Brinda Coates, etc. v. R.J. Reynolds Tobacco Company

Supreme Court of Florida·Decided January 5, 2023·No. SC21-175·Published

Opinion

Supreme Court of Florida

No. SC21-175

BRINDA COATES, etc.,

Petitioner,

vs.

R.J. REYNOLDS TOBACCO COMPANY, Respondent.

January 5, 2023

POLSTON, J.

In R.J. Reynolds Tobacco Co. v. Coates, 308 So. 3d 1068 (Fla.

5th DCA 2020), the Fifth District Court of Appeal reversed as excessive a punitive damages award that exceeds the net compensatory damages award by a ratio of 106.7 to 1. In so ruling, the district court certified a question of great public importance. 1 308 So. 3d at 1076.

In passing upon the certified question, the Fifth District addressed the Florida and federal standards for evaluating whether

1. We have jurisdiction. See art. V, § 3(b)(4), Fla. Const.

a punitive damages award is excessive, and ultimately certified this question:

When other factors support the amount of punitive damages awarded, but the award is excessive compared to the compensatory award, does the amount of punitive damages that may legally be imposed for causing the death of a human being depend on the actual amount of compensatory damages awarded to the decedent’s estate, even when that compensatory award is modest and the punitive award would be sustainable compared to awards in other cases for comparable injuries caused by comparable misconduct?

Coates, 308 So. 3d at 1076.

Under Florida law, although the trial court has broad discretion in ruling on a motion for remittitur of a damages award, that discretion is constrained by statutory criteria that must be considered in determining whether the award is excessive. See Schoeff v. R.J. Reynolds Tobacco Co., 232 So. 3d 294, 308 (Fla. 2017). Because the Florida Statutes require us to conclude that a punitive damages award in a wrongful death action must bear a reasonable relation to the amount of damages proved and the injury suffered by the statutory beneficiaries, we decline to further analyze the issue as a matter of Florida or federal constitutional law. See In re Holder, 945 So. 2d 1130, 1133 (Fla. 2006) (“[W]e have long

subscribed to a principle of judicial restraint by which we avoid considering a constitutional question when the case can be decided on nonconstitutional grounds.”). Accordingly, we rephrase the certified question as follows:

Does the trial court in a wrongful death action abuse its discretion by denying remittitur of a punitive damages award that does not bear a reasonable relation to the amount of damages proved and the injury suffered by the statutory beneficiaries?

As explained below, our answer to the rephrased question is yes, and because no reasonable trial court could have concluded that the necessary relation exists in this case, we hold that the trial court abused its discretion by denying remittitur of the excessive award. Accordingly, we approve the Fifth District’s decision reversing the punitive damages award and remanding for further proceedings to the extent the district court’s decision is consistent with this opinion.

I. BACKGROUND

This case involves a non-Engle2 wrongful death action that is governed by the 1997 version of the Florida Statutes based on the

2. Engle v. Liggett Grp., Inc., 945 So. 2d 1246 (Fla. 2006).

date of the decedent’s death. Coates, 308 So. 3d at 1070 n.1, 1071. In the operative complaint filed in the trial court, the plaintiff Brinda Coates, individually and as the personal representative of the estate of her sister, Lois Stucky, alleged that Ms. Stucky died as a result of lung cancer caused by smoking cigarettes and sought relief from the defendant R.J. Reynolds Tobacco Company (RJR) based on four theories: (1) negligence, (2) strict-liability design defect, (3) fraud, and (4) conspiracy.

The jury found for Ms. Coates on the strict liability theory but rejected RJR’s liability under the other three theories. The jury further found that each of Ms. Stucky’s three adult children sustained $100,000 in damages, for a total of $300,000. Id. at 1070. The jury’s verdict specified that these were “the total amount” of damages sustained by Ms. Stucky’s children “for the loss of parental companionship, instruction[,] and guidance, and from their mental pain and suffering as a result of Lois Stucky’s lung cancer and death.” However, the jury also found that Ms. Stucky’s negligence caused 50% of the damages, which reduced the total compensatory damages to $150,000. Coates, 308 So. 3d at

1070. Finally, the jury found that punitive damages were warranted and ultimately awarded $16 million. Id.

RJR filed a motion for new trial or remittitur, arguing that the punitive damages award was excessive. Id. In an unelaborated order, the trial court denied RJR’s motion, id. at 1071 n.3, and then entered a final judgment against RJR.

RJR appealed to the Fifth District, “challeng[ing] the punitive damages award as excessive, particularly when considered in relation to the $150,000 net compensatory damages award, and argu[ing] that the trial court erred in denying its motion for new trial or remittitur.” Id. at 1071. After concluding that the punitive damages award is excessive under both Florida and federal law, the Fifth District reversed the award and remanded “for entry of an order of remittitur or, if remittitur is rejected by either party, a new trial solely on the amount of punitive damages.” Id. at 1076. In so holding, the Fifth District certified to this Court the question of great public importance that we have rephrased and limited to Florida law as set forth above.

II. ANALYSIS

The rephrased question presents a pure question of law that we review de novo. See Townsend v. R.J. Reynolds Tobacco Co., 192 So. 3d 1223, 1225 (Fla. 2016). To explain why we answer it in the affirmative, we first address Florida law requiring a reasonable relationship between punitive damages and the amount of damages proved and the injury suffered. Then, we explain why the rule is no different in a wrongful death action. Finally, we apply Florida law to the undisputed facts of this case to conclude that the trial court abused its discretion by denying remittitur of the excessive punitive damages award.

A. Florida law requires a reasonable relationship between punitive damages and the amount of damages proved and the injury suffered.

The rephased question implicates two statutes, sections 768.73 and 768.74, Florida Statutes (1997), that govern review of the punitive damages award at issue. 3 Therefore, we begin with

3. Since 1997, the first statute, section 768.73, has been substantially amended. See § 768.73, Fla. Stat. (2021). The second statute, section 768.74, remains the same. See § 768.74, Fla. Stat. (2021).

their text. See Ham v. Portfolio Recovery Assocs., 308 So. 3d 942, 946 (Fla. 2020) (explaining that in interpreting a statute this Court “follow[s] the ‘supremacy-of-text principle’—namely, the principle that ‘[t]he words of a governing text are of paramount concern, and what they convey, in their context, is what the text means’ ”) (quoting Antonin Scalia & Bryan A. Garner, Reading Law: The Interpretation of Legal Texts 56 (2012)).

First, section 768.73, Florida Statutes (1997), addresses Florida’s limitation on punitive damages, and subject to one exception, caps a punitive damages award in relation to the compensatory damages award at a 3:1 ratio:

(1) (a) In any civil action based on negligence, strict liability, products liability, misconduct in commercial transactions, professional liability, or breach of warranty, and involving willful, wanton, or gross misconduct, the judgment for the total amount of punitive damages awarded to a claimant may not exceed three times the amount of compensatory damages awarded to each person entitled thereto by the trier of fact, except as provided in paragraph (b). However, this subsection does not apply to any class action.

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