Court Opinion

ID: 9478351
Source: CourtListenerOpinion
Date Created: 2023-08-05 06:47:07.526284+00
Date Added: 2024-06-11T17:46:23.310981
License: Public Domain

ROSS, Senior Circuit Judge,
dissenting.
I respectfully dissent from the opinion of the panel majority and instead would reverse and remand the case to the district court with directions to order a remittitur of at least $300,000 of the $400,000 punitive damages award. A remittitur is appropriate in this case for at least two reasons. First, the record discloses that Clayton Brokerage Services Company (Clayton) was at most negligent in failing to supervise and investigate Martin Rachlin’s activities. The degree of malice exhibited by Clayton does not justify the severity of the punitive damages levied against it.
Second, at a fifty to one ratio, the punitive damages award is so grossly excessive in relation to the actual damages that the award represents a plain injustice. The punitive damage award imposed in this case does not exhibit the requisite correlation to the injury inflicted and the cause thereof. Morrissey v. Welsh Co., 821 F.2d 1294, 1299 (8th Cir.1987).
Accordingly, I dissent from the majority opinion to the extent that it fails to find that the punitive damages award of $400,-000 is excessive as a matter of law.