Appellee suffered a permanent back injury while working as a
brakeman and conductor for appellant railroad. After returning to
work in a less physically demanding position, appellee brought an
action under the Federal Employers' Liability Act (FELA) in a
Pennsylvania state court, alleging that his injury was attributable
to appellant's negligence and that his future earning power had
been impaired as a result of his injury. The trial judge refused to
instruct the jury that any damages award for loss of future
earnings should be reduced to present value, but instead informed
the jury that the law (apparently referring to Pennsylvania case
law) "now provides that there need not be such a reduction." After
the jury found for appellee and awarded damages, the trial judge
assessed an additional amount as prejudgment interest pursuant to
Pennsylvania Rule of Civil Procedure 238, which requires state
courts in personal injury actions to add to compensatory damages 10
percent per year, as "damages for delay," from the date the
complaint was filed or from the date one year after the cause of
action accrued, whichever was later, to the date of the verdict.
The Pennsylvania Superior Court affirmed. The Pennsylvania Supreme
Court also affirmed, characterizing Rule 238 as a mere "rule of
procedure," and holding that it was not inconsistent with FELA. It
also held that whether the trial judge properly refused to instruct
the jury to discount future damages to present value and instead
applied the "total offset" method, under which future inflation is
presumed equal to future interest rates, was a question of federal
law, and that the judge's use of the total offset rule was not
inconsistent with
St. Louis Southwestern R. Co. v.
Dickerson, 470 U. S. 409.
Held:
1. State courts may not award prejudgment interest pursuant to
local practice in FELA actions. Pp.
486 U. S.
334-339.
(a) The proper measure of damages under FELA -- including the
question whether prejudgment interest may be awarded to a
prevailing plaintiff -- is inseparably connected with the right of
action, and therefore is an issue of substance that must be settled
according to federal law, rather than state law. The Pennsylvania
courts cannot avoid the application of federal law by
characterizing Rule 238 as nothing more than a
Page 486 U. S. 331
procedural device to encourage settlements and relieve court
congestion. Pp.
486 U. S.
335-336.
(b) Federal law does not authorize awards of prejudgment
interest in FELA actions. Although neither FELA nor the general
federal interest statute, 28 U.S.C. § 1961, mentions prejudgment
interest, when Congress enacted FELA in 1908, the common law did
not allow prejudgment interest in suits for personal injury or
wrongful death, and that was the rule in the federal courts. In
enacting FELA, Congress expressly dispensed with other common law
doctrines of that era, and there is no indication that Congress
intended to abrogate the doctrine barring prejudgment interest
sub silentio. Moreover, the lower federal courts and the
state courts have held with virtual unanimity that prejudgment
interest is not available under FELA. Congress' failure to disturb
such a longstanding, consistent judicial interpretation of a
statute indicates that Congress at least acquiesces in, and
apparently affirms, that interpretation. Pp.
486 U. S.
336-339.
2. The trial court did not act consistently with federal law in
instructing the jury not to discount appellee's future lost
earnings to present value.
St. Louis Southwestern R. Co. v.
Dickerson, supra. The jury has the task of making the present
value determination in FELA cases, but it is permissible for the
judge to recommend to the jury one or more methods of calculating
present value so long as the judge does not, in effect, preempt the
jury's function. In the present case, however, the trial judge
instructed the jury that a zero discount rate was to be applied as
a matter of law to appellee's future damages. The instruction
improperly took from the jury the essentially factual question of
the appropriate rate at which to discount appellee's FELA award to
present value. Pp.
486 U. S.
339-342.
513 Pa. 86,
518
A.2d 1171, reversed and remanded.
WHITE, J., delivered the opinion of the Court, in which BRENNAN,
STEVENS, SCALIA, and KENNEDY, JJ., joined, in Parts I, II-A, and
III of which MARSHALL and BLACKMUN, JJ., joined, and in Parts I and
II of which REHNQUIST, C.J., and O'CONNOR, J., joined. BLACKMUN,
J., filed an opinion concurring in part and dissenting in part, in
which MARSHALL, J., joined,
post, p.
486 U. S. 342.
O'CONNOR, J., filed an opinion concurring in part and dissenting in
part, in which REHNQUIST, C.J., joined,
post, p.
486 U. S.
350.
Page 486 U. S. 332
JUSTICE WHITE delivered the opinion of the Court.
This case concerns the application of state law rules affecting
the measure of damages in an action brought in state court under
the Federal Employers' Liability Act (FELA), 35 Stat. 65,
as
amended, 45 U.S.C. § 51
et seq.
I
Appellee was employed by appellant as a railroad brakeman and
conductor. In August, 1977, appellee fell while alighting from a
railroad car and suffered a permanent injury to his back. He
returned to work in February, 1979, in the less physically
demanding position of radio and supply clerk.
Appellee brought an FELA action in the Court of Common Pleas of
Allegheny County, Pennsylvania, alleging that his fall was
attributable to appellant's negligence. He claimed that his future
earning power had been impaired as a result of his injury because
he could not obtain certain incentive and shift differential
payments in his new position.
The trial judge refused to instruct the jury that any damages
award for loss of future earnings would have to be reduced to
present value. Instead, she informed the jury that "[t]he law now
provides that there need not be such a reduction." App. 61. The
judge apparently was referring to the Pennsylvania Supreme Court's
decision in
Kaczkowski v. Bolubasz, 491 Pa. 561, 583,
421
A.2d 1027, 1038-1039 (1980), which had instructed state courts
to cease discounting future lost earnings to present value because
"as a matter of law . . . future inflation shall be presumed equal
to future interest rates, with these factors offsetting."
The jury found in favor of appellee and awarded damages of
$125,000. The trial judge assessed an additional $26,712.50 as
prejudgment interest pursuant to Rule 238 of the Pennsylvania
Page 486 U. S. 333
Rules of Civil Procedure. Rule 238 requires state courts in
personal injury actions to "add to the amount of compensatory
damages . . damages for delay at ten (10) percent per annum, not
compounded," from "the date the plaintiff filed the initial
complaint in the action or from a date one year after the accrual
of the cause of action, whichever is later," to the date of the
verdict. [
Footnote 1] The judge
rejected appellant's contention that Rule 238 could not be applied
to FELA actions.
A three-judge panel of the Pennsylvania Superior Court affirmed.
339 Pa.Super. 465,
489
A.2d 254 (1985).
The Pennsylvania Supreme Court granted appellant's petition for
allowance of appeal, and subsequently affirmed by a narrow margin.
513 Pa. 86,
518 A.2d
1171 (1986).
The court characterized Rule 238 as a mere "rule of procedure"
designed to encourage meaningful settlement negotiations, and
thereby alleviate congestion in the trial courts.
Id. at
98-99, 518 A.2d at 1177. The court concluded that, as neither the
"worthy goal" nor the specific provisions of Rule 238 contravened
the purposes and provisions of the FELA, the Pennsylvania courts
could apply Rule 238 to award prejudgment interest in FELA cases as
well as in cases involving only state law.
Ibid.
The court recognized that whether the trial judge had properly
refused to instruct the jury to discount future damages to present
value, and instead applied the so-called "total offset" method, was
a question of federal law.
See St. Louis Southwestern R. Co. v.
Dickerson, 470 U. S. 409,
470 U. S. 411
(1985) (per curiam). The court noted our discussion of a Federal
District Court's use of Pennsylvania's total offset rule in
Jones & Laughlin Steel Corp. v. Pfeifer, 462 U.
S. 523 (1983), a case brought under the Longshoremen's
and Harbor
Page 486 U. S. 334
Workers' Compensation Act (LHWCA), 33 U.S.C. § 904. We held in
Pfeifer that
"whatever rate the District Court may choose to discount the
estimated stream of future earnings, it must make a deliberate
choice, rather than assuming that it is bound by a rule of state
law."
Id. at
462 U. S.
552-553. Here, the trial judge's use of the total offset
rule was held to have been permissible under
Pfeifer
because the reviewing court had itself "deliberately selected" that
rule in
Kaczkowski v. Bolubasz "after a thorough
consideration of various present worth theories and rules." 513 Pa.
at 92-93, 518 A.2d at 1174. Nor did the court find any
inconsistency between the trial judge's use of the total offset
rule and our holding in
Dickerson that "an utter failure
to instruct the jury that present value is the proper measure of
[an FELA] damages award is error." 470 U.S. at
470 U. S. 412.
Here, reasoned the court, "the trial judge did instruct the jury on
present value by charging on the total offset method." 513 Pa. at
94-95, 518 A.2d at 1175. [
Footnote
2]
We noted probable jurisdiction, 484 U.S. 813 (1987), and now
reverse.
II
We first consider whether state courts may award prejudgment
interest pursuant to local practice in actions brought under the
FELA.
Page 486 U. S. 335
A
State courts are required to apply federal substantive law in
adjudicating FELA claims.
Dickerson, supra, at
470 U. S. 411;
Chesapeake & Ohio R. Co. v. Kuhn, 284 U. S.
44,
284 U. S. 46-47
(1931). It has long been settled that "the proper measure of
damages [under the FELA] is inseparably connected with the right of
action," and therefore is an issue of substance that "must be
settled according to general principles of law as administered in
the Federal courts."
Chesapeake & Ohio R. Co. v.
Kelly, 241 U. S. 485,
241 U. S. 491
(1916);
see also Dickerson, supra, at
470 U. S. 411;
Norfolk & Western R. Co. v. Liepelt, 444 U.
S. 490,
444 U. S. 493
(1980).
The question of what constitutes "the proper measure of damages"
under the FELA necessarily includes the question of whether
prejudgment interest may be awarded to a prevailing FELA plaintiff.
Prejudgment interest is normally designed to make the plaintiff
whole, and is part of the actual damages sought to be recovered.
West Virginia v. United States, 479 U.
S. 305,
479 U. S. 310,
and
479 U. S.
310-311, n. 2 (1987);
General Motors Corp. v. Devex
Corporation, 461 U. S. 648,
461 U. S.
655-656 (1983);
Poleto v. Consolidated Rail
Corporation, 826 F.2d 1270, 1278 (CA3 1987);
Wilson v.
Burlington Northern R. Co., 803 F.2d 563, 566 (CA10 1986)
(McKay, J., concurring),
cert. denied, 480 U.S. 946
(1987). Moreover, prejudgment interest may constitute a significant
portion of an FELA plaintiff's total recovery. Here, for example,
the trial court's award of $26,712.50 in prejudgment interest under
Rule 238 increased appellee's total recovery by more than 20
percent. Accordingly, the Pennsylvania courts erred in treating the
availability of prejudgment interest in FELA actions as a matter of
state law, rather than federal law. [
Footnote 3]
Page 486 U. S. 336
The Pennsylvania courts cannot avoid the application of federal
law to determine the availability of prejudgment interest under the
FELA by characterizing Rule 238 as nothing more than a procedural
device to relieve court congestion. In
Dice v. Akron, C. &
Y. R. Co., 342 U. S. 359
(1952), the Ohio courts had applied a state procedural rule in an
FELA action that permitted the judge rather than the jury to
resolve factual questions as to whether a release had been
fraudulently obtained. We reversed on the ground that
"the right to trial by jury is too substantial a part of the
rights accorded by the Act to permit it to be classified as a mere
'local rule of procedure' for denial in the manner that Ohio has
here used."
Id. at
342 U. S. 363.
See also Brown v. Western R. Co. of Alabama, 338 U.
S. 294,
338 U. S.
298-299 (1949). Similarly, prejudgment interest
constitutes too substantial a part of a defendant's potential
liability under the FELA for this Court to accept a State's
classification of a provision such as Rule 238 as a mere "local
rule of procedure." [
Footnote
4] We therefore turn to the issue of whether federal law
authorizes awards of prejudgment interest in FELA actions.
B
Neither the FELA itself nor the general federal interest
statute, 28 U.S.C. § 1961, makes any mention of prejudgment
interest. It is true that Congress' silence as to the availability
of interest on an obligation created by federal law does not,
without more, "manifes[t] an unequivocal congressional
Page 486 U. S. 337
purpose that the obligation shall not bear interest."
Rodgers v. United States, 332 U.
S. 371,
332 U. S. 373
(1947).
We can discern a sufficiently clear indication of legislative
intent with regard to prejudgment interest under the FELA, however,
when we consider Congress' silence on this matter in the
appropriate historical context. In 1908, when Congress enacted the
FELA, the common law did not allow prejudgment interest in suits
for personal injury or wrongful death.
See C. McCormick,
Law of Damages § 56 (1935); 1 T. Sedgwick, Measure of Damages § 316
(9th ed.1912). [
Footnote 5]
This was the rule in the federal courts.
Pierce v. United
States, 255 U. S. 398,
255 U. S. 406
(1921); [
Footnote 6]
Mowry v.
Whitney, 14 Wall. 620,
81 U. S. 653
(1872);
see also Poleto, supra, at 1276, 1278;
Wilson,
supra, at 565;
Louisiana & Arkansas R. Co. v.
Pratt, 142 F.2d 847, 848 (CA5 1944). Congress expressly
dispensed with other common law doctrines of that era, such as the
defense of contributory negligence,
see 45 U.S.C. § 53, in
order "to provide liberal recovery for injured workers" under the
FELA.
Kernan v. American Dredging Co., 355 U.
S. 426,
355 U. S. 432
(1958). But Congress did not deal at all with the equally well
established doctrine barring the recovery of prejudgment
Page 486 U. S. 338
interest, and we are unpersuaded that Congress intended to
abrogate that doctrine
sub silentio. [
Footnote 7]
Moreover, we have recognized that Congress' failure to disturb a
consistent judicial interpretation of a statute may provide some
indication that "Congress at least acquiesces in, and apparently
affirms, that [interpretation]."
Cannon v. University of
Chicago, 441 U. S. 677,
441 U. S. 703
(1979);
see also Gulf Oil Corp. v. Copp Paving Co.,
419 U. S. 186,
419 U. S.
200-201 (1974);
Flood v. Kuhn, 407 U.
S. 258,
407 U. S.
283-284 (1972). The federal and state courts have held
with virtual unanimity over more than seven decades that
prejudgment interest is not available under the FELA.
See,
e.g., Poleto, 826 F.2d at 1279;
Wilson, 803 F.2d at
566;
Kozar v. Chesapeake & Ohio R. Co., 449 F.2d 1238,
1244 (CA6 1971);
Pratt, supra, at 848-849;
Chicago,
M., St. P. & P. R. Co. v. Busby, 41 F.2d 617, 619 (CA9
1930);
Carmouche v. Southern Pacific Transportation Co.,
734 S.W.2d 46, 47 (Tex. App.1987);
Melin v. Burlington Northern
R. Co., 401
N.W.2d 418, 420 (Minn.App.1987);
Wicks v. Central R.
Co., 129 N.J.Super. 145, 147,
322 A.2d 488, 489,
cert. denied, 66 N.J. 317, 331 A.2d
17 (1974);
Murmann v. New York, N. H. & H.R. Co., 258
N.Y. 447, 450, 180 N.E. 114, 115 (1932) (per curiam);
Mobile
& O. R. Co. v. Williams, 219 Ala. 238, 249, 121 So. 722,
731 (1929);
Bennett v. Atchison, T. & S. F. R. Co.,
187 Iowa 897, 903-904, 174 N.W. 805, 807 (1919);
Grow v. Oregon
Short Line R. Co., 47 Utah 26, 29, 150 P. 970, 971 (1915).
Congress has amended the FELA on several occasions since 1908.
See 36 Stat. 291 (1910); 53 Stat. 1404 (1939); 62
Stat.
Page 486 U. S. 339
989 (1948). Yet, Congress has never attempted to amend the FELA
to provide for prejudgment interest. [
Footnote 8] We are unwilling in the face of such
congressional inaction to alter the longstanding apportionment
between carrier and worker of the costs of railroading injuries. If
prejudgment interest is to be available under the FELA, then
Congress must expressly so provide. [
Footnote 9]
III
We turn now to the question whether the trial court acted
consistently with federal law in instructing the jury not to
discount appellee's future lost earnings to present value.
We have consistently recognized that "damages awards in suits
governed by federal law should be based on present value."
Dickerson, 470 U.S. at
470 U. S. 412.
The "self-evident" reason is that "a given sum of money in hand is
worth more than the like sum of money payable in the future."
Kelly, 241 U.S. at
241 U. S. 489;
see also Dickerson, supra, at
470 U. S. 412.
And, as
Page 486 U. S. 340
Kelly and
Dickerson demonstrate, the rule
governs in FELA cases. Hence, a "failure to instruct the jury that
present value is the proper measure of a damages award is error."
470 U.S. at
470 U. S.
412.
Here, the trial court instructed the jury that, although it
"used to be" that juries were to reduce an award to "something
called present worth," the law now provided that there need not be
such a reduction. Tr. 701-702. The "law" referred to was the
Pennsylvania Supreme Court's decision in
Kaczkowski v.
Bolubasz, 491 Pa. 561,
421 A.2d
1027 (1980), which held that future inflation would be
conclusively presumed to equal future interest rates, and that
state courts in Pennsylvania therefore were not to reduce damages
to present worth. It was error for the court to have refused on the
basis of this state rule to allow an FELA award to be reduced to
present value, just as it was error for the court in
Pfeifer to have failed to make "a deliberate choice" as to
how an LHWCA award was to be reduced to present value and to have
"assum[ed] that it [was] bound by a rule of state law." 462 U.S. at
462 U. S.
553.
Under the Court's FELA cases, the jury has the task of making
the present value determination. It was observed in
Kelly,
for example, that
"it may be a difficult mathematical computation for the ordinary
juryman to calculate interest on deferred payments, with annual
rests, and reach a present cash value."
241 U.S. at
241 U. S. 491.
We declined to decide in that case
"[w]hether the difficulty should be met by admitting the
testimony of expert witnesses, or by receiving in evidence the
standard interest and annuity tables in which present values are
worked out at various rates of interest and for various periods
covering the ordinary expectancies of life."
Ibid. We did not suggest that the difficulty could also
be met by permitting the present value calculation to be made by
the judge, rather than the jury.
The question was addressed more directly two years later in
Louisville & Nashville R. Co. v. Holloway,
246 U. S. 525
Page 486 U. S. 341
(1918), which held that an FELA defendant was not entitled to a
jury instruction that the present value of future losses must, as a
matter of law, be computed at the State's 6 percent legal interest
rate. The state trial court had properly refused to give an
instruction that "sought to subject the jury's estimate to [such a]
rigid mathematical limitatio[n]."
Id. at
246 U. S. 528.
[
Footnote 10]
There is nothing in
Pfeifer to suggest that the judge,
rather than the jury, is to determine the discount rate in FELA
actions. There, we repeatedly indicated that the present value
calculation is to be made by the "trier of fact."
See 462
U.S. at
462 U. S. 534,
462 U. S. 536,
462 U. S. 538,
462 U. S.
547-548,
462 U. S.
550-551, n. 32. Of course, because
Pfeifer was
tried to the Bench, the "trier of fact" in that case was a judge,
rather than a jury.
We do not mean to suggest that the judge in an FELA action is
foreclosed from assisting the jury in its present value
calculations. Indeed, because "
[t]he average accident trial
should not be converted into a graduate seminar on economic
forecasting,'" id. at 462 U. S. 548
(quoting Doca v. Marina Mercante Nicaraguense, S.A., 634
F.2d 30, 39 (CA2 1980)), the judge has an obligation to prevent the
trial proceedings on the
Page 486 U. S. 342
present value issue from becoming unnecessarily prolonged and
the jury from becoming hopelessly mired in "difficult mathematical
computation." It is therefore permissible for the judge to
recommend to the jury one or more methods of calculating present
value, so long as the judge does not in effect preempt the jury's
function. [
Footnote 11] A
trial judge's instructions to the jury with regard to discount
methods -- provided that they do not "subject the jury's estimate
to . . . rigid mathematical limitatio[n],"
Holloway,
supra, at
246 U. S. 528
-- are entitled to substantial deference on appellate review.
In the present case, however, the trial judge instructed the
jury that a zero discount rate was to be applied as a matter of law
to appellee's future damages. This instruction improperly took from
the jury the essentially factual question of the appropriate rate
at which to discount appellee's FELA award to present value, and
therefore requires reversal.
IV
We conclude that Pennsylvania's prejudgment interest and "total
offset" rules were improperly applied to this FELA action. The
judgment of the Pennsylvania Supreme Court is therefore reversed,
and the case is remanded for further proceedings not inconsistent
with this opinion.
It is so ordered.
[
Footnote 1]
Rule 238 provides that, if the defendant made a pretrial
settlement offer and the plaintiff's recovery does not exceed 125
percent of that offer, the court cannot award "delay damages" for
the period after the offer was made.
[
Footnote 2]
The three dissenting justices maintained that the trial court's
award of "delay damages" under Rule 238 contravened federal
substantive law and "undermine[d] the national uniformity FELA was
designed to achieve." 513 Pa. at 102, 518 A.2d at 1179. They
dismissed as "pure sophistry" the majority's assertion that Rule
238 was a mere procedural device, observing that "[a]ny rule which
increases a damage award by twenty-five percent has an undeniably
material effect on damages."
Id. at 101-102, 518 A.2d at
1179. In addition, said the dissenters, the trial judge's refusal
to instruct the jury to discount any future damages to present
value was inconsistent with federal law. The trial judge had
"blindly applied" the Pennsylvania total offset rule, they
asserted, and had not made the "deliberate choice" among present
value theories required by
St. Louis Southwestern R. Co. v.
Dickerson, 470 U. S. 409
(1985). 513 Pa. at 100, 518 A.2d at 1178.
[
Footnote 3]
Other courts have uniformly recognized that the availability of
prejudgment interest under the FELA is a question of federal law.
See, e.g., Poleto v. Consolidated Rail Corporation, 826
F.2d 1270, 1274 (CA3 1987);
Louisiana & Arkansas R. Co. v.
Pratt, 142 F.2d 847, 848 (CA5 1944);
Chicago, M., St. P.
& P. R. Co. v. Busby, 41 F.2d 617, 619 (CA9 1930);
Carmouche v. Southern Pacix Transportation Co., 734 S.W.2d
46, 47 (Tex. App.1987);
Wicks v. Central R. Co., 129 N.J.
Super. 145, 147,
322 A.2d 488, 489,
cert. denied, 66 N.J. 317, 331 A.2d
17 (1974);
Mobile & O. R. Co. v. Williams, 219 Ala.
238, 249, 121 So. 722, 731 (1929).
[
Footnote 4]
The Court of Appeals for the Third Circuit recognized in an FELA
action that Rule 238 is substantive in nature.
Poleto v.
Consolidated Rail Corporation, supra, at 1274. Indeed, even
the Pennsylvania Supreme Court has acknowledged that Rule 238 has
"both procedural and substantive elements."
Laudenberger v.
Port Authority of Allegheny County, 496 Pa. 52, 66,
436 A.2d
147, 154 (1981).
[
Footnote 5]
As JUSTICE BLACKMUN's dissent concedes, the authorities
recognized even two decades after the enactment of the FELA that
"interest usually was not awarded" in personal injury actions
involving claims for both economic and noneconomic injury.
Post at
486 U. S. 347
(citing McCormick § 56, p. 224).
[
Footnote 6]
In
Pierce, the Government obtained a criminal judgment
against a corporation, and a fine was imposed. The Government then
brought a civil action against the corporation's shareholders to
satisfy the judgment. The Court held that the Government was
entitled to interest only from the date of the civil judgment, and
not from the date of the prior criminal judgment. It was observed
that "[a]t common law, judgments do not bear interest; interest
rests solely upon statutory provision." 255 U.S. at
255 U. S. 406.
Accordingly, as the only applicable statute provided for
post-judgment interest in civil actions, the Government could not
obtain interest prior to the date of the civil judgment either as
post-judgment interest in the criminal action or as prejudgment
interest in the civil action.
[
Footnote 7]
Similarly, the Court refused in an early FELA case to depart
from the common law rule that a right of action for personal injury
was extinguished by the death of the injured party.
See
Michigan Central R. Co. v. Vreeland, 227 U. S.
59,
227 U. S. 67-68
(1913). The Court noted that the FELA did not expressly provide for
the survival of the injured employee's right of action, and that
state survival statutes were inapplicable because "[t]he question
of survival is not one of procedure,
but one which depends on
the substance of the cause of action.'" Id. at
227 U. S. 67
(quoting Schreiber v. Sharpless, 110 U. S.
76, 110 U. S. 80
(1884)).
[
Footnote 8]
Congress considered a proposal to authorize prejudgment interest
under the general federal interest statute, 28 U.S.C. § 1961,
during deliberations on the Federal Courts Improvement Act of 1982,
Pub.L. 97-164, 96 Stat. 25. The proposal was omitted from the final
legislation. S.Rep. No. 97-275, pp. 11-12 (1981).
[
Footnote 9]
JUSTICE BLACKMUN's dissent does not recognize the obvious
difference between the instant case and previous cases in which the
Court allowed prejudgment interest on certain pecuniary losses.
See, e.g., General Motors Corp. v. Devex Corp.,
461 U. S. 648,
461 U.S. 654-656 (1983);
Jacobs v. United States, 290 U. S. 13,
290 U. S. 16-17
(1933);
Waite v. United States, 282 U.
S. 508,
282 U. S. 509
(1931). In none of those cases did the plaintiff seek prejudgment
interest on a cause of action arising under a statute that, like
the FELA, was enacted at a time when prejudgment interest was
generally unavailable on similar causes of action arising under the
common law. The Court would have had no occasion in those cases to
consider whether the Congress that adopted the statute under which
prejudgment interest was sought intended to dispense
sub
silentio with a well established common law rule barring
prejudgment interest on similar claims. Hence, we cannot accept the
dissent's characterization of our analysis as a "departure from our
normal inquiry into the relation between an allowance of interest
and Congress' purpose in creating [the underlying] obligation."
Post at
486 U. S.
348.
[
Footnote 10]
A similar issue was presented in
Vicksburg & Meridian R.
Co. v. Putnam, 118 U. S. 545
(1886), a tort action brought against a railroad by an injured
passenger. The trial judge had instructed the jury to calculate the
present value of the plaintiff's damages at the rate shown in
standard annuity tables. This Court held that such an
instruction
"tended to mislead the jury . . . by giving them to understand
that the tables were not merely competent evidence of the average
duration of human life, and of the present value of life annuities,
but furnished absolute rules which the law required them to apply
in estimating the probable duration of the plaintiff's life, and
the extent of the injury which he had suffered."
Id. at
118 U. S. 557. The
Court observed that
"it has never been held that the rules to be derived from such
tables or computations must be the absolute guides of the judgment
and the conscience of the jury."
Id. at
118 U. S. 554.
The Court discussed this aspect of the
Putnam decision in
Chesapeake & Ohio R. Co. v. Kelly, 241 U.
S. 485 (1916), without questioning its continued
validity or intimating that a different rule might apply in FELA
actions.
See id. at
241 U. S.
491-492.
[
Footnote 11]
Moreover, as we recognized in
Pfeifer, "nothing
prevents parties interested in keeping litigation costs under
control from stipulating to [the
total offset' method's] use
before trial." 462 U.S. at
462 U. S. 550.
JUSTICE BLACKMUN, with whom JUSTICE MARSHALL joins, concurring
in part and dissenting in part.
I agree with the Court's conclusion that the availability of
prejudgment interest in a suit under the Federal Employers'
Liability Act (FELA), 35 Stat. 65,
as amended, 45 U.S.C. §
51
et seq., is governed by federal law, and that the state
trial court therefore was not at liberty to supplement appellee's
judgment on the basis of Rule 238 of the Pennsylvania
Page 486 U. S. 343
Rules of Civil Procedure. I also agree with the Court's
conclusion that the trial court erred in refusing to instruct the
jury on present value pursuant to federal law. Accordingly, I join
Parts I, II-A, and III of the Court's opinion. Because the Court's
hasty decision that prejudgment interest is uniformly unavailable
in FELA actions fails to follow the teaching of our prior cases and
undermines the FELA's system of compensation, I dissent from Part
II-B.
I
Section 1 of the FELA, 45 U.S.C. § 51, provides that a railroad
"shall be liable in damages to any [employee] suffering injury . .
. from the negligence" of the railroad or its employees. Enacted to
ensure compensation for railroad workers injured by the negligence
of their employers or of their fellow employees, the FELA uses
broad language that, in turn, "has been construed even more
broadly" by this Court, consistent with its assessment of
congressional intent.
Atchison, T. & S. F. R. Co. v.
Buell, 480 U. S. 557,
480 U. S.
561-562 (1987);
see Kernan v. American Dredging
Co., 355 U. S. 426,
355 U. S. 432
(1958). This Court has "accepted [a] standard of liberal
construction in order to accomplish" the "Act's humanitarian
purposes."
Urie v. Thompson, 337 U.
S. 163,
337 U. S. 180
(1949);
Atchison, T. & S. F. R. Co. v. Buell, supra,
at
480 U. S. 562.
In accord with these principles, appellee is entitled under the
FELA to interest on the money awarded to him as damages for his
economic losses, here lost earnings, between the time of his injury
and the time of trial. [
Footnote
2/1]
Page 486 U. S. 344
A
Although the FELA allows recovery of "damages," it does not
specifically state that "damages" includes interest.
Nonetheless,
"in the absence of an unequivocal prohibition of interest, . . .
this Court has fashioned rules which granted or denied interest on
particular statutory obligations by an appraisal of the
congressional purpose in imposing them and in the light of general
principles deemed relevant by the Court."
Rodgers v. United States, 332 U.
S. 371,
332 U. S. 373
(1947). Plainly, the "congressional purpose" in providing a damages
award under the FELA was to compensate a worker for his injury.
Nothing in the legislative history or in our decisions suggests
that this compensation was intended to be anything less than what
was required to compensate him fully. The relevant "general
principle" employed by this Court in interpreting the FELA is the
provision of liberal recovery under flexible remedies.
See
Kernan v. American Dredging Co., 355 U.S. at
355 U. S. 432
("[I]t is also clear that Congress intended the creation of no
static remedy, but one which would be developed and enlarged to
meet changing conditions and changing concepts of industry's duty
toward its workers"). Together, purpose and principle indicate the
allowance of interest in FELA cases.
To compensate an injured rail employee fully for income lost
prior to trial, it is necessary to award not only the amount of the
lost income, but also interest on that income for the time the
employee did not have the use of it.
"The interest foregone on lost income or on money spent for
out-of-pocket expenses from the date of loss to the time of
compensation is as much a part of making an injured party whole as
is the calculation of her wage rate."
Wilson v. Burlington Northern R. Co., 803 F.2d 563, 566
(CA10 1986) (concurring
Page 486 U. S. 345
opinion),
cert. denied, 480 U.S. 946 (1987). In
recognition of the principle that an interest award may be
necessary to provide full compensation, this Court, in other
contexts, repeatedly has authorized prejudgment interest for
economic injury when the purpose of the overall award is to make
the plaintiff whole.
See General Motors Corp. v. Devex
Corp., 461 U. S. 648,
461 U.S. 654-656 (1983)
(patent infringement);
Jacobs v. United States,
290 U. S. 13,
290 U. S. 16-17
(1933) (eminent domain);
Waite v. United States,
282 U. S. 508,
282 U. S. 509
(1931) (patent infringement);
Miller v. Robertson,
266 U. S. 243,
266 U. S.
256-259 (1924) (contract). In short, it cannot be denied
that an award of interest on pretrial economic losses in a FELA
case is necessary to make the injured worker whole, and that making
the worker whole is the purpose of the FELA. [
Footnote 2/2] It would seem apparent, therefore, that,
under our normal method of deciding such questions, a prejudgment
interest award is appropriate in a FELA case.
In reaching the opposite conclusion, the Court relies
principally on a common law rule that barred prejudgment interest
in suits for personal injury or wrongful death.
Ante at
486 U. S.
337-338. [
Footnote 2/3]
From the combination of this common law rule
Page 486 U. S. 346
and the FELA's silence on interest, the Court would discern a
congressional intent to disallow interest awards entirely in FELA
cases -- an intent, in effect, to deny full compensation to workers
covered by the FELA. [
Footnote 2/4]
Closer scrutiny of the development of interest and damages law,
however, reveals the flaws in this facile analysis.
The common law's hostility to interest awards usually is traced
to the medieval view of interest as an evil thing.
See D.
Dobbs, Law of Remedies § 3.5, p. 165 (1973); C. McCormick, Law of
Damages § 51 (1935). Before the time of Henry VIII, English common
law prohibited the payment of interest even for the lending of
money. 1 T. Sedgwick, Measure of Damages § 283 (9th ed.1912). The
abhorrence of all forms of interest gradually receded, so that, by
the time of the FELA's enactment, it was "almost universally held
in this country that interest is in the proper case given as
damages by the common law." § 293; 1 T. Sedgwick, Measure of
Page 486 U. S. 347
Damages § 293 (8th ed. 1891). Thus, to an authority writing in
1891, 17 years before the passage of the FELA, "[t]he gradual
extension of the principles allowing interest as damages [was]
clear." § 297.
To be sure, claims for interest often were summarily dismissed
in personal injury and wrongful death suits.
See McCormick
§ 56, p. 224. It was, nonetheless, "the prevailing view [that]
interest may be allowed in all actions of tort where the loss is
pecuniary," 1 T. Sedgwick, Measure of Damages § 316, p. 630 (9th
ed.1912), and, even prior to the FELA, interest sometimes was
allowed on economic losses that had resulted from personal injury.
See Washington & Georgetown R. Co. v. Hickey, 12
App.D.C. 269, 275-276 (1898);
Georgia R. & Banking Co. v.
Garr, 57 Ga. 277, 280 (1876);
see also Ell v. Northern
Pacific R. Co., 1 N.D. 336, 353, 48 N.W. 222, 227 (1891)
(pursuant to statute). However, because claims for lost earnings in
personal injury suits frequently were joined with claims for
noneconomic injury, such as pain and suffering, interest usually
was not awarded. McCormick § 56, p. 224. Thus, the generalization
about the unavailability of interest was criticized by Professor
McCormick as "hasty and injudicious":
"It seems clearly desirable that the jury should at least be
permitted, if not required, to add interest as compensation for
delay in payment of those purely pecuniary losses which result from
an injury to the person."
Ibid.
Against this background, one might conclude that, in mandating
that railroads "shall be liable in damages," Congress actually
intended not to provide a blanket award of prejudgment interest on
personal injury and wrongful death awards under the FELA.
Certainly, many FELA remedies, such as recovery for past pain and
suffering and for future damages, are widely viewed in the context
of personal injury litigation as inappropriate objects for an
interest award even today.
See, e.g., Poleto v. Consolidated
Rail Corporation, 826 F.2d 1270, 1278, n. 14 (CA3 1987);
Comment, Prejudgment
Page 486 U. S. 348
Interest: An Element of Damages Not To Be Overlooked, 8
Cumberland L.Rev. 521, 536-537 (1977). This is so because interest
on these elements of damages is not necessary to full compensation.
[
Footnote 2/5] It should not be
concluded, however, that Congress intended to deny interest on past
economic losses, such as the lost wages that are a part of the
recovery appellee seeks here. Therefore, the Court's departure from
our normal inquiry into the relation between an allowance of
interest and Congress' purpose in creating an obligation, and the
Court's indifference to the policy of liberal recovery under the
FELA, are without justification.
C
The Court's conclusion about the unavailability of interest in
FELA actions is particularly curious coming, as it does, in a case
which also involves the method of discounting an award of future
damages to present value. Awarding prejudgment interest and
discounting to present value are really two sides of the same coin.
For precisely the same reason that "
a given sum of money in
hand is worth more than the like sum of money payable in the
future,'" ante at
486 U. S. 339, quoting Chesapeake & Ohio R. Co.
v. Kelly, 241 U. S. 485,
241 U. S. 489
(1916), a given sum of money in hand is worth less than the like
sum of money had it been paid in the past. It is hard to see how
the Court can recognize that the meaning of "damages" under the
FELA requires that future lost earnings be discounted to present
value, but fail to recognize that the same term encompasses a
mandate that past lost earnings be increased to present value,
through the use of prejudgment
Page 486 U. S. 349
interest. In effect, the Court thus only half-recognizes the
principle that a FELA plaintiff is entitled to recover "`the
damages . . . [that] flow from the deprivation of . . . pecuniary
benefits.'"
Norfolk & Western R. Co. v. Liepelt,
444 U. S. 490,
444 U. S. 493
(1980), quoting
Michigan Central R. Co. v. Vreeland,
227 U. S. 59,
227 U. S. 70
(1913).
Indeed, in previous discussions of present value calculations,
we have recognized the symmetry between discounting to present
value and awarding prejudgment interest. In
Jones &
Laughlin Steel Corp. v. Pfeifer, 462 U.
S. 523,
462 U. S. 538,
n. 22 (1983), the Court instructed:
"It is . . . more precise to discount the entire lost stream of
earnings back to the date of injury -- the moment from which
earning capacity was impaired. The plaintiff may then be awarded
interest on that discounted sum for the period between injury and
judgment, in order to ensure that the award, when invested, will
still be able to replicate the lost stream. [
Footnote 2/6]"
This Court has held that the present value principles of
Pfeifer apply in FELA actions.
See St. Louis
Southwestern R. Co. v. Dickerson, 470 U.
S. 409,
470 U. S.
411-412 (1985) (per curiam).
II
In sum, I conclude that prejudgment interest on past economic
loss is available as part of the damages award in FELA
Page 486 U. S. 350
cases. This reading of the statute comports with the
congressional intent to provide liberal recovery under the FELA. Of
course, by applying Rule 238 of the Pennsylvania Rules of Civil
Procedure, the state trial court went further and allowed
prejudgment interest on appellee's general verdict, including
interest on appellee's damages for pain and suffering and future
losses, which are not appropriate objects for a compensatory award
of prejudgment interest. Because the trial court erred in its
instruction on present value, however,
ante at
486 U. S.
339-342, a new trial on damages will be necessary in any
event. As part of appellee's award at his new trial, I would allow
interest on the past economic damages he has proved.
[
Footnote 2/1]
At the trial of this action, appellee sought recovery for, and
the trial court instructed the jury on, four distinct elements of
"damages" within the meaning of § 1 of the FELA: (i) appellee's
lost earnings from the time of his injury to the time of trial,
(ii) appellee's pain and suffering from the time of his injury to
the time of trial, (iii) appellee's future pain and suffering, and
(iv) appellee's future lost earnings. Tr. in GD 79-23765, Ct.Common
Pleas, Allegheny Cty., pp. 694-695. Although the jury returned a
single lump-sum verdict for appellee, a properly instructed jury
could have returned a verdict that segregated past economic damages
from noneconomic and future economic damages. In my view, the
statute sanctions the award of prejudgment interest on only the
first of these categories.
[
Footnote 2/2]
Of course, in not making the injured worker whole, a rule
denying prejudgment interest provides a windfall to the defendant.
It also creates an incentive for the employer to stall the
litigation and postpone the judgment as long as possible.
See
General Motors Corp. v. Devex Corp., 461 U.
S. 648,
461 U. S. 656,
n. 10 (1983). It seems unlikely that Congress intended such results
to be part of its program of "liberal recovery" for workers.
[
Footnote 2/3]
The Court also relies on "Congress' failure to disturb a
consistent judicial interpretation" of the FELA denying prejudgment
interest.
Ante at
486 U. S. 338-339. However,
"the doctrine of legislative acquiescence is at best only an
auxiliary tool for use in interpreting ambiguous statutory
provisions. . . . We do not expect Congress to make an affirmative
move every time a lower court indulges in an erroneous
interpretation."
Jones v. Liberty Glass Co., 332 U.
S. 524,
332 U. S.
533-534 (1947).
See also Helvering v. Reynolds,
313 U. S. 428,
313 U. S. 432
(1941). Moreover, the "consistent judicial interpretation" relied
on here is particularly unpersuasive.
"Few of the cases contain any extensive discussion of the
subject . . . and . . . many of the recent cases simply note that
the issue was settled in an older case that disposed of the point
summarily."
Poleto v. Consolidated Rail Corporation, 826 F.2d 1270,
1278 (CA3 1987). Indeed, a number of the most recent opinions have
recognized the "excellent case" to be made for prejudgment interest
under the FELA.
Ibid. See also Wilson v. Burlington
Northern R. Co., 803 F.2d 563, 566-568 (CA10 1986) (concurring
opinion),
cert. denied, 480 U.S. 946 (1987);
Garcia v.
Burlington Northern R. Co., 597 F.
Supp. 1304 (Colo.1984),
rev'd on other grounds, 818
F.2d 713 (CA10 1987). Finally, of course, cases of this Court, by
consistently giving the FELA a broad and flexible construction,
have signaled the opposite result.
See, e.g., Kernan v.
American Dredging Co., 355 U. S. 426
(1958);
Jamison v. Encarnacion, 281 U.
S. 635 (1930).
[
Footnote 2/4]
I do not understand the Court to argue that the absence of any
express reference to interest in the FELA is, by itself, probative.
Certainly, such a contention could not succeed. First, as explained
above, that approach is directly contrary to this Court's settled
technique for deciding questions of the availability of interest in
the face of congressional silence. Second, the FELA's express
authorization of the recovery of "damages" may be read as providing
for prejudgment interest. Indeed, as the Court properly recognizes:
"Prejudgment interest . . . is part of the actual
damages
sought to be recovered."
Ante at
486 U. S. 335
(emphasis added).
[
Footnote 2/5]
Arguably, damages for pain and suffering are themselves not
truly compensatory.
See D. Dobbs, Law of Remedies § 8.1,
pp. 548-550 (1973). Certainly, such awards are of a different
character. They are inherently noneconomic, and are established
through the subjective discretion of the jury.
Poleto v.
Consolidated Rail Corporation, 826 F.2d at 1278, n. 14.
Prejudgment interest on these speculative awards does not make up
for the lost use of money, and cannot be considered compensatory in
any realistic sense.
[
Footnote 2/6]
In re Air Crash Disaster Near Chicago, Illinois, on May 25,
1979, 644 F.2d 633 (CA7 1981), on which the Court in
Pfeifer relied, stated the necessary relation between
interest awards and discounting to present value even more
plainly:
"[Even when] prejudgment interest [is rejected] as a separate
element of damages, the measure of compensatory damages in wrongful
death cases unquestionably does involve some form of interest in
the determination of 'present value.' Prejudgment interest
per
se is not allowable [under Illinois law] as a separate element
of a wrongful death damages award, but use of interest is implicit
in the calculation of the present value of plaintiff's pecuniary
loss as of the date of trial."
644 F.2d at 641.
JUSTICE O'CONNOR, with whom THE CHIEF JUSTICE joins, concurring
in part and dissenting in part.
For the reasons given by the Court, I agree that prejudgment
interest was impermissibly awarded in this FELA case. Accordingly,
I join Parts I and II of its opinion. Because the trial court
erroneously gave conclusive effect to a state rule requiring the
use of a "total offset" method of calculating present value, I also
agree that we must reverse the judgment of the Supreme Court of
Pennsylvania upholding that decision. I do not agree, however, that
juries must in all circumstances be left free to choose among the
total offset rule and alternative methods of accounting for
anticipated future inflation.
The majority correctly notes that damages awards in state court
FELA cases must be based on an approximation of present value, and
that the jury must be instructed accordingly.
Ante at
486 U. S.
339-340.
"Although . . . [it is] clear that no single method for
determining present value is mandated by federal law, and that the
method of calculating present value should take into account
inflation and other sources of wage increases as well as the rate
of interest, it is equally clear that an utter failure to instruct
the jury that present value is the proper measure of a damages
award is error."
St. Louis
Page 486 U. S. 351
Southwestern R. Co. v. Dickerson, 470 U.
S. 409,
470 U. S. 412
(1985). The reason for this rule is plain: because of the time
value of money and the practice of awarding damages in a lump sum,
the failure to reduce awards for loss of future wages to their
present value would risk the systematic overcompensation of
plaintiffs.
Ibid.
For reasons that were explained in great detail in this Court's
opinion in
Jones & Laughlin Steel Corp. v. Pfeifer,
462 U. S. 523
(1983), the best method for calculating the approximate present
value of an award for loss of future earnings could become the
subject of reasonable debate in almost any case. Some of the
uncertainties arise from the phenomenon of price inflation in our
economy, and others arise from the possibility of "productivity
gains" that would have increased a particular plaintiff's real
wages over time. Absent congressional action,
Pfeifer
cautiously declined to impose any one method of accounting for
these phenomena on all litigants and all cases. Instead, the Court
concluded that, in federal bench trials, the judge should be
permitted to choose among reasonable methods and should explain the
choice.
Id. at
462 U. S.
548-549,
462 U. S.
552-553.
The trial judge in this case believed that the choice among
methods of calculating present value was a procedural issue, and
she "blindly applied the total offset method [of]
Kaczkowski v.
Bolubasz, 491 Pa. 661,
421 A.2d
1027 (1980)." 513 Pa. 86, 100,
518
A.2d 1171, 1178 (1986) (dissenting opinion below);
see
also Tr. 577-578. The Supreme Court of Pennsylvania concluded
that use of the total offset method was appropriate here because
that method had been "deliberately selected [in
Kaczkowski] as the rule that most nearly provides an
injured claimant with damages to the full extent of the injuries
sustained." 513 Pa. at 92-93, 518 A.2d at 1174. Whatever might be
said in favor of precluding individual trial courts and juries from
reexamining such a rule, we specifically held in
Pfeifer
that it was improper for a federal trial court to apply the
Kaczkowski rule without examining
Page 486 U. S. 352
its suitability in the particular case before the court.
See 462 U.S. at
462 U. S. 546,
462 U. S.
551-553. The reason for this holding was a
reluctance
"to select [any] of the many rules [for calculating present
value] that have been proposed and establish it for all time as the
exclusive method in all federal trials for calculating an award for
lost earnings in an inflationary economy."
Id. at
462 U. S. 546.
State appellate courts are in no better position than this Court to
select a single rule for all cases and all time. The reasoning in
Pfeifer therefore precludes the automatic application of
any method of estimating present value in an FELA case. Although I
therefore agree with the Court that the judgment below must be
reversed, I do not believe that a jury charge reflecting the
Kaczkowski rule would necessarily have been impermissible
in this case.
Believing that the choice of a method for estimating present
value is always an "essentially factual question," the majority
will permit the trial judge to "recommend to the jury one or more
methods," but will not permit the judge to impose "
rigid
mathematical limitation[s].'" Ante at 486 U. S.
341-342. As with many mixed questions of law and fact,
one can imagine cases in which the choice between competing methods
of calculating present value would turn on disputed factual
questions. In such cases, I agree, it would be error to take those
questions from the jury. If, for example, the parties offered
conflicting evidence as to foreseeable wage increases, attributable
to promotions for which the plaintiff would have been eligible but
for the injury that gave rise to the case, a court could not
properly impose on the jury a rule under which the market interest
rate is deemed equal to price inflation plus all other sources of
future wage increases. Cf. Pfeifer, supra, at 462 U. S.
544-545 (discussing Beaulieu v.
Elliott, 434 P.2d
665 (Alaska 1967)). The case before us, however, raises no such
possibility.
In this case, the trial judge applied the rule set out in
Kaczkowski, v. Bolubasz, 491 Pa. 561, 579-583,
421 A.2d
1027, 1036-1039 (1980), under which the rates of future
price
Page 486 U. S. 353
inflation are presumed equal to the available interest rates.
See 513 Pa. at 94-95, 518 A.2d at 1175. (Under
Kaczkowski, it should be noted, the jury, rather than the
judge, estimates the effects of lost "productivity gains," which
depend largely on factors that are specific to the plaintiff and
the industry in which the plaintiff worked.
See 491 Pa. at
579-580, 421 A.2d at 1036-1037.) The relation between future price
inflation and interest rates has virtually nothing to do with any
particular plaintiff or with the facts of any individual case. The
absence of such a connection is illustrated by the present case, in
which there is no suggestion that appellant offered any expert
testimony or other evidence about future levels of price inflation
and interest rates.
See Brief for Appellant 34.
Appellant's proposed jury instruction, moreover, made no mention
of inflation, and thus appears on its face to have been potentially
far more misleading than the
Kaczkowski-type instruction
actually given.
Compare App. 68a-69a with Tr. 701-702. The
majority does not say, and I do not think one could properly say,
that the trial judge erred by refusing to give appellant's proposed
jury instruction. Nor, as this Court's
Pfeifer opinion
amply demonstrates, is the prediction of future inflation and
interest rates a matter that can properly be referred to common
experience or common sense. The majority nonetheless concludes that
the jury in this case should have been left free to choose between
a reasonable rule like the one adopted in
Kaczkowski and
such other methods as may have occurred to the jurors. I cannot
agree that federal law requires a trial judge to permit the jury to
speculate about something so uncertain and so disconnected from any
evidence in the case at hand.
The majority suggests that its decision to the contrary is
supported by
Chesapeake & Ohio R. Co. v. Kelly,
241 U. S. 485
(1916), and
Louisville & Nashville R. Co. v. Holloway,
246 U. S. 525
(1918). The majority does not, and I believe could not, say that
the result reached today is compelled by
Page 486 U. S. 354
those decisions.
Kelly held only that it is error for a
court to take no steps to ensure that an FELA award is reduced to
its approximate present value. Although the Court assumed that
juries would calculate the reduction, it did not say or imply that
the choice of a method for making that calculation must always be
left entirely to the jury. Similarly,
Holloway held that a
party was not entitled to a jury instruction requiring that an
award be discounted by the legal rate of interest in effect at that
time. Choosing the legal rate of interest as the discount rate in
an FELA action would be arbitrary, because there is no reason to
suppose that it takes account of inflation or of the reasonable
investment opportunities actually available to a prevailing
plaintiff.
See generally Jones & Laughlin Steel Corp. v.
Pfeifer, 462 U.S. at
462 U. S.
537-539. As
Pfeifer indicates, however, the
"total offset" rule at issue in this case is not arbitrary, and
would not constitute reversible error if employed by a judge in a
bench trial, even if the parties had not introduced evidence to
support it.
See id. at
462 U. S.
546-547,
462 U. S.
551-553. Thus, although
Holloway rejected a
party's claim that it was entitled to a particular "rigid
mathematical limitatio[n]" on a jury's discretion, it did not say
or imply that a judge may never impose any such limitation.
Compare Holloway, supra, at
246 U. S. 528,
with
ante at
486 U. S.
340-341.
Although it was error to apply
Kaczkowski automatically
in this case, I see no reason to prohibit the trial court in an
FELA case from employing a rebuttable presumption in favor of the
Kaczkowski rule. That rule is reasonable, and we indicated
in
Pfeifer that it could be used in a bench trial so long
as the judge chose it deliberately. 462 U.S. at
462 U. S.
551-553. Unless one of the parties shows by evidence or
argument that some other rule or method of estimating present value
may be more appropriate, I simply see no basis for turning a jury
loose to speculate about the complex and technical
Page 486 U. S. 355
matters that underlie any method of estimating present value.
*
In the case before us, appellant offered a jury instruction on
the calculation of present value that was inconsistent with
Kaczkowski. App. 68a-69a. It has not been suggested,
however, that appellant offered evidence to show that present value
could be estimated more accurately by some method other than the
one adopted in
Kaczkowski; nor is there any suggestion
that appellant was denied an opportunity to present such evidence.
See Tr. 577; Brief for Appellant 34. Assuming that the
record would not support such suggestions (a question that I would
leave for the Supreme Court of Pennsylvania to address on remand),
I would require only that the trial judge make a "deliberate
choice" between the
Kaczkowski rule and others that may be
suggested.
See Pfeifer, supra, at
462 U. S.
552-553. If a reasonable choice were made in favor of
the
Kaczkowski rule, I would permit the jury's verdict to
be reinstated.
* Despite the majority's suggestion to the contrary,
ante at
486 U. S. 341,
Pfeifer did not imply that the choice between the
Kaczkowski rule and some competing method is necessarily a
jury question. First, the decision in
Pfeifer dealt with
cases arising under the Longshoremen's and Harbor Workers'
Compensation Act, where the trier of fact is a federal judge. 462
U.S. at
462 U. S. 547.
For that reason, we had no occasion in
Pfeifer to decide
which of the many questions that may arise in the calculation of
present value may be resolved by the judge in a jury case. Second,
the
Pfeifer opinion did not consistently say that the
method of calculating present value must be chosen by the "trier of
fact."
See, e.g., id. at
462 U. S.
548-549 ("[W]e do not believe a trial court adopting [a
real interest rate'] approach . . . should be reversed if it
adopts a rate between 1 and 3% and explains its choice"). Third,
Pfeifer's expressed expectation that a trial court would
explain its choice of a particular discount rate suggests that the
decision is not always an "essentially factual question." See
ante at 486 U. S. 342.
Judges are not ordinarily expected to give explanations for their
findings of fact, and juries ordinarily do not give explanations at
all.