GILBERTSON, Justice.
[¶ 1.] Defendant Citation Oil and Gas Corporation (Citation) appeals a jury verdict in favor of plaintiffs for breach of contract, fraud and punitive damages resulting from its wrongful actions as operator of certain oil wells. We affirm in part, and reverse and remand with remittitur on the issue of punitive damages.
FACTS AND PROCEDURAL BACKGROUND
[¶ 2.] This case involves the operation of two oil fields located in Fall River County near the Wyoming-South Dakota border: the North Hollingsworth Field and the East Simms Field. At various times, the plaintiffs acquired oil and gas leases in one or both of the fields and entered into or became subject to Joint Operating Agreements (JOAs) with Citation. Citation was the operator of the fields. As operator, Citation was responsible for managing the exploration and production of oil and for accounting for profits and expenses on behalf of all of the owners.
[498]*498[¶ 3.] The JOAs provided for what is referred to as a “nonconsent penalty.” Under the JOAs, if an owner wanted to drill a well, that owner would make a proposal to the other owners and submit an Authorization For Expenditure (AFE) setting forth the cost to drill and complete the well. The other owners could then elect to either share in the cost of drilling the proposed well or go “nonconsent” and not share in those costs. If the well was drilled and was a dry hole, the owners who elected to go nonconsent did not have to pay any of the costs of the unsuccessful drilling. However, if the well produced oil, the owners who elected to share in the cost of drilling the well were entitled to recover their costs plus a noncon-sent penalty from the noneonsenting owners. There were two'tiers of nonconsent penalties, the first ranging from 300 percent to 400 percent of the costs incurred up to the wellhead (costs incurred for work done below the surface of the ground, such as drilling, casing, and completing). The second tier ranged from 100 percent to 200 percent of the costs incurred after the wellhead (costs incurred for surface equipment, production roads, and operating expenses). In short, the owners who put up the money to drill the well were entitled to recover from the production of that well several times their actual costs as a penalty before the noneonsenting owners would receive any share of the proceeds from that well.
[¶ 4.] The JOAs further required that Citation provide the owners with monthly Payout Status Reports (PSRs), which were itemized statements of the costs of drilling, completing, and equipping each well, and any nonconsent penalties owed. The JOAs also provided for the removal of Citation as operator, by majority vote of the nonopera-tors, should Citation fail or refuse to carry out its duties.
[¶ 5.] In 1984 Citation proposed the drilling of the North Hollingsworth 1-19 well (the 1-19 well). According to the AFE submitted by Citation, it would cost $327,000 to drill, complete and equip the well. Some of the plaintiffs or their predecessors elected to go nonconsent. Citation drilled the 1-19 well, which came in as a good producing well. Therefore, Citation, along with the other owners who elected to share in the cost of the 1-19 well, was entitled to nonconsent penalties from the noneonsenting owners with respect to costs associated with the 1-19 well. Within approximately twelve months, two additional wells were drilled on the North Hollingsworth field. None of the owners went nonconsent with respect to these additional wells, both of which produced oil.
[¶ 6.] After the wells were drilled, Citation began improperly allocating costs to the 1-19 well. This allocation maximized Citation’s receipt of nonconsent penalties. Specifically, Citation misalloeated to the 1-19 well: (1) the entire cost of a production road ($27,000), which actually served all seven wells in both fields; (2) the entire cost of a tank battery ($39,416), which was used to store oil from all of the wells in the North Hollingsworth Field; (3) the entire cost of converting a well used to dispose of salt water produced from wells in both fields ($13,571); and (4) other costs for work actually done on other wells. In addition, Citation improperly moved items which belonged in the 200 percent nonconsent penalty category (costs incurred after the wellhead) into the 400 percent category (costs incurred up to the wellhead).1
[¶ 7.] For approximately two years, these misallocations continued undetected by the owners. The PSRs did not itemize expenses, instead using “lump sum” amounts. Additionally, PSRs were not provided on a monthly basis as required by the JOAs. Although over seventy PSRs should have been sent out by Citation over the period it was operator, only eleven PSRs were provided.
[¶ 8.] In 1986 an audit was conducted by TIPCO, one of the owners. TIPCO discovered Citation’s improper charges to the 1-19 well. TIPCO submitted its audit report to [499]*499Citation in September 1986 objecting to the allocation. Citation did not respond until June 15,1988, but agreed that it had misallo-cated costs associated with the production road, the tank battery, and the salt water disposal well. Citation granted TIPCO’s exceptions. However, Citation did not reallocate these costs to the other owners and neither the TIPCO audit nor Citation’s response were provided to the other owners.
[¶ 9.] On June 23, 1989, Citation sent out another inaccurate PSR. This report was again not itemized and still contained the improper allocations.
[¶ 10.] Prom 1984 to 1991 Citation allocated operating costs (e.g., salaries, vehicles, insurance, and supervision) equally among the seven wells on the North Hollingsworth and East Simms Fields. In August 1991 Citation unilaterally converted to a volumetric method of allocation.2 As a result, costs which had previously been charged to owners of the East Simms Field (which had become uneconomical) were shifted to the owners of the North Hollingsworth Field. In effect, the owners of wells in the North Hollings-worth Field were subsidizing the East Simms Field, allowing the East Simms Field wells to continue to produce. Citation was then able to continue to collect overhead charges and allocate salary expenses to East Simms Field wells.
[¶ 11.] Representatives of the owners met with Citation on September 20, 1991. Although Citation had already changed to the volumetric method of allocation, Citation stated during the meeting that it was still allocating costs on a per-well basis. Citation also represented that it would relinquish its position as operator, if a majority of the owners so desired. Based on Citation’s representations regarding the cost allocation method and its willingness to step down as operator, the owners allowed Citation to continue as operator.
[¶ 12.] Finally in March 1992 a majority of the owners of each field voted to remove Citation as operator. Despite its earlier representation that it would step down, Citation refused to do so.
[¶ 13.] Plaintiffs filed suit against Citation alleging fraud and breach of contract, seeking compensatory and punitive damages and the removal of Citation as operator. The jury returned a verdict in favor of the plaintiffs, awarding $222,850 for breach of contract, $354,250 for fraud, and $4.8 million in punitive damages. The trial court denied Citation’s motions for judgment notwithstanding the verdict and for new trial, and Citation appealed.
[¶ 14.] Citation raises the following issues on appeal:
1. Did Citation’s actions give rise to an independent tort cause of action for fraud and a claim for punitive damages?
2. Was the jury properly instructed on the elements of deceit?
3. Did the trial court err in providing the jury with a “global” punitive damages form?
4. Was the punitive damages verdict unreasonable and excessive as a matter of law?
ANALYSIS AND DECISION
[¶ 15.] 1. Did Citation’s actions give rise to an independent tort cause of action for fraud and a claim for punitive damages?
[¶ 16.] This Court has recently handed down two decisions on the issue of independent torts arising from contract. See Sundt v. State ex rel. SD Dep’t of Transp., 1997 SD 91, 566 N.W.2d 476; Fisher Sand & Gravel Co. v. State ex rel. SD Dep’t of Transp., 1997 SD 8, 558 N.W.2d 864. Both Sundt and Fisher involved highway construction contracts,3 and in both cases, we held that there was no independent tort which would give rise to punitive damages. The distinctively [500]*500different facts of the case now before us justify a different result.
[¶ 17.] Punitive damages “are not ordinarily recoverable in actions for breach of contract, because, as a general rule, damages for breach of contract are limited to the pecuniary loss sustained.” Hoffman v. Louis Dreyfus Corp., 435 N.W.2d 211, 214 (S.D.1989) (quoting 22 Am.Jur.2d Damages § 751 (1988)). There are public policies underpinning this general rule. First, breach of contract is generally a private injury, unlike a malicious tort, which some authorities have held to be a public injury. L. Schleu-ter & K. Redden, 1 Punitive Damages § 7.2 (3d ed. 1995). Second, our free market system allows economically efficient breaches of contract, for example, when it costs less for one party to breach an unwise contract and to pay the other party compensatory damages than it would cost to completely perform the contract. Third, “[w]hile compensatory damages encourage reliance on business agreements, the threat of additional punitive damages would create uncertainty and apprehension in the marketplace.” Id.
[¶ 18.] Nonetheless, the majority of jurisdictions allow punitive damages in breach of contract cases under certain circumstances, including: conversion; forgery; breach of fiduciary duty; tortious interference with business expectancy; intentional breaches accompanied by willful acts of violence, malice or oppressive conduct; fraud; and, breach of covenant of good faith and fair dealing. Id. at § 7.3 (listing cases). Punitive damages may arise in these situations when the complaining party can prove an independent tort that is separate and distinct from the breach of contract. Hoffman, 435 N.W.2d at 214. “While the independent tort may occur at the time of and in connection with the breach, or may arise out of the same transaction, it is not committed merely by breaching the contract, even if such act is intentional.” Id. (citing 22 Am.Jur. Damages § 752 (1988)).
It may be conceded that tort usually signifies a breach of legal duty independent of contract. But such breach of duty may arise out of a relation or state of facts created by contract. Smith v. Weber, 70 S.D. 232, 236, 16 N.W.2d 537, 539 (1944). As more recently stated: “Conduct which merely is a breach of contract is not a tort, but the contract may establish a relationship demanding the exercise of proper care and acts and omissions in performance may give rise to tort liability.” Kunkel v. United Security Ins. Co., 84 S.D. 116, 135, 168 N.W.2d 723, 733 (1969).
Id.
[¶ 19.] This independent tort doctrine has two functions, as described by the Indiana Supreme Court in Vernon Fire & Casualty Insurance Co. v. Sharp, 264 Ind. 599, 349 N.E.2d 173 (1976):
First, it maintains the symmetry of the general rule of not allowing punitive damages in contract actions, because the punitive damages are awarded for the tort, not the contract. Secondly, the independent tort requirement facilitates judicial review of the evidence by limiting the scope of review to a search for the elements of the tort.
349 N.E.2d at 180 (second emphasis added). See also Morrill v. Becton, Dickinson and Co., 747 F.2d 1217, 1222 (8th Cir.1984) (focusing its analysis on whether the evidence was sufficient to prove the elements of fraud).
[¶ 20.] South Dakota has recognized the independent tort doctrine. In South Dakota, punitive damages are codified in SDCL 21-3-2, which provides, in relevant part, as follows:
In any action for the breach of an obligation not arising from contract, where the defendant has been guilty of oppression, fraud, or malice, actual or presumed, ... the jury, in addition to the actual damage, may give damages for the sake of example, and by way of punishing the defendant.
(1987) (emphasis added). This statute states that no punitive damages are available for a breach of contract obligation. The language of the statute clearly permits punitive damages, however, for a tort arising independent of the contract obligation, and when the damages are necessary to deter the wrongful conduct and to punish the defendant.
[501]*501[¶ 21.] The independent tort doctrine was first applied by this Court in Smith v. Weber, 70 S.D. 232, 16 N.W.2d 537 (1944). In Smith, an aggrieved tenant brought suit against his landlord who had tried to force him out of his apartment by shutting off the tenant’s heat, water and telephone services, causing debris from a remodeling job to destroy $1,500 of the tenant’s personal property, and burning garbage in the building’s furnace. Id. at 538. In upholding the award of punitive damages, this Court stated:
It may be granted that an omission to perform a contract obligation is never a tort, unless that omission is also an omission of a legal duty. But such legal duty ... may spring from extraneous circumstances, not constituting elements of the contract as such, although connected with and dependent upon it, and born of that wider range of legal duty which is due from every man to his fellow, to respect his rights of property and person, and refrain from invading them by force or fraud. A tort may grow out of or make part of, or be coincident with a contract. The fact that there existed a contract between the plaintiffs and the defendant would not immune the latter from the penalty that is ordinarily visited upon tortfeasors.
Id. at 539 (quoting Jones v. Kelly, 208 Cal. 251, 280 P. 942, 943 (1929)) (emphasis added). Under the facts of this case, as determined by the jury, Citation clearly invaded the property rights of the plaintiffs by committing fraud.
[¶22.] Upon review, in order to reach this conclusion, we must first focus on whether a legal duty exists independent of the obligations under the contract. In Smith, this Court noted that although it “may be conceded that tort usually signifies a breach of legal duty independent of contract ... such breach of duty may arise out of a relation or state of facts created by con-tractu” Id. at 539 (citations omitted). The existence of a legal duty is a question of law. Fisher, 1997 SD at 8 ¶ 13, 558 N.W.2d at 867 (citing Tipton v. Town of Tabor, 538 N.W.2d 783, 785 (S.D.1995)). We review questions of law de novo. Id. In Sundt and Fisher, we found as a matter of law that no duty outside the contract existed to support their claims of negligence. Sundt, 1997 SD at 91 ¶ 10, 566 N.W.2d at 479; Fisher, 1997 SD at 8 ¶ 16, 558 N.W.2d at 868. This case is a different story. We hold Citation had a duty to the plaintiffs which arose outside the contract obligation, namely, the “legal duty which is due from every man to his fellow, to respect his rights of property ... and refrain from invading them by ... fraud.” Smith, 70 S.D. at 236, 16 N.W.2d at 539. Simply put, a contract is not a license allowing one party to cheat or defraud the other.
[If 23.] Having passed the first analytical hurdle of legal duty, we next focus on the existence (or nonexistence) of the independent tort alleged. Although the matters complained of may have “their origin in a contract, the gist of the action is for alleged wrongful and tortious acts of defendant.” Id. We therefore put aside our review of the breach of contract cause of action and carefully analyze the evidence presented to determine whether each element of the alleged tort has been proven (recognizing that on appeal of a jury verdict, this Court is “required to view the evidence and all reasonable inferences from the evidence in the light most favorable to the verdict winner and conflicting evidence is to be resolved in favor of the verdict.” Nelson v. Nelson Cattle Co., 513 N.W.2d 900, 903 (S.D.1994)). If each element is present, then punitive damages may be properly awarded for the tort.4 If any of the elements are absent, then no tort [502]*502has been committed, and the aggrieved party is left with only a breach of contract action, for which no punitive damages are available.
[¶ 24.] In this case, the plaintiffs allege that Citation’s actions constitute the tort of deceit. The essential elements of deceit are:
[T]hat a representation was made as a statement of fact, which was untrue and known to be untrue by the party making it, or else recklessly made; that it was made with the intent to deceive and for the purpose of inducing the other party to act upon it; and that he did in fact rely on it and was induced thereby to act to his injury or damage.
Holy Cross Parish v. Huether, 308 N.W.2d 575, 576 (S.D.1981). See also S.W. Croes Family Trust v. Small Bus. Admin., 446 N.W.2d 55, 57 (S.D.1989); Dahl v. Sittner, 474 N.W.2d 897, 900 (S.D.1991).
[¶ 25.] The evidence presented at trial supports the conclusions that (1) representations of fact were made by Citation; (2) that such representations were untrue; (3) that Citation either knew the representations were untrue or made them recklessly; (4) that Citation made such representations with the intent to deceive the plaintiffs, and induce them to act (or in this ease, not act) upon them; and (5) that the plaintiffs did in fact rely on Citation’s false representations and were induced to pay excessive noneon-sent penalties and to allow Citation to continue as operator.5
[¶ 26.] We believe there is a policy underpinning our conclusion that punitive damages are appropriate here upon a finding of deceit. We agree with the reasoning of the North Carolina Supreme Court in Oestreicher v. American National Stores Inc., 290 N.C. 118, 225 S.E.2d 797, 809 (1976):
In the so-called breach of contract actions that smack of tort because of the fraud and deceit involved, we do not think it is enough just to permit defendant to pay that which the ... contract required him to pay in the first place. If this were the law, defendant has all to gain and nothing to lose. If he is not caught in his fraudulent scheme, then he is able to retain the resulting dishonest profits. If he is caught, he has only to pay back that which he should have paid in the first place.
To hold otherwise would give parties to a contract a license to steal, undercutting one of the very policy reasons for withholding punitives, i.e., to “encourage reliance on business agreements.” Supra, ¶ 17. The twin purposes of punitive damages—deterrence and punishment—are well served in a contract where one party commits an intentional tort like deceit.
[¶ 27.] We have in the past awarded punitive damages for fraudulent inducement of a contract. Ducheneaux v. Miller, 488 N.W.2d 902 (S.D.1992). Hoffman, supra. Some courts have held that punitive damages for deceit in a contract are only available when the fraud was used to induce the contract. See, e.g., Parks v. City of Marshalltown, 440 N.W.2d 377 (Iowa 1989) (adopting test under Pogge v. Fullerton Lumber Co., 277 N.W.2d 916 (Iowa 1979)); United States ex rel. Farmers Home Admin. v. Redland, 695 P.2d 1031 (Wyo.1985); Las Palmas Assocs. v. Las Palmas Ctr. Assocs., 235 Cal.App.3d 1220, 1 Cal.Rptr.2d 301 (1991). This Court made no such distinction in Hulstein v. Meilman Food Industries, 293 N.W.2d 889 (S.D.1980), a case with facts strikingly similar to those now before this Court. In a contract for purchase of cattle, where the contract price was based on the cattle grades, Meilman deliberately underre-ported the grades at which the cattle had been sold, concealed its underreporting, denied wrongdoing, and “lost” the sale records. Id. at 892. In that case, we held that the trial court had properly instructed the jury that there must be a finding of fraud before punitives could be awarded. Id. This fraudulent behavior in Hulstein occurred during the contract, rather than at its inception, and punitive damages were awarded and affirmed. See also Oestreicher, 225 S.E.2d at [503]*503809 (involving the intentional understatement of the percentage of monthly net sales which American National agreed to pay as part of its lease agreement). We find no reason at this point in time to draw a new distinction between fraud in the inducement and a fraud committed during contract performance, since the defrauded party is damaged regardless of when the fraud occurred.
[¶ 28.] 2. Was the jury properly instructed on the elements of deceit?
[¶29.] Citation argues that Instruction Number 20,6 which set forth the elements of fraud, misstated the law by failing to include the element of reliance. SDCL 15-6-51(b) governs procedures for settlement of jury instructions at trial. It provides, in relevant part:
[E]aeh counsel, or party, shall specify and state the particular ground or grounds upon which the giving or rejecting of any instruction is objected to. It shall be insufficient to state generally that an instruction does or does not state the law, but it shall be necessary to specify clearly wherein any instruction, or part thereof objected to, is insufficient or does not state the law.... No grounds of objection to the giving or the refusing of an instruction shall be considered either on motion for new trial or appeal, unless presented to the court upon the “settlement” of such instruction.
The party objecting to an instruction must make the objection clear so the trial court is not only advised of possible errors, but also given an opportunity to correct the instructions accordingly. Knudson v. Hess, 1996 SD 137, ¶ 11, 556 N.W.2d 73, 77 (1996). Citation did not give the trial court this opportunity. At trial, Citation objected to the fraud instruction on the ground that it was not supported by the evidence. On appeal, Citation claims the instruction was erroneous on the new ground that the instruction was a misstatement of the law. When a party’s objection at trial is not the same as its objection on appeal, the issue of the improper jury instruction is not preserved for our review. Sybesma v. Sybesma, 534 N.W.2d 355, 359 (S.D.1995); Hogg v. First Nat’l Bank of Aberdeen, 386 N.W.2d 921, 925 (S.D.1986). “[T]he complaining party must have properly objected to the instruction in order to preserve the issue on appeal, or the improper instruction becomes the law of the case.” Knudson, 1996 SD at 137 ¶ 11, 556 N.W.2d at 77; Wallahan v. Black Hills Elec. Co-op., 523 N.W.2d 417, 419-20 (S.D.1994); State v. Willis, 370 N.W.2d 193, 200 (S.D.1985); Shaull v. Hart, 327 N.W.2d 50, 53 (S.D.1982). Because Citation failed to properly object to the jury instruction, the given instruction is the law of the case, and Citation has failed to preserve the issue for appeal.
[¶30.] 3. Did the trial court err in providing the jury with a “global” punitive damages form?
[¶ 31.] Citation argues that the trial court erred in providing the jury with a “global” punitive damages award in favor of plaintiffs, as opposed to a verdict form specifying the amount due each plaintiff. Citation failed to object to the use of this verdict form at trial.
[¶ 32.] “Verdict forms to be submitted to the jury should be treated in the same manner as jury instructions to be submit-ted_ Similarly, at [the] instruction conference parties should object to any errors of commission or omission in the verdict forms to be submitted to the jury.” Hiway 20 Term., Inc., v. Tri-County Agri-Supply, Inc., 235 Neb. 207, 454 N.W.2d 671, 675 (1990); see also Walsh v. Wild Masonry Co., [504]*504Inc., 72 Wis.2d 447, 241 N.W.2d 416, 420 (1976) (defendant who did not submit proposed verdict to the judge for approval and did not object to the form of the verdict as submitted by plaintiff waived any objection to the form of the verdict). By failing to raise an objection to the verdict form which would alert the trial court to the claimed error, Citation has failed to preserve this issue for appeal. See Hogg, 386 N.W.2d at 925.
[¶ 38.] 4. Were the punitive damages unreasonable and excessive as a matter of law?
[¶ 34.] Citation next argues that the punitive damages award is unreasonable and excessive, and should therefore be set aside. We agree.
[¶35.] The jury awarded punitive damages of $4.8 million against Citation. Prior to this case, the largest punitive damages award ever imposed against a single defendant, subsequently challenged on appeal as excessive and affirmed as reasonable by this Court, was $750,000. See Schaffer v. Edward D. Jones & Co., 1996 SD 94, 552 N.W.2d 801 {Schaffer II).
[¶ 36.] At the outset of our analysis, we admit there is no even playing field, as this Court gives the benefit of the doubt to the jury’s verdict.
We have consistently held that the determination whether to award punitive damages and the amount rests in large part with the jury.
Great latitude is allowed in the class of cases. One purpose of exemplary damages is to deter the person against whom they are awarded from repeating the offense and others from committing it. An amount sufficient to serve this purpose in one instance might be wholly inadequate in another. Each action must be governed by its own peculiar facts. [A]ll circumstances are to be considered. The question is not whether the trial court or this court, as triers of fact, would have awarded a less amount. Unless the verdict is so large as to clearly indicate that it must have been given under the influence of passion or prejudice, it should stand. Stene v. Hillgren, 78 S.D. 1, 98 N.W.2d 156, 159 (1959) (quoting Bogue [v. Gunderson ], 30 S.D. 1, 137 N.W.2d [595] at 596 [(S.D.1912)]).
This obviously creates an extremely difficult burden for anyone attempting to overturn a jury verdict on the ground of excessive damages. Wangen v. Knudson, 428 N.W.2d 242, 245 (S.D.1988).
Schaffer II, 1996 SD at 94, ¶ 26, 552 N.W.2d at 809-10. However, we will not uphold punitive damage awards that are oppressive or so large as to shock the sense of fair-minded persons. Hulstein, 293 N.W.2d at 892. See also Hannahs v. Noah, 83 S.D. 296, 158 N.W.2d 678 (1968); Stene v. Hillgren, 78 S.D. 1, 98 N.W.2d 156 (1959)..
[¶37.] To guarantee uniformity in the application of the law, we have established a five-factor test to determine whether a punitive damage award is appropriate or excessive. Flockhart v. Wyant, 467 N.W.2d 473, 479 (S.D.1991). Under this test we consider: (1) the amount allowed in compensatory damages, (2) the nature and enormity of the wrong, (3) the intent of the wrongdoer, (4) the wrongdoer’s financial condition, and (5) all of the circumstances attendant to the wrongdoer’s actions. Id.
[¶ 38.] The first factor to be considered is the amount of compensatory damages and its relationship or ratio to the amount of punitive damages. The amount of punitive damages must bear a reasonable relationship to the compensatory damages. Centrol, Inc. v. Morrow, 489 N.W.2d 890, 896 (S.D.1992). Here the jury awarded compensatory damages for fraud of $354,250 and punitive damages of $4.8 million for a ratio of 13 and one-half to one. While prior cases from this jurisdiction have upheld fractional awards equal to or even greater than occurred here,7 [505]*505nevertheless, in Schaffer II, we cautioned that:
Such ratio comparisons, however are of limited value. Were there to be some bright-line rule on ratios as Jones implies, the remaining four criteria would become irrelevant and the entire process of judicial review would be reduced to that of a turn at a calculator. We have held ‘[tjhere is no precise mathematical ratio between compensatory and punitive damages.’ Wan-gen, 428 N.W.2d at 246. Therefore, while this ratio [30 to 1] is cause for concern, we must proceed to analyze the other applicable factors to set the ratio matter in perspective.
Schaffer II, 1996 SD at 94 ¶ 28, 552 N.W.2d at 810-11.
[¶ 89.] The second factor is the nature and the enormity of the wrong. Here the expertise of the two parties becomes worthy of note when compared to our prior ease law on fraud and deceit. Schaffer II was also a case based on a compensatory award for deceit. We stated in Schaffer II that a factor in upholding the substantial punitive damage award was the deceit of the defendant brokerage firm in selling securities to the plaintiff, who was a farmer with an eighth grade education and unsophisticated in these types of investments. See Schaffer I, 521 N.W.2d 921 (S.D.1994); see also Davis v. Merrill Lynch, 906 F.2d 1206, 1210 (8th Cir.1990) (affirming a $2 million punitive damage award to an “unsophisticated investor who completely trusted [her broker] and relied upon his advice”); Holmes v. Wegman Oil, 492 N.W.2d 107 (S.D.1992) (a punitive damage award of $500,000 each to five plaintiffs for fraudulent concealment by a manufacturer of a defective LP valve; victims had no knowledge of the defect and were severely injured by an explosion caused by the defect); Hoff v. Bower, 492 N.W.2d 912 (S.D.1992) (painters in Aberdeen were awarded punitive damages against painting contractor for fraudulent representation for being lured to California by promises of high wages and excellent working conditions when “it appears from the transcript that nearly every promise made to these two men [the plaintiffs] was a lie.”)
[¶ 40.] The case now before us pits plaintiffs, who are all sophisticated, experienced oil and gas operators or investors, against the expertise of the defendant. The plaintiffs were well familiar with the oil drilling business and JOAs,8 contrary to the investor in Schaffer I & II, who knew nothing about the risks in investing in limited partnerships.
[¶ 41.] In considering punitive damage awards, the United States Supreme Court in BMW of North America, Inc., v. Gore further focused on the “likely potential harm” to a plaintiff as a result of the defendant’s fraudulent acts. 517 U.S. -, -, 116 S.Ct. 1589,1599,134 L.Ed.2d 809, 830 (1996). As far as the specifics of the enormity of the wrong perpetrated upon the plaintiffs in the case now before us, they informed this Court that they stood to lose approximately $165,-000 per year in overcharges.9 At that rate, the punitive damages awarded in this case represent over 29 years of “potential additional harm” to the plaintiffs. Yet the life expectancy of the wells generating those overcharges was five years or less. Thus, plaintiffs’ potential loss could not exceed [506]*506$825,000 during the lifetime of the wells, even using their own figures.
[¶42.] The third factor is that of the wrongdoer’s intent. “From intent, we determine ‘the degree of reprehensibility of the defendant’s conduct,’ which is viewed as probably the most important indication of reasonableness of a punitive damage award.” Schaffer II, 1996 SD at 94 ¶ 32, 552 N.W.2d at 812 (citing BMW, 517 U.S. at -, 116 S.Ct. at at 1599, 134 L.Ed.2d at 826). Trickery and deceit are more reprehensible than negligence. Id.10 Of a more serious nature would be those acts which result in injury to persons through “indifference to and reckless disregard for the health or safety of others.” See BMW, 517 U.S. -, 116 S.Ct. at 1599, 134 L.Ed.2d at 826. The most reprehensible, from an intent point of view, would be an intentional malicious assault or attack against a person. Id. See Shippen v. Parrott, 1996 SD 105, 553 N.W.2d 503 (Shippen II); Zahrowski v. Dahl, 78 S.D. 255, 100 N.W.2d 802 (1960); Stene, supra.
[¶43.] Cases where the defendant or its operating officers knew or committed the deceit are more reprehensible than eases involving punitive liability based on respon-deat superior where the misdeeds were committed by employees whose acts were unknown to corporate leadership. Schaffer II, 1996 SD at 94 ¶ 34, 552 N.W.2d at 812. Here Citation makes no claim of respondeat superior as a partial defense for being held responsible for wrongful acts committed upon the plaintiffs. The evidence indicates that the acts were deceitfully and intentionally done by Citation against the plaintiffs for the purpose of enriching Citation.
[¶ 44.] The fourth factor is the consideration of the financial condition of the wrongdoer. In Schaffer II, we analyzed this factor by a review of the defendant’s net worth and net income, 1996 SD at 94 ¶¶ 36-37, 552 N.W.2d at 813. We noted the punitive verdict awarded less than one-half of one percent of the net worth of the defendant, and based on its income, it could make up the loss of the award with between four to twenty hours of net income. Id. n. 18.
[¶ 45.] In contrast, in the case now before us, the punitive award has a much greater effect on the defendant. It constitutes ten percent of the defendant’s entire net worth. Cf. Hoff, 492 N.W.2d at 915 (upholding an award equal to two percent of the defendant’s net worth). More significantly, the punitive damage award would represent all of Citation’s net income for an entire year, despite the fact this case is a dispute over only seven of the 3,000 wells (one-half of one percent) Citation operates. Cf. Hoff, 492 N.W.2d at 915 (where the award was three percent of the defendant’s gross income). There is no case law in this jurisdiction which even approaches upholding an award that would have this kind of an effect on a defendant.11
[507]*507[¶ 46.] The final factor is a consideration of all the other relevant circumstances of this case. In Schaffer II, we focused on two concerns. One was the availability of other sanctions, including those under our criminal code. Here plaintiffs argue that Citation’s acts “are ‘comparable’ to theft by deception under SDCL 22-30A-3 or theft by embezzlement under SDCL 22-30A-10.” In discussing these statutes in Schaffer II, we noted that criminal penalties included a maximum ten-year penitentiary sentence, a $10,000 fine or both. 1996 SD at 94 ¶ 39, 552 N.W.2d at 814. See SDCL 22-6-1. Restitution is authorized under SDCL 23A-28-2(3), but is limited to pecuniary damages and specifically excludes punitive damages.12 There is no evidence in the record to show any criminal charges are pending or even contemplated.
[¶ 47.] BMW teaches us to consider whether a less drastic remedy could achieve the goal of deterring future misconduct. 517 U.S. at -, 116 S.Ct. at 1603, 134 L.Ed.2d at 832. Applying this rationale in Schaffer 11. we found that a lesser amount would not suffice given the defendant’s challenge to the jury that “we would do it again.” 1996 SD at 94 ¶ 42, 552 N.W.2d at 814. No such position is advanced by Citation in this case.
[¶ 48.] In summary, the factors show that Citation is guilty of deceit, which is condemned by statutes of this State and the decisions of this Court. Cases from this jurisdiction and others can be cited to show greater ratios being affirmed for the sake of punishing a defendant. However, here the punitive award is five times in excess of what the plaintiffs would have ever lost even if Citation’s actions went undetected throughout the lifetime of the wells. Moreover, the award represents a substantial amount of Citation’s net worth and would result in the loss of an entire year’s profits for actions involving less than one-half of one percent of the wells which it supervises.
[¶ 49.] Even with giving the jury’s verdict the deference to which it is entitled, under our five-factor test, we conclude that the punitive award was shockingly excessive13 and oppressive.14 It clearly goes against one’s sense of fairness and sympathy to listen to the pleas of a party who has been found guilty of deceit. Nevertheless, the [508]*508purpose of punitive damages is to punish, not to permanently cripple or destroy.
[¶ 50.] As was proeedurally approved in Shippen II, after a consideration of “all relevant factors,” we reduce the punitive damages award to one million dollars. This figure exceeds the maximum potential financial loss to the Plaintiff of $825,000 and thus the maximum potential gain to the Defendant. It is well in excess of the compensatory verdict of $577,100 awarded by the jury.15 Per Shippen II, the plaintiffs should be given the option to accept this remittitur together with interest thereon, or if not acceptable, be granted a new trial on the issue of punitive damages. Plaintiffs are given 30 days from the date of this opinion to make this election.
[¶ 51.] MILLER, C.J., concurs.
[¶ 52.] SABERS and AMUNDSON, JJ., concur in part and dissent in part.
[¶ 53.] TUCKER, Circuit Judge, dissents.
[¶ 54.] TUCKER, Circuit Judge, sitting for KONENKAMP, J., disqualified.