Opinion ID: 2520201
Heading Depth: 3
Heading Rank: 1

Heading: The Relative Wealth of Price

Text: ¶ 33 We first consider Price's wealth. Our cases have determined that a defendant's wealth can be either an aggravating or a mitigating factor in determining the size of a punitive damage award, since punitive damages should be tailored to what is necessary to deter the particular defendant, as well as others similarly situated, from repeating the prohibited conduct. Diversified Holdings, 2002 UT 129 at ¶ 15, 63 P.3d 686; see also Campbell I, 2001 UT 89 at ¶ 23, 65 P.3d 1134. In making this assessment, some courts have compared a punitive damage award with a company's net worth. See, e.g., Cash v. Beltmann N. Am. Co., 900 F.2d 109, 111 n. 3 (7th Cir.1990); Campbell I, 2001 UT 89 at ¶ 23, 65 P.3d 1134. The Seventh Circuit Court of Appeals has held that a typical punitive damage award may be around one percent of the defendant's net worth. Cash, 900 F.2d at 111 n. 3. We have emphasized that although such guidelines may be helpful, in Utah there is no pre-established mathematical formula for such awards. Campbell I, 2001 UT 89 at ¶ 23, 65 P.3d 1134. ¶ 34 Price Development Company was a large owner and operator of commercial shopping malls and retail properties in the intermountain states. Its chairman and CEO, John Price, owned 99.99% of the company. In the court below, Price Development Company's total wealth was found to be in excess of $37 million. This amount was determined after attempting to overcome the obstacles associated with commingled funds and the highly interrelated ownership and operations of various John Price entities, each of which had substantial assets. With Price Development Company valued at $37 million, the $5.5 million punitive damage award represents approximately 15% of the company's wealth. An analysis of the remaining Crookston factors will aid us in determining whether this percentage renders the award excessive under the facts of this case.