Coale v. Dow Chemical Co.

701 P.2d 885, 1985 Colo. App. LEXIS 1086
CourtColorado Court of Appeals
DecidedApril 25, 1985
Docket83CA0723
StatusPublished
Cited by26 cases

This text of 701 P.2d 885 (Coale v. Dow Chemical Co.) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coale v. Dow Chemical Co., 701 P.2d 885, 1985 Colo. App. LEXIS 1086 (Colo. Ct. App. 1985).

Opinion

METZGER, Judge.

In this products liability case, defendants Dow Chemical Co. (Dow) and American Home Products Corporation, Franklin Laboratories Division, (Franklin) appeal the trial court’s judgment entered after jury verdict for compensatory and punitive damages in favor of plaintiffs, Gerald and Chris Coale and Larry McCarty. Plaintiffs cross-appeal the trial court’s refusal to grant pre-judgment interest as to the punitive damages. We affirm.

Plaintiffs are the owners of Super-Rex, a three-quarter blood Brahman, one-quarter Angus bull. Super-Rex is the only direct cross-breed offspring of Sugar Bull, who was the most renowned and highly rated Brahman bull in history. Super-Rex was a superior breeder by the time he reached the age of four, and his potential was exceptional.

Dow produces a number of products under the trade name Dursban. A solution developed by Dow specifically for the control of lice on cattle was bottled under the name of Dursban 44, and was marketed by Franklin.

In June 1980, in order to control lice on his cattle, Chris Coale purchased a bottle of Dursban 44. The label contained no warnings or restrictions concerning Dursban’s use on Brahman or Brahman cross-breed cattle. Coale used the Dursban 44 in accordance with label instructions to treat Super-Rex and four other three-quarter *888 Brahman bulls. All the bulls had immediate negative reactions; one bull died, and Super-Rex was diagnosed as having orga-nophosphate toxic poisoning caused by the Dursban 44. Super-Rex survived but his breeding capability was irretrievably destroyed, since he was rendered sterile and impotent.

Dursban 44 was field tested on cattle in the United States during 1975 and 1976. Other manufacturers of organophosphate products used warning labels indicating that the products were not to be utilized on Brahman cattle because such cattle have pores allowing fast chemical absorption causing toxic reactions. However, the Dursban 44 label mentioned no such limitation.

In early December 1979, defendants began receiving reports that some cattle, including Brahman cattle, were experiencing adverse reactions to Dursban 44. Dow requested Franklin to notify its sales representatives and branch managers of a “temporary halt sales” action until Dow could determine whether to continue sales of Dursban 44 to the beef-breed market. Franklin notified its distributors and its sales and branch personnel to stop all sales and shipments of Dursban 44; however, Franklin discouraged return of the product. Dow’s management for Canada instituted a stop sale as of March 28, 1980, because of an inability to amend the label satisfactorily and a feeling that potential liabilities exceeded the benefits of continued sale.

In April 1980, Dow withheld press releases warning of the Dursban 44 problem, because of its concern regarding adverse publicity about Dursban 44 and other products using the Dursban name, and determined not to disseminate information to the general public unless “pressed” for it. However, on April 2, 1980, Dow’s management for Canada elected to send out a news release regarding the stop sale and the negative reaction on cattle. Shortly thereafter Dow also concluded that the Dursban 44 warning label should be expanded to include warnings concerning Dursban’s use on several breeds of cattle, including Brahman. Dow received EPA approval for this expanded warning in June 1980. Notwithstanding the fact that 33,000 bottles of Dursban 44 were in the marketplace, Dow ordered only 20,000 labels.

Dow and Franklin continued to receive complaints and claims that Dursban 44 was causing adverse effects and that the new label was not on bottles purchased. Durs-ban 44 was never recalled.

Plaintiffs sued Dow and Franklin seeking compensatory and punitive damages for the deaths of and injury to their Brahman-Angus cross-breed bulls. The jury verdict awarded plaintiffs $150,000 in compensatory damages against both defendants, $800,000 in punitive damages against Dow, and $200,000 in punitive damages against Franklin.

I.

Defendants first contend that the trial court erred in submitting the issue of punitive damages to the jury. They assert that the evidence was insufficient to prove beyond a reasonable doubt that they had acted with a “wanton and reckless disregard of plaintiffs’ rights.” The record belies that assertion.

Initially, the trial court must determine whether, considering the evidence and all reasonable inferences therefrom in the light most favorable to the plaintiffs, a reasonable jury could find beyond a reasonable doubt that plaintiffs’ injury was caused by the defendants’ wanton or reckless disregard of the rights and feelings of the plaintiff. Palmer v. A.H. Robins Co., 684 P.2d 187 (Colo.1984).

The term “wanton and reckless” means conduct that creates a substantial risk of harm to another and is purposely performed with an awareness of the risk and disregard of the consequences. Palmer v. A.H. Robins Co., supra. While the question of the sufficiency of the evidence justifying an award of exemplary damages is a question of law, the allowance or denial of such damages rests in the discretion of *889 the trier of fact. Mince v. Butters, 200 Colo. 501, 616 P.2d 127 (1980).

The record, as set out above, shows continued effort on the part of Dow and Franklin to conceal information from the consuming public regarding the possible negative effects of Dursban 44. This evidence was sufficient to present a jury question on exemplary damages.

The jury, as the trier of fact, determined that the defendants’ behavior created a substantial risk of harm to another and was purposely performed with an awareness of risk and disregard of the consequences. There is support in the record for such a finding, and thus, it will not be disturbed on appeal. Page v. Clark, 197 Colo. 306, 592 P.2d 792 (1979).

II.

Defendants also assert that the jury award of $800,000 as punitive damages against Dow and $200,000 as punitive damages against Franklin was grossly excessive. We conclude that the punitive damage awards were not excessive.

Punitive damages do not admit of precise determination; thus, the amount of an award must necessarily rest, in the first instance, with the trier of fact. Palmer v. A.H. Robins Co., supra. Where the record shows that the jury was properly guided by the purposes of a punitive damage award in reaching its verdict, the award will be upheld. Palmer v. A.H. Robins Co., supra. However, the factfinder’s discretion is not absolute, and is subject to judicial scrutiny in the post-trial and appellate stages of a case.

Defendants argue extensively that the ratio of compensatory damages to punitive damages, six and two-thirds-to-one, requires reversal. However, ratio is no longer a factor to be considered in determining the excessiveness of a punitive damages award. Palmer v. A.H. Robins Co., supra.

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701 P.2d 885, 1985 Colo. App. LEXIS 1086, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coale-v-dow-chemical-co-coloctapp-1985.