Tucker v. Marcus
Tucker v. Marcus
Opinion of the Court
LOUIS J. CECI, J.
This is an appeal from a decision of the circuit court for Dane county, Susan Steingass, circuit judge, accepted on appellants’ petition to bypass the court of appeals pursuant to sec. 808.05(1), Stats. Plaintiff-respondent, Carol Tucker (respondent or Tucker) commenced this action in both an individual capacity and as the special administrator of the estate of her minor son, Nathaniel Tucker (Nathaniel) against Marvin S. Marcus, d/b/a MGM Health Club, and Continental Casualty Company (referred to collectively as appellants or Marcus). The essential facts of this case are undisputed. The deceased, Nathaniel, was fourteen years old on April 9, 1983, the day he drowned at a swimming pool at the MGM Health Club, owned and operated by Marcus in Madison, Wisconsin. Nathaniel was at the pool on the day of the drowning incident with his two minor
This matter was tried to a jury, and on February 14, 1986, the jury rendered a verdict apportioning seventy per cent of the causal negligence to Nathaniel. Ten per cent of the causal negligence was attributed to Marcus, and twenty per cent to Nathaniel’s adult supervisor. The jury then awarded both compensatory and punitive damages to the respondent in a wrongful death action and to Nathaniel’s estate in a survival action.
The trial court determined that Nathaniel’s estate was entitled to $50,000 as punitive damages. Specifically, the trial court found insignificant the fact that the respondent did not actually receive compensatory damages and stated that "punitive damages ... are not effected [sic] by the attribution of fault.” We disagree. In order for punitive damages to be available to a claimant, actual damages must have been awarded and recovered.
HH
Two primary questions arise with respect to the relationship between compensatory and punitive damages under the Wisconsin comparative negligence law.
The interpretation of a statute is a question of law. Delvaux v. Vanden Langenberg, 130 Wis. 2d 464, 475, 387 N.W.2d 751 (1986). Accordingly, to the extent that we are called upon to interpret sec. 895.045, we are deciding a question of law, which is reviewable by this court without deference to the trial court. Brown v. Maxey, 124 Wis. 2d 426, 431, 369 N.W.2d 677, reconsideration denied 126 Wis. 2d 40, 373 N.W.2d 672 (1985). As we have previously stated, "The issue of whether punitive damages are recoverable in negligence actions is a question of law.” Id.
II.
We address first the appellants’ position that punitive damages are "damages for negligence” under sec. 895.045, Stats. Section 895.045 provides as follows:
"895.045 Contributory negligence. Contributory negligence shall not bar recovery in an action by*433 any person or his legal representative to recover damages for negligence resulting in death or in injury to person or property, if such negligence was not greater than the negligence of the person against whom recovery is sought, but any damages allowed shall be diminished in the proportion to the amount of negligence attributable to the person recovering.”
Wisconsin first adopted a system of comparative negligence in 1931. 1931 Wis. Laws ch. 242. In 1971, the comparative negligence law was changed from one prohibiting recovery of damages for negligence if the injured person’s negligence was "as great as” that of the wrongdoer, to one permitting recovery unless the injured person’s negligence was "greater than” the negligence of the person against whom recovery is sought. 1971 Wis. Laws ch. 47. The statute’s language "damages for negligence” has remained unchanged. However, while an examination of the legislative history has not revealed an express indication of legislative intent
Specifically, because there is a presumption that where the legislature substantially reenacts a statute it adopts construction previously placed on that statute, we must interpret the statute to be consistent with case law predating sec. 895.045, Stats. Delvaux v. Vanden Langenberg, 130 Wis. 2d 464, 476, 387 N.W.2d 751 (1986) (quoting Zimmerman v. Wisconsin Electric Power Co., 38 Wis. 2d 626, 633-34, 157 N.W.2d 648 (1968)): Munninghoff v. Wisconsin Conservation Commission, 255 Wis. 252, 258, 38 N.W.2d 712 (1949); State v. Hackbarth, 228 Wis. 108, 121, 279 N.W. 687 (1938). In this regard, this court’s decision in Bielski v. Schulze, 16 Wis. 2d 1, 114 N.W.2d 105 (1962), becomes significant. In Bielski, this court abolished the doctrine of gross negligence and, in dicta, further stated: "We recognize the abolition of gross negligence does away with the basis for punitive damages in negligence cases. But punitive damages are given, not to compensate the plaintiff for his injury, but to punish and deter the tortfeasor, and were acquired by gross negligence as accoutrements of intentional torts.” 16 Wis. 2d at 18. Although this court, in Wangen, explained the Bielski holding and explicitly rejected an interpretation of the decision which would eliminate outrageous conduct as a basis for awarding punitive damages in a negligence action,
Furthermore, while Wangen circumscribed the interpretation to be given the Bielski holding, the court in Wangen nevertheless maintained, "[W]e interpret the dicta in Bielski to mean that punitive damages are not recoverable if the wrongdoer’s conduct is merely negligent. Punitive damages do not rise from negligence. ” 97 Wis. 2d at 275 (emphasis added). Similarly, in Brown, 124 Wis. 2d at 432, this court stated, "In a negligence case, if the plaintiff proves only those elements constituting the cause of action, punitive damages are not available.” Therefore, notwithstanding the probable intent which should be attributed to the legislature in reenacting the comparative negligence statute, there exists, in the fact of this court’s adherence to the position that punitive damages are not available for ordinary negligence, further reason to reject an interpretation of sec. 895.045 under which "damages for negligence” would include punitive damages. Nothing in the language of the statute indicates that negligence referred to therein is intended to include outrageous conduct, or anything beyond ordinary negligence.
Our position that punitive damages are not damages for negligence under sec. 895.045 finds support among other jurisdictions. For example, in Lane v. Meserve, 20 Mass. App. Ct. 659, 482 N.E.2d 530, review
Perhaps even more fundamentally, there exists a basis to reject any interpretation of sec. 895.045, Stats., which would include punitive damages within the phrase "damages for negligence.” Specifically, such an outcome would categorically deny recognition to the purpose of punitive damages:
III.
For the above-articulated reasons, we reject as a basis for finding error in the trial court’s decision to award punitive damages the appellants’ position that "damages for negligence” under sec. 895.045, Stats., include punitive damages which would consequently be precluded where the claimant’s negligence exceeds that of the individual from whom recovery is sought. We nevertheless find that punitive damages were inappropriately allowed in this case, since an award of actual damages was unavailable due to the operation of sec. 895.045.
A general and perhaps almost universally accepted rule is that punitive damages cannot be awarded in
In Hanson v. Valdivia, 51 Wis. 2d 466, 187 N.W.2d 151 (1971), this court considered whether children of a wronged party could recover punitive damages in a survival action. Although some "actual injury” had been "suffered” by the conduct of the alleged wrongdoer, no compensatory damages were recoverable since the cause of action for which damages were sought did not pass to the estate of the wronged. The
In Hanson, punitive damages were not available because the "cause of action” for damages for the loss of marital services was not found to constitute a cause of action for "damage done to a property right” such as to survive the death of the wronged individual under sec. 895.01, Stats. Of course, whereas in Hanson the court determined that there was no "cause of action” for compensatory damages to support the award of punitive damages, there was, in the case at bar, a valid cause of action.
This court’s unwillingness to depart from the legislature’s adoption of a system of modified comparative negligence has, in previous decisions, been made apparent. In Vincent v. Pabst Brewing Co., 47 Wis. 2d 120, 177 N.W.2d 513 (1970), we declined the invitation to adopt a system of pure comparative negligence:
"Although considerable disagreement exists as to whether a doctrine of pure comparative negligence should be adopted in Wisconsin, there has been considerable agreement as to the ability or propriety of this court’s initiating such adoption.
'"If the legislature had never developed a comparative negligence doctrine, our supreme court might feel free to act. However, the right of the claimant is now controlled by the 1931 statute. The change should be made, but it will require action by the Wisconsin Legislature.’” Id. at 126-27 (quoting Campbell, Wisconsin Law Governing Automobile Accidents—Part II, 1962 Wis. L. Rev. 557, 569).
More recently, in Delvaux, we reaffirmed our commitment to the legislative adoption of a system of modified comparative negligence. We again decline the request to act in derogation of legislative intent. The intent of the legislative was not to create the anomalous result of allowing an award of punitive damages where conduct, although "outrageous,” was not, under the standard articulated by the legislature under sec. 895.045, a legally cognizable cause of the
'"[Pure comparative negligence] would increase claims and litigation. It would put a greater strain on ever increasing insurance rates. It would cause the general public to bear a larger premium for insurance and costs for judicial administration as a result of allowing plaintiffs of greater fault to recover. It would be the first step to a "no fault” system whereby the wrongdoer is allowed to profit from his own wrong. It is contrary to the basic sense of justice created by the majority of citizens and as such embodied in the historic principles of tort law....’” 47 Wis. 2d at 126 (quoting Campbell, Wisconsin Law Governing Automobile Accidents—Part II, 1962 Wis. L. Rev. 557, 569).
We think this passage is equally relevant with regard to permitting the recovery of punitive damages where the recovery of compensatory damages would be barred under sec. 895.045; such a result would, in effect, entail for the limited purpose of punitive damages the adoption of the doctrine of pure comparative negligence.
The principle that exemplary damages must be supported by a recoverable award of actual damages was recognized in Dawson v. Jost, 35 Wis. 2d 644, 651-52, 151 N.W.2d 717 (1967), in which this court held that despite the fact that it had been established that the plaintiff had "suffered injuries,” treble damages were unavailable because the jury determined
Similar results have been reached in other jurisdictions. It is widely recognized that despite the unambiguous presence of actual harm, punitive damages are not available absent an award of compensatory damages.
"Although the amount of compensatory damages and criminal penalties have some relevancy to the amount of punitive damages and may be factors in determining the reasonableness of the punitive damages award, we have not been willing in the past, and are not willing in this case, to adopt a mathematical formula for awarding punitive damages.” Id.
The position recognizing the need for the establishment of some relationship between compensatory and punitive damages is one adopted by most jurisdictions. See W. Prosser & W. Keeton, The Law of Torts, sec. 2 at 14-15 (5th ed. 1984). This determination should be made on a case-by-case basis, with due regard given to the discretion of the jury in assessing punitive dam
A federal district court in Channel 20, Inc. v. World Wide Towers Services, Inc., 607 F. Supp. 551, 556-57 (S.D. Tex. 1985), reached a similar result and stated: "It is axiomatic that punitive damages must bear some reasonable relationship to, and be supported by, the imposition of actual damages.” Likewise, in Sulecki v. Southeast National Bank, 358 Pa. Super. 132, 136, 516 A.2d 1217, 1219 (1986), the court considered the issue of "whether any punitive award can bear a reasonable relationship to a zero compensatory award.” The court concluded as follows: "[PJunitive damages may not be imposed in cases of zero compensatory awards. Since punitives are not allowable, the issue of proportionality should never arise.” Id. See also Contractor Utility Sales Co. v. Certain-Teed Corp., 748 F.2d 1151, 1156 (7th Cir. 1984), cert. denied 470 U.S. 1029 (1985).
Finally, we note that our decision in Wussow is consistent with our holding today requiring as a condition precedent to the recovery of punitive damages an award of compensatory damages. Wussow was
"It is both rational and consistent with the common law to allow punitive damages in this case, where actual damages were sustained and compensatory payment was made. This is especially true in this case, because the damage claim was dismissed with the defendants’ knowledge that punitive damages remained a remedy still to be sought. It cannot be argued that plaintiff abandoned his cause of action by accepting partial compensation, when the record shows that for a quid pro quo he compromised one remedy but retained the whole cause of action (the set of operative facts) as evidence of his right to an additional remedy of punitive damages.” 97 Wis. 2d at 151.
Consequently, and as discussed above, we did not reach in Wussow the present issue of whether punitive damages may be awarded where there has been no payment or recovery of compensatory damages. In the present case, actual damages of the most severe form were sustained; however, there was neither voluntary payment by means of settlement nor a right to receive compensatory damages under sec. 895.045. No Wisconsin precedent supports the award of punitive damages in such a case. Where "actual injury” does not justify the recovery or an "award” of actual or compensatory damages due to the operation of sec. 895.045, punitive damages are barred. We are, therefore, in agreement with the statement of the court of appeals that where "compensatory damages cannot be given ... neither can punitive damages.” Bachand v. Connecticut Gen
In a case factually similar to the one at bar, Cox v. Kansas Gas & Electric Co., 630 F. Supp. 95 (D. Kan. 1986), the comparative negligence law of Kansas was applied to reach a similar result. Although due to the apportionment of comparatively less negligence to the plaintiff in Cox the prospect of permitting punitive damages was less egregious, the court nevertheless found an award of exemplary damages to be barred where compensatory damages under the comparative negligence statute were unavailable. Specifically, the court articulated its position as follows:
"[W]e note that the issue of punitive damages is moot. Because the jury found plaintiff to be sixty percent at fault, plaintiff was not entitled to recover actual damages. K.S.A. 60-258a. Kansas law is quite clear that a plaintiff must establish a right to recover actual damages before punitive damages may be awarded. Lantz v. City of Lawrence, 232 Kan. 492, 657 P.2d 539 (1983).” Id. at 101.
In a related matter, the Supreme Court of Arkansas held in Williams v. Carr, 263 Ark. 326, 565 S.W.2d 400 (1978), that where a jury apportioned fifty per cent of the negligence to the plaintiff, thereby precluding an award of actual damages under the comparative negligence statute, punitive damages could not be recovered.
To permit an award of punitive damages where the operation of sec. 895.045, Stats., prohibits the recovery of compensatory damages would undermine the purpose of our system of comparative negligence.
The requirement that a plaintiff be awarded compensatory damages before punitive damages are recoverable is premised upon the both elementary and historic principles of tort law which necessitate not only proof of injury as a basis for recovery, but of causation as well. Under our system of comparative negligence, as provided by sec. 895.045, causation does not give rise to recovery where it is established that the negligence of the plaintiff exceeds that of the wrongdoer. The theory justifying this outcome was articulated in Vincent as follows:
"Since poverty can affect defendants as well as plaintiffs, the possibility that given an ultimate fact verdict, which is necessary in implementing any form of comparative negligence, a defendant will always be found partially negligent should be considered. By adopting pure comparative negligence out of a sense of intellectual fairness one might well be eliminating what has been called an arbitrary rule of no recovery, while at the same time creating an arbitrary rule of partial recovery in all cases. If such were the case, pure comparative negligence would render defendants the insurers of any who chose to commence an action.” Vincent, 47 Wis. 2d at 129. (Emphasis in original.)
Due to the flexible nature of punitive damages awards and the fact that "[i]t is generally agreed that punitive damages are a windfall to the plaintiff...,” W. Prosser & W. Keeton, The Law of Torts, sec. 2 at 14 (5th ed. 1984), the impact of permitting punitive damages where a claimant is more negligent than an alleged wrongdoer could be potentially even more severe than would the allowance of compensatory damages. Thus,
Compensatory damages, since Bielski, have been barred where the plaintiffs negligence exceeds that of the defendant, notwithstanding the fact of defendant’s gross negligence or outrageous conduct. Consequently, despite the "outrageous” quality of a defendant’s conduct, there can be no award, under such an apportionment of negligence, of compensatory damages to support punitive damages. However, because Wisconsin has repeatedly recognized that the purposes of punitive damages and compensatory damages are distinct, the relationship between comparative negligence and punitive damages goes no further. We expressly decline to adopt an interpretation of sec. 895.045 under which punitive damages would be deemed "damages for negligence” and, as such, subject to proportionate reduction. Our decision today represents a necessary extension of those earlier decisions in which we have deferred to the legislative adoption of a system of modified comparative negligence and to the theory that a claimant should not be "allowed to profit from his own wrong.” Vincent, 47 Wis. 2d at 126. Accordingly, we hold that punitive damages may not be recovered where actual damages are unavailable due to the operation of sec. 895.045, Stats.
By the Court. — The judgment of the circuit court is reversed, and the cause is remanded with directions to vacate the judgment for punitive damages.
The jury verdict was, in relevant part, as follows:
"QUESTION NO. 8: ... Assuming the total negligence involved in causing the accident to be 100%, what percentage of causal negligence, if any, do you attribute to:
"A. Marvin Marcus 10%
d/b/a MGM Health Club
"B. Nathaniel Tucker 70% ...
"C. Toni Elliott 20% ...
[Nathaniel’s adult supervisor]
"QUESTIONNO. 9: Answer this question irrespective of your answers to the preceding questions: What sum of money will fairly and reasonably compensate the Plaintiff, Carol Tucker, with respect to her:
*431 "A. Loss of society and companionship: $25.000
"B. Punitive damages: $10.000
"QUESTION No. 10: Answer this question irrespective of your answers to the preceding questions: What sum of money will fairly and reasonably compensate the Estate of Nathaniel Tucker for damages resulting to it with respect to:
"A. Pain and suffering: $25.000
"B. Punitive damages: $50.000
"..."
Contrary to the dissent, we do not find the article written by Joseph Padway to be determinative of legislative intent with respect to the present issue. See Padway, Comparative Negligence, 16 Marq. L. Rev. 1 (1931). Prior to Bielski v. Schulze, 16 Wis. 2d 1, 114 N.W.2d 105 (1962), gross negligence was not compared to ordinary negligence under the comparative negligence statute. Additionally, punitive damages were available only for conduct amounting to gross negligence. As such, any conduct for which punitive damages might be awarded would not be subject to the comparative negligence law. For this reason, the comments of former legislator Padway offer no firm indication of legislative intent regarding the present issue.
The court in Wangen noted that aggravated conduct characterized as "outrageous” conduct may also fit the description of "gross negligence.” 97 Wis. 2d at 275. However, throughout this opinion, the term "outrageous conduct” will be used, as it was in Wangen, to indicate conduct which would justify the imposition of punitive damages.
The concept underlying punitive damages has been described as follows:
"The idea of punishment, or of discouraging other offenses, usually does not enter into tort law, except in so far as it may lead the courts to weight the scales somewhat in favor of the plaintiffs interests in determining that a tort has been committed in the first place. In one rather anomalous respect, however, the ideas underlying the criminal law have invaded the field of torts. Where the defendant’s wrongdoing has been intentional and deliberate, and has the character of outrage frequently associated with crime, all but a few courts have permitted the jury to award in the tort action 'punitive’ or 'exemplary’ damages, or what is sometimes called 'smart money.’ Such damages are given to the plaintiff over and above the full compensation for the injuries, for the purpose of punishing the defendant, of teaching the defendant not to do it again, and of deterring others from following the defendant’s example.
"Something more than the mere commission of a tort is always required for punitive damages. There must be circumstances of aggravation or outrage, such as spite or 'malice,’ or a fraudulent or evil motive on the part of the defendant, or such a*437 conscious and deliberate disregard of the interests of others that the conduct may be called wilful or wanton. There is general agreement that, because it lacks this element, mere negligence is not enough-” W. Prosser & W. Keeton, The Law of Torts, § 2 at 9-10 (5th ed. 1984) (footnotes omitted).
Consistent with, our position regarding the apportionment of punitive damages is the following observation:
“Where the negligent conduct of the defendant is sufficiently aggravated that it will support an award for punitive damages, the question arises whether punitive damages may be apportioned as are compensatory damages. A majority of courts addressing the issue of whether comparative negligence affects the award of punitive damages have held that the contributory negligence of the plaintiff should in no way reduce the punitive damages award. The rationale supporting this view is based on the policies behind comparative negligence and punitive damages.” C. Heft & C. Heft,*438 Comparative Negligence Manual, § 1.310 at 63 (Rev. ed. 1986). See also H. Woods, Comparative Fault, § 7:5 at 174 (2d ed. 1987); 1 M. Bender, Comparative Negligence, § 4.30[5] at 62-63 (2d ed. 1987).
See also Amoco Pipeline Co. v. Montgomery, 487 F. Supp. 1268 (W.D. Okla. 1980); Campbell v. Van Roekel, 347 N.W.2d 406, 410 (Iowa 1984) (citing Wangen v. Ford Motor Co., 97 Wis. 2d 260, 294 N.W.2d 437 (1980)). See generally Annotation, Effect of Plaintiff's Comparative Negligence in Reducing Punitive Damages Recoverable, 27 A.L.R.4th 318 (1984). Compare Hondo’s Truck Stop Cafe, Inc. v. Clemmons, 716 S.W.2d 725 (Tex. Ct. App. 1986), and Tatum v. Preston Carter Co., 702 S.W.2d 186 (Tex. 1986), with City of San Antonio v. Hamilton, 714 S.W.2d 372 (Tex. Ct. App. 1986).
For a summary of those jurisdictions which similarly require that punitive damages be supported by an award of actual damages, see Annotation, Sufficiency of Showing of Actual Damages, supra at sec. 3. See also infra n. 9.
Appellants argue that there is no "cause of action” because compensatory damages are not available due to the operation of sec. 895.045. We reject this argument, as we rejected a similar position in Wussow v. Commercial Mechanisms, 97 Wis. 2d 136, 293 N.W.2d 897 (1980).
See, e.g., Bishop v. Firestone Tire & Rubber Co., 814 F.2d 437, 447 (7th Cir. 1987) (seventh circuit, applying Indiana law, stated
The Slutzky decision was premised upon the interpretation of Ga. Code Ann. sec. 51-12-5, which provides for an award of "additional damages” for the purpose of deterrence. Wisconsin common law similarly refers to punitive damages as damages which may be awarded "in addition to compensatory damages.” Meshane v. Second Street Co., 197 Wis. 382, 387, 222 N.W. 320 (1928). See also Williams v. Walker, 256 Ark. 421, 422, 508 S.W.2d 52, 53 (1974) (with respect to availability of punitive damages for gross negligence, the court stated that "[t]he question, however, is still whether Williams proved his assertion of actual damage caused by ordinary negligence; because the recovery of exemplary damages is dependent upon the recovery of actual damages’”); Skinner v. Martin, 455 N.E.2d 1168, 1171 (Ind. Ct. App. 1983) (with
Our holding rejecting mathematical comparison while requiring a reasonable relationship between punitive and compensatory damages is one which has been followed by other jurisdictions. See, e.g., Betts v. Allstate Ins. Co., 154 Cal. App. 3d 688, 711-12, 201 Cal Rptr. 528, 542 (Ct. App. 1984). See also Annotation, Sufficiency of Showing of Actual Damages, supra p. 439, at secs. 13-14, for a compilation of those jurisdictions which have held similarly.
The relationship between ordinary negligence and outrageous conduct was discussed in Wangen as follows:
"Although Bielski eliminated the proof of aggravated conduct characterized as gross negligence in determining liability for compensatory damages and the amount thereof in negligence actions, Bielski has not been interpreted by this court as eliminating such conduct as the basis for punitive damages. We do not read Bielski as holding that 'outrageous’ conduct, which may also fit the description of 'gross negligence,’ has no place in determining the existence of liability for punitive damages and in determining the amount of punitive damages in a product liability tort action. To the extent that the dicta quoted from*452 Bielski can be interpreted otherwise, we reject such an interpretation.” 97 Wis. 2d at 275. (Footnote omitted.)
Dissenting Opinion
(dissenting). I agree with the majority that the term, "damages for negligence,” under sec 895.045, Stats. (Comparative negligence), does not encompass punitive damages. This is because, as the majority correctly states, punitive damages arise from a different rationale than compensatory damages. See, Wangen v. Ford Motor Co., 97 Wis. 2d 260, 275, 278-84, 294 N.W.2d 437 (1980).
This interpretation also corresponds to legislative intent: An article by one of the authors of ch. 242, 1931 Wis. Laws (the predecessor of the current chapter) indicates that the comparative negligence statute was to have no effect on punitive damages. Padway, Comparative Negligence, 16 Marq. L. Rev. 1, 20 (1931).
Although I agree with the majority on this first issue, the majority and I part company on the proposition that, absent a monetary recovery for compensatory damages, no punitive damages may be recovered. Instead, I would hold that, if both punitive and compensatory damages are awarded by the jury, punitive damages may be recovered even though compensatory damages are statutorily barred.
It is true, as the majority states, that the universal rule on punitive damages is that none may be awarded unless the party seeking them has sustained actual damage. However, this truism does not settle the issue because the term, "actual damages,” needs to be defined.
Today’s majority holds that this term should be defined in a manner that no punitive damages may be awarded in the absence of a recovery for compensatory damages. This definition would make "actual damages” synonymous with "recovery for actual damages.” This court’s precedent, as well as this state’s
The difficulty in this case arises because, although the jury granted an award of compensatory damages, collection of the award is barred by the contributory negligence statute. Note that this is a very different situation from one in which no compensatory award was even justified in the first place.
Turning first to the precedents whose use by the majority I find questionable: Widemshek v. Fale, 17
As is evident, Widemshek and Hanson simply do not go to the question of whether a statutory bar on payment of awarded compensatory damages also bars punitive damages. Put another way, these cases are inapposite to the case at hand. Widemshek and Hanson hold that, absent loss, no recovery of any sort may be had. In this case, however, quite unlike those cases, it is undisputed that plaintiff suffered an injury — the ultimate injury of death.
Further, although the holding of these cases is irrelevant to this case, on the issue of what type of injury must underlie an award for punitive damages, the Hanson court implied that only such injuries as
Turning next to the question of whether, under our case law, treble damages and punitive damages are sufficiently similar that cases on treble damages are precedent for cases, such as this one, on punitive damages: In Cieslewicz v. Mutual Service Casualty Ins. Co., 84 Wis. 2d 91, 267 N.W.2d 595 (1978), this court pointedly rejected such a comparison. The court pointed out that the state of mind required is different, the purpose is different, the mode of assessment is different, and the method of calculation if different. Cieslewicz, 84 Wis. 2d at 101-02. For these reasons, I am unpersuaded by arguments regarding the prece-dential value of the requirement, as set forth in the treble damages cases, of a recovery of actual damages as a condition precedent to the recovery of enhanced damages.
As to the last use of precedents I find questionable: In my analysis, our cases requiring that punitive damages bear a reasonable relationship to compensatory damages cannot be read to mean that, when compensatory damages are awarded but not recoverable, punitive damages may not be awarded. Neither Fahrenberg v. Tengel, 96 Wis. 2d 211, 236, 291 N.W.2d 516 (1980), nor Brown v. Maxey, 124 Wis. 2d 426, 440, 369 N.W.2d 677 (1985), stand for the proposition that allowing punitive damages in the absence of recoverable compensatory damages must be said to "necessarily shock the judicial conscience” as the majority
These cases, as is also true of the previous cases cited, simply do not go to the question of whether a statutorily barred compensatory award may support a punitive award. These cases go only to the question of disproportionality of the two awards. In this case, the jury awarded plaintiff $50,000 in compensatory damages. In addition, the jury awarded $50,000 in potentially recoverable punitive damages.
Turning from precedent I find questionable to that I find persuasive, the case of Wussow v. Commercial Mechanisms, Inc., 97 Wis. 2d 136, 293 N.W.2d 897 (1980), addressed a situation similar in many respects to this case. There, the question presented was whether, after the parties had reached a settlement on the compensatory damages, the plaintiff could still maintain an action on punitive damages. This court held that the disposition of the compensatory damage claim had no bearing on the punitive damage claim,
As in Wussow, I would hold that the disposition of the compensatory damages claim is irrelevant to the continued claim for punitive damages. As in that case, I would award punitive damages to the plaintiff in this case.
The upshot of this tour through our precedent is this: The majority states that no precedent of this court supports award of punitive damages in this case. Opinion at page 449. I would not go so far. Instead, I would agree that, while we have no cases which squarely answer the question of whether, despite a statutory bar on compensatory damages, recovery of punitive damages is nevertheless permissible, our precedent markedly tilts in favor of a position response. First, dicta in Hanson supports the position that no recovery for injury is required. Second, Wussow supports the position that the disposition of the compensatory claim is irrelevant to the award of punitive damages. Further, although none of our cases address the issue squarely, under legislative intent, it is reasonably certain that the comparative negligence statute was not intended to affect awards of punitive damages.
First, the pool area was often dirty, with large earthworms to be found crawling around. This is especially egregious in light of the fact that this is an indoor pool.
Second, the air in the pool enclosure was often so foggy or cloudy that visibility was reduced. This condition arose because the pool, which was heated, released steam into the unheated air above. This condition is even more serious because these foggy conditions were allowed to persist despite frequent instructions from the city pool inspector to keep the air heaters turned on. This instruction was given in order that Marcus might comply with the requirements of the Wisconsin Administrative Code that air temperature be four degrees warmer than pool temperature in order to minimize fog. Nevertheless, it appears, because of purely economic reasons, Marcus simply kept the air heaters off.
Finally, the pool water was yellowish or cloudy. This condition apparently arose due to improper chlorination and filtration, and the filtration system itself was often clogged with the byproducts of human grease, sweat, and urine.
Not surprisingly, the pool was the target of frequent complaints. Further, the pool was the target of frequent visits by pool inspectors seeking to have Marcus maintain the pool in compliance with code requirements.
When he was finally seen by a passing swimmer, he was initially mistaken for a floor drain because of low visibility through the eight feet of water in which he lay. Finally, his would-be rescuers were unable to see him clearly until they came within two or three feet of him, again because of cloudy water. These details add up to consistently outrageous behavior in performing substandard maintenance.
The purposes of punitive damages is to deter, and such behavior should be deterred. As we have explained previously:
"Suffice it to say that whatever shortcomings the award of punitive damages may have, nevertheless, it must be remembered that it has the effect of bringing to punishment types of conduct that though oppressive and hurtful to the individual almost invariably go unpunished .... Punitive damages serve not only the aggrieved victim ... but also society, for by this device, a quasi-criminal action is prosecuted, when ordinarily it would not be prosecuted at all .... This court takes the position that punitive damages do serve as a deterrent _” Kink v. Combs, 28 Wis. 2d 65, 80-81, 135 N.W.2d 789 (1965).
Awarding punitive damages in this case would deter pool operators from so poorly maintaining pools that they are a contributing cause of death to swimmers.
Moreover, it is significant that punitive damages are not available as a matter of right. They are only available where, in the trial judge’s opinion, such damages could possibly be proper under the facts of the case. Meshane v. Second Street Co., 197 Wis. 382, 222 N.W.2d 320 (1928); Ghiardi, Punitive Damages in Wisconsin, 60 Marq. L. Rev. 733, 762 (1977). Further, even if punitive damages would be proper, the jury need not award them. Wangen, 97 Wis. 2d at 301. Finally, if an award should be excessive, it can always be reduced by remittitur. See, Powers v. Allstate Ins. Co., 10 Wis. 2d 78, 102 N.W.2d 393 (1960) (progenitor of the "Powers” rule); McGarrity v. Welch Plumbing Co., 104 Wis. 2d 414, 430, 312 N.W.2d 37 (1981). These observations are important because they confirm the
For all these reasons, the appropriate, and in my view the only correct, rule of law would be to allow punitive damages where compensatory damages, reflecting a jury finding of "injury,” are awarded but not recoverable. The purposes of punitive damages are very different from the purposes of compensatory damages, and the statutory bar on compensatory damages should have, and was intended to have, no bearing on punitive damages. Further, as stated above, our Wisconsin precedents implicitly mandate such result. Accordingly, I dissent.
I am authorized to state that JUSTICES ABRA-HAMSON and BABLITCH join in this dissent.
This situation is, however, similar to one where a compensatory award is justified, but cannot be awarded because the damage is not quantifiable. It is also similar to a situation where the compensatory damages have been settled. See, discussion infra at 459.
If no injury were sustained, the situation might rise to the level of there simply not being a cause of action in the first place, a theory urged by appellant in this case, but correctly rejected by the majority.
See, Wussow v. Commercial Mechanisms, Inc., 97 Wis. 2d 136, 150, 293 N.W.2d 897 (1980) ("Widemshek held that, where no actual damage was 'sustained’ (p. 343) or 'suffered’ (p. 340), there is no cause of action whatsoever. This has nothing to do with punitive damages.").
Actually, the jury awarded $60,000 punitive damages, $10,000 to Mrs. Tucker personally in her wrongful death action, and $50,000 to Nathaniel Tucker’s estate. However, Wangen v. Ford Motor Co., 97 Wis. 2d at 315, bars recovery of punitive damages incident to damages for wrongful death, so only the $50,000 award to the estate is potentially recoverable.
Reference
- Full Case Name
- Carol TUCKER, A/K/A Carrie Tucker, Plaintiff-Respondent, v. Marvin S. MARCUS D/B/A MGM Health Club, and Continental Casualty Company, Defendants-Appellants
- Cited By
- 77 cases
- Status
- Published