), (2015) 239 Cal.App.4th 165, 194 [191 Cal.Rptr.3d 263], internal, 21 Cal.3d at p. 928, internal citations and footnote omitted. If, you decide to award punitive damages, you should consider all of the. appropriate declaration and support papers as provided by California law. 64, Punitive Damages - Individual Defendant - Bifurcated Trial, ] in punitive damages. 16-CV-00135-LHK ORDER RE: DEFENDANT’S MOTIONS IN LIMINE AND MOTION TO BIFURCATE PUNITIVE DAMAGES injury, harm, or damage actually suffered by the plaintiff and proved at trial. . ), • “The wealth of a defendant cannot justify an otherwise unconstitutional punitive, U.S. at p. 427, internal citation omitted. Upon the clearest proof of malice in fact, it is, still the exclusive province of the jury to say whether or not punitive damages, shall be awarded. United States District Court Northern District of California UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN JOSE DIVISION NAIDONG CHEN, et al., Plaintiffs, v. FLEETCOR TECHNOLOGIES INC., Defendant. A plaintiff, seeking punitive damages is not seeking a mere declaration by the jury that he is, entitled to punitive damages in the abstract. 318, 813 P.2d 1348], (2017) 16 Cal.App.5th 932, 942 [224 Cal.Rptr.3d 751]. In our view, Judicial Council of California. 2d 341,343 (Fla. 2d Dist. An award of nominal damages cannot support an award of punitive damages. But even after establishing a case where punitive, damages are permissible, he is never entitled to them. plaintiffs, as where a scheme worthy of punitive damages does not fully succeed. The precise award in any case, of course, must be based upon the, facts and circumstances of the defendant’s conduct and the harm to the plaintiff.”, • “In determining whether a punitive damages award is unconstitutionally, to compensatory damages, regardless of whether the fees are awarded by the, trier of fact as part of its verdict or are determined by the trial court after the, Cal.4th 363, 368 [203 Cal.Rptr.3d 23, 371 P.3d 242]. Proof must be shown – by clear and convincing evidence – … • “[Section 3295(d)] affects the order of proof at trial, precluding the admission of, evidence of defendants’ financial condition until after the jury has returned a, verdict for plaintiffs awarding actual damages and found that one or more, defendants were guilty of ‘oppression, fraud or malice,’ in accordance with Civil, 272, 274-275 [34 Cal.Rptr.2d 490], internal citations omitted. only a small amount of economic damages.’ The converse is also true, however. ), • “Evidence of the defendant’s financial condition is a prerequisite to an award of, punitive damages. Bifurcation of Punitive Damages At trial, determinations regarding punitive damages are sometimes "bifurcated," or tried separately, from other issues. BIFURCATION OF PUNITIVE DAMAGES. . Because compensatory damages are designed to, make the plaintiff ‘whole,’ punitive damages are a ‘windfall’ form of recovery.”, Cal.Rptr.2d 898, 882 P.2d 894], internal citations omitted. . . 184. Punitive Damages Under California Law. that it may not use evidence of out-of-state conduct, to punish a defendant for action that was lawful in the jurisdiction where it, 422.) particular nature of the defendant’s acts in light of the whole record; clearly, different acts may be of varying degrees of reprehensibility, and the more, reprehensible the act, the greater the appropriate punishment, assuming all other, factors are equal. . You must not, use the amount of punitive damages awarded in other cases to determine the, amount of the punitive damage award in this case, except to the extent you, determine that a lesser award, or no award at all, is justified in light of the. (See Civil Code section 3295(d).) ), • “Though due process does not permit courts or juries, in the calculation of, punitive damages, to adjudicate the merits of other parties’ hypothetical claims, against a defendant under the guise of the reprehensibility analysis, this does not, mean that the defendant’s similar wrongful conduct toward others should not be, considered in determining the amount of punitive damages. 1513, 155 L.Ed.2d. ), • “It follows that the wealthier the wrongdoing defendant, the larger the award of, exemplary damages need be in order to accomplish the statutory objective.”, • “ ‘A plaintiff, upon establishing his case, is always entitled of right to, compensatory damages. 2570, No. .’ This does not mean, however, that the defendant’s similar, wrongful conduct toward others should not be considered in determining the, Cal.App.4th 543, 560 [131 Cal.Rptr.3d 382]. real money in a specific amount to be set by the jury. Punitive Damages, §§ 14.1-14.12. c. Punitive damages may be awarded only if compensatory damages have been awarded in the first stage of the trial. 16-cv-00135-lhk28 order order re: defendant’s motions in limine and motion to bifurcate punitive damages 1 2 3 4 5 6 7 8 9 10 11 . Such evidence may not have been relevant to the issues of liability, but may become relevant during the second phase. These findings raise questions about the merits of bifurcation in cases that involve multiple claims for damages. (c)), prohibiting claims for punitive damages from stating an amount or amounts (§ 3295, subd. See Bihun v. AT&T Information Systems, Inc. (1993) 13 Cal.App.4th 976, 991: They, demonstrate what should be obvious: Single-digit multipliers are more likely to, comport with due process, while still achieving the State’s goals of deterrence, and retribution, than awards with ratios in range of 500 to 1 . January 21, 2014. Feb. 1, 2012), addressed the EEOC’s practice of seeking “punitive damages in Phase I” bifurcation, and its push for corresponding discovery bifurcation in pattern or practice cases. • Evidence of Profits or Financial Condition. 3. Punitive Damages - Individual Defendant - Bifurcated Trial (Second Phase) - Free Legal Information - Laws, Blogs, Legal Services and More The folks over at Mayer Brown's Guideposts have a new post entitled "To Bifurcate or Not to Bifurcate," discussing whether it is strategically wise for defendants to take advantage of the bifurcation procedure that exists for punitive damages trials in many states, including California. The bracketed phrase concerning “potential harm” might be, appropriate, for example, if damages actually caused by the defendant’s acts are not, recoverable because they are barred by statute (, bad faith insurance case, plaintiff died before judgment, precluding her estate’s, recovery of emotional distress damages]), or if the harm caused by defendant’s acts, could have been great but by chance only slight harm was inflicted. (1974) 13 Cal.3d 43, 65 [118 Cal.Rptr. In such cases, the proper ratio would be the ratio of punitive damages to the, Cal.App.4th 1135, 1162, fn. (1991) 54 Cal.3d 105, 119 [284 Cal.Rptr. [A]n award of more than four times the amount of, compensatory damages might be close to the line of constitutional, impropriety. Many defense trial lawyers prefer to avoid a second round of closing arguments before a jury that has already rejected the defendant's arguments on liability and found that the defendant acted with malice. following factors in determining the amount: 1. Other reforms pertaining to punitive damages included raising the burden of proof for recovery to "clear and convincing evidence" (§ 3294, subd. In addition, the parties agree that the conditions of the stipulation shall be binding upon both parties. The parties make the following express waivers of rights: 1. harmed the plaintiff also posed a substantial risk of harm to the general public, and so was particularly reprehensible - although counsel may argue in a, particular case that conduct resulting in no harm to others nonetheless posed a, grave risk to the public, or the converse. (See Civil Code section 3295(d).) . 6 California Points and Authorities, Ch. Because the award, whatever its amount, cannot be sustained absent evidence of the defendant’s, financial condition, such evidence is ‘essential to the claim for relief.’ ” (, • “A defendant is in the best position to know his or her financial condition, and, cannot avoid a punitive damage award by failing to cooperate with discovery, orders. Bifurcation Serves the Ends of Convenience and Judicial Economy.....5 4. INDIANAPOLIS — An Indiana federal magistrate judge on Oct. 30 denied a motion by Cook Medical Inc. to bifurcate the issue of punitive damages during discovery and during trials involving the device maker’s inferior vena cava (IVC) filters (In Re: Cook Medical, Inc., IVC Filters Marketing, Sales Practices and Product Liability Litigation, MDL Docket No. d. In the second stage of a bifurcated trial, the trier of fact shall determine if a defendant is liable for punitive damages… But we're still waiting for a published California opinion to address this issue and put to rest the notion that the second phase should focus entirely on the defendant's financial condition. 389, 582 P.2d 980] [in a. TXO Production Corp. v. Alliance Resources Corp. (2003) 538 U.S. 408, 419 [123 S.Ct. You may not increase the, punitive award above an amount that is otherwise appropriate, resources. 15 California Forms of Pleading and Practice, Ch. 305], internal citations omitted. ‘In most cases, evidence of earnings or profit alone are not sufficient “without examining the, liabilities side of the balance sheet.” [Citations. ), • “[I]n some cases, the defendant’s financial condition may combine with high, reprehensibility and a low compensatory award to justify an extraordinary ratio, between compensatory and punitive damages. The likelihood of future punitive damage awards may, also be considered, although it is entitled to considerably less weight.” (, 525], internal citations omitted.) 1:10-CV-1234 (S.D. Civil Code section 3295(d). Harm to others may be relevant to, determining reprehensibility based on factors (a)(2) (disregard of health or safety of, others) and (a)(4) (pattern or practice). Of course, there remains a risk that the jury will use the punitive awards from prior cases as a measuring stick for its own punitive award, so defendants may elect not to introduce it even at the cost of forfeiting the argument that they have been punished enough. Mandatory Bifurcation of Punitive Damages Upheld Posted on September 8th, 2014 by sutteroconnell A Cuyahoga County trial court’s decision to vacate a jury verdict and order a new trial for failure to bifurcate the issue of punitive damages was affirmed last week. Civil Code section 3294. . Judge Willett (former Tex. ), • “With the focus on the plaintiff’s injury rather than the amount of compensatory, damages, the [‘reasonable relation’] rule can be applied even in cases where only. The post observes that many defense lawyers prefer not to bifurcate the issue of punitive damages into a separate phase of trial. But the wreck of a punitive damage award is seldom as bad as it looks. A plaintiff is entitled to such damages only after the jury, in, the exercise of its untrammeled discretion, has made the award.’ ” (, • “In light of our holding that evidence of a defendant’s financial condition is, essential to support an award of punitive damages, Evidence Code section 500, mandates that the plaintiff bear the burden of proof on the issue. Ct. Justice Willett) Praises His Old Colleagues' Speed …. . A jury may consider evidence of harm caused to others, for the purpose of determining the degree of reprehensibility of a defendant’s, conduct toward the plaintiff in deciding the amount of punitive damages, but it, may not consider that evidence for the purpose of punishing the defendant, directly for harm caused to others. As we noted in a prior post, many state legislatures and supreme courts have mandated that the amount of punitive damages be tried separately from other issues in the case if the defendant so requests.The principal impetus for mandating this procedure was concern that evidence of the defendant's financial condition, though assumed to be relevant to the amount of punitive damages, is … California Civil Code, sections 3294-3296, Largest Punitive Damages Awards to Survive Appeal. 9. 3-E. California Tort Damages (Cont.Ed.Bar 2d ed.) (c)), prohibiting claims for punitive damages from stating an amount or amounts (§ 3295, subd. . ‘[T]o consider, the defendant’s entire course of conduct in setting or reviewing a punitive, damages award, even in an individual plaintiff’s lawsuit, is not to punish the, defendant for its conduct toward others. Joe, Joey, Joe-Baby, Sexist: Where’s Your Imposter Syndrome? . By the same token, of course, the function of punitive damages is, not served by an award which, in light of the defendant’s wealth and the gravity, of the particular act, exceeds the level necessary to properly punish and deter.”, • “[T]he Constitution’s Due Process Clause forbids a State to use a punitive, damages award to punish a defendant for injury that it inflicts upon nonparties or, are, essentially, strangers to the litigation.” (, • “Evidence of actual harm to nonparties can help to show that the conduct that. (e)), and prohibiting complaints against health care providers from making claims for punitive damages unless permitted by court order (Code Civ. ), • “[N]et worth is not the only measure of a defendant’s wealth for punitive, damages purposes that is recognized by the California courts. 2711, 125 L.Ed.2d 366] [considering the, hypothetical of a person wildly firing a gun into a crowd but by chance only, damaging a pair of glasses].) The bracketed phrase should not be given if an award, of compensatory damages is the “true measure” of the harm or potential harm, [rejecting consideration for purposes of assessing punitive damages of the plaintiff’s, loss of the benefit of the bargain if the jury had found that there was no binding, Read the optional final sentence of factor (c) only if the defendant has presented, Read the optional final sentence if there is a possibility that in arriving at an amount, of punitive damages, the jury might consider harm that the defendant’s conduct may, 353-354 [127 S.Ct. As Guideposts points out, however, the second phase of trial presents an opportunity for a defense to present evidence that cuts against the need for punitive damages. But ever since Adams v. Murakami(1991) 54 Cal.3d 105, our supreme court has made it clear you will need evidence over and above the defendant’s wrongdoing if you want to win punitive damages at trial and keep them on appeal. Bifurcation is Necessary to Avoid Prejudice to Dollar Tree.....6 5. The parties hereby waive the following rights as to the judgment so entered. [Any award you impose may not exceed [, [Punitive damages may not be used to punish [. Whether the conduct caused physical harm; weak or vulnerable and took advantage of [him/her/, (b) Is there a reasonable relationship between the amount of punitive, discourage future wrongful conduct? ), State Farm Mutual Automobile Insurance Co., supra, fees may be included in the calculation of the ratio of punitive, (1996) 517 U.S. 559 [116 S.Ct. Ind. equitable relief is obtained or where nominal damages are awarded or, as here, where compensatory damages are unavailable.” (, 809]] has refined the disparity analysis to take into account the. Sup. 1589, 134 L.Ed.2d, California Civil Jury Instructions (CACI) (2020). . These issues are relevant to punitive damages and some liability questions. [Citation. Another relevant yardstick is the amount of compensatory, damages awarded; in general, even an act of considerable reprehensibility will, not be seen to justify a proportionally high amount of punitive damages if the, actual harm suffered thereby is small. ]’ ” (, • “[W]e are afforded guidance by certain established principles, all of which are, grounded in the purpose and function of punitive damages. Our jurisprudence and the principles it has now established, demonstrate, however, that, in practice, few awards exceeding a single-digit ratio, between punitive and compensatory damages, to a significant degree, will satisfy, due process. ‘Indeed, it is likely, that blind adherence to any one standard [of determining wealth] could, sometimes result in awards which neither deter nor punish or which deter or. [HOT] Read Latest COVID-19 Guidance, All Aspects... [SCHEDULE] Upcoming COVID-19 Webinars & Online Programs [GUIDANCE] COVID-19 and Force Majeure Considerations .” (, • “Nonetheless, because there are no rigid benchmarks that a punitive damages, award may not surpass, ratios greater than those we have previously upheld may, comport with due process where ‘a particularly egregious act has resulted in. “It follows that the wealthier the wrongdoing defendant, the larger the … • When Punitive Damages Permitted. Haning et al., California Practice Guide: Personal Injury, Ch. The court in, instruction be given if evidence of other punitive damage awards is introduced into, If you determine that a defendant has already been assessed with punitive, damages based on the same conduct for which punitive damages are requested, in this case, you may consider whether punitive damages awarded in other cases, have sufficiently punished and made an example of the defendant. (, (1993) 509 U.S. 443, 459 [113 S.Ct. (Exception: The same jury must hear both phases of a bifurcated punitive damages trial.) . . [Eugene Volokh] 5th Cir. That rule cannot be deemed satisfied where the jury has made an express, determination not to award compensatory damages.” (, Cal.App.4th 1673, 1677 [42 Cal.Rptr.2d 164], footnote omitted. INTRODUCTION Like a bad car wreck, a large award of punitive damages seems to bring out the rubberneckers – critics, scholars, appellate lawyers, and legislators. 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