However, Exxon must also assume liability, but it can only be deemed guilty of letting him command the vessel. Punitive Damages Research in the Amicus Briefs. It is widely understood that punitive damages have two primary goals: deterrence and punishment. at 873. The ideal punitive damage amount would make the expected cost of engaging in a wrongful behavior higher than the cost of taking proper precautions. For example, lawsuits against medical care providers for malpractice have punitive damage caps in some states. Punitive damages are often awarded at higher rates in EPL cases than in other civil cases. Brief of Washington Legal Foundation as Amicus Curiae in support of Petitioners: The question addressed in this brief is whether the $2.5 billion punitive damages award was within the strict limitations imposed by federal common law and, in particular, federal maritime law. damages were awarded because he could only sell as many cars as he could get. Brief of the American Petroleum Institute, the American Chemistry Council, the American Tort Reform Association, the National Association of Manufacturers and the Western States Petroleum Association as Amicus Curiae in support of Petitioners: The main argument raised in this brief is that a punitive damages award is excessive if its amount is higher than that reasonably necessary to accomplish the goals of deterrence and retribution, as it no longer serves a valid and legitimate purpose. It is clear that the Court’s opinion is decided on the justices' notion of fairness rather than on any rigorous analysis of the impact of punitive damage awards on deterring future tortfeasors. The amount of punitive damages was based on the similarity of this case to McNeil v. Brewers Retail Inc. where punitive damages of $500,000 were awarded. Although punitive damages are generally only awarded in cases of unusually offensive conduct, the courts may decide on punitive damages if they are deemed necessary to ‘send a message’ to the ‘at fault’ person. We believe a predictable maximum one-to-one ratio of punitive damages to compensatory damages serves as an inadequate deterrent for potential tortfeasors and that potential exposure to greater punitive damage awards is a more effective deterrent. Punitive damages were awarded in 700 (5%) of the 14,359 trials where plaintiffs prevailed. Indeed, of the six medical trials In fact, this is the first case where punitive damages have been awarded in Shanghai. In Whiten v. Pilot Insurance Co., the Supreme Court of Canada set out that when the amount awarded for punitive damages is added to the amount awarded for compensatory damages, it must add up to an amount which is reasonably required to punish the wrongdoer. J. 13% of cases where punitive damages were awarded had damages of $1 million or more, and the median punitive damage amount was $64,000. In addition to the social science research on punitive damages addressed in the opinion's footnotes, several amicus briefs address punitive damages research and merit closer analysis. 1.Punitive damages were awarded in 39.7 per cent of claims in our sample. The municipality was unsuccessful in their appeal of this substantial punitive amount in a higher court. It was held that denial of the claim was deliberate with the intention to force the family to take an unfair and undervalued settlement. The judge concluded that the defendant’s drinking and driving behaviour was not extreme. They argue that compensatory damages only fail to deter when there is an evident fear or danger that the defendant will not be held accountable for its conduct. 111, No. Punitively though, the jury awarded the surviving family members with an eye-popping 23.6-billion dollars in damages. The Court does not acknowledge the potential deterrent effect of large punitive awards or the deterrent effect of potentially (albeit unpredictable) large punitive awards in preventing wrongdoing. 1143 (1988). This brief objects to the fact that in this case the jury took into account evidence of Exxon's income and net worth in order to impose a higher punitive damages award. at 954. § 51-12-5.1. In the landmark Supreme Court decision, Justice Souter, speaking for a five justice majority, held that a one-to-one ratio for punitive damages to compensatory damages is a reasonable upper limit in maritime cases to comport with due process and limit the uncertainty of allegedly variable and unpredictable punitive damage awards. In Alabama, punitive damages represented between 80 and 86 percent of all damages … The McMaster Student Union responsible for managing the pub was named as a joint defendant for their role in serving alcohol to the intoxicated driver. They conclude that the aforementioned conduct was not so reprehensible compared to other conduct for which punitive damages are awarded and therefore the $2.5 billion award cannot be justified as necessary to punish and deter it. This paper focuses on the recent BP oil spill and its connections to Exxon v. Baker. The authors argue that punitive damages ordinarily should be awarded if, and only if, an injurer has a significant chance of escaping liability for the harm he caused. For example, in the Monsanto RoundUp cases, the juries have actually awarded hundreds of millions of dollars in punitive damages. In a defamation of character case, Hill v. The Church of Scientology, 1992, the jury awarded punitive damages of $800,000, an amount which was upheld on Appeal. Further, the amount should be in proportion to the blameworthiness of the defendant’s actions; therefore, the more reprehensible the actions, the potentially larger the award. That is to say, if they serve to prevent a company from profiting from their illicit conduct, the goal of deterrence is satisfied, making any higher amount unreasonable. Pate. Punitive damages in the common law evolved from the concept of multiple damages, which were recognized in Roman and Mosaic law. The punitive damages come on top of more than $5 million already awarded to the couple by the same jury. This case presents questions on how the Supreme Court used and did not use social science evidence in reaching their opinion and raises questions on the effect of ratio-limited punitive damages on potential tortfeasors. Nonetheless, to the extent that they are mostly aimed at penalizing culpable individuals within firms (penalizing the firm is just the way to penalize the individuals), their effectiveness is significantly attenuated, and they can even penalize those whose conduct is not blameworthy, especially shareholders. The punitive damages award was upheld on a post-trial motion with the judge considering the three guideposts for evaluating the size of a punitive damages award set forth by the U.S. Supreme … The Court concluded “the insurer’s conduct towards the [Whitens] was exceptionally reprehensible.” The family was forced to accumulate $320,000 in legal costs they did not have. A jury in federal district court in Brooklyn ruled in plaintiff’s favor as to his excessive force and battery claims and awarded him $20,000 in compensatory damages and $75,000 in punitive damages. The Court is following its idea that punitive damages should not be, in their opinion, excessive--regardless of the harm caused by the subject whose conduct was reprehensible. In January 1994, the Whiten family home in Haliburton County, Ontario, burned down during the night in minus 18 Celsius temperatures. This footnote, noting that the Court does not rely on the study because it was funded by Exxon, has caused significant debate among legal scholars as to the implications on the use of studies and research conducted by or funded by parties to a case. Mr. Grigg had been drinking at the campus pub, but this was apparently the third bar he had attended that evening. Georgia Punitive Damages Law The place to begin when researching punitive damages in Georgia personal injury and wrongful death cases is the plain language of the pertinent statute, O.C.G.A. Auto. In Roman law, multi-ple damages were always awarded for … - "RAND Institute for Civil Justice, D. Hensler & E. Moller, Trends in Punitive Damages, table 2 (Mar. In the aftermath of the Exxon Valdez disaster, where an alcoholic captain negligently operated the Exxon Valdez, causing the vessel to run aground and spill oil into the Prince William Sound, polluting more than 1,500 miles of coastline and disrupting the livelihoods of fishermen and others, Baker et al. However, many people feel this proportion is insufficient to deter some subjects, especially wealthy firms, from committing harmful acts, and therefore they feel that higher punitive damages should be awarded to them. When are punitive damages awarded? Then, they analyze the degree of reprehensibility of that particular conduct committed by Exxon, the defendant. Co. v. Campbell, 538 U.S. 408 (2003) (addressing outlier punitive damage awards and due process), BMW of N. Compensatory damages commonly awarded in civil cases and negligence suits include compensation for financial losses (pecuniary losses) such as loss of income and rehabilitation expenses and compensation for a reduction in the quality of life and pain and suffering (non-pecuniary losses). An experienced New Jersey personal injury lawyer will be able to review the details of your case and advise if your case meets the requirements for obtaining punitive damages. OPP were reluctant to lay charges but were allegedly pressured to do so by the Township. Mr. Grigg, the driver of the vehicle, was intoxicated and allegedly speeding when he recklessly turned a corner and struck Ms. Mcintyre. Punitive damages are awarded only in exceptional cases where conduct giving rise to damage is such that it offends the court’s sense of decency. 869 (1998). In this respect, punitive damages differ from the usual damages that are awarded to an injured person to compensate them for losses arising from their injury. There is no exhaustive list of the types of employer conduct that attracts punitive damages. Exxon must be held accountable for that behavior and punitive damages are an appropriate means of ensuring that liability. The brief goes on to argue that, by awarding compensatory damages alone, the court would be under-assessing the total costs of harm, and therefore not adequately deterring future wrongdoers. As far as compensatory damages, the family was awarded 16.9-million dollars. And, according to the data, the median award in EPL cases (punitive and compensatory) is several times higher than the quantum of median awards of other civil cases. This is because in some instances the insurer's breach of contract is so wrongful that it breaches the implied covenant of good faith and fair dealing, a tort. Pate was fired by his employer who alleged that they discovered discrepancies with building permit fees. Mr. Whiten suffered severe frostbite on his feet, for which he was hospitalized. from the makers. The Court of Appeal upheld this award. 3.The success rate of punitive damages claims was much higher in ‘Category 2’ cases (54.7 per cent) than in ‘Category 1’ cases (18.3 per cent). Whether or not punitive damages are appropriate for your case, if you were seriously injured by someone’s negligent actions, you are entitled to compensatory damages for any financial losses you are experiencing as well as for loss of enjoyment in life. However, in some cases, punitive damages are awarded in insurance bad faith cases that arise under an insurance policy. Our expert staff will provide you with valuable information on your best options given your unique circumstances, and in most cases, initial consultation is free. Previous Post: The Risks of Distracted Driving, Next Post: Driving with a Blood Alcohol Level in the 'Warn Range' is proven to increase the Risk of Car Accidents, City may be liable for Cyclist’s Injuries despite delay in Notifying City of Claim, How Ontario’s Bill 218 impacts Covid-19 Lawsuits, Personal Information that a Plaintiff must reveal in their Lawsuit, Distracted Driving is the leading cause of Injury for Ontario motorists, What Seniors need to know when Renewing their Ontario Driver’s Licence, Passenger may be solely Liable for Car Accident Injuries when he grabbed the Steering Wheel. A breathalyser test revealed a blood alcohol concentration (BAC) three times the legal limit. 3. Footnote 16: in this footnote, the Supreme Court cites a recent comprehensive study of punitive damages awarded by juries in state civil trials, which found a median ratio of punitive to compensatory damages of just 0.62:1, but a mean ratio of 2.90:1 and a standard deviation of 13.81. This case involves only limited use of social science evidence in determining the deterrent effect of punitive damages. In some states, like California, this still happens. 4 869, 877 (Feb., 1998). Punitive damages were sought in 10% of all tort trials; however, for certain case types including slander or libel, conversion, and intentional tort cases, punitive damages were requested in approximately 30% of trials. Punitive damages, also known as “exemplary damages,” are a monetary amount awarded to a plaintiff in a civil lawsuit for the purpose of punishing the defendant, or to deter him from engaging in the same conduct in the future. It is our opinion that the Court is engaging in a cherry picking of the social science data to explain and rationalize a decision reached on other grounds, and that Exxon v. Baker was actually decided by relying on the justice’s innate sense of fairness and due process for potential tortfeasors. On the effects of punitive damages generally. When do the courts award punitive damages in an a claim for injury compensation? Upon re-trial, the judge found significant misconduct on behalf of the defending municipality, which persisted over a ten year period. Should Life Jackets be mandatory for Ontario Boaters. Actually, they are quite reluctant to accept the retributive effect of punitive damages in cases involving corporations, since individuals are the ones who commit the wrong actions. Pate was pressured to resign to avoid criminal charges, but he was never provided details on the alleged discrepancies. Consider the following cases where large punitive damages were awarded: A hospital in Sacramento that repeatedly refused to reprimand surgeons for sexually harassing subordinate staff members. As in this case where the defendant is an important company and the harm is evident, they believe compensatory damages will be awarded and therefore the deterrence goal will be satisfied. As we said before, this argument cannot be supported by us because punitive damages have a punitive or retributive effect that is absent in compensatory damages, which do not take into account profit and the less than perfect chance that potential actors will be caught. In a Dec 2009 trial, Mr. at 948-49. Ins. reasonable amount of punitive damages was twice the amount of damages awarded by the jury for mental anguish. Robert D. Cooter, Punitive Damages for Deterrence: When and How Much, 40 Ala.L.Rev. These allegations were determined to be unsubstantiated and untrue. The relevant argument presented in this brief is that neither deterrence nor retribution can justify a punitive damages award in this case, and as these are the only grounds that can justify its imposition, punitive damages cannot be justified. If they are intended to punish the firm as an entity (with independence of the conduct of blameworthy individuals within the firm), they fully accomplish their objective. sued Exxon Shipping Company for compensatory and punitive damages. Punitive damages were sought in 10% of all tort trials; however, for certain case types including slander or libel, conversion, and intentional tort cases, punitive damages were requested in approximately 30% of trials. The family’s financial situation became increasingly desperate over the more than two years, during which Pilot delayed settling their claim. Furthermore, this brief argues that the jury should not take into account the defendant's wealth when determining a punitive damage award. Co. v. 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