Contemporary Business Law 8th Edition by Henry Cheeseman

Exercise 4

Negligent Infliction of Emotional Distress Gregory and Demetria James, brother and sister, were riding their bicycles north on 50th Street in Omaha, Nebraska. Spaulding Street intersects 50th Street. A garbage truck owned by Watts Trucking Service, Inc., and driven by its employee, John Milton Lieb, was backing up into the intersection of 50th and Spaulding streets. The truck backed into the intersection, through a stop sign, and hit and ran over Demetria, killing her. Gregory helplessly watched the entire accident but was not in danger himself. As a result of watching his sister's peril, Gregory suffered severe emotional distress. Gregory sued Watts and Lieb to recover damages for his emotional distress. Who wins? James v. Watts Trucking Service, Inc., 221 Neb. 47, 375 N.W.2d 109, Web 1985 Neb. Lexis 1209 (Supreme Court of Nebraska)