Opinion ID: 900903
Heading Depth: 1
Heading Rank: 9

Heading: Punitive Damages Instruction and Evidence

Text: [¶ 36.] DM & E also contends that it was error to instruct on punitive damages and to submit the Boomsma's punitive damages claim to the jury. SDCL 21-1-4.1 allows: In any claim alleging punitive or exemplary damages, before any discovery relating thereto may be commenced and before any such claim may be submitted to the finder of fact, the court shall find, after a hearing and based upon clear and convincing evidence, that there is a reasonable basis to believe that there has been willful, wanton or malicious conduct on the part of the party claimed against. [¶ 37.] Pursuant to SDCL 21-1-4.1, if the trial court, by clear and convincing evidence, finds that there is a reasonable basis to believe that there has been willful, wanton or malicious conduct by a party, then the issue should be submitted for the jury to decide. See Kieser v. Southeast Properties, 1997 SD 87, 566 N.W.2d 833. There is no requirement that the required hearing take place before the trial; it may be held at the close of the evidence. Id. [¶ 38.] DM & E contends that, even though an award for punitive damages was not given, it was prejudicial for the jury to hear evidence regarding DM & E's worth. DM & E claims hearing this evidence caused the jury to award more compensatory damages. DM & E would have this Court presume prejudice any time a trial court allows the issue of punitive damages to be submitted to the jury if the jury fails to award punitive damages. We decline to adopt such a presumption. [¶ 39.] A hearing was conducted outside the presence of the jury at the close of the evidence in the Boomsma's case to discuss whether or not the issue of punitive damages would be submitted to the jury. The trial court, pursuant to SDCL 21-1-4.1, found sufficient evidence existed for the punitive damage issue to be submitted to the jury. The trial court committed no error in doing so. [¶ 40.] Further, even if the instruction was given in error, DM & E did not prove the error was prejudicial. The evidence regarding DM & E's worth did not prejudice it so as to require a reversal. The jury did not award punitive damages and there was ample evidence to support the jury's award of compensatory damages. [3]