Lead Opinion
OPINION
¶ 1 The Honorable Alfredo C. Marquez of the United States District Court for the District of Arizona has certified two questions of Arizona law to this court, reformulated as follows:
1. Whether a claim for punitive damages survives the death of a tortfeasor and may be pursued against his or her estate?
2. Whether a corporate defendant can be held vicariously liable for punitive damages arising out of the tortious conduct of its now-deceased employee?
¶ 2 We have jurisdiction pursuant to Arizona Constitution art. 6, § 5(6), Arizona Revised Statutes § 12-1861 (1994), and Supreme Court Rule 27(a).
Background
¶ 3 Timothy Fisher was the president and chief executive officer of Fisher Surveying, Inc. On December 10, 1996, he was driving southbound on Highway 191 in Graham County while in the course and scope of his employment. Several motorists- witnessed Fisher cross the road’s center line and tried unsuccessfully to warn him with horns and flashing headlights. Unfortunately, he continued on his way, eventually colliding with a truck in which Haralson was a passenger. Fisher was killed in the accident and Haralson was injured. Fisher’s body subsequently tested positive for the presence of amphetamines, benzodiazepine, and marijuana metabolites. Defendants admit that the deceased was at fault.
Discussion
1. Estate Liability.
¶ 4 We first address whether punitive damages can be assessed against the estate of a deceased tortfeasor. The court of appeals confronted this issue thirty-one years ago in Braun v. Moreno,
¶ 5 We are not bound by the court of appeals’ opinion. Wilderness World, Inc. v. Department of Revenue,
¶ 7 Punishment, societal condemnation, deterrence, and public policy have been recognized in Arizona as valid grounds for assessing punitive damages. See, e.g., Wyatt v. Wehmueller,
¶ 8 We recognize that a majority of jurisdictions do not permit such damages to be awarded against a deceased tortfeasor’s estate. See G.J.D. v. Johnson,
119 There are, however, jurisdictions allowing recovery of exemplary damages from a deceased tortfeasor’s estate. In Alabama, the state’s wrongful death statute was long ago interpreted to permit punitive damages based on a general deterrence rationale. Shirley v. Shirley,
If 10 Texas permits the imposition of punitive damages for many reasons besides punishment — to set an example for others; to reimburse for inconvenience, attorneys’ fees, and other losses outside the normal realm of compensatory damages; and to serve the overall public good. Hofer v. Lavender,
¶ 11 In Tillett v. Lippert,
¶ 12 An Illinois appellate court enforced an award of punitive damages against a deceased’s estate in Penberthy v. Price,
¶ 13 We find the reasoning in these cases to be most persuasive. We also recognize the obvious — that it is impossible to punish or deter the decedent in this case, and that his acts resulted in a far more serious penalty than any court or jury could mete out. Nevertheless, without making a judgment concerning the advisability of exemplary damages here, we conclude that there are situations in which it would be appropriate, and perhaps even necessary, “to express society’s disapproval of outrageous conduct” by rendering such an award against the estate of a deceased tortfeasor. Hawkins,
¶ 14 We do not suggest, however, that today’s holding is limited to such extreme conduct.
¶ 15 While a punitive award cannot punish a deceased wrongdoer for his or her reprehensible conduct, it may “deter its future occurrence” by others. Wyatt,
¶ 16 There is no logical reason why courts should allow a punitive award against a defendant who survives a judgment, but deny it where death occurs earlier. Suppose, for example, two individuals commit equally culpable and outrageous acts. One is comatose and, for all practical purposes, has no reasonable chance of recovery. The other is dead. Is there a way to explain why the unconscious tortfeasor would have his assets exposed to punitive liability, while the deceased’s estate would be immunized from it? Surely the answer does not lie in our inability to punish the dead wrongdoer.
¶ 17 If there is to be a difference in legal treatment, it should be established by the legislature. Just as that body expressly terminated recovery for pain and suffering upon the death of tort victims, see Ariz.Rev.Stat. § 14-3110 (“Every cause of action ... shall survive the death of the person entitled thereto or liable therefor ... provided that upon the death of the person injured, damages for pain and suffering of such injured person shall not be allowed.”),
¶ 18 The dissent’s suggestion that we should interpret the legislature’s silence as approval of the holding in Braun, infra ¶ 33, is off the mark and ignores our own well-established precedent. As Justice Martone explained in Southwestern Paint & Varnish Co. v. Arizona Dep’t of Envtl. Quality,
The dissent contends that the legislature’s acquiescence in Herzberg[ v. David,27 Ariz.App. 418 ,555 P.2d 677 (1976)] is suggestive of legislative intent. The argument is without merit for two independent reasons. First, the principle of legislative acquiescence applies only where a statute has been construed by the court of last resort, not an intermediate appellate court. Calvert v. Farmers Ins. Co. of Arizona,144 Ariz. 291 , 297,697 P.2d 684 , 690 (1985) (“Owens and progeny, however, were decided by the Court of Appeals, and not the court of last resort in this state, the Arizona Supreme Court. Thus, this principle has no application to the case at bar.”). Similarly, Herzberg and its progeny were decided by the court of appeals and not this court. As noted, this is a case'of first impression for us.
Second, even if the principle were applicable, it is limited to instances in which the legislature has considered and declined to reject the relevant judicial interpretation. Lowing v. Allstate Ins. Co.,176 Ariz. 101 , 106,859 P.2d 724 , 729 (1993). We have squarely rejected the idea that silence is an expression of legislative intent. Id.
(Emphasis added); see also, Summerfield v. Superior Court,
¶ 19 The tortfeasor’s estate is entitled only to what the law affords — nothing more. Whatever the heirs may hope to inherit is generally contingent upon the obligations incurred by the deceased during his or her lifetime. See Ariz.Rev.Stat. § 14-3101 (1995); In re Estate of Foreman,
¶ 21 Finally, if a verdict is “so manifestly unfair, unreasonable and outrageous as to shock the conscience of the Court,” the judge can grant a remittitur or new trial. Acheson,
2. Employer Liability.
¶ 22 We now turn to whether a corporate defendant can be held vicariously liable for exemplary damages arising from the acts of a deceased tortfeasor-employee. In Wiper v. Downtown Dev. Corp. of Tucson,
¶ 23 When a judge or jury finds for an employee on the issue of punitive damages, as in Wiper, the employer may only be held liable if its own independent tortious conduct is involved. Wiper,
¶ 24 Under the Restatement, the absence of independent wrongdoing on the part of the employer would generally prevent any recovery of exemplary damages.
¶ 25 This rule governing vicarious punitive liability is not predicated on the employee being alive when a lawsuit is brought; it is sufficient that, when the tort was committed, the employee was performing his or her job. Such a result is justified because “an employer receives some economic benefit from the employee’s labor and specifically, defines for the employee the scope of employment.” Jacobson v. Superior Court,
¶ 26 We therefore answer both questions posed by the District Court in the affirmative.
Notes
. The present case does not involve a claim for wrongful death. But because Braun was a wrongful death action, the dissent initially focuses on Ariz.Rev.Stat. § 12-613. Infra ¶¶ 33-34. Five years before Braun was decided, we held that punitive damages are recoverable under that statute, which permits the judge or jury to consider "aggravating circumstances attending the wrongful act, neglect or default." Boies v. Cole, 99 Ariz. 198, 202,
Nothing in our wrongful death statutes expressly prohibits a punitive award against a deceased tortfeasor’s estate. See Ariz.Rev.Stat. §§ 12-611 to -613. Thus, Braun rests on case law from other jurisdictions, primarily Barnes v. Smith,
. “[Ajlthough we generally follow the Restatement absent statutes or cases to the contrary, we will not do so blindly.” Barnes v. Outlaw,
. We note, for example, that Arizona's “public policy of deterring drunk driving,” Del E. Webb Corp. v. Superior Court,
. This statute is patently indifferent to the adverse financial effect it may have on a victim’s clearly innocent estate and heirs by extinguishing what could be a significant damage claim. Thus, the dissent’s concern for the estate and heirs of an evil wrongdoer who causes considerable harm, infra ¶ 38, may not accurately reflect the thinking of a legislature which has chosen to remain silent on the subject.
. The dissent claims that the estate is at a disadvantage because the tortfeasor is dead. Infra ¶ 38. But that disadvantage exists any time a party is deceased, and applies equally to claims for compensatory and punitive damages. Moreover, because both compensatory and punitive awards have the clear potential of diminishing an estate and depriving “innocent" heirs of their inheritance, a difference in treatment on such a ground is difficult to justify.
. It is important to note that Wiper does not prevent an award of punitive damages against an employer when the employee’s behavior merits such liability, nor does it preclude vicarious liability in cases where only tire employer is sued. See, e.g., Southern Pac. Co. v. Boyce,
. Even the Restatement, however, would allow an employer to be found liable for punitive damages if the decedent was “employed in a managerial capacity and was acting in the scope of employment.” Restatement (Second) of Torts § 909(c).
Concurrence Opinion
concurring in part and dissenting in part:
¶ 32 Until today, Arizona’s justice system upheld the basic and essential principle that we do not punish an innocent party for another’s wrongdoing. Because today’s holding that punitive damages may be assessed against the estate of a deceased tortfeasor upends that principle, I respectfully dissent.
¶ 33 More than thirty years ago, the Arizona Court of Appeals asked whether, in a wrongful death action against a deceased tortfeasor, the legislature intended that punitive damages be recoverable. Braun v. Moreno,
¶ 34 The majority asserts that if an estate and a wrongdoer are to be treated differently, the difference in treatment should come from the legislature. Supra ¶ 17. I agree. But the legislature’s failure to amend either section 12-613 or Arizona’s survival statute, A.R.S. section 14-3110, to permit recovery of punitive damages against an estate, in light of Arizona’s long-standing judicial interpretation prohibiting such an award, provides a clear indication that the legislature did not intend to permit a plaintiff to recover such damages.
¶35 Although the majority disregards Braun because it is a decision of the court of appeals, supra ¶ 18, the Restatement view, which we usually apply, echoes the approach taken by the Braun court. “Absent Arizona law to the contrary, this court will usually apply the law of the Restatement.” Ft. Lowell-NSS Ltd. P’ship v. Kelly,
¶ 36 Punitive damages are not simply another form of compensatory damages. Rather, they constitute quasi-criminal fines imposed upon defendants in a civil action. Our reason for imposing such damages is that society regards the defendant’s conduct as outrageous and morally reprehensible. Cooper Indus., Inc. v. Leatherman Tool Group, Inc.,
¶ 37 Notably, the majority presents no concrete data that would permit us to weigh the
¶ 38 Balanced against this nebulous and speculative benefit stands the certain risk that the award will punish not the tortfeasor but heirs who are entirely innocent of any wrongdoing. The majority justifies that outcome by noting that “an estate is placed in the same position as any other defendant against whom a punitive award is sought.” Supra ¶20. But that statement does not accurately describe the estate’s position. As already noted, unlike other parties subject to punitive damages, the estate has committed no reprehensible act. In addition, unlike a living defendant, the estate cannot defend itself against the allegation of outrageous conduct. In this case, the tortfeasor’s inexcusable conduct seems clear; in other factual situations, the precise nature of the conduct that allegedly gives rise to punitive damages will be less clear. What will always be true is that the deceased tortfeasor will not be available to give his version of the facts that gave rise to the lawsuit, the estate will lack knowledge essential to defend the claim against it, and the award will punish a party that has done no wrong.
¶ 39 Perhaps recognizing the underlying inequity of punishing an estate for the behavior of the decedent, the majority asserts that the trial court can utilize adequate safeguards to protect against improper verdicts and can instruct the jury “to consider all aspects of fairness and justice in deciding whether, and in what amount, to award punitive damages.” Supra ¶ 20. I am uncertain just what instructions the trial judge can give to accomplish those results. Surely the judge may not instruct the jury to decide whether punitive damages may be awarded against an estate, for that is the legal issue we decide today. If the judge instructs the jury as our earlier decisions advise, he will tell the jury to consider, in assessing punitive damages, the defendant’s financial position, the nature of the defendant’s conduct and the harm that occurred from the defendant’s conduct, the duration of the misconduct, the defendant’s awareness of the harm or risk of harm, any concealment by the defendant of the harm, and the profitability of the defendant’s action. Hawkins v. Allstate Ins. Co.,
. Most of the states the majority cites in support of its holding based their own holdings on statutory text that, unlike Arizona’s, explicitly permits recovery of punitive damages against the estate of a deceased tortfeasor. See Shirley v. Shirley,
. The parties have not discussed whether imposing punitive damages upon an innocent party violates the Eighth Amendment to the United States Constitution, which prohibits excessive fines and cruel and unusual punishment. Because the degree of a defendant’s culpability is one factor relied upon by the Supreme Court to determine whether a punitive damages award violates the Eighth Amendment, see Cooper Indus., Inc. v. Leatherman Tool Group, Inc.,
Concurrence Opinion
specially concurring:
1127 I join the majority on the issues before the court; I write this additional note, however, to make the following observation.
¶ 28 Today’s opinion, in my view, adds a much needed dimension to the common law. I understand the reluctance of our dissenting colleagues to hold a tortfeasor’s estate liable in exemplary damages where the tortfeasor himself is dead and the heirs are innocent of wrongdoing. But, I find unpersuasive the argument that death, as opposed to survival, of a tortfeasor engaged in outrageous conduct should make a difference. Where general deterrence, as here, is a prime factor, exemplary relief makes sense.
¶ 29 This case involves a highway collision in which the tortfeasor, driving his vehicle in a drugged stupor, killed himself and injured his victim. Interestingly, had he survived the crash with full, permanent mental disability, he would be “alive” but unable to function. In that case, the dissent, of necessity, would be compelled under its rationale to accept the position announced today by the majority of the court. To me, a distinction based solely on survival of the tortfeasor makes no sense. It is his conduct that justifies exemplary relief, not whether he survives his own malfeasance.
¶ 30 The majority does not “upend” a traditional rule, as suggested by the dissent, but rather sustains a far more fundamental principle — that the common law lives and responds to human experience. The instant case calls to mind the ancient maxim — Ex-perientia Per Varios Actus Legem Facit— which means “Experience by various acts makes law.” Black’s Law Dictionary 688 (4th ed.1951). Mr. Justice Holmes, writing on the subject, commented, “The life of the law has not been logic; it has been experience.” Oliver Wendell Holmes, Jr., The Common Law 1 (1881). If we cannot learn after having experienced the often tragic results of reckless, wanton conduct, indeed we all become victims of our own misfortune.
¶31 When a person, as here, engages in behavior so egregious as to drive a motor vehicle in a drugged or drunken state, resulting in the death or injury of innocent people, he or she must recognize that the decision to drive in that condition may result in placing everything on the line, even if solely as a reminder to others so tempted.
