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Prudential Ballard Realty Company7/28/2000
icated that the Weatherlys' suffered economic damage of no more than $25,000. The jury returned a verdict of $250,000, based primarily on the mental anguish suffered by the Weatherlys. I think it is important to note that the $750,000 punitive-damages award upheld by the per curiam opinion is 30 times the economic damage suffered by the plaintiffs. I would also note that there was no expert testimony to support the claims that the aggravation of Mrs. Weatherly's Tourette's syndrome or Mr. Weatherly's depression were caused by stress resulting from the real-estate transaction.
Does the Punitive-Damages Award Remove the Defendants' Profit?
The trial court did not address this issue in its order. The gross commission on the purchase of the Steep Creek house was $3,850. Of that amount, Weimorts received 70% and Ballard received 30%. The $750,000 punitive-damages award is almost 195 times greater than the total gross commission earned by the defendants. Even a substantial reduction in the punitive-damages amount would obliterate any profit the defendants derived from this transaction.
The Financial Position of the Defendant
The trial court did not consider the financial position of the defendant based on its net worth, as BMW II contemplates. Instead, the trial court stated that the defendants' insurance would cover up to $1,900,000 of the award, and perhaps a greater amount. The trial court also stated that the defendants "insist that the corporate Defendant has a negative net worth based on the unaudited financial reports" but also noted that "the corporate Defendant has income of over $3 million for each of the last three years." The trial court refused to consider Ballard's net worth in assessing the financial position of the defendants.
In 1999, the Alabama Legislature amended § 6-11-21, Ala. Code 1975, by enacting Act No. 99-358, Ala. Acts 1999. That Code section places a statutory cap on punitive damages. Although the statute is not applicable to the present case, which was filed before August 6, 1999, the "effective date" of Act No. 99-358, it is a persuasive indicator that the punitive damages awarded in this case are excessive. The Legislature has spoken as to how courts should reach a fair punitive-damages award, and this Court should not ignore its guidance. If the statute were applicable to this case, based on § 6-11-21(b) and (c), Ballard would fit within the definition of "small business," and the punitive damages would be capped at $50,000. The vast difference between the $50,000 cap of § 6-11-21 and the $750,000 awarded in this case surely indicates excessiveness.
Finally, after the closing of the Woodbridge home did not occur as planned, Weimorts continued to work to secure a lender for the Stallworths, so that the Weatherlys could sell the Woodbridge house. Ironically, the Stallworths were initially approved for a mortgage by the Marble Mortgage Company in November 1995, but that company decided to withdraw from doing business in Alabama because it believed the legal climate here was unfavorable. The result of this case will be that even more businesses will want to withdraw from doing business in Alabama. Any mistake by a realtor who hopes a buyer will obtain financing and who relies on a financing company for such a prediction will be fair game in Alabama for any plaintiff who wants to be a millionaire.
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