Opinion ID: 1989929
Heading Depth: 2
Heading Rank: 2

Heading: Iowa Code section 668A.1(2)(b).

Text: Although not raised in the parties' briefs, we discovered a possible issue in this case concerning the interplay between the jury verdicts and the judgment entered on Revere's punitive damages verdict and the provision of Iowa Code section 668A.1(2)(b). The district court submitted special interrogatories to the jury concerning punitive damages. The jury awarded punitive damages in the amount of $450,000 against defendant Deere, but answered no to the question, Was the conduct of the Defendant directed specifically at the Plaintiff? Promptly after the verdicts were returned, the district court entered judgment against the defendant for $1,000,000 plus interest. The $1,000,000 figure included the $450,000 in punitive damages plus $550,000 in compensatory, damages awarded by the jury for the tortious interference with contract and civil conspiracy, claims. The court's judgment, however, made no reference to the provision in section 668A.1(2)(b) which requires that, if the answer to the question set forth above is negative, the court shall distribute the award of punitive damages as follows: after payment of all applicable costs and fees, an amount not to exceed twenty-five percent of the punitive or exemplary damages awarded may be ordered paid to the claimant, with the remainder of the award to be ordered paid into the civil reparations trust fund administered by the state court administrator. We entered an order allowing the parties, and the attorney general in behalf of the Civil Reparations Trust Fund after intervention on appeal, to file statements addressing whether the judgment entered upon the punitive damages award, if upheld by us, should be modified to reflect the provisions of section 668A.1(2)(b). We also allowed the attorney general to respond to this issue during oral argument. In prior cases, we have explained that the distribution under section 668A.1(2)(b) of a punitive damages award shall be in the following order: (1) payment of attorney's fees (2) after payment of attorneys fees, payment of 25% of the total punitive damages award together with interest to plaintiff; and (3) after satisfying 1 and 2, the remainder, plus interest, to the Civil Reparations Trust Fund. See Wilson I, 558 N.W.2d at 148; Fernandez v. Curley, 463 N.W.2d 5, 8-9 (Iowa 1990). Because the district court did not follow the mandate of section 668A.1(2)(b), we, sua sponte, order that upon remand the court shall hold an evidentiary hearing concerning the proper distribution of plaintiff Revere's punitive damages award in accordance with section 668A.1(2)(b) and our prior cases bearing on this issue. See Wilson v. IBP, Inc., 589 N.W.2d 729, 730 (Iowa 1999) ( Wilson II ); Wilson I, 558 N.W.2d at 148; Fernandez, 463 N.W.2d at 8-9. The district court shall then modify the present judgment concerning punitive damages as appropriate. We discovered during oral argument that there is no established procedure by which the Civil Reparations Trust Fund is notified that a verdict on a punitive damages award has been entered in district court and that the jury has found that the defendant's acts were not directed at the plaintiff, thus implicating possible benefits to the Civil Reparations Trust Fund under section 668A.1(2)(b). As a result, the Civil Reparations Trust Fund sometimes learns of such awards by notice from the court and sometimes by newspaper or television. Knowing of no other present procedural rule which would ensure notice to the Civil Reparations Trust Fund in cases such as the present one, we direct that upon entry of a verdict on a punitive damages award that falls under section 668A.1(2)(b), the district court shall cause notification to the Civil Reparations Trust Fund by order setting forth the punitive damages award and the jury or fact finder's findings. The Civil Reparations Trust Fund may then intervene in the proceedings as appropriate.