Shippen v. Parrott

AMUNDSON, Justice

(concurring in part and dissenting in part).

I concur with the majority’s analysis of the compensatory damages; however, I would not remit the punitive damage award.

In Schaffer v. Edward D. Jones & Co., 521 N.W.2d 921, 927 (S.D.1994) (Schaffer I), this court held:

In determining the amount of punitive damages, as well as deciding whether they should be given at all, the trier of fact can properly consider not merely the act itself but all circumstances including the motives of the wrong-doer, [and] the relations of the parties. (Emphasis added.) (Quotations and citations omitted.)

Further, the recent United States Supreme Court decision in BMW of North America, Inc. v. Gore, 517 U.S. -, 116 *512S.Ct. 1589, 134 L.Ed.2d 809 (1996) (holding that a $2,000,000 punitive damage award was grossly excessive and therefore exceeds the constitutional limit) recognized “that repeated misconduct is more reprehensible than an individual instance of malfeasance.” Therefore, when assessing punishment by way of punitive damages, it is appropriate to look at the total picture rather than just the isolated incident which serves as the basis for the compensatory award.7

When the recovery of punitive damages is sought and the pleadings properly disclose circumstances which justify an allowance of such damages, any matters of evidence having a reasonable tendency to establish the existence or nonexistence of a fact or circumstance warranting the allowance of such damages may be introduced. Thus, evidence of any fact which legitimately tends to show the motive and intent of the defendant in doing the act complained of is admissible[.]

22 AmJur2d § 925 at 951-52 (2dEd 1988).

Parrott’s conduct in taking advantage of Shippen and his twin brother over a course of time is unquestionably reprehensible so that it warrants punishment. This total conduct was appropriately considered by the trial court as relevant to the issues of motive and evil intent. In considering the total picture in this case, I cannot agree that the punitive damage award of $113,000.00 was excessive. Therefore, I would affirm the punitive damage award in total.

. The majority states that "[biasing punitive damages on 'taking advantage of Shippen over a course of time' and upon the ‘total picture' rather than the conduct which is the basis of the actionable event effectively awards Shippen damages for the ill effects we found non-actionable in Shippen I." This assertion is flawed, however, because punitive damages are awarded to set an example and to punish a defendant, not for ill effects suffered by the plaintiff. Without allowing a consideration of the total picture, the court is putting blinders on the trial court in assessing the appropriate amount for punitive damages. Furthermore, the United States Supreme Court noted that repeated misconduct is relevant when determining the award for punitive damages. BMW, 517 U.S. at —, 116 S.Ct. at 1599-1600, 134 L.Ed.2d at 827.