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Rose Care6/1/2005 admitted a 1999 OLTC survey. In the 1998 survey, Rose Care was cited for, inter alia, deficiencies for improper use of restraints, improper grooming of residents (including two instances where a resident was found with a brown substance under her fingernails), failure to prevent UTIs, improper treatment of pressure sores, and at least four instances where a resident at risk for pressure sores remained in the same position for more than two hours - all issues that were present in this case. However, the trial court determined that the 1998 survey was "too remote" in time to be relevant.
We believe that the court abused its discretion in the evidentiary ruling. Rose Care argues that admission of the survey would violate the U.S. Supreme Court's holding in State Farm Mutual Automobile Insurance Co. v. Campbell, 538 U.S. 408 (2003), a seminal punitive-damages decision, which ruled that a defendant should not be punished for being an unsavory business but only for conduct that harmed the plaintiff. According to Rose Care, the 1998 survey would permit a jury to award damages against it to punish its conduct toward persons other than Mrs. Givens. However, Rose Care agrees that evidence of prior conduct affecting nonparties satisfies due process so long as it is substantially similar to the conduct that harmed the plaintiff. In fact, the admissibility of prior similar occurrences is commonly accepted in Arkansas upon a showing of sufficient similarity in circumstances, see Union Pacific R.R. Co. v. Barber, supra, although exact identity of circumstances is not required for admissibility. Arrow Int'l v. Sparks, 81 Ark. App. 42, 98 S.W.3d 48 (2003). Rose Care claims that the 1998 survey contains evidence of violations that are not substantially similar to its conduct toward Mrs. Givens. While we agree that some of the conduct mentioned in the survey is not substantially similar to that which occurred in this case, the survey contains numerous incidents that are substantially similar and relevant to appellee's claim for punitive damages. See Arrow Int'l, supra. We therefore conclude that, with proper redacting upon remand, the survey can be suited for admissibility.
In light of the foregoing, we affirm the jury's verdict on direct appeal and reverse and remand on cross-appeal.
Neal and Roaf, JJ., agree.
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