Eichel v. New York Central Railroad Company/Opinion of the Court

Petitioner, who had been employed by respondent New York Central Railroad for 40 years, brought this action against respondent under the Federal Employers' Liability Act, 35 Stat. 65, as amended, 45 U.S.C. § 51 et seq., in the District Court for the Southern District of New York. The complaint alleged that in 1960, as a result of respondent's negligence petitioner suffered a permanently disabling injury. The jury returned a verdict of $51,000 for petitioner and the District Court entered judgment in accordance with that verdict. Respondent offered evidence that petitioner was receiving $190 a month in disability pension payments under the Railroad Retirement Act of 1937, 50 Stat. 309, as amended, 45 U.S.C. § 228b(a) 4. This evidence was offered for the purpose of impeaching the testimony of petitioner as to his motive for not returning to work and as to the permanency of his injuries. The trial court excluded the evidence in response to the objection of petitioner's counsel. The Court of Appeals for the Second Circuit reversed, holding it prejudicial error to exclude the evidence of the disability pension, and remanded 'for a new trial, limited, however, to the issues of injury and resulting damages * *  * .' 2 Cir., 319 F.2d 12, 14. The court affirmed the judgment as to the determination of negligence.' Ibid. We grant certiorari and reverse the judgment of the Court of Appeals.

Respondent does not dispute that it would be highly improper for the disability pension payments to be considered in mitigation of the damages suffered by petitioner. Thus it has been recognized that:

'The Railroad Retirement Act is substantially a Social     Security Act for employees of common carriers. * *  * The      benefits received under such a system of social legislation      are not directly attributable to the contributions of the      employer, so they cannot be considered in mitigation of the      damages caused by the employer.' New York, N.H. & H.R. Co. v.      Leary, 1 Cir., 204 F.2d 461, 468, cert. denied, 346 U.S. 856,     74 S.Ct. 71, 98 L.Ed. 370.

Respondent argues that the evidence of the disability payments, although concededly inadmissible to offset or mitigate damages, is admissible as bearing on the extent and duration of the disability suffered by petitioner. At the trial counsel for respondent argued that the pension would show 'a motive for (petitioner's) not continuing work, and for his deciding not to continue going back to work after the last accident.' On the basis of this argument the Court of Appeals concluded that the disputed evidence should have been admitted because: 'Its substantial probative value cannot reasonably be said to be outweighed by the risk that it will * *  * create substantial danger of undue prejudice through being considered by the jury for the incompetent purpose of a set-off against lost earnings.' 319 F.2d, at 20.

We disagree. In our view the likelihood of misuse by the jury clearly outweighs the value of this evidence. Insofar as the evidence bears on the issue of malingering, there will generally be other evidence having more probative value and involving less likelihood of prejudice than the receipt of a disability pension. Moreover, it would violate the spirit of the federal statutes if the receipt of disability benefits under the Railroad Retirement Act of 1937, 50 Stat. 309, as amended, 45 U.S.C. § 228b(a) 4, were considered as evidence of malingering by an employee asserting a claim under the Federal Employers' Liability Act. We have recently had occasion to be reminded that evidence of collateral benefits is readily subject to misuse by a jury. Tipton v. Socony Mobil Oil Co., Inc., 375 U.S. 34, 84 S.Ct. 1. It has long been recognized that evidence showing that the defendant is insured creates a substantial likelihood of misuse. Similarly, we must recognize that the petitioner's receipt of collateral social insurance benefits involves a substantial likelihood of prejudicial impact. We hold therefore that the District Court properly excluded the evidence of disability payments. Accordingly, the judgment of the Court of Appeals is reversed and the case remanded for proceedings consistent with this opinion.

Reversed and remanded.