Time Warner Entertainment Co. v. Six Flags Over Georgia, LLC

563 S.E.2d 178, 254 Ga. App. 598, 2002 Fulton County D. Rep. 1088, 2002 Ga. App. LEXIS 430
CourtCourt of Appeals of Georgia
DecidedMarch 29, 2002
DocketA00A0120
StatusPublished
Cited by50 cases

This text of 563 S.E.2d 178 (Time Warner Entertainment Co. v. Six Flags Over Georgia, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Time Warner Entertainment Co. v. Six Flags Over Georgia, LLC, 563 S.E.2d 178, 254 Ga. App. 598, 2002 Fulton County D. Rep. 1088, 2002 Ga. App. LEXIS 430 (Ga. Ct. App. 2002).

Opinion

Ellington, Judge.

This is the second appearance of this case before this Court. On July 13, 2000, we affirmed the jury’s award of compensatory and punitive damages to appellees Six Flags Over Georgia, LLC (“Flags”) and Six Flags Fund, Ltd., L.P. (“Fund”). Time Warner Entertainment Co. v. Six Flags Over Ga., 245 Ga. App. 334 (537 SE2d 397) (2000) *599 (“Time Warner”). 1 On January 18, 2001, the Supreme Court of Georgia denied the petition for a writ of certiorari filed by appellants Time Warner Entertainment Company, L.P. (“TWE”) and its subsidiaries Six Flags Over Georgia (“SFOG”), Six Flags Entertainment Corporation (“SFEC”), and Six Flags Theme Parks, Inc. (“SFTP”). Time Warner Entertainment Co. v. Six Flags Over Ga., 2001 Ga. LEXIS 98. However, on October 1, 2001, the United States Supreme Court granted certiorari, vacated our opinion, and remanded the case to us for further consideration in light of an opinion it issued on May 14, 2001, Cooper Indus. v. Leatherman Tool Group, 532 U. S. 424 (121 SC 1678, 149 LE2d 674) (2001) (“Leatherman”). Time Warner Entertainment Co. v. Six Flags Over Ga., _ U. S. _ (122 SC 24, 151 LE2d 1) (2001). Upon remand, we redocketed this case and gave the parties an opportunity to brief and to orally argue the relevant issues.

1. Leatherman pertains only to our analysis of whether the award of punitive damages in this case was excessive. We addressed whether the award of punitive damages was excessive in Division 6 (c) of our original opinion. Time Warner, 245 Ga. App. at 356-357 (6) (c). Therefore, with the exception of Division (6) (c), we hereby reinstate our original opinion, Time Warner, 245 Ga. App. at 334-357.

2. Review of Allegedly Excessive Punitive Damages Awards.

(a) The Standard of Review.

(i) Federal Constitutional Excessiveness Claims. Leatherman requires state and federal appellate courts to review de novo claims that punitive damages awards are grossly excessive in violation of the Due Process Clause of the Fourteenth Amendment to the United States Constitution. Leatherman, 532 U. S. at 433-434. However, “[i]f no constitutional issue is raised, the role of the appellate court, at least in the federal system, is merely to review the trial court’s 'determination [on the excessiveness issue] under an abuse of discretion *600 standard.’ ” Id. at 433, citing Browning-Ferris Indus. v. Kelco Disposal, 492 U. S. 257, 279 (109 SC 2909, 106 LE2d 219) (1989); see also Foster v. Time Warner Entertainment Co., 250 F3d 1189, 1194, n. 3 (8th Cir. 2001) (“Time Warner has not argued that the punitive damages award violated its right to due process which would require a de novo review of the denial of its motion [for new trial or remittitur]” under Leatherman.). Further, if the federal constitutional claim is not raised in the court below, such arguments on appeal are “unavailing.” Leatherman, 532 U. S. at 433, n. 7.

Because Leatherman applies only to excessive punitive damages claims raised under the federal constitution’s due process clause, it does not reach excessiveness claims raised under state and federal common law. Thus, state and federal appellate courts remain free to review common law excessiveness claims under an abuse of discretion standard. See id.; Foster, 250 F3d at 1194; Stroud v. Lints, 760 NE2d 1176, 1180 (I) (Ind. App. 2002) (following the U. S. Supreme Court’s remand for reconsideration in light of Leatherman, the Indiana Court of Appeals concluded that since no federal constitutional claim was raised, it could review the common law excessiveness claim under an abuse of discretion standard).

As one scholar quipped, judicial review of excessive punitive damages awards “now comes in both common-law and constitutional flavors.” Murphy, Punitive Damages, Explanatory Verdicts, and the Hard Look, 76 Wash. L. Rev. 995, 1014 (Oct. 2001). Since Leatherman, many state and federal courts have recognized this federal due process/common law analytical split. For example, in July 2001, the Eleventh Circuit reviewed an award of both compensatory and punitive damages in a diversity action under an abuse of discretion standard. Middlebrooks v. Hillcrest Foods, 256 F3d 1241, 1249 (IV) (11th Cir. 2001). Applying Georgia law to the common law excessiveness claim, the Eleventh Circuit noted that de novo review under Leatherman was not required because the appellant failed to argue that the punitive damages award violated its constitutional rights. Id. at 1249, n. 5. Although some state appellate courts have embraced Leatherman’s de novo standard of review and applied it to all excessive punitive damages claims, e.g., Campbell v. State Farm &c. Auto. Ins. Co., 432 Utah Adv. Rep. 44 (2001), other jurisdictions have declined to extend the standard’s application beyond its federal due process bounds, e.g., Trinity Evangelical Lutheran Church v. Tower Ins. Co., 641 NW2d 504 (Wis. App. 2002); Stroud v. Lints, 760 NE2d 1176 (Ind. App. 2002); State Compensation Ins. Fund v. WPS, Inc., 2001 Cal. App. LEXIS 1410. The Supreme Court of Georgia has yet to enter this fray, so we proceed with caution.

In Kent v. A. O. White, Jr., Consulting Engineer, P.C., 249 Ga. App. 893 (553 SE2d 1) (2002), a panel of this Court assumed that the *601 Supreme Court of Georgia “sub silentio” adopted Leatherman with respect to all excessive punitive damages award claims by virtue of an order remanding Kent to this Court. We are now convinced, however, that the remand order had no such implications. The Supreme Court of Georgia’s remand order in that case, like the U. S. Supreme Court’s remand order in this case, was a mandate to reconsider our opinion “in light of” Leatherman. Kent v. A. O. White, Jr., Consulting Engineer, P.C., 2001 Ga. LEXIS 929. The U. S. Supreme Court has recognized that such a “grant-vacate-remand” order (“GVR”) is a deferential method of sending a case back to a lower tribunal so that it may reconsider its decision in light of an intervening legal event. See Lawrence v. Chater, 516 U. S. 163, 166-169 (116 SC 604, 133 LE2d 545) (1996); see also Hoover v. Kiowa Tribe &c., 986 P2d 516, 519 (Okla. 1999) (Wilson, J., dissenting). As Justice Scalia explained, “we left it to the state court to decide the effect of the intervening event, rather than follow our usual practice of deciding that question for ourselves.” Lawrence v. Chater, 516 U. S. at 179 (Scalia, J., dissenting).

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Bluebook (online)
563 S.E.2d 178, 254 Ga. App. 598, 2002 Fulton County D. Rep. 1088, 2002 Ga. App. LEXIS 430, Counsel Stack Legal Research, https://law.counselstack.com/opinion/time-warner-entertainment-co-v-six-flags-over-georgia-llc-gactapp-2002.