California Punitives by Horvitz & Levy
  • Briefs in Roby v. McKesson Now Available on Cal. Supreme Court Website

    Woo-hoo! This is the sort of thing an appellate nerd like me gets excited about. The California Supreme Court has introduced a terrific new feature to its website. The court has posted links to the briefs in the cases on the court’s September 2 oral argument calendar (including Roby v. McKesson). The links include both the review-stage briefs and the merits-stage briefs. I certainly hope the court continues this feature for future argument calendars.

    Hat tip: The Complex Litigator. As Scott at the Complex Litigator points out, this may be the court’s response to a recent controversy over the court’s distribution of briefs to Lexis and WESTLAW. Unlike those fee-based services, the court’s website makes the briefs freely available to anyone, conveniently grouped together so that no searching is necessary.

  • California Supreme Court Will Hear Oral Arguments in Roby v. McKesson on Sept. 2

    In prior posts, we have mentioned in Roby v. McKesson, a case pending before the California Supreme Court. The briefing in that case has focused primarily on employment law issues, but punitive damages are in the mix.

    For example, Roby argues that Court of Appeal went too far in reducing her punitive damages award from $15 million down to $2 million, for a punitive-to-compensatory ratio of 1.4 to 1. Roby’s petition for review suggested that the reduction was the result of a “knee-jerk adherence” to the “mere suggestion” in State Farm v. Campbell that the ratio of punitive damages to compensatory damages should be low, perhaps no more than 1 to 1, in cases involving substantial compensatory damages.

    In April of this year, the Supreme Court asked the parties to file supplemental briefs to address whether the jury’s damages awards are so ambiguous that a new trial is required. That question raises the distinct possibility that the Supreme Court won’t even reach the punitive damages issues in Roby, but we’re continuing to keep an eye on this one just in case. Oral argument has been set for Sept. 2. Click here to view the court’s online docket.

  • California Supreme Court Denies Request to Re-Publish Buell-Wilson

    The California Supreme Court today denied a request to publish the Court of Appeal opinion in Buell-Wilson v. Ford. (See the court’s online docket.) Justice Werdegar dissented.

    The order denying publication is good news for defendants, especially products liability defendants, because the Buell-Wilson opinion included some language that would make it more difficult to defeat punitive damages claims in such cases.

    For those of you who haven’t been following the Buell-Wilson saga, the Court of Appeal in this case reaffirmed a $55 million punitive damages award even after the US Supreme Court vacated the Court of Appeal’s prior opinion affirming the same award. As far as we know, Buell-Wilson is the largest punitive damages award ever to survive appeal in California.

    The California Supreme Court granted review, which had the effect of de-publishing the Court of Appeal’s published opinion. The Supreme Court put the case on hold pending the outcome if Philip Morris v. Williams (Williams III). When the U.S. Supreme Court dismissed Williams III, the Cal. Supreme Court did the same in Buell-Wilson.

    The dismissal left Ford on the hook for the judgment, but did not restore the published status of the Court of Appeal opinion. Consumer lawyers Bisnar & Chase asked the Supreme Court to re-publish the Court of Appeal opinion. In California, anyone can submit such a request, although they are rarely granted. Requesting publication in this case was a saavy move, but ultimately unsuccessful.

    This will bring an end the Buell-Wilson saga, unless Ford can get the U.S. Supreme Court to step in once again.

  • California Supreme Court Denies Review in Blanks v. Seyfarth Shaw

    According to the California Supreme Court’s conference results list, the court has declined to review Blanks v. Seyfarth Shaw, a case we discussed in a prior post.

  • Cal. Supreme Court Dismisses Review in Buell-Wilson v. Ford

    The California Supreme Court has changed its mind about reviewing the $55 million punitive damages award in Buell-Wilson v. Ford. The Court issued an order today dismissing review, according to the court’s online docket.

    As we noted in our prior post about this case, the plaintiff in Buell-Wilson moved to dismiss review in light of the U.S. Supreme Court’s decision to dismiss certiorari in Philip Morris v. Williams (Williams III). The Supreme Court could have used Buell-Wilson to decide some important issues raised by the petition which had nothing to do with the issue in Williams III. But the Supreme Court decided to remand the case back to the Court of Appeal without deciding anything.

    Although the Supreme Court won’t be addressing any of the issues raised by Buell-Wilson, the Supreme Court’s grant of review has an important consequence for California punitive damages litigation. When the Supreme Court granted review, the Court of Appeal’s published opinion was automatically de-published, preventing litigants from citing that opinion in any California court. (See California Rules of Court, rules 8.1105(e) and 8.1115(a).) Even though the Supreme Court dismissed review, the Court of Appeal’s opinion in Buell-Wilson remains depublished and uncitable. That’s good news for other defendants in products liability cases in California, because the opinion contained some language making it easier for plaintiffs to recover punitive damages in such cases. But the depublication of Buell-Wilson is cold comfort for Ford, which must now pay the $55 million punitive damages award upheld by the Court of Appeal.

    UPDATE: Cal Biz Lit blogs about the dismissal here.

  • Cal. Supreme Court Requests Supplemental Briefing in Roby v. McKesson

    The California Supreme Court has asked the parties in Roby v. McKesson to address the following question:

    Are the jury’s compensatory damages verdicts so ambiguous as to
    whether there is overlapping recovery as to require a remand to the trial
    court for a new trial limited to determining the amount of compensatory and
    punitive damages?

    Roby has been pending before the California Supreme Court since April 2007. The issues before the court are primarily questions of employment law, but they also include a punitive damages issue. Specifically, the petitioner contends that the Court of Appeal erred when it determined that a $15 million punitive damages award was excessive and ordered the award reduced to $2 million, roughly 1.4 times the compensatory damages. The question that the Supreme Court is now posing suggests that the court may order a new trial in that case without deciding the punitive damages issue.

    A very similar issue is also before the California Supreme Court in Buell-Wilson v. Ford. In that case, the Court of Appeal took the opposite approach from Roby; the court refused to reduce a punitive damages award to a 1-to-1 ratio, notwithstanding the U.S. Supreme Court’s admonition in State Farm v. Campbell that a 1-to-1 ratio may be the outer limit in cases involving substantial compensatory damages. The defendant petitioned for review on that issue.

    There is a chance, however, the California Supreme Court won’t address this issue in Buell-Wilson either. As we have noted, the plaintiff in Buell-Wilson has moved to dismiss review based on the U.S. Supreme Court’s decision to dismiss certiorari in Williams III.

    Interestingly, the lawyer who represents the defendant in Roby also represents the plaintiff in Buell-Wilson. He may find himself on opposite sides of the same issue if the Supreme Court actually hears both cases on the merits. He will probably have to argue that, even though both cases involve substantial compensatory damages, the facts of Buell-Wilson permit a ratio in excess of 1-to-1 while the facts of Roby do not.

  • California Supreme Court Denies Review in Food Pro v. Farmers

    Last December we blogged about the Court of Appeal’s published opinion in Food Pro v. Farmers, which rejected a plaintiff’s claim for punitive damages in an insurance bad faith case.

    The insurance company petitioned for review to the California Supreme Court (see the court’s online docket here). Obviously they weren’t challenging the opinion’s punitive damages analysis; they were challenging the portion of the opinion in which the Court of Appeal concluded (contrary to the trial court’s ruling) that the insurer had a duty to defend its insured from a third party lawsuit. The Supreme Court denied review yesterday, according to the Supreme Court’s conference results.

    Although the petition for review did not address the punitive damages issue, the denial of review is relevant to this blog. If the Supreme Court had granted review, the entire opinion, including the punitive damages discussion, would have been vacated (and therefore not citeable in California courts).

  • Plaintiff Asks California Supreme Court to Dismiss Review in Buell-Wilson v. Ford

    The plaintiff in Buell-Wilson has asked the California Supreme Court to dismiss review in that case. (See the court’s online docket.)

    The court agreed to review Buell-Wilson last year but deferred briefing pending the U.S. Supreme Court’s decision in Williams III. As we noted last week, the U.S. Supreme Court’s decision to dismiss certiorari in Williams III without deciding the case could cause the California Supreme Court to dimiss review in Buell-Wilson as well. On the other hand, the petition in Buell-Wilson raises recurring issues that are not related to Williams III, so perhaps the court will call for briefing on the merits in Buell-Wilson notwithstanding the dismissal in Williams III.

  • How Will the California Supreme Court React to the Williams III Cert. Dismissal?

    As we noted below, the U.S. Supreme Court today dismissed certiorari in Philip Morris v. Williams (Williams III). Among the many questions raised by the dismissal is what will happen in Buell-Wilson v. Ford, currently pending before the California Supreme Court.

    The Cal. Supremes granted review in Buell-Wilson last summer, but deferred briefing pending the disposition of Williams III. Now that the U.S. Supreme Court has dismissed Williams III without a decision , the Cal. Supreme Court will either have to order briefing in Buell-Wilson and address the issue that was unaddressed in Williams III, or dismiss review in that case as well. As my co-blogger Jeremy Rosen pointed out, two of the three issues raised in the Buell-Wilson petition for review are not dependent on the outcome of Williams III, so even if the court decides not to address the Williams III issue, it may decide to resolve these issues.

  • California Supreme Court Denies Review in Brewer v. Premier Golf

    According to the California Supreme Court’s Conference Results posted today, the court has denied review in Brewer v. Premier Golf Properties, a case we previously blogged about here and here.

    Among other things, the Court of Appeal’s opinion in Brewer held that punitive damages are unavailable in an action for violations of statutes and regulations governing pay stubs, minimum wages, and meal and rest breaks. The court concluded that, because those statutes and regulations created new rights that did not exist at common law, the statutory remedies for violations of meal/rest break, minimum wage, and pay stub laws are the exclusive remedies. Also, the court held that punitive damages are unavailable for these sorts of claims because they ultimately arise from a contractual obligation, whereas Civil Code section 3294 provides that punitive damages are only available for the breach of an obligation not arising from contract.