Stroud v. LintsStroud v. Lints
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- Before:
- Barnes
Lead Opinion
OPINION
Case Summary
Matthew Stroud appeals the trial court's award of $500,000 in punitive damages against him in favor of Trevor Lints in Lints' action seeking recovery for injuries sustained in an automobile accident caused by Stroud. Lints cross-appeals the trial court's finding that he was twenty-five percent at fault for his injuries and that Stroud's mother was not liable for the punitive damages award. We affirm in all respects.
Issues
Stroud has listed six issues, but they may be restated as one basic issue: whether the punitive damages award is clearly excessive. Lints' two cross-appeal issues are:
I. whether Stroud's mother should have been held liable for the punitive damages award because she signed Stroud's driver's license application pursuant to Indiana Code Section 9-24-9-4(a); and
II. whether Stroud presented sufficient evidence that Lints was twenty-five percent comparatively at fault for his injuries.
Facts
The facts most favorable to the judgment reveal that on July 28, 1996, high
Stroud was charged with six criminal counts related to the accident, including one count of operating while intoxicated ("OWI") and causing serious bodily injury to Lints in violation of Indiana Code Section 9-30-5-4, a Class D felony. Stroud pled guilty to all six counts and was initially sentenced on June 12, 1997, to eight years of incarceration; he received three years on the count related to Lints, to be served concurrently with the eight-year sentences on the two counts of OWI resulting in death. On June 10, 1999, Stroud's petition for modification of his sentence was granted, which allowed him to serve the rest of his incarceration period on work release.
On June 10, 1998, Lints and his parents sued Stroud and his mother, who had signed Stroud's minor driver's license application. After a bench trial, the trial court entered judgment, without special findings, on September 12, 2000. It found Lints' total compensatory damages to be $1,842,000; however, it also found Lints was twenty-five percent at fault for his injuries and entered judgment against Stroud and his mother for $1,381,500 in compensatory damages. It also found Lints' parents were entitled to $100,000 in compensatory damages, after taking Lints' comparative fault into account. Finally, it assessed $500,000 in punitive damages against Stroud only. Stroud and Lints now both appeal.
Analysis
I. Punitive Damages
The standard of review for determining whether punitive damages were properly awarded is whether, considering only the probative evidence and the reasonable inferences supporting the judgment, without weighing evidence or assessing witness credibility, a reasonable trier of fact could find by clear and convincing evidence that the defendant acted with malice, fraud, gross negligence or oppressiveness that was not the result of a mistake of fact or law, honest error of judgment, overzealousness, mere negligence, or other human failing. Executive Builders, Inc. v. Trisler,
As to the standard of review as to the amount of punitive damages, numerous Indiana cases have discussed various factors to consider when reviewing the amount of punitive damages, but few have clearly articulated the level of deference given to a trial court's or jury's assessment as to the appropriate amount of such damages. Generally, Indiana courts will not reverse an award of punitive damages as being excessive unless the damages appear so unreasonable as to indicate that the fact finder was motivated by passion or prejudice. Archem, Inc. v. Simo,
At oral argument, counsel for Stroud directed us to the recent Supreme Court case of Cooper Industries, Inc. v. Leatherman Tool Group, Inc.,
"The purpose of punitive damages is to punish the wrongdoer and thereby deter others from engaging in similar conduct." Bright v. Kuehl,
The BMW opinion states that "[plerhaps the most important indicium of the reasonableness of a punitive damages award is the degree of reprehensibility of the defendant's conduct."
"The second and perhaps most commonly cited indicium of an unreason
"Comparing the punitive damages award and the civil or criminal penalties that could be imposed for comparable misconduct provides a third indicium of excessiveness." Ford Motor Co.,
As for comparable civil penalties, we are unaware of any reported case in Indiana with a similar fact pattern and an award of punitive damages with which to compare this case. Lints directs us to the case of Warhurst v. White,
Stroud's arguments for reversal or re-mittitur focus primarily on his alleged inability to pay the $500,000 in punitive damages, as well as on the fact that he has already been subjected to criminal sanctions for his conduct. He is correct that this court has often affirmed large punitive damages awards only after considering the defendant's wealth and ability to pay the award. See Executive Builders,
In Hibschman Pontiac v. Batchelor, our supreme court said "there appears to be no requirement that evidence of [a defendant's]l worth be submitted in cases of punitive damages."
We recognize that Stroud was a seventeen-year-old high school student at the time of the accident, and that at the time of the civil trial he had served two years of incarceration and was on work release. It may be that this evidence permitted a reasonable inference that Stroud is an individual with little economic wealth and virtually no present ability to pay a $500,000 punitive damages judgment. Still, this was one factor among several that the trial court was entitled to consider when assessing punitive damages and one that we do not believe was required to be given special weight, particularly given the lack of definitive evidence on the issue. Alternatively, we conclude the trial court reasonably could have decided, without committing an abuse of discretion, that Stroud's alleged lack of economic wealth was not at all proven and was a factor entitled to no weight because of this lack of evidence.
Stroud also relies heavily on a case from the United States Northern District of Indiana, Fall v. Indiana University Board of Trustees,
Stroud also claims that the fact that he pled guilty to six criminal charges stemming from the automobile accident is another basis for reducing the amount of the punitive damages award. He concedes the existence of Indiana Code Section 34-24-3-3, which provides that is not a defense to a punitive damages action that the defendant is "subject to criminal prosecution" for the act that gave rise to the civil suit. He also acknowledges the holding of Robbins v. McCarthy,
Several factors here weigh in favor of a larger punitive damages award: the reprehensibility of Stroud's conduct; the ratio of compensatory to punitive damages; and damages awarded in comparable cases. Other factors favor a smaller award: Stroud's arguable lack of wealth and the fact that he has already been criminally punished for the same conduct. We also note that trial and appellate courts no longer award and review punitive damages awards in a complete vacuum, as once was the case. Our legislature has enacted a cap on punitive damages, so that they cannot exceed three times the compensatory damages or $50,000, whichever is greater.
Our decision today should not be construed as a broad grant of authority to impose large punitive damages awards against individuals. In another case with a different set of facts, another trial court or jury may decide not to impose such a large award. Nor should a punitive damages award be made or affirmed solely on the basis that it does not exceed the cap established by the legislature. As with a criminal sentence that technically falls under the statutory maximum but is nonetheless "manifestly unreasonable," so too a punitive damages award that falls under the statutory cap may be impermissibly excessive. In this particular case we cannot say the $500,000 punitive damages award is so clearly against the logic and effect of the entirety of the facts and circumstances before the trial court as to constitute an abuse of discretion.
II. Cross-Appeal Issues
A. Mother's Liability for Punitive Damages
Lints claims that because Stroud's mother signed his driver's license application, she should be jointly liable not only for the compensatory damages in this case, but also the punitive damages. Indiana Code Section 9-24-9-4(a) provides:
An individual who signs an application for a permit or license under this chapter [concerning minor applicants] agrees to be responsible jointly and severally with the minor applicant for any injury or damage that the minor applicant causes by reason of the operation of a motor vehicle if the minor applicant is liable in damages.
There is little case law interpreting this provision. Specifically, there is no case stating whether "any injury or damage" necessarily imputes liability for punitive as well as compensatory damages to the person signing a minor's driver's license application. No Indiana case discusses the general proposition of whether a parent or other individual who is jointly or vieariously liable for damages "caused" by another is also necessarily liable for any punitive damages assessed against the tortfeasor. It does appear that in Indiana a corporation may be held vicariously liable for punitive damages assessed against an employee. See Stevenson v. Hamilton Mut. Ins. Co.,
We find the following discussion to be instructive:
Exemplary damages can be awarded only against one who has participated in the wrongful act, and usually are not given against those liable, if at all, merely by reason of their relation to the wrongdoer. Since punitive damages are awarded primarily to punish the offender and discourage similar offenses, these justifications for their imposition are sharply diminished if vicarious liability were recognized. However, there are exceptions to the above rule dealing withthe liability of employers and principals for the acts of their agents....
22 Am.Jur.2d 836, § 785 (1988) (footnotes omitted). Thus, outside of the master-servant or principal-agent context, the common law appears to disfavor vicarious liability for punitive damages. See also Franz v. Brennan,
We also observe that the statute refers to injury or damages "caused" by a minor for which a parent may be jointly liable. We believe this refers to injuries or damages actually sustained by the tort victim, such as pain and suffering, medical bills, lost wages and the like, and which are remedied by the award of compensatory damages. Punitive damages, on the other hand, do not compensate a victim for his or her injuries but instead are designed to serve the State's interests in deterrence and punishment. See Carroll v. Statesman Ins. Co.,
Our supreme court addressed a similar question of statutory interpretation in Indiana Civil Rights Comm'n v. Alder,
Having concluded that Stroud's mother cannot be liable for the punitive damages award via the minor's driver's license application statute, we must decide whether Stroud's mother should be held personally liable for punitive damages. Lints is appealing from a negative judgment on this point, because he bore the burden of proving, by clear and convincing evidence, that Stroud's mother acted with malice, fraud, gross negligence or oppressiveness that was not the result of a mistake of fact or law, honest error of judgment, overzealousness, mere negligence, or other human failing. See Executive Builders, Inc. v. Trisler,
Lints' only factual assertion on this claim is that after Stroud was ticketed for illegal consumption of alcohol one month before the accident, his mother should have immediately moved to cancel his license pursuant to Indiana Code Section 9-24-9-4(b). We cannot say that this fact by itself leads to but one conclusion as a matter of law, namely, that Stroud's mother acted with the requisite culpability with respect to the accident that she should personally be held liable for punitive damages. We decline to overturn the trial court's judgment on this point.
B. Comparative Fault of Lints
Finally, Lints claims there was insufficient evidence to support the trial court's finding that he was twenty-five percent at fault for his injuries. "In the absence of special findings, we review a trial court decision as a general judgment and, without reweighing evidence or considering witness credibility, affirm if sustainable upon any theory consistent with the evidence." Perdue Farms, Inc. v. Pryor,
Stroud argues that Lints knowingly incurred a risk when he solicited a ride home from Stroud with knowledge that Stroud had been drinking. "Incurred risk requires a 'mental state of venturousness' and a 'conscious, deliberate and intentional embarkation upon the course of conduct with knowledge of the cireumstances.' This defense 'contemplates acceptance of a specific risk of which the plaintiff has actual knowledge."" Id. at 242 (citations omitted). Incurred risk used to be a complete defense in Indiana, but has been subsumed by the concept of fault under the Comparative Fault Act. Heck v. Robey,
Lints argues that ineurred risk should not have been found to exist in this case because he testified that he had previously ridden with Stroud after Stroud had been drinking and had not observed reckless driving similar to what occurred on the night of the accident. Even so, we do not accept that this absolved Lints of all responsibility for his solicitation of a ride with a person whom he knew had been drinking for several hours. It would contravene sound public policy for us to recognize, as a matter of law, that there can be such a thing as a normally "good" drunk driver. Every passenger should be charged with an awareness that knowingly soliciting a ride from a drunk driver is always fraught with danger, even if past rides with that driver while he or she was intoxicated somehow concluded without incident. Lints' solicitation of a ride from Stroud with knowledge that he had been drinking is sufficient to support the trial
Conclusion
We have reviewed the trial court's decision to impose $500,000 in punitive damages against Stroud for an abuse of discretion and have concluded that, given the various facts and circumstances before the court, it did not abuse its discretion in arriving at that figure. As for Lints cross-appeal, we hold that Stroud's mother cannot be jointly or vicariously liable for the punitive damages award pursuant to the minor driver's license application statute, nor is there sufficient reason for us to overturn the trial court's decision not to impose punitive damages against her for her own behavior. Finally, we sustain the trial court's finding that Lints was twenty-five percent comparatively at fault for his injuries. We affirm the judgment in all respects.
Affirmed.
Notes
. We heard oral argument in the beautifully restored Kosciusko County Courthouse on
. We believe, however, that we may refer to the BMW case and the factors it identified for reviewing punitive damages awards as instructive when conducting a common law ex-cessiveness review.
. Although this is an accurate citation to the holding, we note that Chief Justice Givan wrote this statement, with Justice Pivarnik concurring, purporting to overrule an earlier case that said that under the former version of the Indiana Guest Statute, driving while intoxicated must be combined with some other misconduct or reckless driving behavior to rise to the level of willful and wanton conduct. Andert v. Fuchs,
. Additionally, we note that Lints has not presented us with any argument upon which to base personal liability against Stroud's mother, outside of the argument based upon the minor's driver's license statute that we rejected. In the absence of a theory upon which to base the personal liability of Stroud's mother, such as the breach of a duty owed to Lints or the commission of an intentional tort, there can be no personal liability against her for punitive damages.
Concurrence Opinion
concurring.
I write only to emphasize in concurrence that the assignment of twenty-five percent (25%) comparative fault to Lints by the trial court as fact-finder was, under the facts and cireumstances of this case, generous ... to Lints. When Lints chose to consume alcohol all day and further chose to ride home with Stroud, who Lints knew had done likewise, he was nearly as culpable as Stroud in the proximate causation of the tragic injuries he received.