It would appear that, if a court follows the Stevens approach in any future case, a clear conflict will be set up between Stevens and Schelbauer.
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More on Bullock v. Philip Morris: Curing Legal Error with a Remittitur?
Another interesting aspect of yesterday’s opinion in Bullock (discussed in earlier posts here and here) is the court’s analysis of the conditional new trial/remittitur procedure, under which a court orders that a new trial will take place unless the plaintiff consents to a reduction of the damages award. The Bullock court outlines the usual use of a remittitur to cure an award that is flawed simply because it is just too high in light of the evidence. But the court goes on to say a remittitur can also be used in some cases to cure a defect in an award that is the result of a legal error that affected the jury’s deliberations. Specifically, “remittitur may be appropriate where instructional error resulted in an excessive award and the amount of the excess is ascertainable.” Ultimately, on the particular facts of Bullock, the court concluded, “we cannot determine how the instructional error that we have found affected the amount of the punitive damages award and we cannot substitute our own assessment of the appropriate amount of punitive damages for that of a jury (or a judge on a new trial motion). We therefore conclude that a remittitur by this court would be inappropriate.”This result – an unconditional new trial order – makes sense to me, but what’s a little harder to fathom is the court’s reference, without further elaboration, to Stevens v. Snow (1923) 191 Cal. 58, 68, in which the Supreme Court used a remittitur to, in the words of the Bullock court, “reduc[e] by one-half the amount of a judgment based on instructional error and error in the admission of evidence despite the Supreme Court’s express acknowledgment that it could not determine how the errors affected the amount of the judgment.” What’s a little odd here is that no subsequent court seems to have followed Stevens on this matter of using a remittitur to cure an award that is potentially inflated due to legal error, and the Supreme Court 60 years later – in Schelbauer v. Butler Manufacturing Co. (1984) 35 Cal.3d 442, 454 – exhaustively analyzed and expressly disapproved the use of a remittitur as a means to cure legal error, holding that use of remittitur is “confined to cases in which an excessive damage award [is] the only error in the jury’s verdict.” Several other courts have reached the same conclusion, but the Bullock court didn’t cite Schelbauer or any of the other decisions limiting remittitur to cases involving only pure excessiveness challenges to a damages award. -
Thanks for the Links
Thanks to the following blogs for adding California Punitive Damages to their blogroll:
And a special thanks to Greg May at the California Blog of Appeal for this post and for his helpful advice on our foray into the blogosphere.
UPDATE (1/30/08 at 1:46 pm): Additional thanks to Rick Hasen at Election Law Blog for this post.
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Dueling Op-Eds on Punitive Damages
We previously blogged (here and here) about the California Chamber of Commerce’s (unsuccessful) sponsorship of a bill to impose a ratio-based cap on punitive damages. In support of that bill, Kyla Christofferson, a Policy Advocate with the Chamber, submitted a letter to the editor of the Daily Journal (subscription required).
Last week, the Consumer Attorneys of California responded with their own Daily Journal letter to the editor. The letter, authored by Don Ernst, president of the Consumer Attorneys, describes the Chamber of Commerce as a dishonest “front group for corporations seeking to avoid accountability for wrongdoing and negligence.” Aside from attacking the Chamber’s credibility, Ernst’s main argument is that reform is unnecessary because disproportionate punitive damage awards are rare.
I am puzzled by the argument about the rarity of excessive punitive awards. Why should our justice system tolerate any excessive awards, even if they are rare? I doubt that the defendants who get hit with excessive punitive awards find much solace in the notion that such awards are uncommon. And if excessive punitive damages are so rare, why are the Consumer Attorneys so opposed to limiting such awards? What difference would it make, except to the defendants who are unlucky enough to be on the wrong end of those rare awards?
Ernst supports his argument by listing cases in which punitive damages motivated manufacturers to remove dangerous products from the market. Interestingly, he doesn’t mention whether the awards in those cases would have been subject to the cap proposed by the Chamber. Out of curiousity, I looked up one of the awards he mentions – -the $125 million punitive damage award in Grimshaw v. Ford Motor Co., the infamous Ford Pinto case. Ernst cites Grimshaw as an example of an award that changed corporate behavior, but he doesn’t mention that the punitive damages award in Grimshaw was reduced to $3.5 million (by the trial court), compared to compensatory damages of $2 million. If a ratio of 1.75-to-one was sufficient to change Ford’s conduct in Grimshaw, that case hardly supports Ernst’s argument against the three-to-one cap proposed by the Chamber.
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Punitive Damages and the Election
A survey of the official campaign websites for the six major party candidates for president shows only three that mention punitive damages as an issue in the campaign.
Governor Romney and Mayor Giuliani indicate they support some form of cap or limitation on punitive damages and Senator Edwards contends that efforts to roll back or limit punitive damages are dangerous. From a search of their official websites, it does not appear that Senator McCain, Senator Clinton, or Senator Obama have taken an official campaign position on punitive damages. None of the candidates seem to provide any detailed legislation they would support regarding the issue of punitive damages.