Opinion ID: 1196510
Heading Depth: 1
Heading Rank: 3

Heading: the constitutionality question

Text: The next contention by the nursing home is that the punitive damage award is unconstitutional. [9] More specifically, it asserts that the award of punitive damages was based on a vague and standardless procedure which is in violation of its due process rights. The nursing home also claims that by requiring only a preponderance of the evidence as the standard for the jury's determination, it was deprived of property without due process. In Pacific Mutual Life Insurance Co. v. Haslip, 499 U.S. 1, 111 S.Ct. 1032, 113 L.Ed.2d 1 (1991), the United States Supreme Court addressed these Due Process challenges to the award of punitive damages under a statute in Alabama. [10] Haslip addressed that question left open in Browning-Ferris Industries v. Kelco Disposal, Inc., 492 U.S. 257, 109 S.Ct. 2909, 106 L.Ed.2d 219 (1989): [W]hether due process acts as a check on undue jury discretion to award punitive damages in the absence of any express statutory limit must await another day. Browning-Ferris held that the Excessive Fines Clause of the Eighth Amendment did not apply to a punitive damage award in a civil case, and that the federal common law did not provide a basis for disturbing the punitive damage award. The Court also held that the question of due process under the Fourteenth Amendment had not been presented to the courts below and would not be addressed. Haslip was directly confronted with the issue of due process under the Fourteenth Amendment. The Court began its discussion by realizing the long tradition of punitive damages in our law. There has always been left to juries the discretion to set an amount of punitive damages consistent with the gravity of the wrong and the need to deter similar wrongful conduct. Id. While the discretion of the jury has been criticized by some, the wisdom of allowing such additional damages to be given is attested by the long continuance of the practice. Id. quoting Missouri Pacific R. Co. v. Humes, 115 U.S. 512, 6 S.Ct. 110, 29 L.Ed. 463 (1885). [11] The Court then turned to the issue of unlimited jury discretion in the fixing of punitive damages. We need not, and indeed we cannot, draw a mathematical bright line between the constitutionally acceptable and the constitutionally unacceptable that would fit every case. We can say, however, that general concerns of reasonableness and adequate guidance from the court when the case is tried to a jury properly enter into the constitutional calculus. It continued by holding that the punitive damages in that case were not violative of Fourteenth Amendment Due Process because although the jury was given significant discretion, the instructions limited the damages to those which would deter the unwanted conduct as well as serve the purpose of retribution. The instructions enlightened the jury as to the reason for punitive damages and the kind of conduct which could warrant the imposition of such damages. The Court concluded that the award was permissible. As long as the discretion is exercised within reasonable constraints, due process is satisfied. Id. 499 U.S. at 20, 111 S.Ct. at 1044. The high court next noted that in Alabama there were post-trial procedures to scrutinize the punitive damage awards. Id. A trial court was to state into the record the reason for interfering with a jury verdict or refusing to do so, on grounds of excessiveness. The trial court was permitted to consider the conduct of the defendant when reviewing the award. The Alabama Supreme Court, in reviewing the award, used not only a comparative analysis, but also reviewed it to insure that the award did not exceed an amount that would accomplish society's goals of punishment and deterrence. Id. quoting Green Oil Co. v. Hornsby, 539 So.2d 218, 222 (Ala. 1989). Review of the award also involved consideration of factors such as the relationship between the punitive damages award and the harm likely, the degree of the conduct, the defendant's awareness, frequency of the conduct in the past, imposition of other sanctions and the financial condition of the defendant. With this rationale in mind, we turn to the punitive damage award at hand. First, we note that our statute required a preliminary determination before the question could even be considered by the jury. The judge is required to find, by clear and convincing evidence, that the defendant committed conduct which fell within one of the enumerated categories. Such a finding by the judge must be clearly stated into the record. Second, unless this determination is made on the record, the jury's discretion is statutorily limited to awarding punitive damages only up to that amount awarded for actual damages. Next, following the guidance of Haslip, we look to the instructions given to the jury. Here, the trial court instructed that punitive damages were only to be given if the defendant's conduct showed wanton or reckless disregard for the rights of the plaintiff, malice, gross negligence or evil intent. The instruction stated that punitive damages were not compensation to the plaintiff, but were punishment to the defendant. It also made clear that the damages were not required, but only permitted. The instructions then went on to define wanton conduct as actions which show a deliberate or actual intention to injure the plaintiff, or which show an utter disregard or indifference for his rights. Malice was defined as ill will or hatred or a wanton or oppressive manner and conscious disregard for the rights of the plaintiff. The jury was also instructed that it could consider the wealth of the defendant. These instructions, which are supported by Oklahoma case law, do not permit unfettered discretion by the jury. They explain the purpose behind the award of punitive damages, as did the Alabama jury instructions. They specify conduct for which the damages may be given, as did the Alabama instructions. They make clear that the award of such damages are not required by law, but are permitted by way of punishment if the jury determines that certain criteria are met. In this way they are similar to the Alabama instructions. The jury is also instructed that this must be shown by a preponderance of the evidence, and this term is explained. Hence, the jury's discretion is again limited by the burden of proof. The jury was also instructed that the defendant's wealth is a consideration when deciding the amount of punitive damages. Thus, the instructions clearly did not leave the jury unbridled to award punitive damages without guidance. In Oklahoma, as in Alabama, post-trial procedures are available for review of the awards. Here, the nursing home filed a motion asking for judgment notwithstanding the verdict, a new trial and remittitur. The trial court denied these requests. Although New horizons was not given the relief requested in this case, the fact that they are in place and stand as a check on the jury's discretion is important to note. Finally we look to the appellate procedures available to stand as a guard against arbitrary and unreasonable punitive damage awards. As we stated earlier, the preliminary determination by the trial court necessary to lift the cap on punitive damages is a question of law, reviewable by this Court, which reviews the record to see if the plaintiff met its burden of showing by clear and convincing that the defendant acted in a manner warranting imposition of punishment. In this case, the decision of the trial judge was detailed. We reviewed his statement, as well as the record, and found that his decision was supported by clear and convincing evidence. As in Haslip, our appellate review of this question does not just pay lip service to the trial judge's ruling, but is clearly effective to impose a restriction on the imposition of punitive damages. This Court has on many occasions reviewed the amount of punitive damages awarded to determine whether the amount is reasonably related to the conduct of the defendant. The award must bear some relation to the cause and extent of the injuries. Buzzard v. Farmers Ins. Co., Inc., 824 P.2d 1105, 1115 (Okla. 1991); Hobbs v. Watkins, 481 P.2d 746, 753 (Okla. 1971). See also Timmons v. Royal Globe Ins. Co., 653 P.2d 907, 910 (Okla. 1982). We have also not hesitated to reduce the punitive award if the award is excessive as a result of the passion, prejudice, or improper sympathy of the jury. Id.; Chandler v. Denton, 741 P.2d 855, 867-68 (Okla. 1987); Basden v. Mills, 472 P.2d 889, 896 (Okla. 1970) [12] . In proper cases we have, upon request, ordered remittitur of punitive damages as a condition of affirmance. Buzzard v. Farmers Ins. Co., Inc., 824 P.2d 1105, 1115 (Okla. 1991); Chandler v. Denton, 741 P.2d 855, 868 (Okla. 1987); Timmons v. Royal Globe Ins. Co., 653 P.2d 907, 910 (Okla. 1982). We have also held that the financial condition of the defendant is a relevant consideration. Timmons, 653 P.2d at 919. Based on these restrictions, we hold that Oklahoma's law regarding the award of punitive damages does not violate the Due Process Clause of the Fourteenth Amendment. [13] As in Haslip, the jury is not given unfettered discretion in awarding punitive damages. Rather, like Haslip, the combination of statutory law, jury instructions, post-trial procedures and appellate review provide adequate safeguards against the jury's unbridled exercise of discretion in arriving at an award of punitive damages. The jury's award of punitive damages here, though large, can hardly be described as unbridled. Its amount coincides with the evidence of the lowest of the previous years' net earnings distributed to the partners in the defendant nursing home enterprise. In fact the defendant expressly argued in its brief that although the punitive award should be reduced at least to the amount of actual damages as per the Section 9 cap, that it had not briefed, and did not request, a remittitur for the reason that the punitive damages award was imbalanced or excessive. (Reply brief P. 6) Nor did it argue that the verdict was actuated by passion, prejudice, or improper sympathy. The nursing home thus does not seek remittitur.