Ranells v. City of Cleveland

321 N.E.2d 885, 41 Ohio St. 2d 1, 70 Ohio Op. 2d 1, 1975 Ohio LEXIS 412
CourtOhio Supreme Court
DecidedJanuary 8, 1975
DocketNo. 73-951
StatusPublished
Cited by58 cases

This text of 321 N.E.2d 885 (Ranells v. City of Cleveland) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ranells v. City of Cleveland, 321 N.E.2d 885, 41 Ohio St. 2d 1, 70 Ohio Op. 2d 1, 1975 Ohio LEXIS 412 (Ohio 1975).

Opinions

Paul W. Bbown, J.

We are asked to decide whether the city of Cleveland, having admitted negligence in the operation of its Water Department, can be held liable in punitive damages for alleged wanton misconduct.

Ohio law is well established that a municipal corporation, while acting in a governmental capacity, is immune from liability for tortious conduct. It is equally clear that when acting in a proprietary capacity, a municipal corporation may generally be held liable for tortious conduct in the same manner as would a private corporation or individual.1 Neither of those basic principles; embodied in this court’s application of the doctrine of sovereign immunity, is affected by our disposition of the present case.

Nor is it necessary to disturb the jury’s awards by way of compensation for wrongful death, conscious pain and suffering, and other necessary and associated expenses. A unanimous Court of Appeals determined those awards to be more than adequately supported by the evidence, and we find nothing which persuades us to disagree.

However, the appellees’ allegations of wanton misconduct, and the jury’s awards of punitive damages based thereon, present problems of a more serious nature, for if punitive damages are to be awarded, they must further the public policy which justifies them. The petition herein clearly asserts acts of negligence in the handling of a hazardous gas, with some foreknowledge that serious conse-[5]*5quenees might ensue. Allegations of such a character are sufficient to form'the basis for a finding of wanton misconduct. Kellerman v. J. S. Durig Co. (1964), 176 Ohio St. 320, a case upon which both parties rely.

Assuming, arguendo, that wanton misconduct, as defined in Kellerman, forms a sufficient basis for an award of punitive damages,2 we must determine whether the public [6]*6policy upon which such awards are based continues in force when the action is one against a municipal corporation.

No prior decisions of this court are controlling on this point. Appellees cite Dayton v. Pease (1854), 4 Ohio St. 80: Hack v. Salem (1963), 174 Ohio St. 383; and Moloney v. Columbus (1965), 2 Ohio St. 2d 213, to support the proposition that a municipal corporation, when acting in a proprietary capacity, assumes liability in a manner identical to a private corporation. In none of the cited cases were punitive damages either sought or awarded. Thus the present case, specifically involving the issue of punitive damages, is one of first impression.

This issue has often been resolved by the courts of other states.. A substantial majority of jurisdictions treating the issue have held that in the absence of statutory authority specifically providing for an award' of punitive damages, an injured plaintiff has no right to recover exemplary or punitive damages against a municipal corporation. See, generally, 57 American Jurisprudence 2d 268, Section 318, and annotation, 19 A. L. R. 2d 903, 905-911. In so holding, the courts have adopted a variety of rationales, the totality of which we find compelling.

For example, in Fisher v. Miami (Fla. App. 1954), 160 So. 2d 57, 59 affirmed, 172 So. 2d 455, the Third District Court of Appeals declared that:

“* * * to permit such [punitive] damages against a public corporation is to contravene public policy since the parties who must bear the burden of the punishment are the taxpayers and citizens who constitute the very persons who as a group are to benefit from the public example which the granting of such damages is supposed to make of a wrongdoer.”

In Chappell v. Springfield (1968), 423 S.W.2d 810, 814, the Supreme Court of Missouri declared that:

“The theory that punitive damages serve as a deterrent to others adds little justification for the award against a municipality. It is assumed that public officials will do their duty, and if discipline of a wrongdoing municipal employee is indicated, appropriate measures are available [7]*7through the electorate, or by superior officials responsible to the electorate, without recourse to punitive awards through the courts.”

In Costich v. Rochester (1902), 68 A.D. 623, 631, 73 N. Y. Supp. 835, the Appellate Division of the Supreme Court of New York laid to rest the contention that no distinction should exist between private and municipal corporations. Said the court, at page 631: Private corporations “are largely created and administered for purposes of profit or for some other personal object. Those who become members of them do so voluntarily, and in the majority of instances in the hope of gain. There are manifold and speedy ways by which to reach and replace any representative or agent who so mistakes or disregards his duty as to render liable in punitive damages the persons and interests represented by him. The municipal corporation is different. It is not organized for any purpose of gain or profit, but it is a legal creation, engaged in carrying on government and administering its details for the general good and as a matter of public necessity. The individuals who in the aggregate constitute it and submit certain of their affairs to its control and management are not always volunteers in so doing. If they happen to live within the limits of its jurisdiction, they become members of it to the extent of being represented by its agents, and having their property liable for its acts. While theoretically they have a voice in selecting the agents who shall represent and control the municipality, we know that practically it often happens that the government is not of their choice, and its management not in accordance with their judgment.”

To assess punitive damages upon entities so different in character, without distinction, defies the logic upon which the framework of a legal system must be based.

It must be continually emphasized that punitive damages are assessed over and above that amount adequate to compensate an injured party. As such, they are nothing less than a windfall to any plaintiff who receives them. When their reason for being — to punish or deter— ceases to exist, the entire rationale supporting them collap[8]*8se's. Appellees’ contention that any punitive damage award in the present case will come from the Water Department rather than general revenue funds is literally a distinction without a difference. It matters not whether the burden of meeting a punitive damage obligation falls upon a taxpayer, as a taxpayer, or- as a user and consumer of the public water supply.

That the punitive damages awards herein were inappropriate was further dramatized by the admission of evidence as to the wealth of the Water Department of the city of Cleveland. Generally, such evidence is necessary in a punitive damages context, so as to allow the jury to determine that amount of damages sufficient to punish tbe defendant for its wrongdoing. When the defendant- is a municipal corporation, however, admitting such evidence raises the spector of astronomical judgments — because the financial resources of a municipal corporation are, essentially, unlimited.

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Bluebook (online)
321 N.E.2d 885, 41 Ohio St. 2d 1, 70 Ohio Op. 2d 1, 1975 Ohio LEXIS 412, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ranells-v-city-of-cleveland-ohio-1975.