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Gump v. Walmart Stores11/17/1999
Defendant-Appellant Walmart Stores Inc. (Wal-Mart ) appeals the April 23, 1998 judgment of the Circuit Court of the Third Circuit adjudging it liable to Plaintiff-Appellee Linda Gump (Gump) for $25,175.00 in damages, $8,585.00 in attorneys' fees and $1,413.22 in costs, and to the state judiciary for $4,213.04 in jury costs; Wal-Mart also appeals appurtenant pretrial and post-trial orders.
We affirm.
I. BACKGROUND
On February 15, 1996, Gump was leaving Wal-Mart's Kailua-Kona store when she slipped on a french fry, fell, and was injured. Gump suffered a bone fracture along the side of her right foot.
McDonald's, a franchise restaurant owned and operated by co- defendant KBRL, Inc. (McDonald's), is authorized by Wal-Mart to sell food and beverages on leased premises within the store. The McDonald's restaurant is located near the entrance and exit doors of the store, directly on "action alley." Action alley, the main thoroughfare through Wal-Mart, has the highest amount of customer traffic in the store.
Gump's accident happened on action alley, near the McDonald's restaurant.
Although there is no Wal-Mart policy prohibiting McDonald's patrons from taking food and beverage from the restaurant into the store, McDonald's placed a sign inside its restaurant, which read, "Patrons, please do not leave these premises with food."
On April 19, 1996, Gump filed a Complaint against Wal-Mart and McDonald's alleging negligence (Count I) and reckless conduct (Count II), and seeking damages, including punitive damages.
Wal-Mart and McDonald's answered, denying the material allegations and asserting various defenses, including comparative negligence.
The co-defendants did not exchange crossclaims.
On August 5, 1997, the court issued an Order Setting Trial Date and Pretrial Deadlines ("Pretrial Order"). The Pretrial Order provided, in part:
Attendance at settlement conferences shall be as required by Rule 12.1, Rules of the Circuit Courts. The Court notes particularly Rule 12.1(a)(4) mandating the parties to have attempted to negotiate settlement through an exchange of written bona fide and reasonable offers of settlement prior to the conference. Attendance and authority are extremely important, therefore the parties or attorneys who have complete settlement authority (not authority to settle up to a certain amount) shall be present. Failure to comply with this shall result in the Court imposing appropriate sanctions. The court suffers great inconvenience when clients are not readily available.
The sanctions for non-compliance with this order include those imposed by Rule 12.1(a)(6), and shall, in the appropriate case, include default.
Wal-Mart and McDonald's each filed a motion for summary judgment, on October 2, 1997 and October 6, 1997, respectively. The trial court heard both motions on November 6, 1997. The court denied both motions for summary judgment as to the negligence claim, but granted the motions as to the claim for punitive damages based on reckless conduct.
On November 10, 1997, a settlement conference was held, at which counsel for Wal-Mart advised the court that he had "zero settlement authority." The court sanctioned Wal-Mart $175, which represented one hour of attorneys' fees for opposing counsel, for settlement conference violation under Rule 12.1(a)(6) of the
Rules of the Circuit Courts of the State of Hawaii (HCCR), finding that:
Counsel for Defendant Walmart Stores, Inc. had no authority to settle this case and no other person appeared along with counsel for Defendant Walmart Stores, Inc.
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