In a four day criminal trial in 2002, Mr. In this brief the authors also refer to the deterrent effect of compensatory damages as a reason not to award punitive damages. According to some scholars, the amount of punitive damages should be no less and no more than the harm their conduct generates. Punitive damages are awarded in a small number of cases, but if they are awarded, they relate to personal injury cases. Compiled by Nicholas Kaasik and Carlos Valero Carrasco. 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. 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. Auto. In some cases, it is also possible to collect punitive damages. These allegations were determined to be unsubstantiated and untrue. It is important to note that Professor Eisenberg, the lead author of this study, believes "the Court went seriously astray" when using his research to support a reduced punitive damages award. 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. When the actions of a liable person are significantly and unusually deplorable so as to warrant punitive damages, it remains the responsibility of judge or jury to decide the appropriate amount of damages. Exxon Shipping Co. v. Baker, 554 U.S. 471 (2008), State Farm Mut. In Alabama, punitive damages represented between 80 and 86 percent of all damages … Pate did not obtain municipal employment after the trial and passed away in 2011. 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. 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. Punitive damages are entirely unavailable under any circumstances in a few jurisdictions, including Louisiana, Nebraska, Puerto Rico, and Washington. Then, they analyze the degree of reprehensibility of that particular conduct committed by Exxon, the defendant. In Pate Estate v. Galway-Cavendish and Harvey (Townships), 2011, the Ontario Superior Court awarded punitive damages of $550,000 in a re-trial of a wrongful dismissal action and also found the municipality liable for malicious prosecution against Mr. In a Dec 2009 trial, Mr. Addis v Gramaphone Company (1909) The plaintiff could be dismissed by his employers on six months’ notice, which he was given but, at the same time, a new manager was appointed to take. He refused to resign and was subsequently terminated, and some information was turned over to the Ontario Provincial Police (OPP). In fact, this is the first case where punitive damages have been awarded in Shanghai. Mr. Call an experienced Injury Lawyers of Ontario (ILO) personal injury lawyer to learn about your entitlement to compensation. The relevant legal question for our analysis of the effect of punitive damages and the Exxon v. Baker case is whether the $2.5 billion punitive damage award from the appellate court is an acceptable award where the compensatory damages totaled $507.5 million. 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. Punitive damages are often awarded at higher rates in EPL cases than in other civil cases. A big tobacco company that knowingly defrauded the public about the dangers of cigarette smoke. The United States Supreme Court weighed in on the constitutionality of punitive damages. Additionally, punitive damages are awarded in only 3-5% of plaintiff trial cases. Pate was fired by his employer who alleged that they discovered discrepancies with building permit fees. One of the cases selected involved a US Pilates company where punitive damages were awarded. 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. Id. However, we think that punitive damages should indeed be awarded to ensure that the company as a whole gets the punishment it deserves for having engaged in reprehensible conduct, in this particular case having given the command of the vessel to an alcoholic. The Court neglects to evidence demonstrable proof that certain ratios of punitive damages are effective deterrents and argues, somewhat perversely, that the prospective wrongdoer should know how much exposure to liability the actor will face if the actor chooses to violate the law. Brief Amicus Curiae of Sociologists, Psychologists, and Law and Economics Scholars in support of Respondents. The judge rejected the malicious prosecution claim but awarded Mr. This paper criticizes the punitive-compensatory damage ratio from Exxon v. Baker and argues that such a punitive damages scheme under-deters potential tortfeasors. On the effects of punitive damages generally. The family’s financial situation became increasingly desperate over the more than two years, during which Pilot delayed settling their claim. It should be recognized that, while punitive damages are only awarded in a small percentage of jury trials where punitive damages were both sought and a plaintiff's ver-dict rendered, the highest median punitive damages award for all negligent tort cases in 2005—$2.8 million—was in medical malpractice cases. Coming back to the case at hand, the plaintiffs were awarded a decree of damages amounting to Rs. (P. 521). 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. 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. “As deplorable as the reality is, personal injuries arising from impaired driving cases are far from exceptional in our society”, and therefore, a large punitive award was not deemed appropriate in this case. Upon re-trial, the judge found significant misconduct on behalf of the defending municipality, which persisted over a ten year period. 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. The general rule is that punitive damages cannot be awarded for breach of contract, but if an independent tort is committed in a contractual setting, punitive damages can be awarded for the tort. Therefore the misconduct of the company cannot be placed on a low degree in the scale of reprehensibility, despite the brief authors' claim that "it was not morally repugnant". For years, juries were allowed to award as much in punitive damages as they wanted. Footnote 15: in this footnote, the Supreme Court cites studies that support its claim that available data do not substantiate a marked increase in the percentage of cases with punitive awards over the past several decades: It is unclear to us how a low percentage of cases including a punitive damages award suggests that in all cases it is unnecessary to have a high-ratio of punitive to compensatory damages to deter potential tortfeasors. 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. Prior to being fired, Mr. 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. Other states have severely limited punitive damage awards by limiting the types of cases where they can be awarded or placing statutory caps on how much money a jury or judge can award for punitive damages. 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. 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. This decision was appealed, the result of which was to order a re-trial. 1143 (1988). Mitchell Polinsky and Steven Shavell,  Punitive Damages: An Economic Analysis (Harvard L. Rev. Should Life Jackets be mandatory for Ontario Boaters. The $20,000 in punitive damages were payable solely by the Griggs, and $250,000 in general damages were to be shared by the co-defendants. Robert D. Cooter, Punitive Damages for Deterrence: When and How Much, 40 Ala.L.Rev. 1.85 crores spread out amongst 7 Defendant parties. The amount of punitive damages awarded for an injury—whenever they’re awarded at all—is based on the total compensatory damages involved in the case, with a limit of up to four times the amount in most scenarios. In a highly publicized lawsuit over Monsanto's globally used Roundup weedkiller, a jury initially awarded Dewayne Johnson $39.25 million in compensatory damages and $289 million in punitive damages. Ins. It is interesting to note that both the petitioner and the respondent in this case agree that the paying of damages is necessary to (and does) deter negative behavior. This $1 Million punitive damage award restored the amount initially awarded by the Provincial Court in a trial by jury, but which the Ontario Court of Appeal reduced to $100,000. According to his Roundup lawsuit , Johnson developed non-Hodgkin's lymphoma as a result of exposure to the popular weedkiller, and a jury verdict agreed. (2006), the Ontario Court of Appeal reduced the punitive damages that were initially awarded by a jury in a lower court from $100,000 to $20,000. Punitive damages are award in addition to any compensatory or other damages, increasing the plaintiff’s total award. This, of course, is the core reason for punitive damages, and the justification for punitive damages is very much this social science (economics) argument. 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. Although the brief considers this fact a violation of the proportionality requirement, it seems clear to us that the effect of the punitive damages award will differ in each case depending on the wealth of the tortfeasor; the same award can achieve deterrence or not (and therefore be effective) depending on the particular circumstances of the defendant. reasonable amount of punitive damages was twice the amount of damages awarded by the jury for mental anguish. The Supreme Court concluded that the insurer’s actions in this instance were exceptional and, although the $1 Million amount is unusually high, it is within acceptable limits. However, in some cases, punitive damages are awarded in insurance bad faith cases that arise under an insurance policy. at 873. When it is an individual, that relationship is straightforward; if after assessing the individual’s conduct, appropriate punitive damages are imposed, the objective is achieved. The article examines some of the shortcomings of the proposed mechanisms for measuring punitive damages (including how to compensate for nonpecuniary loss) and highlights the difficulties of using punitive damages to efficiently deter behavior in a predictable and consistent way. Therefore, when wanting to critically assess the effect of punitive damages, these two objectives must be always considered. Footnote 17: in this footnote, the Supreme Court cites: All of the research cited in footnote 17 was funded, at least in part, by Exxon. 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. 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). We agree with Justice Stevens in his partial dissent that an abuse of discretion review is a better remedy for disproportionate punitive damages awards. The Court of Appeal upheld this award. The young woman was a competitive athlete prior to the accident, but the physical (including a head and brain injury, soft tissue damage and multiple orthopaedic injuries) as well as psychological injuries resulting from the car accident had a devastating impact on her physical capabilities and mental health. Our analysis focuses on what the Court did, and did not, include in their justification for reducing the punitive damages. Automobile Ins. Pilot’s case was discredited during the trial. The Court argues, in part D of the majority opinion, that because a survey of punitive damage awards shows a trend of restraint relative to the compensatory damages awarded, therefore high ratio punitive damages are more than what is required to deter wrongdoers. 145-billion dollars in punitive awards had already been awarded against the company in a related class-action lawsuit. One important argument presented in the brief is that compensatory damages and other costs paid by the company already serve to accomplish the goals of deterrence and punishment and therefore punitive damages are not necessary to ensure them. The median award was £7,630. It is widely understood that punitive damages have two primary goals: deterrence and punishment. 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. Punitive damages may be awarded in Georgia personal injury and wrongful death 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). Pate was acquitted of all charges, after having endured much negative local media attention. The Court reaches this conclusion despite failing to analyze the deterrent effect of punitive damage awards on future behavior and rather simply analyzes the punitive award amounts relative to compensatory awards in past cases as all the evidence the Court needs to limit punitive damages to a one-to-one ratio. On Punitive Damages Research Cited in the Court's Opinion. The relevant legal question for our analysis of the effect of punitive damages and the Exxon v. Baker case is whether the $2.5 billion punitive damage award from the appellate court is an acceptable award where the compensatory damages totaled $507.5 million. [2] These awards are non-compensatory by nature and represent an exception to the general common law rule that damages are awarded to compensate the injured as opposed to punish the wrongdoer. On the other hand, the punishment objective refers to society’s goal of imposing appropriate sanctions on blameworthy parties, those whose conduct is reprehensible because it reflects disregard for the well-being of others. Punitive Damages Research in the Amicus Briefs. While punitive damages are well-established in terms of the trademark law, in practice it is only recently that such damages are being awarded. The Court’s opinion is concerned with the disparity in punitive damage awards relative to compensatory damages awarded and argues that "fairness and consistency" require a predictable ratio of punitive damages to compensatory damages. 2.The average punitive damages award was £18,181. This paper attempts to create an efficient way to measure punitive damage awards for courts to adopt that would serve as an efficient and effective deterrent for future wrongdoers. For example, in the Monsanto RoundUp cases, the juries have actually awarded hundreds of millions of dollars in punitive damages. In Ontario, the Courts have awarded punitive damages in several cases, including: Wal-Mart was ordered to pay punitive damages because of a manager’s bullying and harassment. 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. Vol. The judge concluded that the defendant’s drinking and driving behaviour was not extreme. This paper focuses on the recent BP oil spill and its connections to Exxon v. Baker. This study concluded that "no statistically significant variation exists in the inflation-adjusted punitive award level over the three time periods" T. Eisenberg et al., Juries, Judges, and Punitive Damages: Empirical Analyses Using the Civil Justice Survey of State Courts 1992, 1996, and 2001 Data, 3 J. of Empirical Legal Studies 263, 278 (2006) (hereinafter Juries, Judges, and Punitive Damages) (analyzing Bureau of Justice Statistics data from 1992, 1996, and 2001). No fault of your own, you may be entitled to compensatory by. 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