Dorothy Clark v. Chrysler Corporation

436 F.3d 594, 2006 U.S. App. LEXIS 2435, 2006 WL 229506
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 1, 2006
Docket04-5279
StatusPublished
Cited by43 cases

This text of 436 F.3d 594 (Dorothy Clark v. Chrysler Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dorothy Clark v. Chrysler Corporation, 436 F.3d 594, 2006 U.S. App. LEXIS 2435, 2006 WL 229506 (6th Cir. 2006).

Opinions

RESTANI, C.J., delivered the opinion of the court.

KENNEDY, J. (pp. 612-614), delivered a separate opinion concurring in part and concurring in the judgment.

MOORE, J. (pp. 614 - 627), delivered a separate opinion concurring in part and dissenting in part.

OPINION

RESTANI, Chief Judge.

Chrysler Corporation appeals the district court’s order, entered on remand, upholding Dorothy Clark’s $3 million punitive damage award as reasonable and proportionate to the wrong committed and denying Chrysler’s motions for judgment as a matter of law, for remittitur, and for a new trial. Because we conclude that the punitive damage award is constitutionally excessive, we remit the amount of punitive damages to $471,258.26.

I. BACKGROUND1

On October 14, 1993, Charles Clark was fatally injured in an automobile accident while driving a 1992 Dodge Ram club cab pickup truck. The accident occurred when Mr. Clark pulled into an intersection in front of an oncoming vehicle and the two vehicles collided. Mr. Clark, who was not wearing a seat belt, was ejected from his vehicle and died a short time later.

Mr. Clark’s wife sued Chrysler, claiming that its pickup truck was defectively and [597]*597negligently designed. On October 1, 1997, after a three-day trial, the jury rendered a unanimous verdict in favor of Mrs. Clark on claims of strict liability, negligence, and failure to warn. The jury found that Chrysler and Mr. Clark were each 50% at fault and returned a verdict of $471,258.26 in compensatory damages and $3,000,000 in punitive damages. The court entered a judgment against Chrysler for $3,235,629.13, reflecting 50% of the compensatory damages plus the $3 million punitive damages award.

After trial, Chrysler renewed its request for judgment as a matter of law pursuant to Federal Rule of Civil Procedure 50 and for a new trial pursuant to Federal Rule of Civil Procedure 59. In its motion for judgment as a matter of law, Chrysler argued that because there was no evidence of “gross negligence,” an award of punitive damages was improper. [J.A. at 81-85.] Chrysler alternatively argued for a new trial in its Rule 59 motion. The district court denied both motions. [J.A. 87-92.] On appeal, we affirmed the district court’s judgment and upheld the jury’s compensatory and punitive damage awards.

Several months later, the Supreme Court decided State Farm Mutual Automobile Insurance Co. v. Campbell, 538 U.S. 408, 123 S.Ct. 1513, 155 L.Ed.2d 585 (2003). In State Farm, the Court elaborated on the procedural and substantive constraints that the Due Process Clause imposes on punitive damage awards. After State Farm was issued, Chrysler petitioned for a writ of certiorari, requesting that the Court “grant certiorari, vacate the decision below, and remand for further consideration (“GVR”) in light of its recent decision in State Farm v. Campbell.” Pet. for Writ of Cert., No. 02-1748, 2003 WL 22428164, at *2 (U.S. May 21, 2003).2 In its petition, Chrysler insisted that the jury’s $3 million punitive damage award was constitutionally excessive. Id. 2003 WL 22428164 at *18-*25. Clark opposed the petition, arguing that Chrysler had waived its constitutional challenge by failing to raise it in its post-judgment motions before the district court, and that even if the issue was preserved for review, the amount of the punitive damage award was within constitutional boundaries. See’ Resp’t Br. in Opp’n to Pet. for Writ of Cert., No. 02-1748, 2003 WL 22428165, at *19-*30 (U.S. July 1, 2003).

On.October 6, 2003, the Supreme Court granted Chrysler’s petition, vacated our judgment, and remanded the case to us “for further consideration in light of State Farm.” Chrysler Corp. v. Clark, 540 U.S. 801, 124 S.Ct. 102, 157 L.Ed.2d 12 (2003). We, in turn, remanded the case to the district court for further proceedings in accordance with the Supreme Court’s order. See Clark v. Chrysler Corp., 80 Fed.Appx. 453 (6th Cir.2003). On February 6, 2004, the district court upheld the jury’s award, and denied Chrysler’s motions for judgment as a matter of law, for remitti-tur, and for a new trial. See Dist. Ct. Op. & Order (Feb. 6, 2004), J.A. at 31-43. Chrysler timely appealed.3

II. DISCUSSION

In State Farm, the Supreme Court elaborated on the measure of punishment, by means of punitive damages, that a state may impose upon a defendant in a civil [598]*598case. The Court reiterated the principle that, “[w]hile States possess discretion over the imposition of punitive damages, it is well established that there are procedural and substantive constitutional limitations on these awards. The Due Process Clause of the Fourteenth Amendment prohibits the imposition of grossly excessive or arbitrary punishments on a tortfeasor.” 538 U.S. at 416, 123 S.Ct. 1513 (citations omitted). The Court also expressed its concern with the manner in which punitive damages systems are administered, noting that vague instructions “do little to aid [a jury] in its task of assigning appropriate weight to evidence that is relevant and evidence that is tangential or only inflammatory.” Id. at 417-18, 123 S.Ct. 1513. In light of these concerns, the Court applied the three guideposts set forth in BMW v. Gore,4 and concluded that a punitive damage award of $145 million, where compensatory damages were $1 million, was constitutionally excessive. Id. at 418-29, 123 S.Ct. 1513.

Because of State Farm’s narrow focus on punitive damages and the Court’s limited GVR order, we do not reconsider our earlier holdings regarding liability, compensatory damages, or the sufficiency of evidence to support some award of punitive damages.5 We must, however, decide whether State Farm requires us to change our conclusion that the amount of the punitive damage award was within constitutional limits. We conclude that it does.

In the discussion below, we explain that (A) Chrysler’s claim regarding the constitutionality of the award has been preserved for review; (B) the award is constitutionally excessive and should be reduced to $471,258.26 and (C) a new trial on the amount of punitive damages is warranted only if the reduced award is rejected by Mrs. Clark.

A. Chrysler’s claim regarding the constitutionality of the award has been preserved for review

The parties dispute whether Chrysler properly preserved its claim that the punitive damage award is constitutionally excessive. We conclude that even though Chrysler initially waived this challenge by failing to raise it in its post-trial motions before the district court, subsequent proceedings in the Sixth Circuit and Supreme Court preserved the issue for review.

Challenges to the excessiveness of verdicts must be brought in the trial court through post-trial motions. Young v. Langley, 793 F.2d 792, 794 (6th Cir.1986).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bell v. Southfield
E.D. Michigan, 2025
Hornback v. Czartorski
W.D. Kentucky, 2022
Edwin Hardeman v. Monsanto Company
997 F.3d 941 (Ninth Circuit, 2021)
Gaines v. FCA US LLC
E.D. Michigan, 2021
Nikos Kidis v. Jean Reid
976 F.3d 708 (Sixth Circuit, 2020)
United States v. Jimmie White
920 F.3d 1109 (Sixth Circuit, 2019)
Hawkins v. Center for Spinal Surgery
247 F. Supp. 3d 897 (M.D. Tennessee, 2017)
Tracy Jones v. Sandusky County, Ohio
652 F. App'x 348 (Sixth Circuit, 2016)
Lompe v. Sunridge Partners, LLC
818 F.3d 1041 (Tenth Circuit, 2016)
Smith v. Lexisnexis Screening Solutions Inc.
138 F. Supp. 3d 872 (E.D. Michigan, 2015)
Doe v. Rutherford County, Tennessee, Board of Education
86 F. Supp. 3d 831 (M.D. Tennessee, 2015)
Manor Care Inc. v. Tom Douglas
763 S.E.2d 73 (West Virginia Supreme Court, 2014)
Park West Galleries, Inc. v. Bruce Hochman
692 F.3d 539 (Sixth Circuit, 2012)
Innovative Technologies Corp. v. Advanced Mgt. Technology, Inc.
2011 Ohio 5544 (Ohio Court of Appeals, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
436 F.3d 594, 2006 U.S. App. LEXIS 2435, 2006 WL 229506, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dorothy-clark-v-chrysler-corporation-ca6-2006.