Court Opinion

ID: 9696473
Source: CourtListenerOpinion
Date Created: 2023-08-25 18:49:02.2182+00
Date Added: 2024-06-11T12:18:28.252163
License: Public Domain

SCHULTZ, Justice
(dissenting).
I cannot endorse division VII of the majority opinion. I would not reinstate the award of punitive damages in favor of the Dickersons against Braddyville. Otherwise, I concur.
The award of punitive damages against a municipality is wrong. Although legislation has been enacted recently which exempts the city from any liability for punitive damages, 1982 Iowa Acts ch. 1018 § 5, I would overrule our decision in Young v. City of Des Moines, 262 N.W.2d 612 (1978), and exempt municipalities which would otherwise be liable for punitive damages.
Although municipalities should not be subject to punitive damages awards, such awards must still be permissible in actions against other tortfeasors. The imposition of money sanctions is often a significant punishment and a powerful deterrent. When a municipality is punished for the wrongful acts of its employees, however, it is the taxpayers, who must pay for the tort either in increased taxes or in reduced mu*106nicipal services, who are punished. Among the taxpayers punished we would find nonresident property owners who have no direct voice in municipal affairs. Since the plaintiff is already fully compensated he is receiving a windfall at the expense of the taxpayers; this result is unjust. Recently, the Supreme Court recognized this injustice. In City of Newport v. Fact Concerts, Inc., 453 U.S. 247, 101 S.Ct. 2748, 69 L.Ed.2d 616 (1981), the Court stated:
[A]n award of punitive damages against a municipality “punishes” only the taxpayers, who took no part in the commission of the tort. These damages are assessed over and above the amount necessary to compensate the injured party .... Indeed, punitive damages imposed on a municipality are in effect a windfall to a fully compensated plaintiff, and are likely accompanied by an increase in taxes or a reduction of public services for the citizens footing the bill. Neither reason nor justice suggests that such retribution should be visited upon the shoulders of blameless or unknowing taxpayers.
City of Newport, 453 U.S. at 267, 101 .S.Ct. at 2759-60, 69 L.Ed.2d at 632. For the above reasons I would change our rule and would exempt municipalities from liability for punitive damages.
The availability of punitive damages serves as a message to those who contemplate deliberate or malicious wrongs. A large award of punitive damages reminds us of-the problems that such an award can present. I have discussed those problems that I believe this court can remedy. There is another problem, however, that could be addressed by the legislature. A plaintiff who receives punitive damages is often fully compensated and the punitive damages award is often a windfall. Perhaps, to avoid this enrichment, we should treat punitive damages as we treat fines assessed in criminal actions. It would seem more equitable for the public, rather than the fully compensated individual, to receive some or all of the award. Of course, some provision must be made to preserve the plaintiff’s incentive, such as reimbursement of attorney fees, or an award to the plaintiff in the nature of a finders fee.