RULING AND ORDER AWARDING PUNITIVE DAMAGES
Barbara Izzarelli smoked Salem King cigarettes for over twenty-five years until she was treated for larynx cancer in 1997. In 1999, she brought suit against the manufacturer of Salem Kings, R.J. Reynolds Tobacco Co. (“R.J. Reynolds”). On May 26, 2010, a jury returned a verdict in Izzarelli’s favor, finding that R.J. Reynolds was liable for her injuries under the theories of strict liability and negligent design. Doc. #429. The jury awarded Izzarelli $325,000 in economic damages and $13,600,000 in non-economic damages. 1 The jury determined that Izzarelli was 42% responsible for her injuries; accordingly, Izzarelli’s total compensatory award is $7,982,250. 2 The jury also found that Izzarelli proved by a preponderance of the evidence that R.J. Reynolds should pay punitive damages.
1. Discussion
In Connecticut, a plaintiff in a product liability action may recover punitive damages if she proves that the compensable harm suffered was a result of the defendant’s reckless disregard for the safety of the product’s user. Conn. Gen.Stat. § 52-240b. The trier of fact determines whether the defendant’s conduct rises to the level of reckless disregard and the court sets the amount of punitive damages, which are not to exceed twice the plaintiffs actual damages.
Id.
Because the jury determined that R.J. Reynolds shall pay punitive damages, I must now determine the punitive damages award. At the close of trial, I requested submissions from the parties on the issue of punitive damages and scheduled a hearing on punitive damages for August 25, 2010. Following that hearing, I allowed the parties to sub
A. Punitive Damages under the Common Law and the Connecticut Product Liability Act
In most states, the calculation of a punitive damages award takes into account a number of factors including the relative wealth of the defendant, the nature of the alleged misconduct, the facts and circumstances surrounding the conduct, the cost of the litigation, and the amount of actual damages awarded.
See generally State Farm Mutual Auto. Ins. Co. v. Campbell,
In 1979, the General Assembly enacted the Product Liability Act (“PLA” or the “Act”), codified at Conn. Gen.Stat. § 52-572m,
et seq.
The PLA codified the various common law theories of product liability.
See LaMontagne v. E.I. DuPont De Nemours & Co., Inc.,
Punitive damages may be awarded if the claimant proves that the harm suffered was the result of the product seller’s reckless disregard for the safety of product users, consumers or others who were injured by the product. If the trier of fact determines that punitive damages should be awarded, the court shall determine the amount of such damages not to exceed an amount equal to twice the damages awarded to the plaintiff.
Accordingly, I must determine the amount of the punitive damages award in favor of Izzarelli. That amount must be set within the framework promulgated by the Connecticut legislature.
Generally, where a statute authorizing punitive damages is silent about how those damages should be calculated, a court should follow the common-law rule.
See Arnone v. Enfield,
B. The Meaning and Effect of Conn. Gen. Stat. § 52-240b
The proper measure of punitive damages under the PLA is a question of statutory construction. “The meaning of a statute shall, in the first instance, be ascertained from the text of the statute itself and its relationship to other statutes. If, after examining such text and considering such relationship, the meaning of such text is plain and ambiguous ... extratextual evidence of the meaning of the statute shall not be considered.” Conn. Gen.Stat. § 1-2z. The Connecticut Supreme Court’s holding in
Lynn v. Haybuster Mfg., Inc.,
In accordance with the principles set forth in section 1-2z and
Lynn,
I first examine the language of section 52-240b to determine whether it clearly abrogates the common-law measure of punitive damages. In doing so, I am mindful of the Court’s direction that “the legislature’s intent is derived not in what it meant to say, but in what it did say.”
Lynn,
1. Recklessness
The language of the first sentence of section 52-240b articulates the standard for determining whether punitive damages are available. It provides that “[pjunitive damages may be awarded if the claimant proves that the harm suffered was the result of the product seller’s reckless disregard .... ” The sentence incorporates a standard strikingly similar to that stated by the Connecticut Supreme Court in
Vandersluis v. Weil,
The legislative history of the PLA also supports the conclusion that the legislature intended to adopt the traditional common-law standard. The initial proposed bill, based on the Draft Uniform Product Liability Act (“UPLA”), called for a “clear and convincing” evidentiary standard for the award of punitive damages and stated that:
(a) Punitive damages, in addition to attorney’s fees, may be awarded if claimant shows by clear and convincing evidence that the harm suffered was the result of the product seller’s reckless disregard for the safety of product users, consumers or others who were injured by the product.
Legislative History of “An Act Concerning Product Liability Actions,” P.A. 79-483, 1979 House Bill No. 5870, Proposed Substitute House Bill No. 5870, at 6 [hereinafter “Proposed Bill”].
The Connecticut legislature, however, did not adopt the “clear and convincing” evidentiary standard and passed instead a provision embodying the previously accepted “preponderance of the evidence” evidentiary standard for common-law punitive damages. See Robert B. Yules, An Analysis of Connecticut’s New Product Liability Law, 56 Conn. B.J. 269 (1982) (“The U.S. Department of Commerce’s Task Force recommended that punitive damages be imposed only on the basis of clear and convincing evidence, not merely on a preponderance of the evidence standard. The Connecticut version does not contain such a standard.”). 3
2. Measurement of Punitive Damages
By rejecting proposed legislation that would have authorized punitive damages “in addition to attorney’s fees,” the legislature declined to expand punitive damages beyond the common-law measure of litigation less taxable costs. The legislature’s intent to preserve the common-law meas
(b) If the trier of fact determines that punitive damages should be awarded, it shall determine the amount of such damages. In making the determination, the court shall consider: (1) The likelihood at the time of manufacture that a serious harm would arise from the product seller’s misconduct, (2) the degree of the product seller’s awareness of such likelihood of harm, (3) the profitability of misconduct to the product seller, (4) the duration of the misconduct and any concealment of it by the product seller, (5) the attitude and conduct of the product seller upon discovery of the misconduct, (6) the financial condition of the product seller, and (7) the total effect of other punishment imposed or likely to be imposed upon the product sellers as a result of the misconduct, including punitive damage awards to persons similarly situated to the claimant and the severity of criminal penalties to which the product seller has been or may be subjected.
Proposed Bill at 6. The legislature declined to incorporate this method of calculation into the PLA, enacting instead a provision that provides only that “[i]f the trier of fact determines that punitive damages should be awarded, the court shall determine the amount of such damages not to exceed an amount equal to twice the damages awarded to the plaintiff.” Conn. Gen. Stat. § 52-240b; see also Yules, 56 Conn. B.J. 269 (“Further, the UPLA provided eight guidelines for the court in determining the amount of punitive damages to be awarded while Connecticut’s version does not have any such suggested guidelines. The Connecticut product liability law contains a limitation on the amount of punitive damages while the UPLA’s version does not.”). The legislature’s outright rejection of the multi-factor method of calculation demonstrates its intent to preserve the common-law formulation.
The second sentence of section 52-240b imposes a punitive damages cap of twice the compensatory damages. Izzarelli argues that limitation evinces a clear intent to break from the common-law doctrine that punitive damages should make the litigant whole.
See Hanna,
S. Constitutionality of Conn. Gen.Stat. § 52-240b
Izzarelli also maintains that, if section 52-240b did not displace the common-law ftcrmulation of damages, then the statute is in conflict with plaintiffs right to a jury trial on the amount of punitive damages in violation of Art. I, § 19 of the
I find no support for the assertion that, under the common-law rule, a party was entitled to a jury determination of the cost of litigation.
6
The Connecticut Supreme Court in
Berry v. Loiseau,
Izzarelli seeks to expand the right to have a jury determine whether punitive damages should be awarded into a right to have a jury calculate those damages. Izzarelli relies on the holdings of
Chykirda v. Yanush,
Similarly, the Court in
Bishop
did not hold that parties have a right to have a jury determine the amount of punitive damages. The Court held unconstitutional a statute that relegated to the court the duty to determine whether a defendant’s conduct “manifests so deliberate or reckless a disregard of these statutes” that an award of damages was appropriate. Under the statute struck down, the trial court was charged with making a factual finding that “is crucial to the question of the defendant’s liability for multiple damages.”
Bishop,
In the present case, the jury was charged with determining whether or not R.J. Reynolds’ conduct evinced a reckless or wanton disregard of the consequences of its acts; I instructed the jury that, if necessary, I would set the amount of punitive damages. Izzarelli did not object to, and in fact expected, such an instruction.
See
doc. #404 at 6 (Plaintiffs Proposed Jury Instructions) (“In this case, the jury is not being asked to make an actual award of punitive damages, but only to determine whether such an award is justified. The Court’s instruction in this regard as currently stated on the top of page 25 ... properly states the punitive damages inquiry----”). Accordingly, neither the cited cases' nor Izzarelli’s assertions in this case support a determination that the court’s reservation of the duty to calculate punitive damages, as required by section 52-240b, conflicts with Art. I, § 19 of the Connecticut Constitution. Indeed, the delegation to the court of the duty to set the amount of common-law punitive damages is commonplace.
See Berry,
C. Legislative History of the PLA
Turning again to the language of the Act itself, its stated purpose addresses concerns associated with the rising cost of product liability litigation and insurance, which had created an “unfavorable climate for manufacturing and commerce.” Legislative History of “An Act Concerning Product Liability Actions,” P.A. 79-483, 1979 House Bill No. 5870, Preface at 1. “The General Assembly sought to remedy this situation by codifying various common law approaches to product liability” in a single act.
Id.
The desire to curb the rising cost of product liability litigation and insurance resulted in a legislative desire to cap punitive damages. Thus, the interpretation suggested by Izzarelli is in
Lastly, to the extent that Izzarelli urges me to consider the measure of punitive damages employed by courts in actions brought under Connecticut’s Unfair Trade Practices Act (“CUTPA”) and Connecticut’s Uniform Trade Secrets Act (“CUT-SA”), I am not persuaded that either act informs the interpretation of the PLA. First, unlike the PLA, CUTPA is not a codification of common law causes of action. Thus, no question arises whether the legislature intended CUTPA’s statutorily-created punitive damages provision to subsume a pre-existing common-law measure of punitive damages. 8 Second, although CUTSA is a statutory codification of Connecticut common law causes of action, its punitive damages provision simply reflects an adoption of section 3 of the Uniform Trade Secrets Act, which provides, in pertinent part: “[i]f willful and malicious misappropriation exists, the court may award exemplary damages in an amount not exceeding twice any award made under subsection (a).” Subsection (a) provides for the award of actual damages. The adoption of this uniform language, in contrast to the legislature’s express rejection of the UPLA, manifests a desire to conform to the majority approach to punitive damages in causes of action brought under the Trade Secrets Act. 9
D. An Award of the Full Amount of Litigation Expenses is Warranted
In its brief on punitive damages, R.J. Reynolds argues that “despite the jury’s verdict, there is no basis on which to award punitive damages in this case” and that a nominal award would be sufficient. Doc. # 445 at 1. R.J. Reynolds also claims that any punitive damages award must be limited only to the harm suffered by Izzarelli and that the punitive damages award should be no more than sufficient to achieve Connecticut’s interests in punishment and deterrence. Although R.J. Reynolds raised the arguments unaware of Connecticut’s common law rule limiting punitive damages awards to the plaintiffs cost of litigation, I address each of those arguments to the extent that they relate to an award of punitive damages pursuant to section 52-240b.
1. The Jury’s Finding of Recklessness
R.J. Reynolds contends that, because the jury was not asked to identify the specific conduct that formed the basis of its decision to award punitive damages, Izzarelli is not entitled to a punitive damages award. R.J. Reynolds posits that because the jury
may have
rendered its decision based on evidence R.J. Reynolds objected to, i.e., evidence concerning youth
2. An Award of the Cost of Litigation is Appropriate
Although R.J. Reynolds urges a nominal award, section 52-240b sets the amount of punitive damages that I must award. Because punitive damages are set at plaintiffs cost of litigation, many of R.J. Reynolds’ arguments concerning its good conduct and due process rights are moot. Under the PLA, my task is not to decide whether Izzarelli should receive more or less than her cost of litigation, but to simply determine her cost of litigation. To the extent that any of R.J. Reynolds’ arguments survive, I address each in turn.
First, an award of the cost of litigation is directly tied to Izzarelli’s harm. Under section 52-240b, the punitive damages award is limited to Izzarelli’s cost of litigation and therefore the award is related to Izzarelli’s harm in that it is limited to the financial cost incurred by Izzarelli in bringing her claim against R.J. Reynolds. Second, punitive damages awarded under section 52-240b serve an important state interest by “striking] a balance [and] providing for the payment of a victim’s cost of litigation, which would be otherwise unavailable to [her] ... [the] rule fulfills the salutary purpose of fully compensating the victim for the harm inflicted on [her] while avoiding the potential for injustice which may result from the exercise of unfettered discretion by a jury.”
Waterbury Petroleum Products, Inc.,
Lastly, with respect to R.J. Reynolds’ claims concerning due process, I find that a punitive damages award limited to the cost of litigation comports with due process.
See generally BMW of North America v. Gore,
II. Conclusion
For the foregoing reasons, I reject Izzarelli’s contention that the PLA abrogated commonlaw punitive damages in product liability cases and order that R. J. Reynolds shall pay Izzarelli $3,970,289.87 in punitive damages, an amount that reflects the parties’ stipulated $3,547,666.67 in attorneys’ fees and $422,623.20 in non-taxable costs. 12 Accordingly, Barbara Izzarelli’s total award is $11,952,539.87.
The clerk shall enter judgment and close this file.
It is so ordered.
Notes
. Although the jury initially awarded Barbara Izzarelli $325,000 in economic damages, the evidence at trial proved economic damages in the amount of only $162,500. See Trial ex. 339. The parties stipulated that Izzarelli is entitled to recover only the economic damages proved at trial and thus the award is hereby reduced accordingly. Doc. # 458. The judgment shall reflect the corrected economic damages award of $162,500.
. This amount includes the adjusted economic damages award.
. Although the proposed language also required a showing of “reckless disregard,” there is nothing that suggests that the legislature derived its standard from the proposed UPLA instead of the common-law standard.
See generally Lynn,
. Izzarelli, of course, can make no claim that the statutory cap on punitive damages will prevent her from being made whole.
. Section 19 states that "[t]he right of trial by jury shall remain inviolate.”
. Putting aside the fact that Izzarelli did not preserve this issue at trial, the argument is a curious one. It is rare for a successful plaintiff to claim that the statute under which she prevailed at trial is unconstitutional. If successful on this claim, Izzarelli’s verdict would be put at risk'—at least with respect to the punitive damages issue—and, at any retrial of the punitive damages issue, the common law rule (which Izzarelli opposes) would presumably apply in absence of the supposedly unconstitutional statute. Thus, Izzarelli would risk her verdict in order to have a jury, rather than the court, "find” the stipulated amount of her litigation costs. Luckily for Izzarelli, there is no merit to her argument.
. In response to the latter challenge, the Court unequivocally rejected the argument and held that:
In Waterbury Petroleum Products, Inc. v. Canaan Oil & Fuel Co., ... we declined a similar invitation to stray from our well settled rule regarding the measurement of punitive damages. We affirmed the continuing viability of a long line of cases holding that common law punitive damages serve primarily to compensate the plaintiff for his injuries and, thus, are properly limited to the plaintiffs litigation expenses less taxable costs. We recognized, moreover, that our rule, when viewed in the light of the increasing costs of litigation, also serves to punish and deter wrongful conduct. In recent years, we have continued to adhere to the view that our traditional rule remains viable. We remain convinced that a rule limiting punitive damages awards to the expense of litigation less taxable costs fulfills the salutary purpose of fully compensating a victim for the harm inflicted on him while avoiding the potential for injustice which may result from the exercise of unfettered discretion by a jury.
Berry,
. CUTPA prohibits "unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce.” Conn. Gen.Stat. § 42-110b(a). The Act is not modeled on Connecticut common law doctrine, but on the Federal Trade Commission Act. CUPTA created a new consumer protection scheme under Connecticut law. See 16 H.R. Proc. Pt. 14, 1973 Sess., pp. 7321-24 (remarks of Rep. Howard A. Newman).
. Conn. Gen.Stat. § 35-53 provides, in part, that "if the court finds willful and malicious misappropriation, the court may award punitive damages in an amount not exceeding twice any award made under subsection (a).” The terms exemplary damages and punitive damages are used interchangeably by Connecticut courts.
. In the usual course, when a federal court is faced with an undecided issue of state law of this importance, certification to the Connecticut Supreme Court pursuant to Conn. Gen.Stat. § 51-199b(d) would be appropriate. Certification at this stage, however, would cause only further delay in a case that was already ten years old when transferred to my docket. At oral argument the parties expressed concern that there are other questions of state law that may be certified on appeal: accordingly, certification at this stage is unnecessary and would be inefficient. See doc. #468 at 19-22.
. Although not binding, the Office of Legislative Research ("OLR’') has responded to inquiries concerning the availability of punitive damages and the method of calculating those damages in Connecticut; its guidance is informative.
See Punitive Damages,
Office of Legislative Research Report, 97-R-1140 (Oct. 1, 1997). In response to these inquiries the OLR has stated; "In Connecticut, punitive damages are awarded under either specific statutory provisions or common law. No statute or practice rule, however, establishes a standard for punitive damages awards in general. Instead, various civil statutes provide for punitive damage awards in discrete situations. These statutes usually declare what the governing standard is: whether the award is mandatory or discretionary with the court or trier of fact; and what the amount should be, including whether it is subject to a maximum dollar figure.” The OLR, citing
Bodner v. United Servs. Auto. Ass’n,
. The parties have stipulated to Izzarelli's costs. Docs. # 458, 469.
