Opinion ID: 159309
Heading Depth: 3
Heading Rank: 3

Heading: Civil and Criminal Penalties

Text: 36 The final guideline whether comparable civil or criminal penalties alert a defendant to the possibility of substantial punitive damages in the wake of his illegal conduct does lean in Midland's favor. A finding of common law fraud does not lend itself to comparison with statutory penalties. See OXY, 101 F.3d at 641 (violation of common-law tort duties). In addition, United fails to specifically cite one statute or case that can be read to put Midland on notice its conduct could result in a large punitive award of over half a million dollars. While large punitive awards are not unusual in trademark infringement cases, cf. Big O Tire Dealers, Inc. v. Goodyear Tire & Rubber Co., 561 F.2d 1365, 1376 (10th Cir. 1977) ($4 million award, 6:1 ratio), cert. dism'd, 434 U.S. 1052 (1978), we did not find any comparable Kansas cases. Therefore, this guidepost lends credence to a smaller punitive award. 37 Weighing all the factors relevant to our determination, we hold the punitive damage award in this case is not unconstitutionally excessive. Even assuming the total amount of actual and potential harm in this case is $67,649.03, as Midland suggests, the punitive to actual damage ratio is less than 10:1. We held the maximum constitutionally permissible ratio in Hamilton and OXY was 6:1. Midland's activity is much more reprehensible than was the defendant's in Hamilton, where the court determined the fraudulent conduct did not involve repeated acts. In addition, the fraud here involved documents submitted to the courts, and it entailed a complete refusal to make a good-faith effort to comply with a settlement agreement. Surely the State of Kansas has a strong interest in deterring this type of conduct, and Fox's continued efforts to disguise his abhorrent behavior with further lies warrants a stiff punitive award. Finally, we note this award was not the product of an emotionally-driven jury run amok, but a district court thoughtfully applying a strict state statute regulating the process to be followed and amounts allowed for punitive damages. Given the specific facts of this case, we hold the punitive award is constitutional.