Opinion ID: 2630568
Heading Depth: 4
Heading Rank: 1

Heading: The Relative Wealth of the Defendant

Text: ¶ 15 Our cases have determined that a defendant's wealth can be either an aggravating or a mitigating factor in determining the size of a punitive damage award, since punitive damages should be tailored to what is necessary to deter the particular defendant, as well as others similarly situated, from repeating the prohibited conduct. Campbell, 2001 UT 89 at ¶¶ 23-24, 65 P.3d 1134. Evidence adduced at trial puts Knapp's worth at $5,000,000. While the evidence relating to the wealth of the other defendants was less complete, Knapp appears to be the wealthiest by a significant margin. In setting the remitted award at 10% of Knapp's estimated worth, the trial court intended to send a very strong message regarding future conduct without putting Knapp at risk of bankruptcy. An extremely wealthy defendant may require a larger award of punitive damages to be deterred from further misconduct; we have recently taken the great wealth of a defendant as a factor tending to support a large award of punitive damages. Id. at ¶ 26. The wealth of the defendant in Campbell, however, was of a completely different order of magnitude than that of Knapp. [6] The ratios between punitive and actual damages we have determined to be presumptively appropriate are generally sufficient to ensure that awards of punitive damages both punish and deter the conduct on which defendants' liability is based. See Crookston II, 860 P.2d at 940 (That pattern was considered adequate to provide compensation which would make the victims whole while punishing and deterring the tort-feasors) (citations omitted). The presence of substantial personal or corporate assets is not alone sufficient to require an award that exceeds those ratios. [7]