Legal Document

499 U.S. 1 111 S.Ct. 1032 113 L.Ed.2d PACIFIC MUTUAL LIFE INSURANCE COMPANY, Petitioner,v.Cleopatra HASLIP et al. No. 89-1279. Argued Oct. 3, 1990. Decided March 4, 1991. Syllabus After respondents' health insurance lapsed when one Ruffin, an agent for petitioner company and another, unaffiliated company, misappropriated premiums issued by employer payment to the other insurer, respondents filed action damages in state court, claiming fraud Ruffin seeking hold liable on a respondeat superior theory. Following trial court's charge instructing jury that it could award punitive if, inter alia, determined there was liability fraud, jury, among things, returned verdict respondent Haslip of over $1 million against which sum included more than four times amount compensatory claimed. The Supreme Court Alabama affirmed, specifically upholding award. Held: this case did not violate Due Process Clause Fourteenth Amendment. Pp. 9-24. (a) Holding responsible Ruffin's acts substantive due process. jury's finding acting within scope his apparent authority as he defrauded disturbed State is amply supported record. Moreover, Alabama's longstanding common-law rule insurer both intentional its effected employment rationally advances State's interest minimizing since creates strong financial incentive vigilance insurers. Thus, imposing under doctrine fundamentally unfair. 12-15. (b) Since every federal court considering question has ruled method assessing does itself process, cannot be said so inherently unfair per se unconstitutional. well established before Amendment enacted, nothing Amendment's text or history indicates intention overturn it. 15-18. (c) Nevertheless, unlimited judicial discretion fixing may invite extreme results are unacceptable Clause. Although mathematical bright line drawn between constitutionally acceptable would fit case, general concerns reasonableness adequate guidance from tried properly enter into constitutional calculus. P.18. (d) assessed petitioner, although large comparison claimed Haslip, lack objective criteria subject full panoply procedural protections. First, instructions placed reasonable constraints exercise expressly describing damages' purposes retribution deterrence, requiring consider character degree particular wrong, explaining imposition compulsory. Second, conducted post-verdict hearing conformed with Hammond v. Gadsden, 493 So.2d 1374 (Ala.), sets forth standards ensure meaningful review awards. Third, received benefit appropriate Court, applied standards, approved thereunder, brought bear all relevant factors recited Green Oil Co. Hornsby, 539 218 ensuring reasonable. 18-24. 553 537 (Ala.1989), affirmed. BLACKMUN, J., delivered opinion REHNQUIST, C.J., WHITE, MARSHALL, STEVENS, JJ., joined. SCALIA, post, p. ---, KENNEDY, opinions concurring judgment. O'CONNOR, dissenting opinion, SOUTER, took no part consideration decision case. Bruce A. Beckman, Los Angeles, Cal., petitioner. J. Ennis, Jr., Washington, D.C., respondents. [Amicus Curiae information intentionally omitted] Justice BLACKMUN Court. This yet another presents challenge 2 * In 1981, Lemmie L. Alabama-licensed Pacific Mutual Life Insurance Company. He also licensed Union Fidelity distinct nonaffiliated entities. wrote group municipalities. not. 3 Respondents Cleopatra Cynthia Craig, Alma M. Calhoun, Eddie Hargrove were employees Roosevelt City, municipality. presenting himself Mutual, solicited city life employees. interested. gave single proposal coverages. and, August prepared separate applications individual policies Mutual. packaging insurance, different unrelated insurers, unusual. Indeed, tended boost sales loss customers who wished have protection. initial premium payments taken submitted insurers applications. Thus far, been out line. those coverage. 4 An arrangement made send billings at Mutual's Birmingham office. Premium through payroll deductions. clerk each month check premiums. sent picked up him. He, however, remit city; instead, most them. late receive payment, notices coverage care Patrick Lupia, agent-in-charge Those forwarded some evidence contrary, see Reply Brief Petitioner B1-B4, found, App. Pet. Cert. A2, know their had canceled. II 5 Respondent hospitalized January 23, 1982. She incurred hospital physician's charges. Because confirm coverage, required upon her discharge, make bill. Her physician, paid, account collection agency. agency obtained judgment credit adversely affected. 6 May 1982, suit, naming defendants (but Union) individually proprietorship, Circuit Jefferson County, Ala. It alleged collected but failed them respective without knowledge. Damages theory superior. 7 liability, instructed if damages. That set margin.1 objection ground specificity instructions, propose particularized charge. No introduced worth. verdicts following amounts: Haslip: $1,040,0002 Calhoun: $15,290 8 Craig $12,400 Hargrove: $10,288 9 Judgments entered accordingly. 10 On appeal, Alabama, divided vote, (1989). addition issues now us, that, while recoverable misrepresentation innocently mistake, they deceit willful concluded misrepresentations either mistakenly. Id., 540. majority then upheld 543. 11 One concurred result opinion.3 Ibid. Two Justices dissented violated process rights 544-545. 12 here. challenged product unbridled violative rights. We stayed enforcement judgment, granted certiorari, 494 1065, 110 1780, 108 782 (1990), procedures light long-enduring debate about propriety.4 III 13 thereof number occasions recent years expressed doubts constitutionality certain 14 Browning-Ferris Industries Vt., Inc. Kelco Disposal, Inc., 492 257, 109 2909, 106 219 (1989), nine participating Members noted concern. awarded state-law claim Eighth Amendments grounds. held Excessive Fines apply civil private parties; excessiveness raised District Appeals therefore considered here; common law provide basis disturbing said: 15 "The parties agree imposes limits awards damages, disputed bias passion, reached proceedings lacking basic elements fundamental fairness. But petitioners themselves unfair, biased blinded emotion prejudice. Instead, seek further protections, addressed directly size There our view places outer pursuant statutory scheme . we never precise presented here: whether undue absence any express limit. inquiry must await day." 276-277, S.Ct., 2921. 16 Brennan, joined separately: 17 "I join Court's understanding leaves door open holding constrains cases parties. 18 19 "Without (or least common-law) determination how given juries left largely making important, potentially devastating, decision. 20 21 "Since correctly concludes Browning-Ferris' based I leave fuller discussion these matters 280-282, 2923. 22 part, observed: 23 "Awards skyrocketing. 24 25 ". do claims—either substantive—are here should overturned matter law. share BRENNAN's view, ante, 280-282 [109 at] 2923-2924, forecloses imposed. ." 282-283, 2923-2924. 26 Bankers & Casualty Crenshaw, 486 71, 1645, 100 62 (1988), made. refused reach claims provisions Federal Constitution passed court. 76-80, 1649-1651. 27 "Appellant touched issue think worthy attention Mississippi gives tort defendant mental state. my because such awards, reason 28 29 "This question, serious is, decided today. concur day issues." 87-89, 1655-1656. 30 Aetna Ins. Lavoie, 475 813, 1580, 89 823 (1986), came appellant argued impermissible stated: "These arguments raise important which, setting, resolved; disposition recusal-for-bias makes unnecessary them." 828-829, 1589. 31 See Newport Fact Concerts, 453 247, 270-271, 101 2748, 2761-2762, 69 616 (1981) ("The impact windfall recovery likely unpredictable times, substantial. ."); Electrical Workers Foust, 442 42, 50-51, 99 2121, 2126-2127, 60 698 (1979); Gertz Robert Welch, 418 323, 350, 94 2997, 3012, 41 789 (1974) ("In jurisdictions amounts limited only gentle excessive. Consequently, assess wholly bearing necessary relation actual harm caused"); Rosenbloom Metromedia, 403 29, 82-84, 91 1811, 1838-40, 296 (1971) (MARSHALL, Stewart, dissenting); Missouri R. Tucker, 230 340, 351, 33 961, 964, 57 L.Ed. 1507 (1913); Southwestern Telegraph Telephone Danaher, 238 482, 491, 35 886, 888, 59 1419 (1915); St. Louis, I.M. S.R. Williams, 251 63, 67, 40 73, 64 139 (1919). 32 status therefore, new unanticipated Challenges before; stated reasons, rejected deferred. For example, Browning-Ferris, supra, tardily argument. once again. IV preliminary overlapping deserve principal controversy. Did act Mutual? If so, superior? 34 Ruffin. mounts grounds, arguing shown manager aware collecting contrary contract; notice actions complained prior filing complaint litigation; authorize ratify conduct; contract forbade application; punished unauthorized performed behalf company. said, imposed focus determining shifted where belonged, obviously unfairly contributed disproportionality. own benefit, "beyond point fairness," embodied id., 32. burden comes rest policyholders. found employee disturb finding. occasion us it, sell derived economic sales. defalcations related plausibly 36 details representation admit conclusion. proposal—not multiple ones—for insurance. used letterhead, authorized use business. was, indication "spoke indicated subsidiary Mutual." A2. encouraged worked exclusively branch Each invoice letterhead 37 Before frauds effectuated, engaged pattern identical perpetrated complaints office purchased advised receipt noninitial payable him, practice violation policy. 38 corporation employment. say advance fraud. long context, prevent agent's sufficient so. British General Simpson Sales Co., 265 683, 688, 93 763, 768 (1957). 39 Imposing exemplary commits position "to guard substantially evil prevented." Louis Pizitz Dry Goods Yeldell, 274 112, 116, 47 509, 510, 71 952 (1927). proof fault independently, minimize oversight agents. independent deters less stringent rule. goal. American Society Mechanical Engineers, Hydro level Corp., 456 556, 102 1935, 72 330 (1982); Pizitz, U.S., 115, 510. These broad range criminal contexts clear Shevlin-Carpenter Minnesota, 57, 663, 54 930 (1910); United States Balint, 258 250, 252, 42 301, 302, 66 604 (1922); Park, 421 658, 670, 95 1903, 1910, 44 489 (1975). readily conclude respondents, not, facts here, V "Punitive traditional law." Silkwood Kerr-McGee 464 238, 255, 104 615, 625, 78 443 (1984). Blackstone appears use. W. Blackstone, Commentaries *137-*138. Wilkes Wood, Lofft 1, 98 Eng.Rep. (C.P.1763) (The Lord Chief validating compensation, punishment, deterrence). Among first reported Genay Norris, (1 Bay S.C. 1784), Coryell Colbaugh, N.J.L. 77 (1791).5 Under approach, initially gravity wrong need deter similar wrongful conduct. reviewed appellate courts 43 Day Woodworth, How. 363, 181 (1852), adoption Amendment, Grier, writing unanimous "It well-established principle law, trespass torts, inflict what called exemplary, punitive, vindictive defendant, having enormity offence rather measure compensation plaintiff. propriety questioned writers; repeated decisions century best exposition will By statute men often aggravated misconduct lawless acts, means action, inflicted way penalty party injured. 45 46 always punishment thus depend peculiar circumstances case." 371. Humes, 115 512, 110, 463 (1885), controlled very definite rules; wisdom allowing additional attested continuance practice." 521, 113. Barry Edmunds, 116 550, 565, 501, 729 (1886) ("For better settled present, torts fixes function determine verdict."); Minneapolis Beckwith, 129 26, 36, 207, 210, 585 (1889) opposed conflict prohibition deprivation property mode duty, legality recognized century. Its authorization justly assailed infringing States."); Standard Missouri, 224 270, 285, 406, 410, 56 760 (1912) ("Nor, standpoint, invalidity maximum penalty, measuring hearing."); (1927) (although briefs, discuss claim); Memphis Community School Dist. Stachura, 477 299, 306, n. 9, 2537, 2542, 249 (1986). Recently, Smith Wade, 461 30, 103 1625, 75 632 (1983), affirmed assessment U.S.C. § 1983, award.6 48 So far able determine, New Orleans, G.N.R. Hurst, Miss. 660 (1859). consistent history, deny " 'If thing practised two hundred consent, affect it.' Sun Wortman, 717, 730, 2117, 2126, 743 quoting Jackman Rosenbaum 260 22, 31, 10, 67 107 (1922). As 363 clear, enacted. Nothing drafters prevailing method. Burnham Superior County Marin, 495 604, 2105, 631 (1990); Snyder Massachusetts, 291 97, 111, 330, 334, 674 (1934) displaced procedure ages").7 49 This, end matter. just inappropriate long, Williams Illinois, 399 235, 239, 90 2018, 2021, 586 (1970) ("[N]either antiquity nor fact steadfast legislative adherence centuries insulates attack. ."). note again concern "run wild." Having task today renders unacceptable. VI 50 concede discretion—or matter—in jar one's sensibilities. Waters-Pierce Texas (No. 1), 212 86, 220, 227, 53 417 (1909).8 indeed cannot, draw can say, With mind, 51 true, course, States, deterrence. 470 1060, 1076 (Ala.1984). They described quasi-criminal. 59, 1641, (1983) (REHNQUIST, dissenting). answer. move, then, points specific 52 1. carefully jury. purpose namely, "not compensate plaintiff injury" punish defendant" "for added protecting public [deterring] others doing future." 105-106. Any wealth excluded accord Southern Health Whitman, 358 1025, 1026-1027 (Ala.1978). To sure, significant unlimited. confined deterrence retribution, policy sought advanced. And awarded, "must take necessity preventing wrong." 106. enlightened nature purpose, identified wrongdoing kind involved, explained believe, reasonably accommodated rational decisionmaking individualized retribution. allowed greater pursued many familiar areas as, deciding "the interests child," "reasonable care," "due diligence," pain suffering anguish.9 exercised constraints, satisfied. See, e.g., Schall Martin, 467 253, 279, 2403, 2417, 81 207 (1984); Greenholtz Inmates Nebraska Penal Correctional Complex, 16, 2100, 2108, 668 (1979). McGautha California, 402 183, 1454, 1467, 711 (1971). 55 2. place, post-trial scrutinizing City reflect record reasons interfering verdict, refusing grounds damages." 1379. deemed "appropriate consideration" "culpability defendant's conduct," "desirability discouraging "impact parties," "other factors, innocent third parties." test ensures whenever fixed 3. provides discretion. undertakes comparative analysis. 505 1050, 1053 (1987). applies detailed developed evaluating awards.10 particular, exceed accomplish society's goals deterrence." 218, 222 (1989); Wilson Dukona 547 70, 73 occurred repetition. Also ruling present elaborated refined So.2d, 223-224; Central 546 376-377. announced excessive inadequate: relationship conduct actually occurred; reprehensibility conduct, duration awareness, concealment, existence frequency past profitability desirability removing profit sustain loss; "financial position" defendant; (e) costs (f) sanctions mitigation; (g) same mitigation. 58 application conclude, sufficiently constraint factfinders awarding postverdict grossly proportion severity offense understandable While embrace heinousness effect victim, likelihood recurrence, extent gain, factfinder guided net plaintiffs enjoy good fortune deep pocket. real examples practice, 219, Ralph Collins Ford-Chrysler, 551 966 resulted reduction 74; Services Automobile Assn. 544 906, 917 deter. surely adopted legislatively Ohio Rev.Code Ann. 2307.80(B) (Supp.1989) Mont.Code 27-1-221 (1989).11 adequately instructed. Hammond. "evidenced malicious, gross, oppressive fraud," A14, importance A15. Alabama. thereunder. Hornsby. 61 200 out-of-pocket expenses 2, much excess fine Ala.Code §§ 13A-5-11 13A-5-12(a) (1982), 27-1-12, 27-12-17, 27-12-23 Imprisonment, context. monetary comparisons wide indeed, close line, criteria. after careful consideration, cross area impropriety.12 Accordingly, be, rejected. 63 ordered. SOUTER 65 argument "another day" "undue damages" violates 277, come, thoroughly briefed argued, chooses decide undue. says (at here) "unreasonable" "cross impropriety," page. jury-like "reasonable," perpetuates uncertainty grant certiorari intended resolve. (where satisfies legal requirements them) jury; accords tradition Bill Rights necessarily constitutes "due" process; approve "fairness" "reasonableness." notes, "exemplary" Anglo-American controversial. recently mid-19th century, treatise writers sparred even existed. respected commentator, Professor Simon Greenleaf, authentically "punitive" cases; attempted explain judgments ostensibly reality compensation. Law Evidence (13th ed. 1876). widely shared. influential Theodore Sedgwick rule" respect "salutary doctrine" "where gross malice, oppression appears, bound adhere strict may, severer impose example community." Measure 522 (4th 1868). doctrine, noted, "seems England, jurisprudence country," 35. G. Field, (1876) ("[The] [of damages] seems sustained great preponderance authorities, England country"); Sutherland, 721-722, 726-727, (1882) [punitive] cases, nearly states England." time controversy Greenleaf Mr. (1847) subject, country followed advocated 371, 68 argument." Even fierce opponents acknowledged firmly feature Foster Hampshire lengthy disallowing "a perversion language ideas ancient seldom attract attention," Fay Parker, N.H. 342, 343 (1873). concluded, passion muster: 70 "Undoubtedly pernicious become difficult get rid business deal difficulties; heresy hand favor, fearlessly. [N]ot reluctantly knife deformity, concerning true member sound healthy body exclaim—'I thee.' 397 (internal quotations omitted). 1868, adopted, undoubtedly torts. circumscribe regarding amount. (1886), "nothing verdict." 113, (1885) rules"). Commentators confirmed thought require special safeguards, than—at most—some "[I]n proper seem impracticable bounds though done, malicious intent, greatly disproportioned power possesses Sedgwick, 537-538, ("[T]he being aside manifest unduly influenced prejudice, partiality, corruption, clearly evinces mistake case"); 742 ("Whether [punitive shall allowed, amount, infer prejudice" (footnote omitted)). system rooted reject proposition dispositive purposes. Ante, 17-18; 60. disagree. traditions people believe rootless analysis dictated precedents. 74 Determining law" requires meaning majestic phrase. prominent English 1354: "[N]o man estate condition put land tenement, imprisoned, disinherited, death, answer Edw. III, ch. historical suggests word "process" provision referred writs employed (a usage retained phrase "service process"), Jurow, Untimely Thoughts: A Reconsideration Origins Law, Am.J.Legal Hist. 265, 272-275 (1975), Sir Edward Coke view. second Institutes, Institutes (5th 1797), equated 1354 "Law Land" Chapter Magna Charta (Chapter original signed King John Runnymede 1215), provides: "No Freeman taken, disseised Freehold, Liberties, free Customs, outlawed, exiled, otherwise destroyed; pass condemn lawful Judgment Peers, Land." Hen. (1225). Coke's customary freemen entitled old England," 50. colonists intimately Coke, Mott, 87-90, (1926); Howard, Road Runnymede: Constitutionalism America 117-125 (1968), when, Constitutions, Charta's "law land" guarantee, see, N.C. Const., Art. XII (1776) ("[N]o freeman ought disseized freehold, liberties privileges, manner destroyed, deprived life, liberty, property, land"); Mass. (1780) arrested, despoiled, immunities, protection exiled estate, peers, land"), almost certainly understood did. supposed affirmation according First Congress (without recorded issue) proposed Fifth "[n]o person Early commentaries this. 133, nn. 11, (S. Tucker 1803); Kent, (1827); Story, 661 (1833). 76 engage until Murray's Lessee Hoboken Land Improvement 272, 372 (1856). involved validity authorizing issuance distress warrants, mechanism Government debts providing debtor opportunity hearing. words conveyed 'by land,' (referring commentary early constitutions), restraint legislature executive powers government," 276. critical question: "To principles, resort ascertain enacted congress, process? twofold. examine constitution itself, provisions. look usages modes proceeding existing emigration ancestors, unsuited political acted settlement country." 276-277. Reviewing warrant, "there period, establishment monarchy, been, land, summary crown, especially receivers revenues," replicated, minor modifications, laws various colonies independence, 278-280. 79 Subsequent Lessee, adding Constitution. soon reaffirmed teaching provision: 80 "A deprive law; imply trials affecting persons requirement met course proceedings. land." Walker Sauvinet, 92 90, 92-93, 678 (emphasis added; citation Not Hurtado 516, 232 (1884), significantly elaborate advanced Lessee. convicted murder California contended denied him omitting grand-jury indictment. Relying tradition, indispensable element disagreed. 82 syllabus [the portion ] forbidden, show sanction country; follows else cited arose reference proceeding, account, was: however exceptional tested definitions principles ordinary procedure, nevertheless, this, substance, immemorially characteristic essential quality age, render incapable progress improvement. stamp unchangeableness attributed Medes Persians." 528-529, 117. 83 Hurtado, clarified role analysis: government follow historically depart remaining business, develop departure denies provided scant guidance. merely suggested "those liberty justice lie base institutions," 535, 120 added). 84 concept "fundamental justice" lexicon description entails general, dispensed with. reiterated Twining Jersey, 211 78, 14, 97 (1908), "consistently change disregards ascertained protect citizen right, arbitrary government." 101, Maxwell Dow, 176 581, 602-605, 448, 456-458, 597 (1900) (eight-member denial rights").1 85 Ownbey Morgan, 256 94, 433, 837 (1921), classic expression "settled usage" doctrine. Delaware creditor attach in-state out-of-state recover debtor's heard unless posted bond. traced back 18th-century London, colonial days. guarantee "includ[es] right stake proceedings." 438. But, "[a] customarily employed, Revolution, commercial metropolis generally suited needs, inconsistent 86 clause duty establish ideal systems administration justice, modern improvement possible hardship befall. 87 "However desirable forms improved time, rightly furnishes universal self-executing remedy. negative, affirmative, carries mandate measures reform." 110-112, 437-438. 88 Corn Exchange Bank Coler, 280 222-223, 95, 378 (1930). (1934), subtle way. prevented accompanying visit scene crime. Writing Cardozo assumed justice," 108, 333, "fairness," 336, nontraditional procedures. opinion's began premise "Massachusetts regulate accordance conception fairness offends conscience ranked fundamental. 105, 332 content changed, violated, willing weight. showing outside presence States. Amendment," wrote, "has ages." 334. ensuing decades, fairness" became increasingly decoupled approach. development incorporation guarantees. resisted idea protections Rights, Adamson 46, 54-58, 1672, 1676-1679, 1903 (1947); Betts Brady, 316 455, 462, 1252, 1256, 1595 (1942); Palko Connecticut, 302 319, 323-325, 149, 150-152, 288 (1937), ultimately incorporated virtually them, Malloy Hogan, 4-6, 1489, 1491-1492, 653 (1964); Gideon Wainwright, 335, 341-345, 792, 794-797, 799 (1963). Of simply codified privileges Robertson Baldwin, 165 275, 281, 326, 329, 715 (1897) perfectly ten amendments Constitution, commonly known lay down novel government, embody guaranties immunities inherited ancestors"); T. Cooley, Constitutional Limitations, X 1878). However, days uniformity interpreted several departed meaning. mid-20th come considerable divergence guarantees Rights. Gideon, pedigree, prohibited Sixth (failure appoint counsel cases) abandoned 342-345, 795-797. unbroken save explicit (applicable Amendment) demonstrate procedure's compliance process." principle, enough whatever might say; practical matter, invalidation practices achievable enumerated subjects. disregard ages" led generally. irony ardently belief avoiding, producing, subjective due-process jurisprudence. dissent Black, author refusal replace sole process: "[T]he 'natural law' formula uses conclusion incongruous excrescence subtly conveys courts, expense legislatures, ultimate fields power." Adamson, 75, 1688 (Black, decades indiscriminately balancing regard (1) (2) Ake Oklahoma, 68, 76-87, 105 1087, 1092-1098, (1985); Lassiter Department Social Durham Cty., 452 18, 24-25, 2153, 2158-2159, 640 (1981); Mathews Eldridge, 424 332-335, 96 893, 901-903, (1976). few Clause, strike concededly continuing practice. Most notably, Sniadach Family Finance Corp. View, 395 337, 1820, 1822, 349 (1969), strenuous declared unconstitutional garnishment wages, saying "[t]he muster feudal regime mean forms." Shaffer Heitner, 433 186, 2569, 683 (1977), invalidated quasi rem jurisdiction, 'traditional notions fair play substantial justice' offended perpetuation longer justified values heritage," 212, 2584. Such pronouncements issue,2 wrongly decided. might, stare decisis, announce, except later give lipservice, holdings reaffirm (unless Rights) conclusive fairness." last Term 623-625, 2117-2118, conclusiveness why jurisdiction mere service State—either case—is "fundamentally fair." Nor mind anything today's whose committed entirely relies inconsequential factors. "guidance" admonition "take platitude. governed discernible standard done (unless, presumably, announce change). "fair" process) context—for dispense picks air reduced judge appeal. conceive relating abstract something imagined. millions dollars hodge-podge fashion fails "jar Court's] sensibilities," hard would. When rationale earlier (Sniadach ) contradicted holdings—and particularly contradicts explicitly overruled—I valid decisis me. Our remain conflict, take. choose, interpretation half aptly faithfully O'CONNOR's dissent, society becomes "lose confidence" 63. like Snyder, affirm unfair" Let me am applying. sanctioned constitutional. call (1970), relied centuries-old permitting criminals reduce prison sentences paying fines. indigent prisoners equal laws. Equal Protection unlike invocation land," counterhistorical content. demanded Rights—which extends Clause—must despite contrary. sanction, 349-350, 3011-3012, (First prohibits defamation suits). harsh unwise unconstitutional, Bank, 223, sensible Maryland 497 836, 860-861, 3157, 3171-3172, 666 (1990) (SCALIA, legislatures restrict abolish Alaska Stat.Ann. 09.17.020 (Supp.1990) (punitive "clear convincing evidence"); Fla.Stat. 768.73(1)(a) (1989) (in specified classes three damages); Va.Code 8.01-38.1 $350,000). means—State State, level, Congress—that citizens improved. Perhaps, operation purged national permit land. fossil, endangered species. (regrettably many) vigorously alive. elimination wise, "Its Ownbey, expended ink implications fact-specific expend come. jury-assessed living dates suspense categorically validity. Historical acceptance institutions serves validate convenient confidence long-accepted institution survived rested irrational reason, SCALIA's approach questions commend maintained widespread challenges govern outcome us. Jury principled recognition central rationality necessary. fiat rationality. evolution illustrates principle. From 13th 14th onward, gradual ipse dixit, ordeal displace, instead Plucknett, Concise History Common 120-131 1956). Elements whim caprice predominate reaches consensus counsel, presentation evidence, judge, courts. justification too composition representative permits sense community. Some inconsistency expected reasons. empaneled decisionmaker permanent body. consequence case-by-case existence, tend disparate outcomes instructions. generality contribute predictability. encompasses phrased varying levels generality. adjudicators, order yield considerations case; or, adjudicator flexibility resolving dispute hand. features discourage uniform results, nonuniformity infirmity. capital sentencing context: surprising collective explain. inherent predictability justify condemnation. uniquely human defy codification 'buil[d] discretion, equity, system.' McCleskey Kemp, 481 311, 1756, 1777, 262 (1987) (quoting H. Kalven Zeisel, 498 (1966)). satisfy norms. prejudiced doubt compared damage prejudice recognize difficulty prevail firmer rests sounder jurisprudential foundations espoused majority. seeming 17-18, nevertheless examination comprehend believes tension resolved mentioned above usual suffice judges legislators initiate system-wide change. authority, alter rules respecting roles determination. Were sitting state-court judges, recurring unpredictability reconsider urge reexamination authority. interpreting perspective dissenting. Punitive powerful weapon. Imposed wisely restraint, potential legitimate interests. indiscriminately, devastating harm. Regrettably, fall latter category. routinely Rarely told "do you best." 2923, (Brennan, concurring). fraught implementation. encourage inviting rely beliefs personal predilections. Juries permitted target unpopular defendants, penalize unorthodox controversial views, redistribute wealth. Multimillion dollar losses whim. legitimacy constrain wisely, capriciously maliciously. much. 112 acknowledges dangers lurk, holds materialize materialize, however. do, parcel typical, guide fix void vagueness. disagrees point, still find Whether vague plainly offered 903, modest safeguards impairing governmental interest. heavily review, 20-23, curing standardless Post hoc tests award, determined. irrelevant. rendered procedures, small infirm. Notwithstanding concerns, upholds scheme. Unfortunately, indistinguishable schemes impede reforms. concerned sends signal, respectfully dissent. 114 Kolender Lawson, 352, 358, 1855, 1858, 903 (1983). lacks void-for-vagueness proscribe vest penalty. Batchelder, 114, 123, 2198, 2203, 755 trouble concluding decisions: threshold follows: "Imposition discretionary don't feels so." 105-106 instruction imagine. speaks Instead reminding factual predicate, "feels" like. invites jurors emotion, bias, predilections sort. read instruction, toss coin color skin reasoned offensive "discretion term, will. purely neither restraint." Yick Wo Hopkins, 118 356, 366-367, 1064, 1069, 220 (1886). 117 Giaccio Pennsylvania, 382 399, 518, 447 (1966), offers compelling analogy. At acquitted defendant. 401, 519. hesitate striking vagueness 402, 520. utter subjected "arbitrary discriminatory impositions costs." Black Court: Act, condition, limitation contingency 'shall pay costs'. Certainly burdens Implicit safeguard enforce. Act written begin meet requirement." 403, 521. 119 precisely reason. "without contingency" distinguishing tortfeasors liable. delegates resolution ad basis, attendant application." Grayned Rockford, 408 104, 108-109, 2294, 2299, (1972). Giaccio, unchanneled, "does th[e] close. pretensions whatsoever, complete, unfettered, unchanneled tells complete textbook unconstitutionally entrusts "such determinations crucial is." 121 anything, easier Giaccio. There, struck Pennsylvania prosecution—in $230.95. 400, scrutiny intensifies, imposed, Hoffman Estates Flipside, Estates, 455 489, 498-499, 1186, 1193-1194, 362 $840,000. 7, pales handed State. Defense Lawyers Association Amicus 1a-19a (listing including high $10 million, $25 $50 million). 122 defense statute. disappear originated legislature. "[I]f legislature's deliberation indulgent limits." 2923 20-22. aberration. tracked Pattern Instruction Instructions, Civil 11.03 (1974). 123 penalties. supra; Mesquite Aladdin's Castle, 283, 1070, 152 (1982). repudiated distinction: 124 "Both protected avoided simple label fasten labeled 'penal' vague." 125 Here, civil/criminal distinction blurry. Unlike character, are, definition, punishment. operate "private fines levied juries" objectives. penalties random, B 126 determines jury: "Should [the] 127 19-20, guidance, appearance deceiving. Brennan instruction: "Guidance scarcely all. suggest error; correct statement [state] rather, reveals deeper flaw: little (concurring opinion). wholeheartedly. Vague references wrong" "necessity assist decision; amorphous. restate overarching awards—to deter—without terms. relation, any, exist caused deterrent comparable cases. identify limitations retributive advise refrain short, destination, tell there. roadmap, directions 128 instructive inquiry. cost-assessment impermissibly written, subsequent implementing guilty offense, warranted 404, accept nebulous cured statute's possibly nearer giving preceded falls short requires." fares better. fact, minimal pushed away decisionmaking. Paraphrased slightly, terse "Think hate teach lesson." sort produce fair, dispassionate verdict. Like "an open-ended, anything-goes easily stoke sympathetic passions juries." P. Huber, Liability: Legal Revolution Consequences (1988) (hereinafter Huber). attest wildly glaring unfairness characterize infra, 54-55. 130 so-called juries. Consider, involving collision train tractor-trailer truck, death driver truck. truck pulled onto tracks front train, thereby ignoring stop sign, warning signs, five speed bumps, administratrix decedent's asked $3 receiving $15 million. Whitt Burlington Northern CV-85-311 (Cir.Ct.Ala., Aug. 1988), aff'd conditionally, 575 1011 (remitting $5 million), stay granted, A-408 (90-1250) (Dec. 5, 1990) (KENNEDY, Justice). 131 "standards" whatsoever illustrated quite dramatically Houston Charter Hospital Mobile, Weinberg, 558 909, 916 (Ala.1990). pointed results: Washington Nat. Strickland, 491 872 (Ala.1985), Associates, Simmons, 562 140 (Ala.1989). misrepresented prospective insured paid reality, conditioned medical unlikely pass. 873, 877; 142. approximately $21,000—151/2 874. penalized $2,490,000—249 151 (Houston, specially). vastly scheme, case-to-case consistency fortuitous. 132 impossible impractical. Kolender, 361, 1860. Just opposite. already formulated list seven considers award: 133 '(1) occur occurred. slight, relatively small. grievous, greater. 134 '(2) considered. awareness hazard cause, concealment "cover-up" hazard, reprehensibility. 135 '(3) profitable remove profit, recognizes loss. 136 '(4) relevant. 137 '(5) All litigation included, bring wrongdoers trial. 138 '(6) mitigation '(7) award.' 223-224 1062 (Ala.1987) standards—the "Green factors"—could decisions. (Maddox, wants. reviewing may—but 223. 141 Obviously, post cure Cf. Baggett Bullitt, 377 360, 373, 1316, 1323, (1964) ("[J]udicial neutralize vice law"). Roberts Jaycees, 468 609, 629, 3244, 462 candidly admit, hand, After-the-fact diminishes permissible system. occasion, stumble result. What rational. "[P]rocedural shaped risk error truth-finding rare exceptions." 344, 907. devised Houston, Addressing wrote: "We reliability assessments only. attempt really address issue." Hospital, 915 (opinion specially) citations 142 above, agrees possible. Applying required. Modest 143 902 ' "[d]ue process," rules, technical place circumstances. Cafeteria McElroy, 367 895 [81 1743, 1748, 1230] (1961).' "[D]ue flexible calls situation demands." Morrissey Brewer, 471, 481, 2593, 2600, 484 sliding-scale adequate. factors: stake; impair interest, cure; (3) avoiding Mathews, 903. 144 enormous. Without limits, authorizes levy ranging zero tens dollars. deliberately calculated bankrupt tied injury, 'the recoveries substantial.' 87, 1655, (O'CONNOR, judgment), 50, 145 Compounding problem, quasi-criminal serve allocate parties, designed exact reprehensible. Hence, stigma attached accompany money stake. factor militates favor safeguards. 146 prong focuses spoken before. Over years, repeatedly criticized illegitimate E.g., Gertz, 3012 (common-law "free selectively expressions views"); Workers, ("[P]unitive defendants"); 84, 1839, dissenting) ("This allows others"); frequently jurors"). forbidden suits plaintiffs, labor unions Railway Labor 52, 2127. 147 squarely today, ----, strongly hinted 9-12. MARSHALL separately "understanding 280, STEVENS joined, voiced "regarding problems 2924 part). echoed statement, SCALIA Life, 88, 1655: process" judgment). 148 52-53, remedied review. best, concern, Santosky Kramer, 745, 757, 1388, 1396, 599 (1982) ("Retrospective preserve class defective evidentiary standard"). 149 evils task. thing, Wheeler, Case Reforming Procedures, Va.L.Rev. 269, 290 Wheeler). Making effective unlikely, primary component deference. insists "presumption correctness" overcome remittitur appropriate. Oil, 222, 224. uphold unbridled, happened reconciled generous 150 governing deferred "would lesser amount," A-15, composed male female, white black conscientiously throughout trial." judge's afforded double dose deference, stating "jury presumed correct, presumption strengthened presiding refuses 537, 543 deference troubling current 'unguided discretion,' dictate verdict: 'The furnishe[s] yardstick Ibid., Ridout's-Brown Service, Holloway, 125, 127-128 (Ala.1981) (Jones, "[I]t hear findings still, albeit unwittingly, accomplishment [punishment deterrence] goals." 222. deferring results. Blind infirmity understand empty rationalization evenhanded justice. Crucial Mathews' prong, infirmities remedied. approval juries, enhance Other prove equally effective. kinds ranges narrow, verdicts. 153 Another possibility commentators, 11; Wheeler 300-301, bifurcate stages. stage, requisite culpability goals. clear-and-convincing-evidence limiting egregious closer Ellis, Damages, Process, Jury, Ala.L.Rev. 975, 995-996 symbolic higher signal 995; 297-298. rudimentary modifications afford lessening chance Given methods, federalism legislate adopt. 154 final asks preserving reforms burdensome. effectively answered 349, announcing securing gratuitous injury." (Emphasis added.) 155 easily. deterring contend predictable, diminish argue, corporations avoid wrongdoing; calculate probability cost unpredictable. 156 goes far. rigid strictures tailor facts, classify arbitrariness virtue. process—of general—is allow behavior. unable solely intrude ability preclude measurable straightjacketed performing 157 Similarly, Admittedly, punishing wrongdoers, maintaining pristine form disproportionate subjects punishments. requires, commensurate Solem Helm, 284-290, 3001, 3006-3010, 637 (1983); 3020, (Burger, whims jurors. 158 concurrence, notion requires. argues pedigree immune reexamination. 38. rejects 18. static flatly 334-335, 902-903, 'flexible' vary 'time, circumstances.' analysis, continued vitality. Harper, 229, 1028, 1040, 178 Brock Roadway Express, 261-262, 1740, 1747-1748, 239 (1987); Walters National Radiation Survivors, 473 305, 320-321, 3180, 3188-3189, Cleveland Bd. Ed. Loudermill, 532, 542-543, 1487, 1493-1494, 77, 1093, 274, 2415, 159 notion. Procedural "even ones, contemporary 630, 2120, validity, [Fourteenth] traditionally accepted declare invalid." 628, 2119 (WHITE, citing (1977). 160 instructive. time-honored extending terms beyond costs. bears repeating: 161 "[N]either 162 reassessment mandated increased nonpayment major cause incarceration 239-240, 2021. 163 similarly ripe reevaluation. past, "merited attention" "rarely amount." Fairness Efficiency S.Cal.L.Rev. reserved reprehensible, outrageous, insulting acts. F. Pollock, Torts (1887); Huber 119. available pain, humiliation, intangible injury. filled gap. K. Redden, 2.3(A) (1980); Note, Exemplary Torts, Harv.L.Rev. 517, 519-520 164 Recent witnessed explosion RAND Institute Justice, Peterson, S. Sarma, Shanley, Damages—Empirical Findings iii RAND). study Corporation California. viii. staggering. Within months fewer six $20 Crovitz, Absurd "Mock" Wall Journal, Mar. 1990, A19, col. Medians averages skyrocketing, routine growing size. vi, ix, 65. "seem lawyers string zeros together drafting complaint." OKI America, Microtech Int'l, F.2d 312, 315 (CA9 1989) (Kozinski, Much attributable changes breach breached bad faith. Seaman's Direct Buying Serv., Cal.3d 752, 206 Cal.Rptr. 354, 686 P.2d 1158 Unheard ago, faith percentage iv. developments include advent mass litigation. "As decade largest products $250,000. appeal." 282, "Today, hardly multimillion-dollar Proposal Further Development Use Modern Product Liability Litigation, 919 166 reassess exposed defects inhere discover regrettable, pretend now. "[N]ew expose apathy stand. imperatives priority comfortable convenience quo." 245, 2024. Circumstances blind ourselves fact. 277. opposite true. demands possess capable producing lose confidence, 167 touchstone government.' Daniels 474 327, 331, 662, 665, 662 Dent West Virginia, 231, 233, 623 (1889). skeletal guidance," concurring), invites—even reign biases prejudices jurors, selectively. antithesis around glaringly yields "in instances Burnham, 168 adopt method, available, problem. experiment methods adjust time. 169 groundbreaking remarkable. reflects straightforward statements expect holding. Why, consigned opinion? reluctant perceives force evaluate confident, though, respond, hesitation inspired flood petitions certiorari. 54-55, shied step in, hoping go away. getting worse, squarely. incorrect "Now, your wouldn't to, example. So, feel feel, satisfied plaintiff, talking about, direct injured detering [sic future. Imposition probable contained Haslip's counsel's $200,000 (including expenditures $4,000) $3,000,000 requested. Tr. 810-814. purposes, rethought 913 Compare, (1872) wrong. monstrous heresy. unsightly unhealthy excrescence, deforming symmetry law"), Luther Shaw, Wis. 234, N.W. 19-20 (1914) (Timlin, "Speaking myself paragraph. outgrowth love regulated tends elevate instrument discourages reprisals, restrains strong, influential, unscrupulous, vindicates weak, encourages recourse wronged oppressed cognizable finds replication amicus briefs Alliance Insurers evident history"); Architects ("Punitive startling. damages—where fantastic attention—is years"); Business Roundtable ("[A]n excessive"); Research ("No regularity tolerate essentially punishment"); Pharmaceutical Manufacturers ("[A]ny [Food Drug Administration] ("[A] advance"); Authority Gwinnett Georgia, ("[I]n constituted [A]wards twice (that treble damages) Mid-America Foundation ("[S]ystem introduces wildcard Tort Reform ("Until job use, process"); Trial ("There 'explosion'. [P]unitive innovation businesses competitive disadvantage. Consumer Organization corporate misconduct"); Court—should litigants"). informative comment, Owen, Products Mich.L.Rev. 1257, 1262-1264, 17-23 303(i)(2)(B), 362(h), 363(n); 3417(a)(3); 78u(h)(7)(A)(iii), 298(c), 1116(d)(11), 1681n(2); 7431(c)(1)(B)(ii); 1514(c). Rand Damages-Empirical Moral Foundations 705, 739 ("Yet remedy abused, causing moral values"). Legislature $250,000 limit 1987 Ala.Acts, 87-185, 4. legislation, June 1987, 12, filed. Electric Cooperative Tapley, 377-378 distinguishes Vermont (1988). schemes, modified "manifestly excessive," Pezzano Bonneau, Vt. 91, 329 A.2d 659, (1974), "it shock conscience," 483 254, 278 (Miss.1985). amici "preponderance evidence." requiring, 2307.80 (Supp.1989), evidence" even, doubt," Colo.Rev.Stat. 13-25-127(2) (1987), persuaded, Alabama—"reasonably evidence"—when buttressed, outlined sufficient. support thereof, cites (1966). helpful. misdemeanor. Decisions consequences violating During 19th departing "fundamental" Allgeyer Louisiana, 578, 589, 427, 431, 832 (1897). deals "procedural" Shaffer, STEVENS' concurrence currently issue, viz., ownership stock state-chartered corporation, owner custodian resided elsewhere. 2587 asserted, moreover, ever

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