## Facts

- David Welsch, employed by Schneider Tank Lines, Inc. (“Schneider”), drove Schneider’s semi-tanker eastbound on U.S. Highway 30 in Lake County, Indiana around 11:00 p.m. on October 5, 1977.
- The relevant roadway had two eastbound lanes and a right-turn lane; Stardust Road intersected Highway 30, with Utah Street intersecting west of Stardust Road.
- Dennis Gorby drove his pickup north on Stardust Road and entered the intersection with Highway 30, apparently attempting to cross the median to proceed westbound.
- The semi-tanker, traveling about 50 mph, struck Gorby’s pickup at the intersection, causing severe injuries.
- Edith Gorby sued in federal court under diversity jurisdiction, individually (loss of consortium) and as guardian for Dennis Gorby (personal injury), applying Indiana negligence law.
- A jury found for Gorby and awarded $1,820,000 in damages.
- Schneider appealed, challenging evidentiary rulings and jury instructions, but not the amount of damages.

## Issues

1. Whether the trial court abused its discretion by restricting defense experts from identifying or relying on a source not produced in discovery.
2. Whether the jury was misinstructed under Indiana law about a preferred-highway driver’s duty to observe vehicles entering from a non-preferred road.
3. Whether the trial court improperly excluded lay opinion that the truck driver did everything possible to avoid the crash and that Gorby could have avoided it.
4. Whether the court erred by instructing on a negligence theory based on federal motor-carrier safety regulations when the theory was not expressly stated in the pretrial order.

## Decision

- The Seventh Circuit affirmed the judgment for the plaintiff.
- The court held the trial judge acted within discretion by limiting expert testimony tied to an undisclosed discovery source.
- The court found the lookout instruction consistent with Indiana law governing drivers on a preferred highway.
- The court upheld exclusion of the eyewitness’s lay opinions as lacking adequate foundation and calling for specialized accident-reconstruction judgment.
- The court held the motor-carrier-regulations negligence theory could be submitted to the jury because it was tried by implied consent under Federal Rule of Civil Procedure 15(b).

## Legal Principles

- Trial courts have broad discretion to manage expert testimony and enforce discovery obligations; limiting reliance on undisclosed materials is permissible to prevent unfair prejudice.
- Under Indiana negligence law, a driver on a preferred or through highway may generally assume drivers on non-preferred, controlled approaches will yield, absent circumstances indicating otherwise; the preferred driver still must act reasonably under the conditions.
- Lay opinion testimony is admissible only when rationally based on the witness’s perceptions and helpful to the factfinder; opinions effectively requiring specialized knowledge (e.g., vehicle stopping capability or “everything possible” avoidance judgments) may be excluded without proper foundation.
- Issues and theories not specified in a pretrial order may be treated as part of the case if tried by implied consent; jury instructions may include such theories when the parties litigate them without timely objection and the evidence supports submission.

## Conclusion

The Seventh Circuit left the plaintiff’s verdict intact, holding that the district court properly exercised discretion in excluding or limiting testimony, correctly instructed the jury on Indiana duties at a preferred intersection, and permissibly instructed on a motor-carrier-regulations negligence theory that was tried by implied consent.


Gorby v. Schneider Tank Lines, Inc., 741 F.2d 1015 (7th Cir. 1984)