California Punitives by Horvitz & Levy
  • San Diego jury awards $7.5 million in punitive damages in medical device case

    We don’t see many cases involving punitive damages in medical malpractice cases, but the San Diego Union-Tribune reports that a jury there has awarded $500,000 in punitive damages against a doctor who allegedly mismanaged the plaintiff’s treatment following knee surgery.  The jury also awarded $7 million in punitive damages against Breg Inc., the maker of a medical device (the Polar Care 500) that allegedly gave the plaintiff frostbite.  The compensatory damages award is $5.2 million. (Engler v. Chao, SDSC no. GIC870982.)

    The article describes accusations of negligence against the doctor, but does not explain the plaintiffs’ theory for recovering punitive damages – there’s no discussion of how the plaintiff proved the defendants acted with malice, oppression, or fraud.   

    The case seems to be getting more press than the usual civil lawsuit because the doctor involved happens to be the team physician for the San Diego Chargers.  As the story notes, the California Medical Board is seeking to revoke his license based on three alleged incidents of negligent care in unrelated cases.

  • $44 million punitive damages award reversed in unpublished opinion (VW Credit v. Keuylian)

    In California, two recurring scenarios appear in the unpublished opinions on punitive damages: (1) the court reverses a punitive damages award because the plaintiff obtained a default judgment but did not provide the defendant with adequate notice of the amount of punitive damages the plaintiff was seeking, or (2) the court reverses a punitive damages award because plaintiff failed to introduce meaningful evidence of the defendant’s financial condition.

    In this unpublished opinion from the Fourth Appellate District, Division Three, we have a twofer: the plaintiff provided insufficient notice of the amount it was seeking by default and failed to introduce meaningful evidence of the defendant’s financial condition.  The $44 million punitive damages award in this case never had a chance.

  • Videotaped debate over “Hot Coffee” and tort reform

    Last year we blogged about the documentary “Hot Coffee,” which focuses on Liebeck v. McDonald’s and a few other cases to illustrate the evils of tort reform.  As noted in our prior post, the film’s director Susan Saladoff said she made the film as an antidote to what she perceives as a pro-defendant bias in the mainstream media’s treatment of tort reform.

    In this video provided by Widener University School of Law, you can view a debate between Ms. Saladoff and Victor Schwartz, general counsel for the American Tort Reform Association.  The video has something for folks on both sides of the issue.  If you’re a fan of the movie, you’ll enjoy seeing Ms. Saladoff passionately explain why everyone should see this film, because it opens people’s eyes to the corporate takeover of the American justice system.  If you’re not a fan of the movie, you’ll enjoy seeing Mr. Schwartz identify all the parts of the film he believes are false or misleading.

    Warning, this video was recorded via Skype and its a little garbled in places.  There are some moments when students are asking questions of Ms. Saladoff and Mr. Schwartz, but the questions are inaudible.  And the video begins in the middle of Ms. Saladoff’s comments.  Despite these technical glitches, I found the video quite interesting.

    Hat tip: TortsProf Blog

    Related posts:

    “Hot Coffee” documentary takes aim at media depictions of civil litigation

  • Judge Rex Heeseman’s latest op-ed on punitive damages

    Judge Rex Hesseman of the Los Angeles County Superior Court has an op-ed in the Los Angeles & San Francisco Daily Journal entitled “‘Finances’ and punitive damages.”  (Subscription required.)  Judge Heeseman, who writes regularly on punitive damages and insurance law, focuses this time on Bankhead v. ArvinmeritorHere’s his conclusion about the potential effects of the Court of Appeal’s decision to affirm a $4.5 million punitive damages award based on expert opinion that the defendant could pay such an award, notwithstanding its negative net worth:

    It can be asserted that focusing upon finances is a sort of an “end run” around the aforementioned “guidelines” of the U.S. Supreme Court.  Furthermore, the emphasis by Bullock III and ArvinMeritor on the “specific facts of each case” (admittedly echoing comments in Campbell) may bring flexibility, but also uncertainty.  . . .  And, for the “punitive damages phase” in some lawsuits, is it now advisable (required?) to have your “expert witness” ready to testify about “net worth,” “financial condition” and/or “ability to pay”?  Will there be a “dueling of experts” in that context, similar to that in some other litigation (e.g. standard of care in medical malpractice)?

    We hope the California Supreme Court will provide some guidance on these questions in the furture, but as we noted in our most recent post about Bankhead, the California Supreme Court declined to wade into this area of the law in the context of that case.

    Related posts:

    California Supreme Court denies review in Bankhead v. Arvinmeritor

    Defendant files petition for review in Bankhead v. Arvinmeritor

    Published opinion affirms $4.5M punitive damages award in asbestos case (Bankhead v. ArvinMeritor)  

  • Fannie Mae immune from punitive damages (for now)

    The Federal National Mortgage Association, better known as Fannie Mae, cannot be liable for punitive damages so long as it remains under the conservatorship of the Federal Housing Finance Agency.  So says an order issued by U.S. District Judge Rosemary Collyer of the U.S. District Court for the District of Columbia.  (Herron v. Fannie Mae, no. 1:10-CV-00943-RMC.)  
    That’s consistent with the general rule that instrumentalities of the federal government are not subject to punitive damages.  (See, e.g., Woodland Production Credit Assn. v. Nicholas (1988) 201 Cal.App.3d 123, 129 [“[n]either the federal government nor its instrumentalities may be held liable for punitive damages unless there is an express statutory authorization for such an award”].)

    Hat tip: The Blog of LegalTimes

  • California Supreme Court denies review in Bankhead v. Arvinmeritor

    The California Supreme Court today decided not to review the Court of Appeal’s decision in Bankhead v. Arvinmeritor, which upheld a $4.5 million punitive damages award against a defendant with a negative net worth.  So that published opinion will remain on the books and California law will remain murky as to what constitutes “meaningful” evidence of the defendant’s financial condition for the purpose of imposing punitive damages.

    Related posts:

    Defendant files petition for review in Bankhead v. Arvinmeritor

    Published opinion affirms $4.5M punitive damages award in asbestos case (Bankhead v. ArvinMeritor)

  • Justice Kennedy issues stay in Icicle Seafoods v. Clausen

    SCOTUSblog is reporting that Justice Kennedy has ordered a stay of enforcement in the Icicle Seafoods case we blogged about earlier this month.  The order prevents plaintiffs from collecting on their $1.3 million punitive damages award while the defendant’s cert. petition is pending, on the condition that the defendant’s appeal bond remains in effect during that time.

    Related post:

    Cert. petition raises punitive damages issues (Icicle Seafoods v. Clausen)

  • Los Angeles jury awards $18M in punitive damages in asbestos case, on top of $30 million compensatory damages

    A jury in Los Angeles has awarded $18 million in punitive damages in an asbestos personal injury case against Dow Chemical subsidiary Union Carbide, according to this press release from the plaintiff’s lawyers.  (Izell v. Union Carbide Corp., et al., LASC no. BC469931.)

    The jury had previously awarded $30 million in compensatory damages, consisting entirely of non-economic damages (pain and suffering).  Because the jury allocated 60 percent to fault to Union Carbide, it will be responsible for $18 million in compensatory damages, resulting in a one to one ratio of punitive to compensatory damages.

    By my count, this is the third largest punitive damages award of the year in California.

  • Oakland jury awards $21M in punitive damages against Jehovah’s Witnesses

    MSNBC.com is reporting that yesterday a jury in Oakland awarded $21 million in punitive damages, on top of a compensatory damages award of $7 million, to a woman who alleged she was sexually abused by a member of the Fremont congregation of Jehovah’s Witnesses.  (Jane Doe v. The Watchtower Bible & Tract Society, Alameda Superior Court no. HG11558324.)

    Defense counsel says he is planning to appeal; he says he is not aware of any other case in which a religious organization was held liable for wrongdoing committed by a church member who was not in an an official position of responsibility.

    Update:  Here is a link to the Court of Appeal online docket.  Some documents in the case have been posted here.

  • Defendant files petition for review in Bankhead v. Arvinmeritor

    Back in April we blogged about this published opinion, which affirmed a $4.5 million punitive damages award against a defendant whose audited financial statements showed a negative net worth.  The defendant, Arvinmeritor, has filed a petition for review with the California Supreme Court, raising the following issues:

    1. Should a publicly traded company’s net worth be the measure of “financial condition” for purposes of evaluating its ability to pay a punitive damage award, in the absence of evidence that the company improperly manipulated the net worth number to lower it?

    2. Can the factor of comparable civil or criminal penalties, the third guidepost of federal due process review established by the United States Supreme Court, be considered “essentially irrelevant” in all cases involving common-law tort duties, or in asbestos-related personal injury cases in particular?

    The Supreme Court’s deadline for ruling on the petition is July 29.  You can track the status of the petition on the Supreme Court’s online docket.

    Full disclosure: Horvitz & Levy filed a letter in support of the petition for review on behalf of the U.S. Chamber of Commerce, the National Association of Manufacturers, and the Motor & Equipment Manufacturers Association.