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Owens-Corning Fiberglas Corp. v. Malone6/5/1998
iscussed when examining the individual punitive damage award in this case, the court of appeals upheld the trial court's judgment finding that OCF's conduct demonstrated indifference to the health and safety of others for many years. This finding weighs in favor of allowing additional punitive damages awards against OCF. See BMW, 517 U.S. at 576. The punitive damages paid by OCF thus far are not "grossly out of proportion to the severity of the offense." See Haslip, 499 U.S. at 22.
Second, a court should examine the profitability of the wrongful conduct. See Haslip, 499 U.S. at 22 (discussing Green Oil factors). The $3 million in punitive damage awards previously paid by OCF is double the amount of profits OCF claims it earned from its Kaylo sales. Punitive damages, however, are not necessarily confined to the amount of profits. Dunn, 1 F.3d at 1391; Stevens, 57 Cal. Rptr.2d at 534. Where evidence shows that product sales resulted in widespread and devastating injuries and little profit in relation to the seller's overall financial condition, merely taking away that profit may or may not impose much punishment on the seller. See Morris, Punitive Damages in Tort Cases, 44 Harv. L. Rev. 1173, 1191 (1931)(" penalty which would be sufficient to reform a poor man is likely to make little impression on a rich one . . . ."). As other courts considering OCF's same arguments have observed, because Kaylo sales approximated only 2 percent of OCF's total sales, and an even smaller percentage of its total profits, "Kaylo profits do not provide an accurate indication of the likely punitive impact of a punitive damage award against OCF." Stevens, 57 Cal. Rptr.2d2d at 535. Thus, the evidence about the profits, or lack thereof, from OCF's Kaylo sales does not support OCF's due process argument.
Third, because courts should ensure that punitive damage awards do not exceed an amount necessary to accomplish society's goals of punishment and deterrence, a court should examine the defendant's financial position. See Haslip, 499 U.S. at 22 (discussing Green Oil factors). Here, the trial court and the court of appeals considered OCF's "enough is enough" evidence from the posttrial hearing and determined that OCF's financial position is not so precarious that further punitive damages awards against it should be disallowed. We agree. The evidence reveals that OCF is a solvent, healthy company. In 1993, shortly before this case was tried, OCF reported to its shareholders that " t the end of 1991, our company was valued by the market at $932 million; 12 months later, the marCF reported to the SEC that "the additional uninsured and unreserved costs which may arise out of pending personal injury and property damages asbestos claims and additional similar asbestos claims filed in the future will not have a materially adverse effect on the Company's financial position." Thus, we cannot say that the prior paid punitive damage awards against OCF, combined with the punitive damage awards here, have exceeded the goals of punishment and deterrence.
Fourth, previously imposed criminal sanctions for the same conduct are relevant in determining whether a defendant has been sufficiently punished and deterred. See Haslip, 499 U.S. at 22 (discussing Green Oil factors). However, there is no evidence about any such sanctions in this case.
OCF has not shown that the aggregate punitive damage awards against it have exceeded the "twin goals of punishment and deterrence underlying such awards" to constitute a violation of its substantive due process rights. Dunn, 1 F.3d at 1390. Given the nature of OCF's conduct and the concomitant injuries suffered by the plaintiffs, OCF's relatively stable financial position, and t
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