Court Opinion

ID: 9856914
Source: CourtListenerOpinion
Date Created: 2023-09-24 07:06:31.51837+00
Date Added: 2024-06-11T09:37:32.184848
License: Public Domain

McFADDEN, Justice
(concurring in part and dissenting in part).
I concur in that portion of the majority opinion which affirms the judgment of the trial court quieting title in the Village of Peck as to its water rights and en*753joins interference by the appellants with those rights. I dissent from that portion of the majority opinion dealing with the assessment of punitive damages. It is my conclusion that a plaintiff does not waive a claim for punitive damages merely because he seeks equitable relief, but that under the facts of the instant case the respondent village failed to establish existence of actual damages and that an award of punitive damages is therefore not permissible.
While the majority opinion assumes, without discussion, that a court may award punitive damages in an action for equitable relief, the numerical weight of authority is to the effect that a plaintiff seeking equitable relief is not entitled to punitive damages, even though he may have been entitled to them in a suit at common law. See Superior Construction Co. v. Elmo, 204 Md. 1, 104 A.2d 581, 48 A.L.R.2d 932 (1954), and the many cases cited therein. Also see Sinclair Oil and Gas Co. v. Bishop, 441 P.2d 436 (Okla.1967); Brady v. Trans World Airlines, 196 F.Supp. 504 (D.C.Del.1961); Orkin Exterminating Co. of South Florida, Inc., v. Truly Nolen, Inc., 117 So.2d 419 (Fla.App.1960); Prucha v. Weiss, 223 Md. 479, 197 A.2d 253 (1964); Monsanto Co. v. Cochran, 254 Miss. 399, 180 So.2d 624 (1965). To the same effect is Anno. 48 A.L.R.2d 947 wherein it is stated that
“ * * * most of the jurisdictions which have considered the question take the view that punitive or exemplary damages may not be recovered in a court of equity. Some courts subscribing to this view have been content merely to state that such damages are ‘not awarded’ by or are ‘not recoverable’ in equity * * *. Other courts have taken the position that a court of equity does not have the inherent power to award such damages * * *. Still other courts, without reference to whether such power exists, have held or recognized that such damages may not be recovered in equity, upon one or both of the theories that an award of punitive damages is incompatible with the fundamental principles of equity * * *, and that by seeking relief in equity a litigant waives all claims to punitive damages * * 48 A.L.R.2d at 949.
In some jurisdictions where the distinction between actions in law and suits in equity has been abolished, the courts have recognized that the rationale for the rule precluding an award of punitive damages-in an action for equitable relief has been eliminated. See for instance I.H.P. Corp. v. 210 Central Park South Corp., 16 A.D.2d 461, 228 N.Y.S.2d 883, 885-886 (1962), in which the New York Supreme Court, Appellant Division, stated:
“It should be noted, at the outset, that the weight of authority in this State and elsewhere has, in the past, forbidden punitive damage awards in actions in which equitable relief is sought. The reasons are rooted in the historic procedural separation between law and equity — a separation which, in large measure, is no longer sustainable under modern code practice. Although the abolition of the ancient forms of action has not eliminated the several legal and equitable principles separately governing judicial remedies, it has removed outmoded procedural barriers against awarding complete relief in a single action.”'
See also Union Oil Co. v. Reconstruction Oil Co., 20 Cal.App.2d 170, 66 P.2d 1215 (1937).
Idaho Constitution Art. 5 § 1 provides:
“The distinctions between actions at law and suits in equity, and the forms of all such actions and suits, are hereby prohibited; and there shall be in this state but one form of action for the enforcement or protection of private rights or the redress of private wrongs, which shall be denominated a civil action ; * *
Similarly I.R.C.P. 2 states that “There shall be one form of action to be known as ‘civil action.’ ” This court has held that actions in law and equity may be joined in the same complaint. Wa Ching v. Con*754stantine, 1 Idaho 266 (1869); Anderson v. War Eagle Consolidated Mining Co., 8 Idaho 789, 72 P. 671 (1903); Anderson v. Cummings, 81 Idaho 327, 340 P.2d 111 (1959). And accordingly in order to afford complete relief in a single action, the district court dispenses both legal and equitable relief, as the occasion demands:
“* * * one of the objects of our practice act and the provisions of our state Constitution in abolishing all distinctions between actions at law suits in equity, and giving our district courts full and complete jurisdiction both at law and in equity, was to rid our system of a multiplicity of suits and a vexatious and cumbersome procedure, and to give litigants full and complete relief in a single action, where under the old practice several suits were necessary to accomplish that result.” Carroll v. Hartford Fire Ins. Co., 28 Idaho 466, 475, 154 P. 985, 987 (1916).
See also Bates v. Capital State Bank, 21 Idaho 141, 121 P. 561 (1912); Murphy v. Russell & Co., 8 Idaho 133, 67 P. 421 (1901); Addy v. Stewart, 69 Idaho 357, 207 P.2d 498 (1949). Since the district court is authorized under Idaho law to award complete relief in a single action, it has the authority to award punitive damages in an appropriate case, notwithstanding the fact that the complaint also raises an equitable cause of action.
Idaho courts have in the past awarded punitive damages in actions for equitable relief. In Driesbach v. Lynch, 71 Idaho 501, 234 P.2d 446 (1951), a plaintiff instituted an action for an injunction, compensatory damages, and punitive damages. The court first determined the equitable cause of action and granted an injunction, which was affirmed on appeal. The case was then returned to the district court for trial on the issue of damages. The jury awarded both compensatory and punitive damages. On the second appeal this court again affirmed the judgment of the lower court. Driesbach v. Lynch, 74 Idaho 225, 259 P.2d 1039 (1953). The district court had awarded both equitable relief and punitive damages in the single action, and although this court did not discuss the issue, in affirming the award of punitive damages the court indicated that the proper procedure had been followed.
California has also allowed punitive damages in an equitable action. In Union Oil Co. v. Reconstruction Oil Co., 20 Cal.App.2d 170, 66 P.2d 1215 (1937), the trial court granted both an injunction and punitive damages. The appellate court upheld the award of punitive damages on the ground that in California there is but one form of action and courts are empowered to grant both legal and equitable relief, stating:
“It is true that it is stated in Lightner Mining Co. v. Lane [161 Cal. 689, 120 P. 771] * * *, that the award of the gross value of mineral taken by a wilfull trespasser without deduction for expenses of mining and milling amounts to an assessment of punitive damages and it may be conceded that as a general rule equity does not award damages by way of punishment. United States v. Bernard (C.C.A.) 202 F. 728, 732. Nevertheless, it must be observed that in California there is but one form of action (section 307, Code Civ.Proc.), and that although this action as originally instituted was purely equitable in nature the claim for damages which arose during the trial and which came into existence through the persistent efforts of the Reconstruction defendants to bring the well to production was legal in character. It is our conclusion, therefore, that in dealing with this phase of the case the trial court correctly applied the above-mentioned legal rule in awarding as damages the gross amount received by the Reconstruction defendants from the sale of oil and gas without permitting any deduction for expenses incurred by them in extracting and marketing such oil and gas.” 66 P.2d at 1222.
*755To the same effect are Bryson v. Bramlett, 204 Tenn. 347, 321 S.W.2d 555 (1958) and and I. H. P. Corp. v. 210 Central Park South Corp., 16 A.D.2d 461, 228 N.Y.S.2d 883 (1962). In the latter case the court stated that
“It is thus apparent that the rule which forbids combination of equitable relief with an award of punitive damages is founded upon an obsolete procedural division with no rational basis, apart from history, in modern substantive law or equity. If the facts warrant, it may be entirely appropriate to grant an injunction or another forms [sic] of equitable relief and also exact punitive damages as a deterrent against flagrantly unlawful conduct, whether embraced within an injunction or not. Such freedom to grant whatever judicial relief the facts call for is entirely consonant with substantive legal and equitable principles and with present-day concepts of procedural efficiency.” 228 N.Y.S.2d at 888.
Similarly there are federal cases in which the trial court has awarded equitable relief and in the same action enforced statutory penalties for treble damages or other penalties comparable to punitive damages. See Leimer v. Woods, 196 F.2d 828 (8th Cir. 1952); Aladdin Mfg. Co. v. Mantle Lamp Co. of America, 116 F.2d 708 (7th Cir. 1941); Keller Products v. Rubber Linings Corp., 213 F.2d 382, 47 A.L.R.2d 1108 (7th Cir. 1954). See also: Orenstein v. United States, 191 F.2d 184 (1st Cir. 1951), in which although no punitive damages were ultimately awarded, the court entertained a suit for both injunctive relief and treble damages, and “Punitive Damages Held Recoverable in Action For Equitable Relief,” 63 Columbia Law Rev. 175 (1963). It is my opinion that the federal decisions and those decisions from California and New York, although numerically a minority, are supported by the better reasoning.
Although an award of punitive damages is not necessarily prohibited in an action for equitable relief, it remains to be considered whether such an award was proper in the present case. This court has stated that an award of punitive damages must bear a reasonable relationship to the actual damages awarded. Williams v. Bone, 74 Idaho 185, 259 P.2d 810 (1953); Driesbach v. Lynch, 74 Idaho 225, 259 P.2d 1039 (1953); White v. Doney, 82 Idaho 217, 351 P.2d 380 (1960). In the case at bar, not only were no actual damages awarded, but the respondent failed to prove that any actual damages were sustained. For that reason it is my opinion that the award of $6,000 punitive damages cannot be upheld. The majority opinion points out that the conduct of the appellants was motivated by malice and was performed with an evil intent. However, the fact remains that, as far as the record shows, no actual damages were proven. Under such circumstances it is inappropriate to award punitive damages.
The majority opinion contends that the only purpose of requiring a showing of actual damages prior to awarding punitive damages is to insure that there is an independent cause of action and that the suit was not brought merely for the purpose of obtaining punitive damages, which purpose is equally accomplished by the request for equitable relief in the present case. Nonetheless, the requirement of a showing of actual damages serves a second purpose. It insures that a defendant will not be punished to an extent disproportionate to the actual damage he has done.
It should also be noted that Title 18, Chapter 43 of the Idaho Code provides criminal liability for interference with water rights and delivery devices, and under I.C. § 18-113 such conduct is punishable only as a misdemeanor. The deterrence of future conduct, which the majority opinion relies upon as a theory to justify the award of $6,000 punitive damages, is thus already accomplished by the legislative enactments governing such conduct. There is no need for further punishment by means of punitive damages.
*756This court has stated on several occasions that “Exemplary damages are not a favorite of the law, and the power to give such damages should be exercised with caution and within the narrowest limits.” Williams v. Bone, 74 Idaho 185, 259 P.2d 810 (1953); Zollinger v. Big Lost River Irrigation Dist., 83 Idaho 411, 364 P.2d 176 (1961). As this court stated in Williams v. Bone, 74 Idaho 185, 259 P.2d 810 (1953):
“While there is no fixed or mathematical proportion, ratio, or relation between the amount of actual damages and the amount of exemplary or punitive damages, which in a proper case may be awarded, there is ample authority for the proposition that an award must not be so disproportionate to the actual damages sustained as to be the result of passion or prejudice rather than reason, and an award of exemplary damages must bear some reasonable relation or proportion to the actual damages, the real question being whether passion rather than reason dictated the verdict.” 74 Idaho at 190, 259 P.2d at 813.
See also Annot. 17 A.L.R.2d 527 wherein it is stated that
“A large number of the decisions recognizing the rule that a showing of actual damages is a necessary predicate for an award of exemplary damages use language indicating that there must actually be a finding and award of actual damages before recovery of punitive damages is justified.” (at 535)
The majority opinion states that “The absence of a showing of actual damages need not bar an award of punitive damages, for such a showing is not a talismanic necessity.” There is, however, no authority cited for such a statement. Similar language is found in this court’s opinion in Crystal Dome Oil & Gas Co. v. Savic, 51 Idaho 409, 6 P.2d 155 (1931), but that case is distinguishable from the case at bar. There the court stated that in a replevin action the jury may award punitive damages where malice is proved and that
“In such cases, definite proof of actual damages is unnecessary. To show that a legal right has been violated is sufficient, the violation itself supplying a foundation for nominal damages.” 51 Idaho at 411, 6 P.2d at 156.
In fact, however, actual damages were proved in that case, and, in any event, no punitive damages were awarded. Therein the judgment of the lower court reveals that the plaintiff was awarded either the return of an oil and gas report which the defendant had appropriated, or its value, plus damages in the amount of $1,000 for the loss of use of the report during the month the defendant retained it. The $1,000 was actually a compensatory award for loss of use of the report, not punitive damages. The language of the decision quoted above, then, is no more than dictum and, additionally, is stated without any authority for support. Subsequent decisions of this court have not followed the statement in Crystal Dome Oil & Gas Company v. Savic, but rather have held that there must be a reasonable relationship between actual and punitive damages. Williams v. Bone, 74 Idaho 185, 259 P.2d 810 (1953); Driesbach v. Lynch, 74 Idaho 225, 259 P.2d 1039 (1953); White v. Doney, 82 Idaho 217, 351 P.2d 380 (1960). This rule, in my opinion, is the better one. Absent a showing of some actual damage, it cannot be said that an award of $6,000 punitive damages is reasonably related to the actual damage. Accordingly I would reverse the decision of the district court in this regard.
SMITH, C. J., concurs in the foregoing. (SMITH, C. J., participated in this decision prior to retirement.)