A Novel Approach to the Punitive Nature of Wrongful Death Damages in Alabama

My partner Bud Watson is frequently asked to speak at seminars to share his years of observation and experience as both a former judge and current litigator.  I have asked him to share some of his strategies on this blog from time to time.  With that in mind, Bud provided this entry concerning an area of the law unique to Alabama -- The availability of only punitive damages in wrongful death actions.  Bud's observations on this issue are especially timely since I recently wrote about the interaction of Alabama's survival statute with its unique approach to wrongful death claims.  I have copied Bud's observations on this issue and posted them below:

 

By Bud Watson:

Here is a strategy that legal counsel might find helpful in wrongful death cases in Alabama.  Again, in Alabama (the only such state), there are no compensatory damages in wrongful death cases.  That means no recovery for medical expenses; no recovery for pain and suffering; no recovery for the huge financial impact to a family when a father or mother is killed.

The unique nature of Alabama law is not present because of some explicit statutory language.  It is a creation of our court.  Alabama courts have concluded that life is priceless and therefore not amenable to crass valuation in dollars.  The only allowable damages are punitive.

Yet, in all cases where punitive damages are claimed, the plaintiff can expect from the defense a long list of boilerplate challenges suggesting that punitive damage rules are unconstitutionally vague.  These defenses or motions to dismiss or strike contend that punitive damages should not be allowed because there is no objective standard by which to measure such damages.  In other types of cases where compensatory damages are also allowed, the law does impose some standards by which to measure punitive damages in conjunction with the compensatory damages assessed.  However, in the wrongful death context in Alabama, these objective comparisons are not present.  The truth is that, as presently applied and in the abstract, these challenges to punitive damages in wrongful death claims are probably correct.  The pattern jury instruction on punitive damages in Alabama also provides little guidance on this issue.

With this background, what is the novel strategy that could be argued in wrongful death cases in Alabama?  It is a pre-trial offer of proof stating the following:

The defendant has contended that there is no objective standard to direct a jury with regard to punitive damages.  In analogous criminal cases (such as criminally negligent homicide cases) the Court is required by law, before setting sentence, to initiate a victim impact statement pursuant to Ala. Rules of Criminal Procedure, Rule 26.3(7), which includes the economic and psychological impact on the family members.  Therefore, the plaintiff offers to provide proof to the jury of the financial and psychological impact of the death of the victim on the victim's immediate family members.  The plaintiff will provide evidence of victim impact from the victims themselves as well as through expert testimony from professionals such as physicians, psychologists, and economists.  Additionally, pursuant to Ala. Rules of Criminal Procedure, Rule 26.8, the application of punishment requires a full evaluation of the wrong and all its consequences.

If accepted, the plaintiff could then provide testimony concerning the impact of the death upon the remaining family members.  The offered approach does not conflict with the Alabama cases holding that a dollar value cannot be placed on the victim's life.  Rather, the emphasis is on the impact of the wrong as a necessary part of reaching a reasonable decision as to the level of appropriate punishment to assess as punitive damages.

Although judges with whom this approach has been discussed and to whom this approach has been made have expressed great interest and intrigue, Alabama courts have yet to rule on such an offer of proof.  On the occasions where I have made this offer in the past, a settlement for the applicable policy limits has soon followed.  As a result, I have not yet pursued the issue to completion in Alabama's court system.  In my conversations with opposing counsel, I believe that most defendants and their counsel do not wish to test this approach at an appellate court level.

 

The Alabama Supreme Court Should Review a Recent Tennessee Decision Addressing Punitive Damages

It's not an Alabama decision. However, I think it provides valuable insight and analysis into an important subject. On November 3, 2009, the Tennessee Supreme Court issued the decision of Goff v. Elmo Greer & Sons. This case involved the appeal of a verdict that assessed only a small amount of compensatory damages with a much larger punitive assessment. 

Our appellate courts employ a review of punitive damage verdicts based upon a number of factors largely established in prior U.S. Supreme Court decisions. One of these factors -- one very frequently cited by The Alabama Supreme Court in reducing assessments of punitive damages -- is the ratio of the punitive damage assessment to the compensatory damage assessment.

However, I have long believed that employing a strict ratio in cases where the actual harm was small but the potential harm could have been catastrophic or the defendant's conduct was especially egregious, is unjust. This recent Tennessee decision provides a review of just such a factual scenario.

The Nashville firm of Leader, Bulso, Nolan & Burnstein has an excellent summary of this new decision on its blog, Tennessee Business Litigation Report. I would urge the Alabama attorney who might have a similar case on appeal to our Supreme Court to review this new decision and incorporate its helpful analysis.