The primary issue in this appeal is whether the trial court erred in imposing punitive damages of $3.5 million against Stonington Development, LLC. We find the trial court properly denied Stonington’s motion for a directed verdict as to punitive damages, and we find no reversible error in the charge given to the jury. However, we find the amount of punitive damages is excessive and therefore that due process requires the amount of the award to be reduced. As to all other issues, we affirm.
I. Facts
The plaintiffs are brothers Glenn and John Hollis; Janette Robinson, who is Glenn’s daughter; and Janette’s husband, Joseph Robinson. The Hollises and Robinsons jointly own approximately nineteen acres of land that has been in the Hollis family for generations. The Robinsons live on the property with their son in a house overlooking two ponds that Glenn, John, and their father built over fifty years ago. The only driveway to the Robinsons’ home crosses an earthen dam that divides the three-acre upper pond from the five-acre lower pond.
In 1999, Stonington purchased property directly upstream from the Hollis and Robinson property for the purpose of developing a residential subdivision. The Hollises and Robin-sons proved at trial that over the next five years Stonington ignored the recommendations of its own stormwater management engineers; violated State regulations and local laws regarding erosion control and stormwater runoff; and misled them, perhaps even lied, about Stonington’s intention to remedy the problems. The result was severe flooding on the Hollises and Robinsons’ property, which inhibited the Robin-sons’ access to their home and filled the ponds with as much as four feet of sediment. The estimated cost to restore the property is over $250,000.00. The jury awarded $400,000.00 in
The troubles between the parties began in 2000, shortly before Stonington began construction. At their first meeting, Stonington asked the Robinsons to relinquish easement rights for their driveway and asked if it could put a sewer line through their front yard to serve the development. When the Robinsons refused both requests, Stonington threatened to condemn the land and install the sewer line anyway. 1
Before beginning construction, Stonington hired Power Engineering to prepare stormwater management plans for the subdivision. The Hollises and Robinsons’ expert testified that stormwater management is a field of engineering that prevents the type of severe flooding, erosion, and sediment accumulation that eventually occurred on the Hollis and Robinson property. The plans Power Engineering prepared for Stonington included protective measures such as silt fences and detention ponds to catch eroding soil and sediment runoff. Stonington failed to follow the plans, despite its admitted responsibility to do so.
By late 2002, the Hollises and Robinsons started to see silt and sediment coming from the development and accumulating in the ponds. Around the same time, Stonington received its first notice of violation from Richland County, requiring it to alleviate the accumulation in the ponds to avoid penalties. By the spring of 2003, the runoff worsened to the point of causing the ponds to flood the Robinsons’ yard and cover part of their driveway with rushing water. The Hollises and Robinsons continually complained to Stonington and asked it to fix the problem. Stonington assured them the problem would be fixed, but failed to take action.
A Stonington employee testified that, as part of its attempt to compromise with the Hollises and Robinsons, Stonington placed a fifty-foot-wide conservation easement on the part of its property bordering the Hollises and Robinsons to provide them with a buffer for protection from the runoff. Stonington told them the buffer increased the size of their property
After numerous other State and County violation notices and no action from Stonington to alleviate the damage, the Hollises and Robinsons finally filed suit against Stonington and Power Engineering 2 on July 29, 2005, for negligence, trespass, private nuisance, and violation of the Unfair Trade Practices Act. By then, the runoff from Stonington caused the back of the dam on the upper pond to collapse, and the sediment in the pond had accumulated as deep as four feet in some locations. Even after the lawsuit was filed, Stonington received violation notices from Richland County directing it to protect the ponds from stormwater runoff.
At trial, the Hollises and Robinsons’ expert in stormwater management testified that Stonington did not follow Power Engineering’s stormwater management plans and failed to maintain the limited stormwater management system it did build. Stonington’s only representative to testify at trial admitted it was responsible for complying with the stormwater management plans. The Hollises and Robinsons’ expert testified that while the Hollises and Robinsons may still have experienced some problems if Stonington had followed the plans and maintained the system, the problems would have been “significantly” less serious. The expert gave an example of Stonington’s failure to follow the plans. He explained that the stormwater system as designed includes a temporary check dam to catch sediment after a rainstorm. The system then requires the check dam be cleaned out and the sediment hauled elsewhere. The expert said Stonington cleaned out the sediment, but then “piled it right on the slope right above it[,] ... obviously making it available for a source of erosion the next time it rains.”
II. Procedural History
At the end of a five-day trial, the jury returned a defense verdict for Power Engineering, but found for the Hollises and Robinsons against Stonington for negligence, trespass, and private nuisance. 4 The jury awarded $400,000.00 in actual damages and $3.5 million in punitive damages. After the verdict, the Hollises and Robinsons elected the private nuisance cause of action. Stonington filed a post-trial motion for judgment notwithstanding the verdict or, in the alternative, new trial absolute or new trial nisi remittitur. The trial court denied the motion and, after conducting a review of the punitive damages award, upheld the constitutionality of the amount of the award. Stonington appeals alleging the trial court erred in (1) denying its motion for a directed verdict on punitive damages, (2) giving an erroneous jury charge on punitive damages, (3) imposing a punitive damages award that violates Stonington’s due process rights, and (4) denying its post-trial motion for judgment or a new trial. We affirm the award of punitive damages and the denial of Stonington’s post-trial motion. However, we find the amount of the punitive damages award to be excessive, and reduce the award to $2 million.
III. Directed Verdict on Punitive Damages
When ruling on a directed verdict motion as to punitive damages, “the circuit court must view the evidence
The record contains evidence that Stonington ignored regulations regarding erosion control, stormwater runoff, and even its own engineer’s plans; took no action to prevent or correct damage it knew it was causing to the ponds; and used threats and deception to avoid the consequences of its misconduct. The trial judge, who had the benefit of observing the •witnesses and the presentation of evidence first-hand, summarized the evidence of punitive damages in his post-trial order as follows:
[T]he Court finds that there was ample evidence presented at trial ... upon which the jury could have based its award of punitive damages, such as (1) the testimony by the plaintiffs about pre-construction meetings between Stoning-ton and the plaintiffs where the plaintiffs expressed concern about the potential environmental impact of Stonington’s development on their properties and ponds, (2) the testimony by the plaintiffs about meetings between the plaintiffs and Stonington after construction activities began expressing concern for damage actually occurring at that time, (3) the DHEC and Richland County inspection reports and correspondence demonstrating that Stonington failed to maintain its stormwater management plan, even after being put on notice by the County and by DHEC of the offsite impact, (4) the testimony of Dr. Meadows about the extreme inadequacies of Stonington’s maintenance of the stormwater management system even after the lawsuit was filed, and (5) the testimony from the plaintiffs of Stonington’s attempted bullying and threats to the plaintiffs about the location of the development’s sewer line and the relocation of the plaintiffs’ ingress/egress easement.
IV. Punitive Damages Jury Charge
Stonington objected to a portion of the beginning of the jury charge on damages in which the trial judge said:
Now, members of the jury, I’m going to talk to you a little bit about damages. And in this case we have actual damages and we have punitive damages as to both Defendants.
Stonington argued the charge required the jury to find actual and punitive damages as to both defendants. We find no reversible error.
“When an appellate court reviews an alleged error in a jury charge, it ‘must consider the court’s jury charge as a whole in light of the evidence and issues presented at trial.’ ”
Ardis v. Sessions,
Throughout the damages charge, the trial court made numerous statements indicating that the jury was not required to award actual or punitive damages.
Members of the jury, if actual damages are found, ... exemplary or punitive damages will be allowed.... [I]n this case, the Plaintiff is seeking punitive damages in addition to actual damages.
[PJunitive damages can only be awarded when the Plaintiff proves by clear and convincing evidence the Defendant’s actions were willful, wanton, malicious, or in reckless disregard of the Plaintiffs rights.
Before you can award punitive damage, members of the jury, you must first find that the Plaintiff is entitled to actual or nominal damages.
Considered in isolation, the sentence to which Stonington objected might be misleading. However, considering the charge as a whole, the trial court adequately explained to the jury that it could not award actual or punitive damages unless the plaintiffs met the applicable burden of proof. In the context of the entire charge, we find the sentence at issue was merely transitional, serving as an introduction to the damages portion of the charge.
5
See Wells v. Halyard,
V. Constitutionality of the Punitive Damages Award
Stonington challenges the constitutionality of the amount of punitive damages. Therefore, we are required to determine whether the award of punitive damages in this case is consistent with due process.
James v. Horace Mann Ins. Co.,
(1) the degree of reprehensibility of the defendant’s misconduct; (2) the disparity between the actual and potential harm suffered by the plaintiff and the amount of the punitive damages award; and (3) the difference between the punitive damages awarded by the jury and the civil penalties authorized or imposed in comparable cases.
Austin v. Stokes-Craven Holding Corp.,
a. Reprehensibility
Our discussion of the facts of this case demonstrates that Stonington’s misconduct was reprehensible. In order to evaluate the reasonableness of the amount of the award, however, we must determine the degree of reprehensibility.
Austin,
(i) the harm caused was physical as opposed to economic; (ii) the tortious conduct evinced an indifference to or a reckless disregard for the health or safety of others; (iii) the target of the conduct had financial vulnerability; (iv) the conduct involved repeated actions or was an isolated incident; and (v) the harm was the result of intentional malice, trickery, or deceit, rather than mere accident.
Mitchell,
Our analysis of the first two of these considerations indicates Stonington’s misconduct involved a lesser degree of reprehensibility. First, although the Hollises and Robinsons incurred significant monetary damages, they did not suffer any physical harm. Finding only economic harm “would typically weigh against [ ] reprehensibility.”
As to the third consideration, the record does not indicate, and neither of the parties argues, whether the Hollises and Robinsons were financially vulnerable. Thus, the third consideration does not favor a lesser or a higher degree of reprehensibility.
The fourth and fifth considerations, however, indicate a higher degree of reprehensibility. As to the fourth consideration, no evidence was presented as to whether Stonington or its members had engaged in similar conduct on other development projects. However, Stonington’s conduct involved repeated actions towards the Hollises and Robinsons, and thus was not an isolated incident. In the face of repeated requests from the Hollises and Robinsons to fix the ongoing problems, and despite repeated official notices of regulatory violations, Stonington continued for over four years
6
to engage in conduct the jury determined to be reckless.
See Mitchell,
Considering the entire record in this case in light of the five factors discussed above, we find that Stonington’s misconduct was moderately reprehensible.
b. Disparity Between Actual or Potential Harm and the Punitive Damages Award
The ratio of punitive damages awarded by the jury in this case to actual damages is 8.75 to l.
7
We find this to be an excessive disparity between the punitive damages awarded and the harm actually suffered by the Hollises and Robin-sons.
8
In making this determination, and in setting the amount to which punitive damages must be reduced, we have considered “the likelihood that the award will deter the defendant from like conduct; whether the award is reasonably related to the harm likely to result from such conduct; and the defendant’s ability to pay.”
Mitchell,
We note initially that the parties have given us little information to use in evaluating the first and third considerations.
In upholding the award, the trial court relied on the deterrent effect this award may have on others in the development business. In its post-trial order the court stated: “The jury’s punitive damages award will send a strong message to developers that such a way of doing business is not acceptable to the people of Richland County.” We significantly discount the importance of this consideration in evaluating the constitutionality of the award. The deterrent effect the imposition of punitive damages may have on others cannot be used as a significant basis for upholding an award of punitive damages.
Deterrence has long been an important consideration in the imposition of punitive damages. In
Mitchell,
the supreme court began its discussion of the history of due process limitations on punitive damages awards by stating “[t]he practice of awarding punitive damages originated in principles of common law ‘to deter the wrongdoer and others from committing like offenses in the future.’ ”
The concept of deterrence includes the specific effect on the party against whom the award is imposed and the general effect the award will have on others similarly situated. In
Gamble v. Stevenson,
the supreme court listed as one of the factors a trial court may consider in its post-trial review of punitive damages the “likelihood the award will deter the
Because of the trial court’s consideration of the deterrent effect on other developers to justify this punitive damages award, the omission of the “or others” language is significant in our review of the trial court’s decision. The
Mitchell
court noted that “much of the [United States] Supreme Court’s punitive damages jurisprudence has focused on the type of evidence that may be used to support a punitive damages award.”
This case, however, presents a “deterrence” consideration somewhere in the middle. Stonington’s only representative to testify at trial described the members of Stonington Development, LLC. In particular, the witness’s testimony indicates that the managing member of Stonington is heavily involved in the development business, not only with Stoning-
The second consideration is “whether the award is reasonably related to the harm likely to result from such conduct.”
Mitchell,
We must also consider whether the amount to which we reduce the award is reasonably related to the likely harm. While a $2 million award results in a ratio of 5 to 1, considerably higher than the actual damages, such an award is reasonably related to the harm likely to result from ignoring stormwater management regulations on large residential development projects such as the subdivision created by Stonington.
As to the third consideration, other than evidence that Stonington still owns large portions of the original development, the record contains no direct evidence of Stonington’s ability to pay a punitive damages award.
c. Comparative Penalty Awards
The third guidepost is “the difference between the punitive damages awarded by the jury and the civil penalties authorized or imposed in comparable cases.”
Austin,
Under federal law, the Administrator of the Environmental Protection Agency may seek a civil penalty of up to $25,000.00 per day for misconduct similar to that engaged in by Stoning-ton. 33 U.S.C. § 1319(d) (Supp.2010). Applicable federal regulations require that sediment and erosion controls must “[a]t a minimum ... be designed, installed, and maintained to: ... (2) Control stormwater discharges ... to minimize downstream channel and streambank erosion; ... (5) Minimize sediment discharges from the site....; (6) Provide and maintain natural buffers around surface waters.... ” 40 C.F.R.
d. The Court’s Role in Reducing the Amount of Punitive Damages
Because we find the award of $8.5 million in punitive damages is excessive and violates due process, we must reduce the award.
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In reducing the amount of the punitive damages, we are not permitted to make the determination independent of the jury of what we think the appropriate amount of punitive damages should be in this case. Rather, in deference to the jury, we may do no more than determine the upper limit of the range of punitive damages awards consistent with due process on the facts of this case, and set the amount of punitive damages accordingly.
See Mitchell,
Additionally, Mitchell’s holding that appellate courts must conduct the review of punitive damages awards de
e. Conclusion as to the Amount of Punitive Damages
Therefore, reviewing de novo the trial court’s determination of constitutionality, but deferring to the jury’s constitutional role as factfinder, we find the upper limit of the range of punitive damages awards consistent with due process on the facts of this case to be $2 million, and we reduce the award accordingly.
VI. Failure to Grant Stonington’s Motions for JNOV, New Trial Absolute, or New Trial Nisi Remittitur
Finally, Stonington appeals the denial of its motion for judgment notwithstanding the verdict or for a new trial based on the trial judge entering the jury room to answer a juror’s question. We find this issue unpreserved for our review.
At one point during a witness’s testimony, the judge interrupted and said to a juror, “You need a break?” to which the juror responded, “Is it possible for me to get a pen and a piece of paper? I have a question for you.” The judge instructed
I spoke to the jury in the room. The note that the Forelady wrote me was: Can jurors ask questions? And I think I was polite about it, the answer was, no, of course. And of course that’s the job of the lawyers as I explained to y’all in the jury room.
Stonington’s counsel neither objected nor asked for any clarification as to the conversation between the judge and the jurors.
“[I]t is the responsibility of trial counsel to preserve issues for appellate review.”
Jackson v. Speed,
We recognize that our supreme court has held a trial judge entering the jury room is reversible error.
State v. Elmore,
As to the remainder of Stonington’s allegations that the trial court erred in refusing to grant its post-trial motions for JNOV, new trial absolute, or new trial nisi remittitur, we deem them abandoned and decline to address the merits.
See
Rule 208(b)(1)(D), SCACR (stating each “particular issue to be
VII. Conclusion
We affirm the denial of a directed verdict on punitive damages, the jury charge on punitive damages, and the denial of Stonington’s post-trial motions. We also affirm the imposition of punitive damages, but because we find the amount excessive, in violation of due process, we reduce the award from $3.5 million to $2 million.
AFFIRMED AS MODIFIED.
Notes
. Stonington is a nongovernmental entity with no power to condemn private property.
. The Hollises and Robinsons also sued Ecological Associates, Inc., Newman Construction, Inc., and C.G.D. Developers, Inc. They settled with these defendants for a total of $85,000.00 and proceeded to trial against only Stonington and Power Engineering.
. This includes the cost of obtaining necessary permits, removing the silt, restoring the dam, and restocking the fish.
. The trial judge granted a directed verdict in favor of Stonington on the unfair trade practices cause of action.
. The jury found neither actual nor punitive damages against Power Engineering, refuting Stonington's argument that the charge required the jury to find actual and punitive damages "as to both Defendants.”
. We mention that the conduct lasted over four years in recognition of the supreme court’s statement that it is no longer necessary to consider the duration of the conduct as a separate factor.
Mitchell,
. In calculating the ratios in this case, we have used actual damages of $400,000.00 rather than the actual damages judgment amount of $315,000.00.
. This is not a case in which it is appropriate to consider potential harm over and above the actual harm suffered by the plaintiff.
See Mitchell,
. Stonington received official violation notices on November 6, 2002, April 18, 2003, October 13, 2003, January 30, 2004, December 28, 2004, January 26, 2005, February 8, 2006, and March 15, 2006.
. We have the option of ordering a new trial.
See EEOC v. Fed. Express Corp.,
.
See also CGB Occupational Therapy, Inc. v. RHA Health Servs., Inc.,
