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Owens-Corning Fiberglas Corp. v. Garrett8/28/1996
and that OCF intended to make workers aware of the risks of Kaylo when improperly handled. Evidence that OCF was actively working to preserve its market share of thermal insulation by designing an asbestos-free Kaylo provides evidence that OCF was worried about the health hazards asbestos presented and affirmatively sought to protect its users.
Clear and convincing evidence of bad faith to support a punitive damages award "goes far beyond that required to support a compensatory damages award based on the underlying strict liability claim . . . in a products liability action based on negligence requires the plaintiff to prove much more than negligence." Zenobia, 325 Md. at 465, 601 A.2d at 655. If we substitute the words "OCF" and "Kaylo" for "PCC" and "Unibestos," the following quotation from Godwin exactly describes the state of the evidence in the instant case:
"At all relevant times the widespread belief was that the extent of the health risk depended, in large part, on the length and intensity of exposure . . . . It may be that a jury would believe that the corporate decision to adopt health warnings came too late and, even then, that it was motivated only by the desire to minimize tort liability. It may also be that a jury would believe that PCC was not only negligent in these respects, but that it was grossly negligent. These possible inferences or conclusions, however, do not demonstrate that PCC made a bad faith decision to market Unibestos [Kaylo] in conscious or deliberate disregard of the threat to the safety of the consumer. Plaintiffs have not shown by clear and convincing evidence that . . . PCC did not in good faith believe that its recommendations for exhaust ventilation, . . . housekeeping, and use of respirators were reasonable protections for users."
Godwin, 340 Md. at 378-79, 667 A.2d at 137 (emphasis added).
Mr. Scruggs was an insulator for two months, and a bystander who regularly inhaled asbestos fibers for four years, the last four years OCF produced asbestos Kaylo. His exposure to asbestos killed him, and the jury found that OCF and PH were both negligent and strictly liable for his death. Certainly the jury had sufficient evidence to find both that the companies knew that Kaylo and other asbestos products posed a potential danger, and that the warnings given to Mr. Scruggs were negligently inadequate. On the record before us, however, we cannot say that the evidence of actual malice was legally sufficient under a clear and convincing evidentiary standard to submit the question of punitive damages to the jury. We reverse the award of punitive damages against OCF in the case of Mr. Scruggs.
G. Remaining Issues
OCF makes three other arguments concerning the punitive damages award against it in the case of Mr. Scruggs. First, OCF claims that the trial judge's jury instructions on punitive damages were improper because they were not consistent with Zenobia. OCF also argues that the trial judge violated OCF's due process rights when it failed to conduct a post-verdict review of OCF's liability for punitive damages. Finally, OCF contends that the evidence that the twin goals of punishment and deterrence were furthered by a punitive damages award against OCF was legally insufficient. We shall not consider any of these arguments, as their resolution is not necessary to our decision today.
JUDGMENT FOR PUNITIVE DAMAGES AGAINST APPELLANT OWENS-CORNING FIBERGLAS CORPORATION REVERSED; ALL OTHER JUDGMENTS AFFIRMED. COSTS TO BE DIVIDED, ONE-FIFTH (1/5) TO BE PAID BY LENORA SCRUGGS INDIVIDUALLY AND AS PERSONAL REPRESENTATIVE OF HARVEY SCRUGGS, DECEASED, AND FOUR-FIFTHS (4/5) TO BE PAID BY APPELLANTS.
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