Opinion ID: 2514236
Heading Depth: 4
Heading Rank: 2

Heading: The superior court's findings are inadequate to support the award of punitive damages.

Text: We have most recently discussed the requirements for an award of punitive damages in Wal-Mart, Inc. v. Stewart: [46] Punitive damages may not be awarded in an action, whether in tort, contract, or otherwise, unless supported by clear and convincing evidence. To support a claim for punitive damages, the plaintiff must prove by clear and convincing evidence that the defendant's conduct was outrageous, such as acts done with malice, bad motive, or reckless indifference to the interests of another. We have stated that a showing of malice is not required; however, [the plaintiff] must establish that [the defendant's] conduct amounted to reckless indifference to the rights of others, and conscious action in deliberate disregard of [those rights]. [47] Two aspects of the superior court's punitive damages award are problematic: the court's award is based on a finding that is not supported by any evidence in the record, and the increase in the award between the verdict of November 1, 1999 and the final judgment of December 7, 1999 is not explained by the court. The superior court's award of punitive damages is based on the following factual finding: [T]he intentional trespass was authorized [by] Mr. Farnsworth on behalf of MAPCO after being informed of the problem that the trespass was causing ... and it was therefore done with the deliberate intent to cause injury to the Faulk property. (Emphasis added.) There is no evidence in the record to support the finding that the trespass was done with the deliberate intent to cause injury to Faulk's property. There is evidence that tends to show that MAPCO negligently or willfully failed to stop stockpiling snow on the MAPCO property, after Faulk warned MAPCO several times that there was a problem with the snow pile. However, this is not evidence that tends to show that MAPCO had a deliberate intent to cause injury. As noted above, although a finding of malice is not required to support an award of punitive damages, a finding of reckless indifference is required. [48] We remand to the superior court for findings in accordance with the proper standard. Also, the increase in the punitive damages award between November 1, 1999 and December 7, 1999 is not supported by any explanation, reasoning, or analysis. On November 1, 1999, the superior court awarded $65,856.43 in punitive damages. Upon a motion for reconsideration, the superior court increased this figure without any reasoning or explanation to $106,815.43. As discussed earlier, we must reverse the superior court's findings under Rule 52(a) when no findings are made to support the court's conclusion. [49] We have held that a number of considerations go into the award of punitive damages. These include: (i) the magnitude and flagrancy of the offense, (ii) the importance of the policy violated, (iii) the ratio of punitive damages to compensatory damages, and (iv) the wealth of the defendant. [50] The superior court in this case did not explicitly consider any of these factors, and in granting the December 7 increase implicitly considered only the ratio of punitive to compensatory damages, since the ratio remained at 1:1. Yet we have repeatedly stated that the ratio of punitive to compensatory damages is not the determinative factor. [51] Because this increase from $65,856.43 to $106,815.43 was not explained by any findings, we must reverse the award of punitive damages and remand to the superior court for reconsideration of punitive damages and findings.