285 P.3d 1219
Utah2012Background
- Westgate Resorts sold restrictive Anaheim certificates with redemption hurdles and misrepresented value.
- CPG formed by Adel to pursue claims for 500 consumers and later represented 15 claims at trial.
- Jury awarded $1,000,000 in punitive damages and about $7,242 in actual damages across 15 claims.
- Trial court denied Westgate's motions for JML, new trial, and remittitur; appeal followed.
- Court reviews punitive damages de novo and remands for a new punitive damages trial in light of due process.
- Court reformulates Crookston factors per Philip Morris and requires protections against punitive harm to nonparties.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Procedural due process in punitive damages award | Westgate | Westgate | Procedural due process violated; remand for new punitive award |
| Closing argument invited harms to nonparties | Westgate | CPG | Argument improperly invited punishment for nonparties; remand required |
| Consolidation of claims | Westgate | CPG | No reversible error; consolidation not shown to prejudice Westgate; remand to recalc punitive award still needed |
| UCSPA assignability/standing | CPG | Westgate | UCSPA claims assignable; CPG may pursue UCSPA claims on remand |
| Private attorney general fees | CPG | Westgate/CPG | Remand to reconsider fees under private attorney general doctrine |
Key Cases Cited
- Philip Morris USA v. Williams, 549 U.S. 346 (2007) (limits on punishing nonparties; due process protection)
- Crookston v. Fire Insurance Exchange, 817 P.2d 789 (Utah 1991) (Crookston factors for punitive damages; harm to others reframing)
- Mayer v. Rankin, 63 P.2d 616 (Utah 1936) (assignability of fraud claims; money recovered as property)