Wiper v. Downtown Development Corp.

732 P.2d 197, 152 Ariz. 306, 1985 Ariz. App. LEXIS 880
CourtCourt of Appeals of Arizona
DecidedOctober 10, 1985
DocketNo. 2 CA-CIV 5370
StatusPublished

This text of 732 P.2d 197 (Wiper v. Downtown Development Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wiper v. Downtown Development Corp., 732 P.2d 197, 152 Ariz. 306, 1985 Ariz. App. LEXIS 880 (Ark. Ct. App. 1985).

Opinion

OPINION

BIRDSALL, Presiding Judge.

The jury returned two verdicts in favor of the plaintiff/appellee, Raima A. Wiper, following a two-day trial, and against the defendant/appellant, The Downtown Development Corporation of Tucson (DDC)1 and Priscilla Robinson. One verdict awarded compensatory damages of $7,000 against both defendants, jointly and severally. The other verdict was for punitive damages of $2,500 and was against the DDC only.

The jury was also given a form of verdict “in favor of the defendant, Priscilla, Robinson, and against the plaintiff, Raima A. Wiper, on the issue of punitive damages.” And it was also given a form “in favor of the plaintiff, Raima A. Wiper, and against the defendant, Priscilla Robinson, and award punitive damages in the sum of $__” The jury did not sign or return either of these verdicts. When the verdicts were returned in open court, no one, neither the trial judge nor either counsel, made any record concerning the jury’s failure to return either of the two Robinson punitive damage verdicts.

The facts show that Wiper was assaulted by Robinson at a public meeting of the DDC. Robinson was a director of the DDC. Therefore, the claim against the DDC was on the theory of respondeat superior. The assault occurred following the adjournment of the meeting. Wiper had spoken from the audience, questioning the provisions for low-cost housing in a downtown development project. Apparently [307]*307Robinson took issue with what was said and came up to Wiper, seized her by the face and shoved her. Another person intervened to stop the attack. Although Wiper received no serious personal injuries, she was upset and continued to be so affected at time of trial.

The issues presented on appeal are: 1) whether the punitive damage award must be set aside because no such damages were awarded against the actor, Robinson; and 2) whether the compensatory award is excessive.

We affirm.

The appellant contends that since the only claim against DDC was vicarious, punitive damages cannot be assessed against the “employer” where none have been assessed against the “employee.” The appellee initially responds that this issue has been waived. In addition to the failure of anyone to question the jury’s failure to return a punitive damage verdict for or against Robinson, the appellee also makes the following points: the forms of verdict given the jury' permitted such a result; the appellant did not object; and the instructions not only did not prevent such a result but, when coupled with the verdict forms, implicitly permitted such a result. The appellant again made no objection and failed to request a limiting instruction. And the appellant made no objection when the verdicts were returned. Although the better practice would be to make a record at all these stages of the proceeding and there may be some merit to these waiver arguments, we will decide this issue upon the substantive legal issue presented.

Assuming arguendo that the jury’s failure to return a punitive damage verdict in favor of the plaintiff and against the actor, Robinson, has the same effect as a verdict in favor of Robinson, see Rosenzweig & Sons v. Jones, 50 Ariz. 302, 72 P.2d 417 (1937), we disagree with the appellant’s position. We hold that punitive damages may be awarded against an “employer” whose only liability is vicarious, even though none are assessed against the “employee” whose acts created that liability. We recognize a contrary rule with regard to compensatory damages. See Rosenzweig, supra; see also Torres v. Kennecott Copper Co., 15 Ariz.App. 272, 488 P.2d 477 (1971); Kennecott Copper Co. v. McDowell, 100 Ariz. 276, 413 P.2d 749 (1966); DeGraff v. Smith, 62 Ariz. 261, 157 P.2d 342 (1945).

The purpose for punitive damages and the evidence which is admissible are much different than for compensatory damages. Punitive damages are permitted for the purpose of punishing the conduct which occurred or deterring similar conduct in the future. Cassel v. Schacht, 140 Ariz. 495, 683 P.2d 294 (1984). They are also designed to serve as a deterrent to others. Price v. Hartford Accident and Indemnity Co., 108 Ariz. 485, 502 P.2d 522 (1972). Evidence of a defendant’s wealth or poverty is admissible because of its relevance to the jury’s determination of the amount of damages to be awarded. Michael v. Cole, 122 Ariz. 450, 595 P.2d 995 (1979). Evidence of other punishment given the wrongdoer, such as criminal sanctions, is admissible as a fact to be considered by the jury in determining whether to assess such damages and the amount thereof. Puz v. McDonald, 140 Ariz. 77, 680 P.2d 213 (App.1984). The public interest in deterring wrongful conduct is best served by leaving the award of punitive damages to the discretion of the jury. Puz, supra. Whether to award punitive damages and the amount thereof is within the discretion of the jury. Miscione v. Bishop, 130 Ariz. 371, 636 P.2d 149 (App.1981). The trier of fact must be allowed to determine which defendants, if any, should be required to pay punitive damages. Rubi v. Transamerica Title Insurance Co., 131 Ariz. 403, 641 P.2d 891 (App.1981). No party has a legal right to punitive damages unless mandated by statutory or constitutional authority and the fact finder cannot be required to make such an award. In State v. Sanchez, 119 Ariz. 64, 579 P.2d 568 (App.1978), our court said that the reason for allowing punitive damages against the employer is the sup[308]*308posed deterrent effect, that the allowance of such damages will encourage employers to exercise closer control over their servants for prevention of outrageous torts. Finally, we recently held in Wilson v. Whittle, 145 Ariz. 317, 701 P.2d 575 (App.1984) that an employer, liable only under respondeat superior, can be assessed greater punitive damages than the employee.

With these principles in mind, we turn to three decisions from outside Arizona which have considered the issue presented. In Joab, Inc. v. Thrall, 245 So.2d 291 (Fla.1971), the jury awarded the plaintiff compensatory damages against both an employer and an employee, and punitive damages against only the employer. As in the case at bar, the wrongful conduct was an assault and battery committed by the employee. The Florida court affirmed, holding that the punitive damage award against the employer was proper even though the actor was assessed only for compensatory damages.

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Related

Cassel v. Schacht
683 P.2d 294 (Arizona Supreme Court, 1984)
Skousen v. Nidy
367 P.2d 248 (Arizona Supreme Court, 1961)
Wilson v. Riley Whittle, Inc.
701 P.2d 575 (Court of Appeals of Arizona, 1984)
Rubi v. Transamerica Title Insurance
641 P.2d 891 (Court of Appeals of Arizona, 1981)
Price v. Hartford Accident and Indemnity Company
502 P.2d 522 (Arizona Supreme Court, 1972)
Puz v. McDonald
680 P.2d 213 (Court of Appeals of Arizona, 1984)
Flieger v. Reeb
583 P.2d 1351 (Court of Appeals of Arizona, 1978)
Kennecott Copper Corporation v. McDowell
413 P.2d 749 (Arizona Supreme Court, 1966)
Michael v. Cole
595 P.2d 995 (Arizona Supreme Court, 1979)
Miscione v. Bishop
636 P.2d 149 (Court of Appeals of Arizona, 1981)
Browand v. Scott Lumber Co.
269 P.2d 891 (California Court of Appeal, 1954)
State v. Sanchez
579 P.2d 568 (Court of Appeals of Arizona, 1978)
Joab, Inc. v. Thrall
245 So. 2d 291 (District Court of Appeal of Florida, 1971)
Tietjens v. General Motors Corporation
418 S.W.2d 75 (Supreme Court of Missouri, 1967)
Torres v. Kennecott Copper Corporation
488 P.2d 477 (Court of Appeals of Arizona, 1971)
Degraff v. Smith
157 P.2d 342 (Arizona Supreme Court, 1945)
Rosenzweig & Sons, Jewelers, Inc. v. Jones
72 P.2d 417 (Arizona Supreme Court, 1937)

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Bluebook (online)
732 P.2d 197, 152 Ariz. 306, 1985 Ariz. App. LEXIS 880, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wiper-v-downtown-development-corp-arizctapp-1985.