(Concurring in Part and Dissenting in Part):
I agree with much of what the majority states about the standards to be employed under Rule 59(a)(5) of the Utah Rules of Civil Procedure, but I have reservations about several points in the opinion concerning the trial and appellate standards for dealing with motions for new trials, and I disagree with the ultimate disposition of the punitive damages issue. I concur in all other parts of the opinion.
The sole issue raised on appeal in this case with respect to the award of punitive damages is that they were “excessive” under Rule 59(a)(5) of the Utah Rules of Civil Procedure. Rule 59(a) specifies seven grounds for granting a new trial by a trial court. Subpart (5) provides that a trial court may order a new trial if it finds that the jury returned “excessive or inadequate damages” that appear “to have been given under the influence of passion or prejudice.” The majority uses that contention of error as a springboard to launch into a sweeping, and in some instances confusing, discussion of the operation of Rule 59(a). In parts of the discussion, it appears that the majority is defining standards for all of Rule 59(a), but in other parts the majority seems to address issues that arise only under subparts (5) and (6), although the latter subpart is not before the Court and has not been argued by the parties.
I think it appropriate to note that although a verdict may be supported by some evidence, the trial court may set that verdict aside under subpart (6) if the verdict is against the manifest weight of the evidence so “that the trial judge ‘cannot in good conscience permit it to stand.’ ” Goddard v. Hickman, 685 P.2d 530, 532 (Utah 1984) (quoting Holmes v. Nelson, 7 Utah 2d 435, 441, 326 P.2d 722, 726 (1958) (Crockett, J., concurring)). See also Brown v. Johnson, 24 Utah 2d 388, 391, 472 P.2d 942, 944 (1970); Hyland v. St. Mark’s Hosp., 19 Utah 2d 134, 137, 427 P.2d 736, 738 (1967); Efco Distrib., Inc. v. Perrin, 17 Utah 2d 375, 380, 412 P.2d 615, 617-18 (1966); King v. Union Pacific R.R., 117 Utah 40, 45-49, 212 P.2d 692, 695-96 (1949); 6A J. Moore & J. Lucas, Moore’s Federal Practice Í159.08[5] (1991). In Goddard v. Hickman, 685 P.2d 530 (Utah 1984), and Nelson v. Trujillo, 657 P.2d 730 (Utah 1982), we held that the standard of review on appeal of an order granting a new trial under Rule 59(a)(6) is that the order will be sustained “if the record contains ‘substantial competent evidence which would support a verdict for the [moving party].’ ” 657 P.2d at 732 (quoting King v. Union Pacific R.R., 117 Utah at 53, 212 P.2d at 698).
In dealing with the standard of review that an appellate court should utilize in reviewing a trial court's grant of a motion for a new trial, the majority states that Bennion v. LeGrand Johnson Construction Co., 701 P.2d 1078 (Utah 1985), is a case that has contributed to confusion with respect to the proper standard because that case stated that a “reviewing court will defer to a jury’s damage award unless the award indicates that the jury disregarded competent evidence_” 701 P.2d at 1084. The majority then asserts that if that statement purports to state the standard of review by which an appellate court determines the propriety of a trial court’s decision to grant or deny a new trial, it is incorrect. The majority further states:
The statement can be read to mean that this court reviews the jury’s action directly, when in reality we review the trial court’s action for an abuse of discretion. It is this type of loosely worded standard *815which has, over time, effectively confused the appellate court’s proper role in assessing the merits of a rule 59 motion attacking a jury verdict with that of the trial judge.
Maj. op. at 805 (citation omitted).
The confusion that the majority finds is based on its misreading of Bennion. There was no issue of the propriety of the grant or denial of a new trial motion in Bennion} This Court was simply asked to review directly the validity of the award of damages. Although Rule 59(a) was argued by the appellant in Bennion as if it established standards for reversing a verdict on appeal, there was no motion for a new trial made in the trial court, and the issue before this Court was the standard for reviewing a damage award directly on appeal. In short, the majority’s loose analysis is used to argue that it is necessary to restate our case law because it is inaccurate. I disagree.
Indeed, the majority contrives a strange, hypothetical procedure to justify an inappropriate standard of appellate review of punitive damage awards not reviewed by the trial court on a motion for a new trial. The majority states that in cases in which a motion for a new trial is not made and an appeal is taken directly from the award of punitive damages, an appellate court will assume that the trial court sua sponte considered and denied a hypothetical motion. This hypothetical motion and ruling is then made the basis for applying the same standard of review in direct appellate review of an award of punitive damages as is applied when a motion for a new trial is actually made and denied by the trial court and that ruling is then appealed. Such an approach is unnecessary and if literally applied would lead to serious difficulties. After assuming the hypothetical motion and a ruling by the trial court denying it, an appellate court must then, according to the majority, determine if the trial court would have abused its discretion in denying the hypothetical motion.
Clearly, the proper approach is for an appellate court to review the award of punitive damages straight-out in light of the various factors set out in the majority opinion for determining the reasonableness of punitive damages. Compare Bennion, 701 P.2d at 1084, which states that to justify a new trial for excessive damages under Rule 59(a)(5), the damage award must be “clearly excessive on any rational view of the evidence.” Although that statement was not made in the context of a punitive damage award, it is an appropriate standard to be applied in light of the six relevant factors referred to by the majority to be considered in determining the validity of a punitive damage award. Applying usual appellate standards to the review of a punitive damage award is altogether sound. There is no reason to devise a fictional procedure to justify an unnecessary and inappropriate result. Given the difficulties, it is important to recognize that the majority’s view is strictly dictum. There was in fact a motion for a new trial in this case.
The majority remands this case to the trial court for the trial judge to state his reasons for sustaining the award of punitive damages. In explaining the factors the trial judge may examine, the majority opinion, in my view, unduly emphasizes the relationship of the punitive damages, to compensatory damages. That relationship is certainly not determinative, but is only one of many factors to be considered. In the context of this case, it is significant that our prior cases have not dealt with punitive damages awarded against a multimillion dollar corporation. Of greater significance than the relationship of the punitive and compensatory damage awards are the other factors which have been enumerated in our cases, such as the financial resources of the defendant and the likelihood that a defendant will continue its malicious conduct.
The defendant in this case argues that its net income for the year of its misconduct was $23,000,000 and that a $4,000,000 puni*816tive damage award is exceptionally high compared to its net income. The defendant does not state, however, that the company's total assets are $723,468,116. Furthermore, the evidence disclosed that there are four claims offices in Utah, each handling four to five thousand claims per year. In addition, scores of other offices located in the western United States handle a similar number of claims. The defendant stated at trial that the practices which it employed in this case were sound business practices. Indeed, three of the defendant’s employees who testified at trial for the defendant stated that they believed they'1 had treated the Crookstons fairly. The claims adjuster who committed the fraud, Clapperton, stated that he felt good about what he did to the Crookstons. His record for improving company profits has apparently not been overlooked in the corporation, because the defendant has twice promoted him since his adjustment of the Crookston loss. He is now the district claims manager supervising the adjustment of all claims in northern Utah.
From the defendant’s point of view, it certainly can be argued that $4,000,000 punitive damages is excessive. However, from a public policy point of view, the award is justified. In the absence of punitive damages, the defendant may well find that it is profitable to continue its illegal conduct even though it may incur the cost of compensatory damages from time to time. One may never know how many of the thousands of claims handled in Utah and elsewhere by the defendant have been subjected to the same kind of fraudulent manipulation as occurred in this case, with devastating losses to those who contracted in good faith. A $4,000,000 punitive damage award can certainly have a salubrious effect in inducing the defendant to bring its practices into harmony with common moral conduct and accepted business ethics, to say nothing of the requirements of the law.
All this, and much more justifying the punitive damage award, is on record in this case. The issue was well-tried, and the trial judge set out his views with some clarity, although not with as much detail as the majority opinion requires. In my view, since the relevant evidence is before the Court and is sufficient to justify the award of punitive damages, given the presumption of correctness that ought to attach to the jury verdict, I would affirm the award and not remand for further proceedings.
Finally, I agree that, as a general proposition, requiring an articulation of the reasons for the granting of a new trial by a trial court is sound policy. This Court said as much in Saltas v. Affleck, 99 Utah 381, 386-87, 105 P.2d 176,178 (1940). However, I think the rules which require trial judges to explain the reasons for granting or not granting a motion for a new trial on the ground of excessive punitive damages should be expanded to awards that are within the three-to-one ratio that the Court suggests presumptively establishes reasonableness. A three-to-one punitive damage award may, however, be devastating for an individual or business entity with limited financial resources. I think all punitive damage awards by a jury should be justified by the trial court when there is a motion for a new trial based on the ground of excessive punitive damages.
For the foregoing reasons, I would affirm the trial judge’s denial of a new trial without further proceedings. I also concur in the reservations expressed in Justice Howe’s opinion.