Opinion ID: 1599037
Heading Depth: 1
Heading Rank: 7

Heading: whether the punitive damage award was excessive.

Text: Wyant argues that the size of the punitive damage award was in disregard of the evidence of her financial condition and ability to pay. She asserts that she was in a financially destitute condition. Although she and her husband owned a home, she asserts that Flockhart offered no testimony whatsoever as to the value of the home or whether there was an outstanding mortgage on it. Wyant notes, too, that she worked approximately fifteen hours a week at a campground and the most she has ever earned in any year was approximately $2,400.00. She observes that it would take her 158 months, or 12.5 years, paying the full $2,400 a year to pay the principal of the punitive damage verdict (noting that this does not take into account the matter of post-judgment interest). She asserts therefore that the size of the punitive damage award was both outside the evidence and in disregard of her financial ability to pay. This court has identified five factors as having a bearing upon the amount of punitive damages. These factors are: (1) the amount allowed in compensatory damages; (2) the nature and enormity of the wrong; (3) the intent of the wrongdoer; (4) the wrongdoer's financial condition; and (5) all of the circumstances attendant to the wrongdoer's actions. Groseth Int'l Inc. v. Tenneco Inc., 440 N.W.2d 276, 278 (1989); Wangen v. Knudson, 428 N.W.2d 242, 246 (S.D.1988). The heart of the matter here is Wangen factor four, the wrongdoer's financial condition. Wyant asserts that because she does not have the present ability to pay the punitive damage award, the award cannot stand, and must be reversed. However, that factor alone is not determinative. We must consider all five factors. Punitive damages must not be oppressive or so large as to shock the sense of fair-minded people, but they may considerably exceed compensatory damages. Wangen, supra at 246. Furthermore, to accomplish the objective of punishing the wrongdoer and deterring others from similar wrongdoing, punitive damages must be relatively large. Id.; Hulstein v. Meilman Food Indus., 293 N.W.2d 889 (S.D.1980). Wyant correctly points out that the test to be employed by courts in determining when damages are excessive was stated initially by this court in Schuler v. City of Mobridge, 44 S.D. 488, 493, 184 N.W. 281, 283 (1921). The test is: The damages, therefore, must be so excessive as to strike mankind, at first blush, as being, beyond all measure, unreasonable and outrageous, and such as manifestly show the jury to have been actuated by passion, partiality, prejudice or corruption. In short, the damages must be flagrantly outrageous and extravagant[.] See also Klug v. Keller Industries, Inc., 328 N.W.2d 847 (S.D.1982). Here, as Flockhart notes, Wyant is approximately fifty years of age, and chooses to work only a few hours each week. Wyant's husband supports her and provides for all the necessities of her life. The defendant's financial condition is but one factor to consider. [8] Here, we cannot say that the amount of damages the jury awarded was flagrantly outrageous and extravagant. Schuler, supra . We have considered the other issues raised by Wyant and find them lacking in merit. Affirmed. WUEST, HENDERSON and SABERS, JJ., concur. MORGAN, Retired J., concurs in part and dissents in part. AMUNDSON, J., not having been a member of the Court at the time this case was considered, did not participate.