FOR PUBLICATION

UNITED STATES COURT OF APPEALS

FOR THE NINTH CIRCUIT

TIMOTHY G. RILEY, 

Plaintiff-Appellant, 

 v. 

VOLKSWAGEN GROUP OF AMERICA, 

INC., DBA Volkswagen of America, Inc., a 

New Jersey corporation; VOLKSWAGEN 

AG, 

Defendants-Appellees.

No. 20-15882 

D.C. No. 3:17-cv-02897-CRB 

OPINION

LUKE G. SANWICK; KATHRYN 

SANWICK, 

Plaintiffs-Appellants, 

 v. 

VOLKSWAGEN GROUP OF AMERICA, 

INC., DBA Volkswagen of America, Inc., a 

New Jersey corporation; VOLKSWAGEN 

AG, 

Defendants-Appellees.

No. 20-15884 

D.C. No. 3:17-cv-03032-CRB 

RICHARD V. ORTIZ; VIRGINIA TORRES 

ORTIZ, 

Plaintiffs-Appellants, 

No. 20-15885 

D.C. No. 3:18-cv-06951-CRB 

FILED

OCT 18 2022

MOLLY C. DWYER, CLERK

U.S. COURT OF APPEALS
2 

 v. 

VOLKSWAGEN GROUP OF AMERICA, 

INC., DBA Volkswagen of America, Inc., a 

New Jersey corporation; VOLKSWAGEN 

AG, 

Defendants-Appellees.

JULIA ROBERTSON, 

Plaintiff-Appellant, 

 v. 

VOLKSWAGEN GROUP OF AMERICA, 

INC., DBA Volkswagen of America, Inc., a 

New Jersey corporation; VOLKSWAGEN 

AG, 

Defendants-Appellees.

No. 20-15886 

D.C. No. 3:18-cv-06956-CRB 

BYRON CLENDENEN, 

Plaintiff-Appellant, 

 v. 

VOLKSWAGEN GROUP OF AMERICA, 

INC., DBA Volkswagen of America, Inc., a 

New Jersey corporation; VOLKSWAGEN 

AG, 

Defendants-Appellees.

No. 20-15887 

D.C. No. 3:18-cv-07040-CRB 

SCOTT SALZER, No. 20-15889 
3 

Plaintiff-Appellant, 

 v. 

VOLKSWAGEN GROUP OF AMERICA, 

INC., DBA Volkswagen of America, Inc., a 

New Jersey corporation; VOLKSWAGEN 

AG, 

Defendants-Appellees.

D.C. No. 3:18-cv-07050-CRB 

KENNETH J. COON; MARIA E. COON, 

Plaintiffs-Appellants, 

 v. 

VOLKSWAGEN GROUP OF AMERICA, 

INC., DBA Volkswagen of America, Inc., a 

New Jersey corporation; VOLKSWAGEN 

AG, 

Defendants-Appellees.

No. 20-15890 

D.C. No. 3:18-cv-06966-CRB 

Appeal from the United States District Court

for the Northern District of California

Charles R. Breyer, District Judge, Presiding

Argued and Submitted December 10, 2021

San Francisco, California

Before: Ronald M. Gould and Daniel P. Collins, Circuit Judges, and David A. 

Ezra,* District Judge.

Opinion by Judge Gould

* The Honorable David A. Ezra, United States District Judge for the District of 

Hawaii, sitting by designation.
SUMMARY**

Punitive Damages

In appeals stemming from the nationwide Volkswagen litigation related to 

emissions defeat devices installed in certain Volkswagen and Audi vehicles, the 

panel vacated punitive damages awards to appellants (who are plaintiffs who opted 

out of the class action), and remanded with instructions that the district court 

recalculate punitive damages.

Appellants are individuals who bought or leased a vehicle with an emissions 

defeat device, and they filed individual suits that were consolidated before the same 

judge who presided over the multidistrict litigation and class action settlements. The 

jury awarded four of the appellants various amounts in compensatory damages and 

$25,000 each in punitive damages. The district court reduced the punitive damages 

award to exactly four times the amount of the compensatory damages suffered by 

each plaintiff.

The panel held that the district court erred by holding that a punitive damages 

ratio calculation of four times the value of the compensatory damages award was the 

maximum punitive damages award permitted by the Constitution’s Due Process 

Clause. The Supreme Court in BMW of North America, Inc. v. Gore, 517 U.S. 559, 

575 (1996), established three guidelines governing whether punitive damages 

awards comply with due process. First, concerning the reprehensibility of the 

defendant’s conduct, the panel held that Volkswagen’s actions were highly 

reprehensible where it engaged in intentional deceit for years. In addition to the 

economic harm, evidenced by the compensatory damages, the deceit frustrated the 

fuel-economy, and reduced emissions objectives of those customers who bought 

their Volkswagens and Audi vehicles. The panel concluded that this was a paradigm 

case where high reprehensibility coupled with relatively low compensatory damages 

could support a higher multiplier for punitive damages consistent with due 

process. Second, concerning the proportionality between the harm, or potential 

harm, suffered by the claimant and his punitive damages, the panel held this case 

warrants a single digit multiplier greater than four times that of the compensatory 

** This summary constitutes no part of the opinion of the court. It has been 

prepared by court staff for the convenience of the reader.
award, and in that respect, the district court erred. Here, the jury ratio for the 

punitive damages awarded varied from a low of 8 to 1 to a high of 43 to 1. The case 

did not support a multiplier above a single digit ratio because the damages were not 

insignificant. The panel concluded that here, a punitive damages award of 

approximately 8 times that of the compensatory damages award fairly comported 

with due process requirements under the Supreme Court’s guidelines. The panel 

applied this ratio to all the appellants, despite the different ratios employed by the 

jury, where the defendant’s conduct was the same towards each appellant and there 

was no meaningful difference in the type of harm experienced by each 

appellant. Third, concerning sanctions for similar misconduct in comparable cases, 

the panel held that the civil penalties in the California Unfair Competition Law 

(“UCL”), the Fair Advertising Law (“FAL”), and California Legal Remedies Act 

were not directly analogous. Thus, this factor did not require the panel to reduce the 

single digit multiplier punitive damages determined by the jury. The district court 

erred in concluding that a 4 to 1 ratio was the highest allowed in this case partially 

because under the UCL and FAL, the maximum civil penalty was $2,550 per 

violation.

Because the panel concluded that the district court erred in applying the Gore

factors, the panel next considered what award of punitive damages comported with 

due process for each party. The panel held that the jury’s multiple of eight times the 

actual compensatory damages award in the case of appellants Luke and Kathryn 

Sanwick was constitutionally permissible because a multiplier greater than four was 

appropriate in this case. The panel also concluded that it would be arbitrary and 

incorrect to set a different ratio between punitive damages and actual compensatory 

damages as to each of the plaintiffs under the circumstances of this case. The panel 

therefore vacated the punitive damages awards to each appellant and remanded with 

instructions that the district court recalculate punitive damages in an amount equal 

to eight times the actual compensatory damages determination.

The panel addressed additional issues presented by the case in a separately filed 

memorandum disposition filed simultaneously with this opinion.
COUNSEL

Jeffrey B. Gurrola (argued), Cynthia E. Tobisman, and Joseph V. Bui; Greines, 

Martin, Stein & Richland LLP, Los Angeles, California; Bryan C. Altman, Altman 

Law Group, Los Angeles, California; Steve B. Mikhov, Knight Law Group LLP, 

Los Angeles, California; Scot D. Wilson, Call & Jensen APC, Newport Beach, 

California; Robert S. Peck, Center of Constitutional Litigation, Washington, D.C.; 

Hallen D. Rosner and Arlyn L. Escalante; Rosner, Barry & Babbitt LLP, San Diego, 

California; for Plaintiff-Appellant.

Robert J. Giuffra, Jr. (argued), Sharon L. Nelles, William B. Monahan, Suhana Han, 

Elizabeth N. Olsen, and William H. Wagener, Sullivan & Cromwell LLP, New 

York, New York; Sverker K. Hogberg and Laura K. Oswell, Sullivan & Cromwell 

LLP, Palo Alto, California; Michael Steinberg, Sullivan & Cromwell LLP, Los 

Angeles, California; for Defendants-Appellees.
4 

GOULD, Circuit Judge:

These appeals stem from the nationwide Volkswagen litigation related to the 

emissions defeat devices installed in certain Volkswagen and Audi vehicles. 

Appellants are plaintiffs who opted-out of the class action, preferring to pursue their 

claims individually (“opt-out Plaintiffs”). After a three-phase trial, the district court 

awarded Appellants damages, but reduced the award of punitive damagesto conform 

with constitutional standards established by the United States Supreme Court for 

punitive damages awards. Appellants challenge the district court’s punitive damages 

calculations.

1

In 2015, researchers discovered that Volkswagen had installed emissions 

defeat devices in some of its vehicles. The vehicles with the defeat devices produced

emissions up to 40 times the maximum permitted by the legal standard, except that 

the emissions were diminished when the vehicles were undergoing emissions 

testing. The district court found that there was no evidence at trial that plaintiffs 

suffered any personal injury resulting from the defeat devices in their cars, nor did 

they bring a personal injury claim. In a press release in 2019, the EPA said that the

1 Appellants also challenged the district court’s rulings on Plaintiffs’ claims under the SongBeverly Act and the California Legal Remedies Act (“CLRA”). We address those state law

issues, and other issues presented by the case, in a separate memorandum disposition filed 

simultaneously with this opinion. 
5 

increased emissions did not present a safety hazard to those who owned and operated

the affected vehicles. 

After the discovery of the defeat devices, the owners of affected cars filed 

thousands of lawsuits. These individual suits were sent to multi-district litigation, 

where the plaintiffs received the option of opting-in to a class settlement based on 

the type of affected vehicle that they owned. The cases of the plaintiffs who optedin were consolidated into two classes for settlement, one for 2.0 liter vehicle owners 

and another for 3.0 liter vehicle owners. 

Appellants Timothy Riley, Luke and Kathryn Sanwick, Richard and Virginia 

Ortiz, Julia Robertson, Byron Clendenen, Scott Salzer, and Kenneth and Maria Coon 

(collectively “Appellants”) are individuals who bought or leased a vehicle with an 

emissions defeat device and opted-out of the class action settlements. Appellants 

filed individual suits that were consolidated before the same judge who presided 

over the multidistrict litigation and class action settlements. The jury awarded four 

of the appellants various amounts in compensatory damages and $25,000 each in 

punitive damages.

2

 In a conscientious effort to comply with due process, the district 

2 Compensatory damages awards by Appellant were: Riley ($1,080); Robertson ($952); Salzer 

($582); and the Sanwicks ($3,133). While the jury found that all seven Appellants had been 

economically harmed, the jury found that only four Appellants had proven economic damages. 
6 

court reduced the punitive damages award to exactly four times the amount of the 

compensatory damages suffered by each plaintiff.

3

Appellants argue that the district court erred by holding that a punitive 

damages ratio calculation of four times the value of the compensatory damages 

award is the maximum punitive damages award permitted by the Constitution’s Due 

Process Clause. We agree there was error in determining this limit.

We review the application of applicable constitutional guidelines de novo. 

State Farm Mut. Auto. Ins. Co. v. Campbell, 538 U.S. 408, 425 (2003). The Supreme 

Court in BMW of North America, Inc. v. Gore established three guidelines governing

whether punitive damage awards comply with due process: (1) the reprehensibility 

of the defendant’s conduct; (2) the disparity between the harm or potential harm 

suffered by the claimant and his punitive damages; and (3) the difference between 

the punitive damages and any civil penalties authorized or imposed in comparable 

cases. 517 U.S. 559, 575 (1996). 

A. Reprehensibility 

Reprehensibility of the alleged conduct is “the most important indicium of the 

reasonableness” of punitive damages. State Farm, 538 U.S. at 419. To assess 

reprehensibility, we consider whether 

3 Punitive damages awards by Appellant were: Riley ($4320); Robertson ($3808); Salzer 

($2328); and the Sanwicks ($12,532). These punitive damages amounts are exactly four times 

that of the individual compensatory damage awards.
 7 

the harm caused was physical as opposed to economic; the tortious 

conduct evinced an indifference to or a reckless disregard of the health 

or safety of others; the target of the conduct had financial vulnerability; 

the conduct involved repeated actions or was an isolated incident; and 

the harm was the result of intentional malice, trickery, or deceit, or mere 

accident.

Id. 

We have held that “trickery or deceit [is] more reprehensible than negligence.” 

Planned Parenthood of Columbia/Willamette Inc. v. Am. Coal. of Life Activists, 422 

F.3d 949, 954 (9th Cir. 2005). Further, “infliction of economic injury, especially 

when done intentionally through affirmative acts of misconduct . . . can warrant a 

substantial penalty.” Gore, 517 U.S. at 576 (citation omitted). While punitive 

damages cannot be used to punish a defendant for the harms to a third party, 

“[e]vidence of actual harm to nonparties can help to show that the conduct that 

harmed the plaintiff also posed a substantial risk of harm to the general public, and 

so was particularly reprehensible.” Philip Morris USA v. Williams, 549 U.S. 346, 

355 (2007). 

Volkswagen’s actions were highly reprehensible. Although Volkswagen’s 

calculated deceit did not physically harm its vehicle customers, it engaged in 

intentional deceit for years. In addition to the economic harm, evidenced by the 

compensatory damages, the deceit frustrated the fuel-economy, and reduced 

emissions objectives of those customers who bought their Volkswagen and Audi

vehicles. Appellants doubtless expected vehicles that met mandatory regulatory 
8 

standards for emissions. But they got vehicles that grievously understated noxious 

emissions whenever emissions were tested. Not only did those vehicles fail to 

comply with health-based emissions standards, they also were advertised as ecofriendly vehicles. In selling these cars, Volkswagen continued to make 

misrepresentations to consumers, preying upon those who sought eco-friendly 

vehicles. All of this directly contradicted the plaintiffs’ contractual expectations. 

The uncovering of this fraudulent scheme revealed Volkswagen’s deliberate 

indifference to compliance with mandatory emissions standards—Volkswagen 

intentionally and fraudulently hid their vehicles’ true emissions to the detriment of 

their customers and the public at large. Had Volkswagen’s abhorrent behavior not 

been discovered by a third party, Volkswagen would have continued to defraud its 

customers and allow vehicles spewing noxious emissions well above EPA’s healthbased standards to operate undetected. Such regulatory standards are not a mere 

formality but rather represent the conscious safeguarding of community interests by 

a Congressionally-designated federal agency. See 42 U.S.C. § 7521(a)(1).

The EPA released a statement saying that the increased emissions in affected 

vehicles were forty times higher than normal. Although there was no proof that the 

increased emissions were physically harmful to the individual drivers and occupants, 

increased nitrous oxide (NOx) emissions have been shown to cause serious public 
9 

health problems.4 Volkswagen’s flagrant disregard of environmental standards 

fashioned by the EPA shows deliberate indifference to the public welfare and to

welfare of all those who could be harmed by the excessive NOx levels that the

vehicles emitted. 

A high level of reprehensibility is present here. Volkswagen’s actions were 

the result of intentional trickery and deceit, not accident or negligence. On the factor 

of reprehensibility, this is a paradigm case where high reprehensibility coupled with 

relatively low compensatory damages can support a higher multiplier for punitive 

damages consistent with due process.

B. Proportionality 

Turning next to the proportionality issue, the question raised by this factor is 

whether the punitive damages awards by the jury were proportional to the harm 

caused by Volkswagen’s scheme. This requires assessing “the disparity between the 

actual or potential harm suffered by the [Appellants] and the punitive damages 

award.” State Farm, 538 U.S. at 419. The proportionality of punitive damages must 

4 In a joint statement, EPA and CARB said “NOx pollution contributes to nitrogen dioxide, 

ground-level ozone, and fine particulate matter. Exposure to these pollutants have been linked 

with a range of serious health impacts, including asthma attacks and other respiratory illnesses that 

can be serious enough to send people to the hospital. Exposure to ozone and particulate matter 

have also been associated with premature death due to respiratory-related or cardiovascular related 

effects. Children, the elderly, and people with pre-existing respiratory disease are particularly at 

risk for health effects of these pollutants.” Press Release, CARB & EPA, EPA, California Notify 

Volkswagen of Clean Air Act Violations (September 18, 2015.); Further, the district court found 

that Appellants “presented evidence of the egregiousness of Volkswagen’s misconduct, including 

expert testimony that increased NOx emissions increase the risk of harm to human health.” 
 10 

be assessed on a case-by-case basis; “there are no rigid benchmarks that a punitive

damages award may not surpass.” Id. at 425. 

 In State Farm, the Supreme Court explained that “[s]ingle-digit multipliers 

are more likely to comport with due process, while still achieving the State’s goals 

of deterrence and retribution.” Id. While leaving the option for higher damages 

ratios open, the Supreme Court suggested that a punitive damages award of “more 

than four times the amount of compensatory damages might be close to the line of 

constitutional impropriety.” Id. (internal citation omitted). The Supreme Court also 

said that minimal actual damages coupled with high reprehensibility could allow due 

process to permit a multiple beyond four times actual damages. See Gore, 517 U.S. 

at 582. In fact, “low awards of compensatory damages may properly support a 

higher ratio than high compensatory awards, if, for example, a particularly egregious

act has resulted in only a small amount of economic damages.” Id.; see also State 

Farm, 538 U.S. at 425. 

We have limited punitive damages to a 4 to 1 ratio “where there are significant 

economic damages . . . but behavior is not particularly egregious.” Planned 

Parenthood of Columbia/Willamette Inc., 422 F.3d at 962. However, we will 

consider a single digit multiplier above 4 to 1 “[i]n cases with significant economic 
 11 

damages and more egregious behavior.”5 Id. (emphasis added). We have upheld 

punitive damages ranging from six to nine times compensatory damages in such 

cases. See Planned Parenthood of Columbia/Willamette Inc., 422 F.3d at 962 

(holding a 9 to 1 ratio was constitutional); Bains LLC v. Arco Products Co., 405 F.3d 

764, 776–77 (9th Cir. 2005) (indicating that ratio between 6 to 1 and 9 to 1 would 

be constitutional); Zhang v. Am. Gem Seafoods, Inc., 339 F.3d 1020, 1044 (9th Cir. 

2003) (upholding a roughly 7 to 1 ratio). 

The district court relied on Ramirez v. TransUnion LLC, where we rejected a 

ratio of 6.75 to 1, and instead applied a ratio of 4 to 1 where the “compensatory

award was substantial” and at the high end of the statutory damages. 951 F.3d 1008, 

1037 (9th Cir. 2020), rev'd and remanded on other grounds, 141 S. Ct. 2190 (2021). 

In that case, the class members’ statutory damages were $8 million and the punitive 

damages were $52 million. Id. However, we reiterate that there is no bright line 

rule for punitive damages. 

Because we conclude that Volkswagen’s reprehensibility was especially high 

and the compensatory awards were relatively low, although not negligible, we 

conclude that this case warrants a single digit multiple greater than four times that 

of the compensatory award, see State Farm, 538 U.S. at 425, and in that respect the

5

 We have also upheld multipliers above a single digit ratio “in cases where there are 

insignificant economic damages but the behavior was particularly egregious.” Planned 

Parenthood of Columbia/Willamette Inc., 422 F.3d at 962. 
12 

district court erred. We hold that the punitive damages award here should have been 

greater than four times that of the compensatory award. 

We next assess the ratios used by the jury. The jury awarded each party 

$25,000 in punitive damages, despite the fact that these plaintiffs each had differing 

compensatory damages. The ratios for the punitive damages awarded varied from 

about a low of 8 to 1 to a high of 43 to 1.6 The 8 to 1 ratio was the only single digit 

multiplier used by the jury.

This case does not support a punitive damages multiplier above a single digit 

ratio because the damages were not insignificant. See Planned Parenthood of 

Columbia/Willamette Inc., 422 F.3d at 962. Thus, we will consider whether the 8 to 

1 ratio comports with due process in this case. 

We conclude that in the circumstances here, a punitive damages award of 

approximately 8 times that of the compensatory damages award fairly comports with 

due process requirements under the Supreme Court’s Gore and State Farm

guidelines. State Farm, 538 U.S. at 425 (“Single-digit multipliers are more likely to 

comport with due process, while still achieving the State's goals of deterrence and 

retribution, than awards with ratios in range of 500 to 1 or, in this case, of 145 to 1.” 

(internal citations omitted)).

6 Punitive damages to compensatory damages award ratios: 23.15 to 1 (Riley); 26.26 to 1

(Robertson); 42.96 to 1 (Salzer); and 7.98 to 1 (Sanwicks).
13 

Further, we apply this ratio to all the Appellants, despite the different ratios 

employed by the jury. In determining punitive damage ratios, we must consider 

whether the jury had a permissible, non-arbitrary basis for applying different ratios 

to the different plaintiffs. See, e.g. Planned Parenthood of Columbia/Willamette Inc.

at 961–62 (endorsing a defendant-by-defendant and plaintiff-by-plaintiff approach 

to punitive damages ratios where the defendants’ conduct and the harm to each 

plaintiff differed).

The defendant’s conduct was the same towards each plaintiff and there is no 

meaningful difference in the type of harm experienced by each plaintiff. 7

 Moreover, 

as noted in the next section, the uniform amount that the jury awarded to each 

plaintiff was well above the maximum civil penalty that could have been imposed 

uniformly for each separate violation under the most closely analogous statute that 

provides for fixed penalties.8 In these circumstances, the jury’s application of 

different ratios in a quest to award the same exact dollar amount to each plaintiff 

was arbitrary and ignored the requirement of a reasonable relationship between a 

particular plaintiff’s punitive award and that plaintiff’s compensatory award. The

jury applied the different ratios arbitrarily, so we apply to all Appellants the lowest 

7 Volkswagen and Audi presumably marketed their cars to all the plaintiffs by the same or 

similar means, and Volkswagen and Audi installed in all vehicles bought by appellants the same 

or similar defeat devices to show reduced emissions on testing. 

8 We thus do not address whether, had the jury imposed a uniform punitive damage amount 

comparable to the statutory civil penalty amount, equalization of awards would have complied 

with the Gore factors, despite the disparity in ratios.
14 

ratio selected by the jury—an 8 to 1 ratio—in determining the maximum punitive 

damages permitted.

C. Sanctions for Comparable Misconduct

For the third guidepost, the court looks at the disparity “between the punitive 

damages award and the ‘civil penalties authorized or imposed in comparable 

cases.’” State Farm, 538 U.S. at 428 (quoting Gore, 517 U.S. at 575). The district 

court concluded that a 4 to 1 ratio was the highest allowed in this case partially 

because under the California Unfair Competition Law (UCL) and the Fair 

Advertising Law (FAL), the maximum civil penalty is $2,500 per violation. 

Appellants argue that while the CLRA does not itself have civil penalties, the fact 

that it does not have a limit on punitive damages means that Volkswagen was on 

notice that it would be exposed to significant penalties for its actions. See, e.g.

Planned Parenthood of Columbia/Willamette Inc., 422 F.3d at 963. They also 

point out, correctly, that the UCL and the FAL are not directly analogous, because 

they may also be invoked to punish much less reprehensible behavior. 

Although this factor may weigh slightly against higher punitive damages, 

Volkswagen’s actions were extremely reprehensible, and the civil penalties in 

these statutes are not directly analogous. Thus, this factor does not require us to

reduce the single digit multiplier punitive damages determined by the jury. 
15 

D. Calculating the maximum punitive damages allowed by due process in 

this case

Because we hold that the district court erred in applying the Gore factors, we 

now consider what award of punitive damages comports with due process for each 

party. Rather than remanding for further assessment of the punitive damages limit, 

we think there is a value to parties and to the public in bringing this case to a 

conclusion. Because the district court specified both actual damages to Appellants 

and what it thought was a permissible punitive damages award in reduction of the 

higher award made by the jury, and because our review is de novo, we can assess the 

maximum constitutional limit for punitive damages in this case.

We conclude that the jury’s multiple of eight times the actual compensatory 

damages award in the case of the Sanwicks is constitutionally permissible because, 

as explained above, a multiplier greater than four is appropriate in this case. We also 

conclude that, for the reasons explained earlier, it would be arbitrary and incorrect 

to set a different ratio between punitive damages and actual compensatory damages 

as to each of the plaintiffs under the circumstances of this case. 

We therefore vacate and remand the punitive damages awards to each 

appellant with instructions that the district court recalculate punitive damages in an 

amount equal to eight times the actual compensatory damages determination.