,000,000 in past non-economic damages, $12,000,000 in future non-economic damages, $1,514,024 in future economic damages, and $305,762.03 in past economic damages. The court apportioned 80 percent of fault to Defendant Garcia, and 20 percent to Defendant L M Sports. However, Defendants were Jointly and Severally liable to Plaintiff for all damages under Admiralty law.

Other Information

Defendant L M Sports filed a Limitation of Liability Act action, which the Court consolidated with Plaintiff's case. Under LOLA, if the defendant boat owner can demonstrate they had no privity or knowledge of the negligent act(s) causing injury, they are entitled to limit their liability to the value of the vessel at the time of the incident. Defendant L M Sports filed and lost a motion for summary judgment. The court ultimately bifurcated the issues of liability and damages. Since a bench trial is the general rule in Admiralty actions, the court tried liability and damages. Plaintiff will additionally be entitled to prejudgment interest from the date of the injury under Admiralty law. The case is on appeal and an opening brief has been filed.

Length

19 days (liability and damages trial)