Court Opinion

ID: 9736574
Source: CourtListenerOpinion
Date Created: 2023-08-26 19:00:18.047353+00
Date Added: 2024-06-11T18:27:07.428764
License: Public Domain

JUSTICE CARMAN, dissenting: Because I believe the majority’s decision in this case does not adequately vindicate the goals of punitive damage awards, I respectfully dissent. While the majority cites the goals of punishment and deterrence as informing its punitive award against the union, the resulting award of $50,000 does not achieve the purpose of those goals. I agree with the majority’s analysis and consideration of the guideposts for reviewing the constitutionality of an award of punitive damages set forth in Gore and further developed in State Farm. State Farm Mutual Automobile Insurance Co. v. Campbell, 538 U.S. 408, 418, 155 L. Ed. 2d 585, 601, 123 S. Ct. 1513, 1520 (2003), citing BMW of North America, Inc. v. Gore, 517 U.S. 559, 575, 134 L. Ed. 2d 809, 826, 116 S. Ct. 1589, 1598-99 (1996). These guideposts are “(1) the degree of reprehensibility of the defendant’s misconduct; (2) the disparity between the actual or potential harm suffered by the plaintiff and the punitive damages award; and (3) the difference between the punitive damages awarded by the jury and the civil penalties authorized or imposed in comparable cases.” State Farm, 538 U.S. at 418, 155 L. Ed. 2d at 601, 123 S. Ct. at 1520. In considering these guideposts courts must keep in mind the underlying goals of punitive awards. An award of punitive damages serves “to further a State’s legitimate interests in punishing unlawful conduct and deterring its repetition.” Gore, 517 U.S. at 568, 134 L. Ed. 2d at 822, 116 S. Ct. at 1595; State Farm, 538 U.S. at 416, 155 L. Ed. 2d at 600, 123 S. Ct. at 1519. Punitive damages have been described as “private fines,” intended to deter future wrongdoing as well as punish a defendant. Cooper Industries, Inc. v. Leatherman Tool Group, Inc., 532 U.S. 424, 432, 149 L. Ed. 2d 674, 684, 121 S. Ct. 1678, 1683 (2001). Not surprisingly, fashioning appropriate punitive awards in furtherance of these goals can be difficult in certain situations. Here, defendant’s conduct was reprehensible based upon the fact that it was intentional and malicious. However, defendant’s conduct of false picketing, while malicious, was not nearly as egregious as sexual harassment or wrongful prosecution. Deters v. Equifax Credit Information Services, Inc., 202 F.3d 1262 (10th Cir. 2000) (sexual harassment); Jones v. Rent-A-Center, Inc., 281 F. Supp. 2d 1277 (D. Kan. 2003) (sexual harassment); Routh Wrecker Service, Inc. v. Washington, 335 Ark. 232, 980 5. W.2d 240 (1998) (defendant wrongfully accused and swore out an arrest warrant against plaintiff for a crime he did not commit). Moreover, the award by the appellate court would result in disparity between the compensatory damages suffered by plaintiff and the punitive damages awarded at a ratio of almost 75 to 1. These facts do not end the analysis, however. In fact, the majority acknowledges that there is no bright-line ratio to follow when considering the disparity between the actual harm suffered by a plaintiff and the punitive damages awarded and explains that courts have considered a variety of other factors in fashioning punitive awards. 225 Ill. 2d at 484-85, 489-91. Despite this, the majority focuses too greatly on the size of the ratio, fails to adequately utilize the other factors courts consider in fashioning punitive awards, and loses sight altogether of the underlying goals of punitive damages. While the United State Supreme Court has stated that “few awards exceeding a single-digit ratio between punitive and compensatory damages *** will satisfy due process,” there is no bright-line ratio and courts consider a variety of factors when departing from single-digit ratios. State Farm, 538 U.S. at 425, 155 L. Ed. 2d at 605-06, 123 S. Ct. at 1524. Where compensatory damages are inadequate to give victims any incentive to sue and thus insufficient to deter and punish defendants, punitive awards with high ratios are more appropriate. Mathias v. Accor Economy Lodging, Inc., 347 F.3d 672, 676-77 (7th Cir. 2003). Such awards are also more appropriate where a defendant’s wealth enables it to mount such an extremely aggressive defense that plaintiffs never bring suits in the first place. Mathias, 347 F.3d at 677. In these situations the extreme litigation costs imposed by the defendant’s practices and the potential difficulty these costs impose on a plaintiffs ability to find a lawyer willing to fight in a case of modest stakes make high-ratio punitive awards more appropriate. Mathias, 347 F.3d at 677. Similarly, high-ratio awards are more appropriate where the attorney fees expended in a case are especially great. Lowe Excavating Co. v. International Union of Operating Engineers Local No. 150, 327 Ill. App. 3d 711, 724-25 (2002), citing E.J. Mckernan Co. v. Gregory, 252 Ill. App. 3d 514, 535-36 (1993). While the majority identifies these factors, it does not appear to actually utilize them in concluding that a punitive damages award of $325,000, at a ratio of approximately 75 to 1, is unconstitutionally excessive, while an award of $50,000, at a ratio of 11 to 1, is reasonable and constitutional. Although the majority’s analysis and resulting 11 to 1 ratio award make clear its belief that this is a situation where an award exceeding a single-digit ratio between punitive and compensatory damages meets the requirements of due process, the majority’s $50,000 award is not sufficient to achieve the punishment and deterrence purposes of punitive awards. Simply providing any double-digit ratio does not prove, in and of itself, an appropriate consideration of all the factors courts must utilize in finally setting an award. This case has been going on since February 17, 1988, when plaintiff first filed suit. The compensatory damages plaintiff was able to establish amounted to only $4,680. Its attorney fees were much greater. When plaintiff filed its original motion for punitive damages on August 15, 2003, it attached affidavits of its company president as well as its attorneys. The company president’s affidavit provided that plaintiff had, at that point, paid $225,925.83 in fees and expenses on the case. The attorneys’ affidavits provided that fees and expenses actually totaled over $500,000. These facts make evident that this is a situation where, under similar circumstances, compensatory damages may be too inadequate to give a victim an incentive to sue in the first place, and thus insufficient to punish and deter a defendant. Additionally, this case provides a strong example of a situation where, without a significant punitive award, extreme litigation costs could make it difficult for a plaintiff to find a lawyer willing to fight for such modest stakes. In fact, in making its findings concerning punitive awards, the trial court in this case specifically stated that it considered “the small amount of actual damages awarded to the Plaintiff, the additional harm to the Plaintiff caused by the Defendant’s actions which caused the Plaintiff to be involved in protracted litigation and to expend substantial amounts for attorney’s fees.” Finally, the attorney fees expended by plaintiff in this case are unquestionably high. Considering the above, and despite the flaws identified by the majority in the appellate court’s analysis of the Gore and State Farm factors, I do not feel that a punitive award of $50,000 goes far enough. While an award of $325,000 leads to a high ratio between punitive and compensatory damages, it does provide an amount truly informed by the facts of this case and the underlying goals of punitive damages. Like the majority, I would therefore not strictly adhere to a single-digit ratio. Having found this a situation appropriate for a double-digit award ratio, I would go further than the majority to appropriately punish defendant for its intentionally malicious conduct as well as deter it and others from considering similar courses of conduct in the future. Similarly situated potential plaintiffs must know that they will receive adequate compensation to justify filing suit in these types of cases, or to offset the extreme litigation costs occasioned by overly and wrongfully aggressive defendants. Upholding the appellate court’s punitive damages award of $325,000 would accomplish these tasks and truly reflect a consideration of the factors which courts utilize in fashioning high-ratio punitive to compensatory awards.