KANSAS CITY— The Missouri Court of Appeals for the Western District has affirmed a Clay County circuit court judgment awarding nearly $75 million in damages against United Parcel Service (UPS) after a 2018 car accident caused catastrophic in utero brain injuries to a child.
The case arose from a collision caused by a UPS driver who ran a stop sign and struck a pregnant woman’s car, according to the May 20 decision in the Missouri Court of Appeals, Western District.
The appellate court rejected UPS’s arguments that the trial court erred by allowing evidence of the driver’s past cocaine use and by awarding prejudgment interest.
The three-judge panel upheld both rulings, stating the evidence was relevant and the interest award was properly applied under Missouri law.
The accident occurred on May 8, 2018, in Clay County when UPS employee Steven Miller failed to stop at a stop sign and collided with a vehicle driven by J.P., who was 13 weeks pregnant at the time.
The impact resulted in severe neurological impairments to the unborn child, K.P., who was born seven months later. A jury later determined K.P.’s injuries were caused by the collision.
The child’s parents, acting as next friends, filed suit against UPS in 2021, seeking compensatory and punitive damages.
UPS admitted liability for the crash, acknowledging that Miller was operating within the scope of his employment when he caused the accident.
Despite that, UPS contested the amount of damages and objected to the admission of Miller’s drug history during the trial.
Before trial, UPS sought to exclude all references to Miller’s past drug use, including a cocaine possession conviction in 2009 and subsequent issues with substance abuse that had led to his termination from UPS in early 2018.
He was later rehired after completing a rehabilitation program, just five days before the accident.
The trial court agreed to bar evidence of post-accident drug use but allowed the jury to hear about Miller’s prior drug history, which UPS continued to challenge throughout the proceedings.
At trial, expert witnesses testified extensively about the cause and severity of K.P.’s injuries. Medical experts concluded that the force of the crash likely caused a malformation in K.P.’s developing brain, a condition known as Schizencephaly.
They testified that K.P. would suffer lifelong disabilities, including intellectual, speech, and physical impairments, and would require around-the-clock care. A financial expert estimated the present value of K.P.’s economic damages at nearly $50 million.
Despite hearing evidence of Miller’s drug history, the jury ultimately found in favor of UPS on the claim of negligent entrustment and declined to award punitive damages. However, they awarded $65 million in compensatory damages based on the claim of vicarious liability for Miller’s negligence.
UPS appealed the verdict, arguing that the evidence of Miller’s cocaine use was prejudicial and led to an excessive award. The appellate court rejected that claim, noting that the drug-related evidence was legally and logically relevant, especially in light of the negligent entrustment and punitive damage claims that were submitted to the jury.
The court noted that the jury’s rejection of those claims indicated they had not been improperly influenced by the drug evidence.
UPS also challenged the circuit court’s award of $9.89 million in prejudgment interest, arguing that the plaintiff failed to send a proper demand letter to UPS’s liability insurer, Liberty Mutual.
The appellate court disagreed, citing a recent decision that held that sending the demand to defense counsel, who represents both the insurer and insured, was sufficient under Missouri law.
The judgment against UPS stands at $74,985,068. The appellate court’s decision means the delivery giant will be responsible for paying the full amount, barring further appeal.
Missouri Court of Appeals, Western District case number: WD86697
