Court Opinion

ID: 9781817
Source: CourtListenerOpinion
Date Created: 2023-08-30 17:32:34.367828+00
Date Added: 2024-06-11T07:34:39.762113
License: Public Domain

McGREGOR, Justice,
concurring in part and dissenting in part:
¶ 32 Until today, Arizona’s justice system upheld the basic and essential principle that we do not punish an innocent party for another’s wrongdoing. Because today’s holding that punitive damages may be assessed against the estate of a deceased tortfeasor upends that principle, I respectfully dissent.
¶ 33 More than thirty years ago, the Arizona Court of Appeals asked whether, in a wrongful death action against a deceased tortfeasor, the legislature intended that punitive damages be recoverable. Braun v. Moreno, 11 Ariz.App. 509, 511, 466 P.2d 60, 62 *8(1970). Construing Arizona Revised Statutes (A.R.S.) section 12-613 in light of the purposes of punitive damages, the court concluded that the legislature did not intend to permit punitive damages in those circumstances: “Since the defendant tortfeasor can in no way be punished by an award of punitive damages, we see no reason for allowing such damages to be assessed.” 11 Ariz.App. at 512, 466 P.2d at 63. During the three decades since that decision, the legislature has not chosen to amend section 12-613 to permit recovery of punitive damages from the estate of a deceased tortfeasor.
¶ 34 The majority asserts that if an estate and a wrongdoer are to be treated differently, the difference in treatment should come from the legislature. Supra ¶ 17. I agree. But the legislature’s failure to amend either section 12-613 or Arizona’s survival statute, A.R.S. section 14-3110, to permit recovery of punitive damages against an estate, in light of Arizona’s long-standing judicial interpretation prohibiting such an award, provides a clear indication that the legislature did not intend to permit a plaintiff to recover such damages.8
¶35 Although the majority disregards Braun because it is a decision of the court of appeals, supra ¶ 18, the Restatement view, which we usually apply, echoes the approach taken by the Braun court. “Absent Arizona law to the contrary, this court will usually apply the law of the Restatement.” Ft. Lowell-NSS Ltd. P’ship v. Kelly, 166 Ariz. 96, 102, 800 P.2d 962, 968 (1990). Without explanation, the majority also fails to follow that accepted approach. The Restatement expressly provides that in survival actions, “the death of the tortfeasor terminates liability for punitive damages.” Restatement (Second) of Torts § 926(b) (1979); see also Restatement § 908 cmt. a (no punitive damages against representative of deceased tortfeasor in a death action). Finally, in adopting a strictly minority view, the opinion rejects the reasoned judgment of the substantial majority of jurists who have considered this issue. See G.J.D. v. Johnson, 552 Pa. 169, 713 A.2d 1127, 1129 (1998) (surveying state court decisions).
¶ 36 Punitive damages are not simply another form of compensatory damages. Rather, they constitute quasi-criminal fines imposed upon defendants in a civil action. Our reason for imposing such damages is that society regards the defendant’s conduct as outrageous and morally reprehensible. Cooper Indus., Inc. v. Leatherman Tool Group, Inc., 532 U.S. 424, — , 121 S.Ct. 1678, 1683, 149 L.Ed.2d 674 (2001). The purposes served by punitive damage awards include punishment, specific deterrence, and general deterrence. Gertz v. Robert Welch, Inc., 418 U.S. 323, 350, 94 S.Ct. 2997, 41 L.Ed.2d 789 (1974) (stating punitive damages are “private fines levied by civil juries to punish reprehensible conduct and to deter its future occurrence”); Linthicum v. Nationwide Life Ins. Co., 150 Ariz. 326, 330, 723 P.2d 675, 679 (1986) (stating that punitive damages are designed “to punish the wrongdoer and to deter others from emulating his conduct”); see, e.g., Acheson v. Shafter, 107 Ariz. 576, 578, 490 P.2d 832, 834 (1971) (punitive damages “are awarded for the avowed purpose of punishing the wrongdoer for his intentional misconduct and they also act as a deterrent to further wrongdoing”). The majority concedes that assessing punitive damages against an estate serves neither the punishment nor specific deterrence function of punitive damages. Supra ¶ 13. The majority goes on to reason that punitive damages are appropriate when imposed against the tortfeasor’s estate because the imposition of punitive damages “may” deter future wrongdoing by others. Supra f 15. I regard that rationale as a slender basis for the broad consequences of today’s holding.
¶ 37 Notably, the majority presents no concrete data that would permit us to weigh the *9likelihood that imposing punitive damages against an estate mil deter future conduct by persons unrelated to the action in question. As most jurisdictions recognize, any general deterrence that emanates from punitive damages “depends significantly upon the punishment function of an award of punitive damages.” Doe v. Colligan, 753 P.2d 144, 146 (Alaska 1988). The possibility that someone who is undeterred by criminal laws or the prospect of personal liability will be deterred from driving while under the influence because a jury awarded punitive damages recoverable from another impaired driver’s estate is remote at best. Because the general deterrence effect of a punitive damage award under those circumstances is so nebulous, that goal simply does not justify the award.
¶ 38 Balanced against this nebulous and speculative benefit stands the certain risk that the award will punish not the tortfeasor but heirs who are entirely innocent of any wrongdoing. The majority justifies that outcome by noting that “an estate is placed in the same position as any other defendant against whom a punitive award is sought.” Supra ¶20. But that statement does not accurately describe the estate’s position. As already noted, unlike other parties subject to punitive damages, the estate has committed no reprehensible act. In addition, unlike a living defendant, the estate cannot defend itself against the allegation of outrageous conduct. In this case, the tortfeasor’s inexcusable conduct seems clear; in other factual situations, the precise nature of the conduct that allegedly gives rise to punitive damages will be less clear. What will always be true is that the deceased tortfeasor will not be available to give his version of the facts that gave rise to the lawsuit, the estate will lack knowledge essential to defend the claim against it, and the award will punish a party that has done no wrong.
¶ 39 Perhaps recognizing the underlying inequity of punishing an estate for the behavior of the decedent, the majority asserts that the trial court can utilize adequate safeguards to protect against improper verdicts and can instruct the jury “to consider all aspects of fairness and justice in deciding whether, and in what amount, to award punitive damages.” Supra ¶ 20. I am uncertain just what instructions the trial judge can give to accomplish those results. Surely the judge may not instruct the jury to decide whether punitive damages may be awarded against an estate, for that is the legal issue we decide today. If the judge instructs the jury as our earlier decisions advise, he will tell the jury to consider, in assessing punitive damages, the defendant’s financial position, the nature of the defendant’s conduct and the harm that occurred from the defendant’s conduct, the duration of the misconduct, the defendant’s awareness of the harm or risk of harm, any concealment by the defendant of the harm, and the profitability of the defendant’s action. Hawkins v. Allstate Ins. Co., 152 Ariz. 490, 497, 733 P.2d 1073, 1080 (1987). The only one of those factors remotely relevant when the estate, not the wrongdoer, is the defendant will be the value of the estate. The estate, as defendant, engaged in no reprehensible behavior, caused no harm to occur, had no awareness of any risk of harm, and did not profit from the decedent’s actions. May the jury, then, award punitive damages if the estate’s financial condition reaches some threshold amount? Or should the trial judge instruct that the jury can consider both the nature of the decedent’s conduct and the innocence of the estate and decide which status is more important in a particular action? If the jury can weigh those matters, then an award of punitive damages reflects the jury’s conscious decision to punish an innocent party for the misconduct of another. I cannot agree that a vague hope of deterring outrageous behavior justifies such a departure from long-held principles.9
*10¶ 40 My disagreement with the majority’s reasons for assessing punitive damages against a tortfeasor’s estate does not extend to its reasons for assessing punitive damages against the deceased tortfeasor’s employer. The employer still exists to be punished and specifically deterred, and others, witnessing its punishment, may be deterred from allowing their employees to commit similar torts. I concur with the court’s decision on the second certified question.
CONCURRING: FREDERICK J. MARTONE, Justice.

. Most of the states the majority cites in support of its holding based their own holdings on statutory text that, unlike Arizona’s, explicitly permits recovery of punitive damages against the estate of a deceased tortfeasor. See Shirley v. Shirley, 261 Ala. 100, 73 So.2d 77, 79 (1954) (interpreting Ala.Code 1940 tit. 7, § 119, renumbered as Ala.Code § 6-5-462 (2000)); Tillett v. Lippert, 275 Mont. 1, 909 P.2d 1158, 1162 (1996) (relying on Mont.Code Ann. § 27-1-501 (2000)); Hofer v. Lavender, 679 S.W.2d 470, 472 (Tex.1984) (interpreting Tex.Rev.Civ. Stat. Ann. art. 5525, now codified at Tex. Civ. Prac. & Rem.Code Ann. § 71.021 (Vernon 1997)).

. The parties have not discussed whether imposing punitive damages upon an innocent party violates the Eighth Amendment to the United States Constitution, which prohibits excessive fines and cruel and unusual punishment. Because the degree of a defendant’s culpability is one factor relied upon by the Supreme Court to determine whether a punitive damages award violates the Eighth Amendment, see Cooper Indus., Inc. v. Leatherman Tool Group, Inc., 532 U.S. 424,— - —, 121 S.Ct. 1678, 1684-85, 149 L.Ed.2d 674 (2001), today’s decision surely raises that question.