Honda Motor Co. v. Oberg
Opinion of the Court
delivered the opinion of the Court.
An amendment to the Oregon Constitution prohibits judicial review of the amount of punitive damages awarded by a jury “unless the court can affirmatively say there is no evidence to support the verdict.” The question presented is whether that prohibition is consistent with the Due Process Clause of the Fourteenth Amendment. We hold that it is not.
I
Petitioner Honda Motor Co., Ltd., manufactured and sold the three-wheeled all-terrain vehicle that overturned while respondent was driving it, causing him severe and permanent injuries. Respondent brought suit alleging that petitioner knew or should have known that the vehicle had an inherently and unreasonably dangerous design. The jury found petitioner liable and awarded respondent $919,390.39 in compensatory damages and punitive damages of $5 million. The compensatory damages, however, were reduced by 20% to $735,512.31, because respondent’s own negligence contributed to the accident. On appeal, relying on our then-recent decision in Pacific Mut. Life Ins. Co. v. Haslip, 499 U. S. 1 (1991), petitioner argued that the award of punitive damages violated the Due Process Clause of the Fourteenth Amendment, because the punitive damages were excessive and because Oregon courts lacked the power to correct excessive verdicts.
The Oregon Court of Appeals affirmed, as did the Oregon Supreme Court. The latter court relied heavily on the fact that the Oregon statute governing the award of punitive damages in product liability actions and the jury instructions in this case
II
Our recent cases have recognized that the Constitution imposes a substantive limit on the size of punitive damages awards. Pacific Mut. Life Ins. Co. v. Haslip, 499 U. S. 1 (1991); TXO Production Corp. v. Alliance Resources Corp., 509 U. S. 443 (1993). Although they fail to “draw a mathematical bright line between the constitutionally acceptable and the constitutionally unacceptable,” id., at 458; Haslip, 499 U. S., at 18, a majority of the Justices agreed that the Due Process Clause imposes a limit on punitive damages awards. A plurality in TXO assented to the proposition that “grossly excessive” punitive damages would violate due process, 509 U. S., at 453-455, while Justice O’Connor, who dissented because she favored more rigorous standards, noted that “[i]t is thus common ground that an award may be so excessive as to violate due process,” id., at 480. In the case before us today we are not directly concerned with the character of the standard that will identify unconstitutionally excessive awards; rather, we are confronted with the question of what procedures are necessary to ensure that punitive damages are not imposed in an arbitrary manner. More specifically, the question is whether the Due Process Clause requires judicial review of the amount of punitive damages awards.
The opinions in both Haslip and TXO strongly emphasized the importance of the procedural component of the Due Process Clause. In Haslip, the Court held that the common-law method of assessing punitive damages did not violate procedural due process. In so holding, the Court stressed the availability of both “meaningful and adequate review by the trial court” and subsequent appellate review. 499 U. S., at 20. Similarly, in TXO, the plurality opinion
All of those opinions suggest that our analysis in this case should focus on Oregon’s departure from traditional procedures. We therefore first contrast the relevant common-law practice with Oregon’s procedure, which that State’s Supreme Court once described as “a system of trial by jury in which the judge is reduced to the status of a mere monitor.” Van Lom v. Schneiderman, 187 Ore. 89, 113, 210 P. 2d 461, 471 (1949). We then examine the constitutional implications of Oregon’s deviation from established common-law procedures.
Ill
Judicial review of the size of punitive damages awards has been a safeguard against excessive verdicts for as long as punitive damages have been awarded. One of the earliest reported cases involving exemplary damages, Huckle v. Money, 2 Wils. 205, 95 Eng. Rep. 768 (C. P. 1763), arose out of King George Ill’s attempt to punish the publishers of the allegedly seditious North Briton, No. 45. The King’s agents arrested the plaintiff, a journeyman printer, in his home and detained him for six hours. Although the defendants treated the plaintiff rather well, feeding him “beef steakes and beer, so that he suffered very little or no damages,” 2 Wils., at 205, 95 Eng. Rep., at 768, the jury awarded him £300, an enormous sum almost 300 times the plaintiff’s weekly wage. The defendant’s lawyer requested a new trial, arguing that the jury’s award was excessive. Plain
Subsequent English cases, while generally deferring to the jury’s determination of damages, steadfastly upheld the court’s power to order new trials solely on the basis that the damages were too high. Fabrigas v. Mostyn, 2 Black. W. 929, 96 Eng. Rep. 549 (C. R 1773) (Damages “may be so monstrous and excessive, as to be in themselves an evidence of passion or partiality in the jury”);
Respondent calls to our attention the case of Beardmore v. Carrington, 2 Wils. 244, 95 Eng. Rep. 790 (C. P. 1764), in which the court asserted that “there is not one single case, (that is law), in all the books to be found, where the court has granted a new trial for excessive damages in actions for torts.” Id., at 249, 95 Eng. Rep., at 793. Respondent would infer from that statement that 18th-century common law did not provide for judicial review of damages. Respondent’s argument overlooks several crucial facts. First, the Beardmore case antedates all but one of the cases cited in the previous paragraph. Even if respondent’s interpretation of the case were correct, it would be an interpretation the English courts rejected soon thereafter. Second, Beardmore itself cites at least one case that it concedes granted a new trial for excessive damages, Chambers v. Robinson, 2 Str. 691, 93 Eng. Rep. 787 (K. B. 1726), although it characterizes the case as wrongly decided. Third, to say that “there is not one single case ... in all the books” is to say very little, because then, much more so than now, only a small proportion of decided cases was reported. For example, for 1764, the year Beardmore was decided, only 16 Common Pleas cases are recorded in the standard reporter. 2 Wils. 208-257, 95 Eng. Rep. 769-797. Finally, the inference respondent would draw, that 18th-century English common law did not permit a judge to order new trials for excessive damages, is explicitly rejected by Beardmore itself,
Common-law courts in the United States followed their English predecessors in providing judicial review of the size of damages awards. They too emphasized the deference ordinarily afforded jury verdicts, but they recognized that juries sometimes awarded damages so high as to require correction. Thus, in 1822, Justice Story, sitting as Circuit Justice, ordered a new trial unless the plaintiff agreed to a reduction in his damages.
“As to the question of excessive damages, I agree, that. the court may grant a new trial for excessive damages____ It is indeed an exercise of discretion full of delicacy and difficulty. But if it should clearly appear that the jury have committed a gross error, or have acted from improper motives, or have given damages excessive in relation to the person or the injury, it is as much the duty of the court to interfere, to prevent the wrong, as in any other case.” Blunt v. Little, 3 F. Cas. 760, 761-762 (No. 1, 578) (CC Mass. 1822).
See also Whipple v. Cumberland Mfg. Co., 29 F. Cas. 934, 937-938 (No. 17, 516) (CC Me. 1843).
Nineteenth-century treatises similarly recognized judges’ authority to award new trials on the basis of the size of damages awards. 1 D. Graham, A Treatise on the Law of New Trials 442 (2d ed. 1855) (“[E]ven in personal torts, where the jury find outrageous damages, clearly evincing partiality, prejudice and passion, the court will interfere for the relief
Modern practice is consistent with these earlier authorities. In the federal courts and in every State, except Oregon, judges review the size of damages awards. See Dagnello v. Long Island R. Co., 289 F. 2d 797, 799-800, n. 1, (CA2 1961) (citing cases from all 50 States except Alaska, Maryland, and Oregon); Nome v. Ailak, 570 P. 2d 162, 173-174 (Alaska 1977); Alexander & Alexander, Inc. v. B. Dixon Evander & Assocs., Inc., 88 Md. App., at 716-722, 596 A. 2d, at 709-711, cert. denied, 605 A. 2d 137 (Md. 1992); Texaco, Inc. v. Pennzoil, Co., 729 S. W. 2d 768 (Tex. App. 1987); Grimshaw v. Ford Motor Co., 119 Cal. App. 3d 757, 174 Cal. Rptr. 348 (1981); Draper, Exeessiveness or Inadequacy of Punitive Damages Awarded in Personal Injury or Death Cases, 12 A. L. R. 5th 195 (1993); Schnapper, Judges Against Juries— Appellate Review of Federal Civil Jury Verdicts, 1989 Wis. L. Rev. 237.
IV
There is a dramatic difference between the judicial review of punitive damages awards under the common law and the scope of review available in Oregon. An Oregon trial judge, or an Oregon appellate court, may order a new trial if the jury was not properly instructed, if error occurred during the trial, or if there is no evidence to support any punitive damages at all. But if the defendant’s only basis for relief is the amount of punitive damages the jury awarded, Oregon
In that case the court held that it had no power to reduce or set aside an award of both compensatory and punitive damages that was admittedly excessive.
Respondent argues that Oregon’s procedures do not deviate from common-law practice, because Oregon judges have the power to examine the size of the award to determine whether the jury was influenced by passion and prejudice. This is simply incorrect. The earliest Oregon cases interpreting the 1910 amendment squarely held that Oregon courts lack precisely that power. Timmins v. Hale, 122 Ore. 24, 43-44, 256 P. 770, 776 (1927); McCulley v. Homestead Bakery, Inc., 141 Ore. 460, 465-466, 18 P. 2d 226, 228 (1933). Although dicta in later cases have suggested that the issue might eventually be revisited, see Van Lorn, 187 Ore., at 106, 210 P. 2d, at 468, the earlier holdings remain Oregon law. No Oregon court for more than half a century has inferred passion and prejudice from the size of a damages award, and no court in more than a decade has even hinted that courts might possess the power to do so.
Respondent also argues that Oregon provides adequate review, because the trial judge can overturn a punitive damages award if there is no substantial evidence to support an award of punitive damages. See Fowler v. Courtemanche, 202 Ore., at 448-449, 274 P. 2d, at 275. This argument is unconvincing, because the review provided by Oregon courts ensures only that there is evidence to support some punitive damages, not that there is evidence to support the amount actually awarded. While Oregon’s judicial review ensures that punitive damages are not awarded against defendants entirely innocent of conduct warranting exemplary damages, Oregon, unlike the common law, provides no assurance that those whose conduct is sanctionable by punitive damages are not subjected to punitive damages of arbitrary amounts. What we are concerned with is the possibility that a culpable defendant may be unjustly punished; evidence of culpability warranting some punishment is not a substitute for evidence providing at least a rational basis for the particular deprivation of property imposed by the State to deter future wrongdoing.
Oregon’s abrogation of a well-established common-law protection against arbitrary deprivations of property raises a presumption that its procedures violate the Due Process Clause. As this Court has stated from its first due process cases, traditional practice provides a touchstone for constitutional analysis. Murray’s Lessee v. Hoboken Land & Improvement Co., 18 How. 272 (1856); Tumey v. Ohio, 273 U. S. 510 (1927); Brown v. Mississippi, 297 U. S. 278 (1936); In re Winship, 397 U. S. 358, 361 (1970); Burnham v. Superior Court of Cal., County of Marin, 495 U. S. 604 (1990); Pacific Mut. Life Ins. Co. v. Haslip, 499 U. S. 1 (1991). Because the basic procedural protections of the common law have been regarded as so fundamental, very few cases have arisen in which a party has complained of their denial. In fact, most of our due process decisions involve arguments that traditional procedures provide too little protection and that additional safeguards are necessary to ensure compliance with the Constitution. Ownbey v. Morgan, 256 U. S. 94 (1921); Burnham v. Superior Court of Cal., County of Marin, 495 U. S. 604 (1990); Pacific Mut. Life Ins. Co. v. Haslip, 499 U. S. 1 (1991).
Nevertheless, there are a handful of cases in which a party has been deprived of liberty or property without the safeguards of common-law procedure. Hurtado v. California, 110 U. S. 516 (1884); Turney v. Ohio, 273 U. S. 510 (1927); Brown v. Mississippi, 297 U. S. 278 (1936); In re Oliver, 333 U. S. 257 (1948); In re Winship, 397 U. S„ at 361. When the absent procedures would have provided protection against arbitrary and inaccurate adjudication, this Court has not hesitated to find the proceedings violative of due process. Tumey v. Ohio, 273 U. S. 510 (1927); Brown v. Mississippi, 297 U. S. 278 (1936); In re Oliver, 333 U. S. 257 (1948); In re Winship, 397 U. S., at 361. Of course, not all deviations from established procedures result in constitutional infirmity. As the Court noted in Hurtado, to hold all procedural
In Hurtado, for example, examination by a neutral magistrate provided criminal defendants with nearly the same protection as the abrogated common-law grand jury procedure. Id., at 538. Oregon, by contrast, has provided no similar substitute for the protection provided by judicial review of the amount awarded by the jury in punitive damages. Similarly, in International Shoe Co. v. Washington, 326 U. S. 310 (1945), this Court upheld the extension of state-court jurisdiction over persons not physically present, in spite of contrary well-established prior practice. That change, however, was necessitated by the growth of a new business entity, the corporation, whose ability to conduct business without physical presence had created new problems not envisioned by rules developed in another era. See Burnham, 495 U. S., at 617. In addition, the dramatic improvements in communication and transportation made litigation in a distant forum less onerous. No similar social changes suggest the need for Oregon’s abrogation of judicial review, nor do improvements in technology render unchecked punitive damages any less onerous. If anything, the rise of large, interstate and multinational corporations has aggravated the problem of arbitrary awards and potentially biased juries.
VI
Respondent argues that Oregon has provided other safeguards against arbitrary awards and that, in any event, the exercise of this unreviewable power by the jury is consistent with the jury’s historic role in our judicial system.
Respondent points to four safeguards provided in the Oregon courts: the limitation of punitive damages to the amount specified in the complaint, the clear and convincing standard of proof, preverdict determination of maximum allowable punitive damages, and detailed jury instructions. The first,
The judgment is reversed, and the case is remanded to the Oregon Supreme Court for further proceedings not inconsistent with this opinion.
It is so ordered.
The jury instructions, in relevant part, read: “ ‘Punitive damages may be awarded to the plaintiff in addition to general damages to punish wrongdoers and to discourage wanton misconduct. In order for plaintiff to recover punitive damages against the defendant[s], the plaintiff must
As in many early cases, it is unclear whether this case specifically concerns punitive damages or merely ordinary compensatory damages. Since there is no suggestion that different standards of judicial review were applied for punitive and compensatory damages before the 20th century, no effort has been made to separate out the two classes of cases. See Brief for Legal Historians Daniel R. Coquillette et al. as Amici Curiae 2, 3, 6-7, 15 (discussing together “punitive damages, personal injury, and other cases involving difficult-to-quantify damages”).
While Justice Story’s grant of a new trial was clearly in accord with established common-law procedure, the remittitur — withdrawal of new trial if the plaintiff agreed to a specific reduction of damages — may have been an innovation. See Dimick v. Schiedt, 293 U. S. 474, 482-485 (1935). On the other hand, remittitur may have a better historical pedigree than previously thought. See King v. Watson, 2 T. R. 199-200, 100 Eng. Rep. 108 (R. B. 1788) (“[0]n a motion in the Common Pleas to set aside the verdict for excessive damages . . . the Court recommended a compromise, and on Hurry’s agreeing to accept 1500 [pounds] they discharged the rule”).
This aspect of passion and prejudice review has been recognized in many opinions of this Court. Brouining-Ferris Industries of Vt., Inc. v. Kelco Disposal, Inc., 492 U. S. 257, 272 (1989); Pacific Mut. Life Ins. Co. v. Haslip, 499 U. S. 1, 21, n. 10 (1991); id., at 27 (Scalia, J., concurring); TXO Production Corp. v. Alliance Resources Corp., 509 U. S. 443, 467 (1993) (Kennedy, J., concurring); id., at 476-478 (O’Connor, J., dissenting).
The amended Article VII, §3, of the Oregon Constitution provides: “In actions at law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury shall be otherwise re-examined in any court of this State, unless the court can affirmatively say there is no evidence to support the verdict.”
“The court is of the opinion that the verdict of $10,000.00 is excessive. Some members of the court think that only the award of punitive damages is excessive; others that both the awards of compensatory and punitive damages are excessive. Since a majority are of the opinion that this court has no power to disturb the verdict, it is not deemed necessary to discuss the grounds for these divergent views.” Van Lom v. Schneiderman, 187 Ore., at 93, 210 P. 2d, at 462 (1949).
“The guaranty of the right to jury trial in suits at common law, incorporated in the Bill of Rights as one of the first ten amendments of the Constitution of the United States, was interpreted by the Supreme Court of the United States to refer to jury trial as it had been theretofore known in England; and so it is that the federal judges, like the English judges, have always exercised the prerogative of granting a new trial when the verdict was clearly against the weight of the evidence, whether it be because excessive damages were awarded or for any other reason. The state courts were conceded similar powers. . . . [U]p to 1910, when the people adopted Art. VII, §3, of our Constitution, there was no state in the union, so far as we are advised, where this method of control of the jury did not prevail.” Id., at 112-113, 210 P 2d, at 471.
The last reported decision to suggest that a new trial might be ordered because the size of the award suggested passion and prejudice was Trenery v. Score, 45 Ore. App. 611, 615, 609 P. 2d 388, 389 (1980) (noting that “[i]t is doubtful” that passion and prejudice review continues to be available); see also Foley v. Pittenger, 264 Ore. 310, 503 P. 2d 476 (1972). More recent decisions suggest that the type of passion and prejudice review envisioned by the common law and former Ore. Rev. Stat. §17.610 (repealed by 1979 Ore. Laws, ch. 284, § 199) is no longer available. See Tenold v. Weyerhaeuser Co., 127 Ore. App. 511, 873 P. 2d 413 (1994).
Respondent cites as support for his argument Chicago, R. I. & P. R. Co. v. Cole, 251 U. S. 54, 55 (1919) (Holmes, J.). In that case, the Court upheld a provision of the Oklahoma Constitution providing that “‘the defense of contributory negligence . . . shall ... be left to the jury.’” Chicago, R. I. provides little support for respondent’s case. Justice Holmes’ reasoning relied on the fact that a State could completely abolish the defense of contributory negligence. This case, however, is different,
This case does not pose the more difficult question of what standard of review is constitutionally required. Although courts adopting a more deferential approach use different verbal formulations, there may not be much practical difference between review that focuses on “passion and prejudice,” “gross excessiveness,” or whether the verdict was “against the great weight of the evidence.” All of these may be rough equivalents of the standard this Court articulated in Jackson v. Virginia, 443 U. S. 307, 324 (1979) (whether “no rational trier of fact could have” reached the same verdict).
Respondent also argues that empirical evidence supports the effectiveness of these safeguards. It points to the analysis of an amicus showing that the average punitive damages award in a products liability case in Oregon is less than the national average. Brief for Trial Lawyers for Public Justice as Amicus Curiae. While we welcome respondent’s introduction of empirical evidence on the effectiveness of Oregon’s legal rules, its statistics are undermined by the fact that the Oregon average is computed from only two punitive damages awards. It is well known that one cannot draw valid statistical inferences from such a small number of observations.
Empirical evidence, in fact, supports the importance of judicial review of the size of punitive damages awards. The most exhaustive study of punitive damages establishes that over half of punitive damages awards were appealed, and that more than half of those appealed resulted in reductions or reversals of the punitive damages. In over 10% of the cases
Judicial deference to jury verdicts may have been stronger in 18th-century America than in England, and judges’ power to order new trials for excessive damages more contested. See Nelson, The Eighteenth-Century Background of John Marshall’s Constitutional Jurisprudence, 76 Mich. L. Rev. 893, 904-917 (1978); M. Horwitz, The Transformation of American Law, 1780-1860, p. 142 (1977). Nevertheless, because this case concerns the Due Process Clause of the Fourteenth Amendment, 19th-century American practice is the “crucial time for present purposes.” Burnham v. Superior Court of Cal., County of Marin, 495 U. S. 604, 611 (1990). As demonstrated supra, at 424-426, by the time the Fourteenth Amendment was ratified in 1868, the power of judges to order new trials for excessive damages was well established in American courts. In addition, the idea that jurors can find law as well as fact is not inconsistent with judicial review for excessive damages. See Coffin v. Coffin, 4 Mass. 1, 25, 41 (1808).
Concurring Opinion
concurring.
I join the opinion of the Court, but a full explanation of why requires that I supplement briefly the description of what has occurred here.
Before the 1910 amendment to Article VII, § 3, of the Oregon Constitution, Oregon courts had developed and were applying common-law standards that limited the size of damages awards. See, e. g., Adcock v. Oregon R. Co., 45 Ore. 173, 179-182, 77 P. 78, 80 (1904) (approving trial court’s decision to grant a remittitur because the jury’s damages award was excessive); see also Van Lom v. Schneiderman, 187 Ore. 89, 96-98, 112-113, 210 P. 2d 461, 464, 471 (1949). The 1910 amendment, by its terms, did not eliminate those substantive standards but altered the procedures of judicial review: “[NJo fact tried by a jury shall be otherwise re-examined in any court of this state, unless the court can affirmatively say there is no evidence to support the verdict” (emphasis added). The Oregon courts appear to believe that a state-law “reasonableness” limit upon the amount of punitive damages subsists, but cannot be enforced through the process of judicial review. In Van Lom, for example, the Oregon Supreme Court had no trouble concluding that the damages award was excessive, see 187 Ore., at 91-93, 210 P. 2d, at
The Court’s opinion establishes that the right of review eliminated by the amendment was a procedure traditionally accorded at common law. The deprivation of property without observing (or providing a reasonable substitute for) an important traditional procedure for enforcing state-prescribed limits upon such deprivation violates the Due Process Clause.
In product liability cases, Oregon guides and limits the factfinder’s discretion on the availability and amount of punitive damages. The plaintiff must establish entitlement to punitive damages, under specific substantive criteria, by clear and convincing evidence. Where the factfinder is a jury, its decision is subject to judicial review to this extent: The trial court, or an appellate court, may nullify the verdict if reversible error occurred during the trial, if the jury was improperly or inadequately instructed, or if there is no evidence to support the verdict. Absent trial error, and if there is evidence to support the award of punitive damages, however, Oregon’s Constitution, Article VII, §3, provides that a properly instructed jury’s verdict shall not be reexamined.
A
To assess the constitutionality of Oregon’s scheme, I turn first to this Court’s recent opinions in Pacific Mut. Life Ins. Co. v. Haslip, 499 U. S. 1 (1991), and TXO Production Corp. v. Alliance Resources Corp., 509 U. S. 443 (1993). The Court upheld punitive damage awards in both cases, but indicated that due process imposes an outer limit on remedies of this type. Significantly, neither decision declared any specific procedures or substantive criteria essential to satisfy due process. In Haslip, the Court expressed concerns about “unlimited jury discretion — or unlimited judicial discretion for that matter — in the fixing of punitive damages,” but refused to “draw a mathematical bright line between the constitutionally acceptable and the constitutionally unacceptable.” 499 U. S., at 18. Regarding the components of “the constitutional calculus,” the Court simply referred to “general concerns of reasonableness and [the need for] adequate guidance from the court when the case is tried to a jury.” Ibid.
And in TXO, a majority agreed that a punitive damage award may be so grossly excessive as to violate the Due Process Clause. 509 U. S., at 453-454, 458 (plurality opinion); id., at 466-467 (Kennedy, J., concurring in part and concurring in judgment); id., at 479-480 (O’Connor, J., dissenting). In the plurality’s view, however, “a judgment that is a product” of “fair procedures ... is entitled to a strong presumption of validity”; this presumption, “persuasive reasons” indicated, “should be irrebuttable,... or virtually so.” Id., at 457, citing Haslip, 499 U. S., at 24-40 (Scalia, J., concurring in judgment), and id., at 40-42 (Kennedy, J., concurring in judgment). The opinion stating the plurality position recalled Haslip’s, touchstone: A “‘concern [for] reasonableness’ ” is what due process essentially requires. 509
“[W]e do not suggest that a defendant has a substantive due process right to a correct determination of the ‘reasonableness’ of a punitive damages award. As Justice O’Connor points out, state law generally imposes a requirement that punitive damages be ‘reasonable.’ A violation of a state law ‘reasonableness’ requirement would not, however, necessarily establish that the award is so ‘grossly excessive’ as to violate the Federal Constitution.” 509 U. S., at 458, n. 24 (citation omitted).
B
The procedures Oregon’s courts followed in this case satisfy the due process limits indicated in Haslip and TXO; the jurors were adequately guided by the trial court’s instructions, and Honda has not maintained, in its full presentation to this Court, that the award in question was “so ‘grossly excessive’ as to violate the Federal Constitution.” TXO, 509 U. S., at 458, n. 24.
1
Several preverdict mechanisms channeled the jury’s discretion more tightly in this case than in either Haslip or TXO. First, providing at least some protection against unguided, utterly arbitrary jury awards, respondent Karl Oberg was permitted to recover no more than the amounts specified in the complaint, $919,390.39 in compensatory damages and $5 million in punitive damages. See Ore. Rule Civ. Proc. 18B (1994); Wiebe v. Seely, 215 Ore. 331, 355-358, 335 P. 2d 379, 391 (1959); Lovejoy Specialty Hosp. v. Advocates for Life, Inc., 121 Ore. App. 160, 167, 855 P. 2d 159, 163 (1993). The trial court properly instructed the jury on this damage
Second, Oberg was not allowed to introduce evidence regarding Honda’s wealth until he “presented evidence sufficient to justify to the court a prima facie claim of punitive damages.” Ore. Rev. Stat. §41.315(2) (1991); see also §30.925(2) (“During the course of trial, evidence of the defendant’s ability to pay shall not be admitted unless and until the party entitled to recover establishes a prima facie right to recover [punitive damages].”). This evidentiary rule is designed to lessen the risk “that juries will use their verdicts to express biases against big businesses.” Ante, at 432; see also Ore. Rev. Stat. § 30.925(3)(g) (1991) (requiring factfinder to take into account “[t]he total deterrent effect of other punishment imposed upon the defendant as a result of the misconduct”).
Third, and more significant, as the trial court instructed the jury, Honda could not be found liable for punitive damages unless Oberg established by “clear and convincing evidence” that Honda “show[ed] wanton disregard for the health, safety and welfare of others.” §30.925 (governing product liability actions); see also §41.315(1) (“Except as otherwise specifically provided by law, a claim for punitive damages shall be established by clear and convincing evidence.”).
Fourth, and perhaps most important, in product liability cases, Oregon requires that punitive damages, if any, be awarded based on seven substantive criteria, set forth in Ore. Rev. Stat. §30.925(3) (1991):
“(a) The likelihood at the time that serious harm would arise from the defendant’s misconduct;
“(b) The degree of the defendant’s awareness of that likelihood;
“(c) The profitability of the defendant’s misconduct;
“(d) The duration of the misconduct and any concealment of it;
“(e) The attitude and conduct of the defendant upon discovery of the misconduct;
“(f) The financial condition of the defendant; and
“(g) The total deterrent effect of other punishment imposed upon the defendant as a result of the misconduct, including, but not limited to, punitive damage awards to*441 persons in situations similar to the claimant’s and the severity of criminal penalties to which the defendant has been or may be subjected.”
These substantive criteria, and the precise instructions detailing them,
The Court’s opinion in Haslip went on to describe the checks Alabama places on the jury’s discretion postverdict— through excessiveness review by the trial court, and appellate review, which tests the award against specific substantive criteria. Id., at 20-23. While postverdict review of that character is not available in Oregon, the seven factors against which Alabama’s Supreme Court tests punitive awards
As the Supreme Court of Oregon observed, Haslip “determined only that the Alabama procedure, as a whole and in its net effect, did not violate the Due Process Clause.” 316 Ore., at 284, 851 P. 2d, at 1096. The Oregon court also observed, correctly, that the Due Process Clause does not require States to subject punitive damage awards to a form of postverdict review “that includes the possibility of remittitur.”
The Supreme Court of Oregon’s conclusions are buttressed by the availability of at least some postverdict judicial review of punitive damage awards. Oregon’s courts ensure that there is evidence to support the verdict:
“If there is no evidence to support the jury’s decision— in this context, no evidence that the statutory prerequisites for the award of punitive damages were met — then the trial court or the appellate courts can intervene to vacate the award. See ORCP 64B(5) (trial court may grant a new trial if the evidence is insufficient to justify the verdict or is against law); Hill v. Garner, 277 Ore. 641, 643, 561 P. 2d 1016 (1977) (judgment notwithstanding the verdict is to be granted when there is no evidence to support the verdict); State v. Brown, 306 Ore. 599, 604, 761 P. 2d 1300 (1988) (a fact decided by a jury may be re-examined when a reviewing court can say affirmatively that there is no evidence to support the jury’s decision).” Id., at 285, 851 P. 2d, at 1096-1097.
The State’s courts have shown no reluctance to strike punitive damage awards in cases where punitive liability is not established, so that defendant qualifies for judgment on that issue as a matter of law. See, e. g., Badger v. Paulson Investment Co., 311 Ore. 14, 28-30, 803 P. 2d 1178, 1186-1187 (1991); Andor v. United Airlines, 303 Ore. 505, 739 P. 2d 18 (1987); Schmidt v. Pine Tree Land Development Co., 291 Ore. 462, 631 P. 2d 1373 (1981).
In addition, punitive damage awards may be set aside because of flaws in jury instructions. 316 Ore., at 285, 851 P. 2d, at 1097. See, e. g., Honeywell v. Sterling Furniture
II
In short, Oregon has enacted legal standards confining punitive damage awards in product liability cases. These state standards are judicially enforced by means of comparatively comprehensive preverdict procedures but markedly limited postverdict review, for Oregon has elected to make factfinding, once supporting evidence is produced, the province of the jury. Cf. Chicago, R. I. & P. R. Co. v. Cole, 251 U. S. 54, 56 (1919) (upholding against due process challenge Oklahoma Constitution’s assignment of contributory negligence and assumption of risk defenses to jury’s unreviewable decision; Court recognized State’s prerogative to “confer larger powers upon a jury than those that generally prevail”); Minnesota v. Clover Leaf Creamery Co., 449 U. S. 456, 479 (1981) (Stevens, J., dissenting) (observing that “allocation of functions within the structure of a state government” is ordinarily “a matter for the State to determine”). The Court today invalidates this choice, largely because it concludes that English and early American courts generally provided judicial review of the size of punitive damage awards. See ante, at 421-426. The Court’s account of the relevant history is not compelling.
A
I am not as confident as the Court about either the clarity of early American common law or its import. Tellingly, the Court barely acknowledges the large authority exercised by American juries in the 18th and 19th centuries. In the early
More revealing, the Court notably contracts the scope of its inquiry. It asks: Did common-law judges claim the power to overturn jury verdicts they viewed as excessive? But full and fair historical inquiry ought to be wider. The Court should inspect, comprehensively and comparatively, the procedures employed — at trial and on appeal — to fix the amount of punitive damages.
As detailed supra, at 440-441, Oregon instructs juries to decide punitive damage issues based on seven substantive factors and a clear and convincing evidence standard. When the Fourteenth Amendment was adopted in 1868, in contrast, “no particular procedures were deemed necessary to circumscribe a jury’s discretion regarding the award of [pu
Furthermore, common-law courts reviewed punitive damage verdicts extremely deferentially, if at all. See, e. g., Day v. Woodworth, 13 How. 363, 371 (1852) (assessment of “exemplary, punitive, or vindictive damages . . . has been always left to the discretion of the jury, as the degree of punishment to be thus inflicted must depend on the peculiar circumstances of each case”); Missouri Pacific R. Co. v. Humes, 115 U. S. 512, 521 (1885) (“[t]he discretion of the jury in such cases is not controlled by any very definite rules”); Barry v. Edmunds, 116 U. S. 550, 565 (1886) (in “actions for torts where no precise rule of law fixes the recoverable damages, it is the peculiar function of the jury to determine the amount by their verdict”). True, 19th-century judges occasionally asserted that they had authority to overturn damage awards upon concluding, from the size of an award, that the jury’s decision must have been based on “partiality” or “passion and prejudice.” Ante, at 425. But courts rarely exer
B
Because Oregon’s procedures assure “adequate guidance from the court when the case is tried to a jury,” Haslip, 499 U. S., at 18, this Court has no cause to disturb the judgment in this instance, for Honda presses here only a procedural due process claim. True, in a footnote to its petition for certiorari, not repeated in its briefs, Honda attributed to this Court an “assumption that procedural due process requires [judicial] review of both federal substantive due process and state-law excessiveness challenges to the size of an award.” Pet. for Cert. 16, n. 10 (emphasis in original). But the assertion regarding “state-law excessiveness challenges” is extraordinary, for this Court has never held that the Due Process Clause requires a State’s courts to police jury factfindings to ensure their conformity with state law. See Chicago, R. I. & P. R. Co. v. Cole, 251 U. S., at 56. And, as earlier observed, see supra, at 438, the plurality opinion in TXO disavowed the suggestion that a defendant has a federal due process right to a correct determination under state law of the “reasonableness” of a punitive damages award. 509 U. S., at 458, n. 24.
Honda further asserted in its certiorari petition footnote:
“Surely . . . due process (not to mention Supremacy Clause principles) requires, at a minimum, that state courts entertain and pass on the federal-law contention that a particular punitive verdict is so grossly excessive as to violate substantive due process. Oregon’s refusal to provide even that limited form of review is particularly indefensible.” Pet. for Cert. 16, n. 10.
But Honda points to no definitive Oregon pronouncement postdating this Court’s precedent-setting decisions in Haslip
It may be that Oregon’s procedures guide juries so well that the “grossly excessive” verdict Honda projects in its certiorari petition footnote never materializes. Cf. supra, at 444, n. 11 (between 1965 and the present, awards of punitive damages in Oregon have been reported in only two product liability cases, including this one). If, however, in some future case, a plea is plausibly made that a particular punitive damage award is not merely excessive, but “so ‘grossly excessive’ as to violate the Federal Constitution,” TXO, 509 U. S., at 458, n. 24, and Oregon’s judiciary nevertheless insists that it is powerless to consider the plea, this Court might have cause to grant review. Cf. Testa v. Katt, 330 U. S. 386 (1947) (ruling on obligation of state courts to enforce federal law). No such case is before us today, nor does Honda, in this Court, maintain otherwise. See 316 Ore., at 286, n. 14, 851 P. 2d, at 1097, n. 14; supra, at 444-445, n. 11 (size of award against Honda does not appear to be out of line with awards upheld in Haslip and TXO).
To summarize: Oregon’s procedures adequately guide the jury charged with the responsibility to determine a plaintiff’s qualification for, and the amount of, punitive damages, and on that account do not deny defendants procedural due process; Oregon’s Supreme Court correctly refused to rule that “an award of punitive damages, to comport with the requirements of the Due Process Clause, always must be subject to a form of post-verdict or appellate review” for excessiveness, 316 Ore., at 284, 851 P. 2d, at 1096 (emphasis
Article VII, § 3, of the Oregon Constitution reads:
“In actions at law, where the value in controversy shall exceed $200, the right of trial by jury shall be preserved, and no fact tried by a jury shall be otherwise re-examined in any court of this state, unless the court can affirmatively say there is no evidence to support the verdict.”
The Supreme Court of Oregon noted that “procedural due process in the context of an award of punitive damages relates to the requirement that the procedure employed in making that award be fundamentally fair,” while the substantive limit declared by this Court relates to the size of the award. 316 Ore. 263, 280, n. 10, 851 P. 2d 1084, 1094, n. 10 (1993).
The Court’s contrary suggestion, ante, at 433, is based on Tenold v. Weyerhaeuser Co., 127 Ore. App. 511, 873 P. 2d 413 (1994), a decision by an intermediate appellate court, in which the defendant does not appear to have objected to the trial court’s instructions as inaccurate, incomplete, or insufficient, for failure to inform the jury concerning a statutorily mandated $500,000 cap on noneconomic damages.
The Haslip jury was told that it could award punitive damages if “ ‘reasonably satisfied from the evidence’ ” that the defendant committed fraud. Pacific Mut. Life Ins. Co. v. Haslip, 499 U. S. 1, 6, n. 1 (1991).
The TXO jury was instructed to apply a preponderance of the evidence standard. See TXO Production Corp. v. Alliance Resources Corp., 509 U. S. 443, 463, n. 29 (1993).
The trial court instructed the jury:
“ ‘Punitive damages: If you have found that plaintiff is entitled to general damages, you must then consider whether to award punitive damages. Punitive damages may be awarded to the plaintiff in addition to general damages to punish wrongdoers and to discourage wanton misconduct.
“ ‘In order for plaintiff to recover punitive damages against the defendants], the plaintiff must prove by clear and convincing evidence that defendants have] shown wanton disregard for the health, safety, and welfare of others....
“ ‘If you decide this issue against the defendants], you may award punitive damages, although you are not required to do so, because punitive damages are discretionary.
“ ‘In the exercise of that discretion, you shall consider evidence, if any, of the following:
“ ‘First, the likelihood at the time of the sale [of the all-terrain vehicle] that serious harm would arise from defendants’ misconduct.
“‘Number two, the degree of the defendants’ awareness of that likelihood.
“ ‘Number three, the duration of the misconduct.
“‘Number four, the attitude and conduct of the defendants] upon notice of the alleged condition of the vehicle.
“ ‘Number five, the financial condition of the defendants].’ ” 316 Ore., at 282, n. 11, 851 P. 2d, at 1095, n. 11.
The trial judge did not instruct the jury on §30.925(3)(c), “profitability of [Honda’s] misconduct,” or §30.925(3)(g), the “total deterrent effect of other punishment” to which Honda was subject. Honda objected to an instruction on factor (3)(c), which it argued was phrased “to assume the existence of misconduct,” and expressly waived an instruction on factor (3)(g), on the ground that it had not previously been subject to punitive damages. App. to Brief for Plaintiff-Respondent in Opposition in No. S38436 (Ore.), p. 2. In its argument before the Supreme Court of Oregon, Honda did not contend that the trial court failed to instruct the jury concerning the “[§30.925(3)] criteria,” or “that the jury did not properly apply those criteria.” 316 Ore., at 282, n. 11, 851P. 2d, at 1095, n. 11.
The trial judge in Haslip instructed the jury:
“Now, if you find that fraud was perpetrated then in addition to compensatory damages you may in your discretion, when I use the word discretion, I say you don’t have to even find fraud, you wouldn’t have to, but you may, the law says you may award an amount of money known as punitive damages.
“This amount of money is awarded to the plaintiff but it is not to compensate the plaintiff for any injury. It is to punish the defendant. Punitive means to punish or it is also called exemplary damages, which means to make an example. So, if you feel or not feel, but if you are reasonably satisfied from the evidence that the plaintifffs] . . . ha[ve] had a fraud perpetrated upon them and as a direct result they were injured [then] in addition to compensatory damages you may in your discretion award punitive damages.
“Now, the purpose of awarding punitive or exemplary damages is to allow money recovery to the plaintiffs, ... by way of punishment to the defendant and for the added purpose of protecting the public by deterring the defendant and others from doing such wrong in the future. Imposition of punitive damages is entirely discretionary with the jury, that means you don’t have to award it unless this jury feels that you should do so.
“Should you award punitive damages, in fixing the amount, you must take into consideration the character and the degree of the wrong as shown by the evidence and necessity of preventing similar wrong.” 499 U. S., at 6, n. 1 (internal quotation marks omitted).
The jury instruction in TXO read:
“ ‘In addition to actual or compensatory damages, the law permits the jury, under certain circumstances, to make an award of punitive damages, in order to punish the wrongdoer for his misconduct, to serve as an example or warning to others not to engage in such conduct and to provide additional compensation for the conduct to which the injured parties have been subjected.
“ ‘If you find from a preponderance of the evidence that TXO Production Corp. is guilty of wanton, wilful, malicious or reckless conduct which shows an indifference to the right of others, then you may make an award of punitive damages in this case.
“ ‘In assessing punitive damages, if any, you should take into consideration all of the circumstances surrounding the particular occurrence, including the nature of the wrongdoing, the extent of the harm inflicted, the*443 intent of the party committing the act, the wealth of the perpetrator, as 'well as any mitigating circumstances which may operate to reduce the amount of the damages. The object of such punishment is to deter TXO Production Corp. and others from committing like offenses in the future. Therefore the law recognizes that to in fact deter such conduct may require a larger fine upon one of large means than it would upon one of ordinary means under the same or similar circumstances.’” 509 U. S., at 463, n. 29.
The Alabama factors are:
“(a) whether there is a reasonable relationship between the punitive damages award and the harm likely to result from the defendant’s conduct as well as the harm that actually has occurred; (b) the degree of reprehensibility of the defendant’s conduct, the duration of that conduct, the defendant’s awareness, any concealment, and the existence and frequency of similar past conduct; (c) the profitability to the defendant of the wrongful conduct and the desirability of removing that profit and of having the defendant also sustain a loss; (d) the ‘financial position’ of the defendant; (e) all the costs of litigation; (f) the imposition of criminal sanctions on the defendant for its conduct, these to be taken in mitigation; and (g) the existence of other civil awards against the defendant for the same conduct, these also to be taken in mitigation.” 499 U. S., at 21-22, citing Green Oil Co. v. Hornsby, 539 So. 2d 218, 223-224 (Ala. 1989), and Central Alabama Elec. Cooperative v. Tapley, 546 So. 2d 371, 376-377 (Ala. 1989).
Indeed, the compatibility of the remittitur with the Seventh Amendment was not settled until Dimick v. Schiedt, 293 U. S. 474 (1935).
“Oregon juries, reported decisions indicate, rarely award punitive damages. Between 1965 and the present, awards of punitive damages have been reported in only two product liability cases involving Oregon law, including this one. See Brief for Trial Lawyers for Public Justice as Amicus Curiae 10, and n. 7. The punitive award in this case was about 5.4 times the amount of compensatory damages and about 258 times the plaintiff’s out-of-pocket expenses. This amount is not far distant from
Not until Sparfv. United States, 156 U. S. 51,102 (1895), was the jury’s power to decide the law conclusively rejected for the federal courts. See Riggs, Constitutionalizing Punitive Damages: The Limits of Due Process, 52 Ohio St. L. J. 859, 900 (1991).
An inquiry of this order is akin to the one made in Haslip. See supra, at 443-444.
In its 1949 decision in Van Lom v. Schneiderman, 187 Ore. 89, 210 P. 2d 461, the Supreme Court of Oregon merely held that it lacked authority to order a new trial even though an award of damages was excessive under state law. See ante, at 435-436 (Scalia, J., concurring). No federal limit had yet been recognized, and the Van Lom court had no occasion to consider its obligation to check jury verdicts deemed excessive under federal law.
Reference
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