Punitive damages: Survey finds they're rare

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  • Punitive damages: Survey finds they're rareAuthor(s): Cheryl FrankSource: ABA Journal, Vol. 72, No. 4 (April 1, 1986), p. 21Published by: American Bar AssociationStable URL: http://www.jstor.org/stable/20758680 .Accessed: 16/06/2014 07:48

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  • ABA MIDYEAR MEETING HIGHLIGHTS

    Subpoena limits

    Lawyers seek protection

    Concern over the issuance of subpoe nas requiring criminal defense lawyers to

    testify against their clients prompted the ABA's House of Delegates to approve a resolution calling for judicial approval before subpoenas are issued.

    The proposal was introduced by the ABA's Criminal Justice Section at the

    midyear meeting. It also urges courts to determine whether subpoenas are neces

    sary by ensuring that the information

    sought is not protected by attorney-client privilege, is relevant to a grand jury investigation and can be gotten no other

    way. The court also is asked to make certain that the subpoena is not issued to harass the attorney, witness or client.

    When a subpoena is issued, the judge's ex parte findings should have no bearing on

    subsequent proceedings, the resolution advised.

    The ABA will urge state and federal authorities to implement these principles.

    The "[s]hocking incidence of grand jury subpoenas to attorneys

    . . . erodes

    Bacon: The trust between attorney and client is being eroded.

    the basic relationship of trust between the attorney and client," said Judge Sylvia Bacon, of the Superior Court of the District of Columbia, and a member of the Criminal Justice Section.

    But not everyone thinks the rules are necessary, or that defense lawyers have

    been deluged with subpoenas. Stephen Trott, assistant attorney general in the criminal division of the Justice Depart ment, questioned the statistics. Of 147 subpoenas issued between August and December, only 13 were of trial lawyers, he said. The Justice Department already has subpoena guidelines, and the ABA's proposal would create "useless, unpro ductive work" for judges, he said.

    In other action, the House approved Criminal Justice Section proposals that:

    Support federal legislation to help law enforcement agencies combat money

    laundering, or transactions designed to conceal criminally derived property. But the ABA opposes legislation backing a new crime of money laundering that does not contain the requirement that the of fense be committed intentionally and knowingly.

    Support an amendment to the Feder al Rules of Criminal Procedures that calls for an equal number of peremptory chal lenges for prosecution and defense in single-defendant criminal trials.

    Urge that turning prisons and jails private get no consideration until com

    plex constitutional, statutory and con

    tractual issues are resolved.

    ?Faye A. Silas

    Punitive damages Survey finds they're rare

    Punitive damages are awarded infre

    quently, even less so in large amounts,

    according to preliminary findings of a new American Bar Foundation study.

    Stephen Daniels, ABF project direc tor, examined all compensatory and puni tive awards in two dozen "reliable" jury verdict reporters from 1981 through 1983, with some 1984 cases included.

    Appellate, settled and judge-disposed cases were not included.

    Here are some preliminary findings: Cobb County, Ga., juries gave puni

    tive awards in 21.6 percent of cases in which plaintiffs recovered?the highest level for the courts studied. By contrast,

    juries in Cook County (Chicago), 111., awarded punitive damages in only 2.2 percent of these cases. For most jurisdic tions studied, jurors gave punitive awards in about 13 percent of cases.

    Cook County's median award for verdicts with a punitive component was $52,500 for 1982-83. There were 30 ver dicts over $1 million and eight million

    Daniels: Median awards don't show a dramatic surge.

    dollar punitive awards.

    New York City had a median jury award of $100,000, but only had two million-dollar punitive awards for 1981 1983.

    Los Angeles County had a median

    jury award of $69,000 for 1981-83. It had 78 million-dollar verdicts, of which 21 included million-dollar punitive awards.

    San Diego County had a median jury award of $50,000 for 1981-83, but for those with punitive damages, the median was $248,000. No million-dollar awards were given for punitive damages. There were six million-dollar verdicts.

    Average total awards have increased

    tremendously in the last few years, Dan iels said. But 87 percent of the cases in

    Cook County for 1982-83 that he tabulat ed produced awards lower than the aver age. A better measurement, he thinks, is

    the median. The median awards don't reveal a dramatic surge, he said. Most punitive damage awards are small

    in amount and involve cases of personal violence, contract, fraud, false arrest and

    insurance conflict, such as bad faith, Dan

    iels said. Punitive damages were not awarded often in products liability and antitrust cases, he said.

    Daniels' findings and conclusions may surprise insurers and manufacturers.

    Many have cited punitive damages in particular, rising compensatory damages in general and the cost of legal services as

    causing skyrocketing premiums, in creased losses and cuts in insurance cov

    erage. Insurers and manufacturers often say

    that just one large punitive damage ver dict can be devastating, Daniels said. But he stressed that these few large awards also skew the picture. Doctors and hospi tals mainly fear pain and suffering awards, not punitive awards, he said.

    ?Cheryl Frank

    April 1, 1986 . Volume 72 21

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    Article Contentsp. 21

    Issue Table of ContentsABA Journal, Vol. 72, No. 4 (April 1, 1986), pp. 1-40, 43-110, 113-120Front MatterPresident's Page: Quo vadis Model Rules? [pp. 8-8]Letters [pp. 10, 12, 15]Correction: IN THE SUPREME COURT: The Abortion Cases [pp. 15-15]LawScope: NewsIntercircuit panel: 'Jr. Supreme Court' opposed [pp. 17-17]Minorities in law: Spurs to participation urged [pp. 18-19]Bid for equality: Ban aid in bias cases: ABA [pp. 19-19]Bitter medicine: AMA tort changes opposed [pp. 20-20]Subpoena limits: Lawyers seek protection [pp. 21-21]Punitive damages: Survey finds they're rare [pp. 21-21]Scrambled issue: Dish owners demand access [pp. 22-22]Suing lawyers: Malpractice targets profiled [pp. 25-25]Getting its due(s) Calif. bar loses budget power [pp. 26-27]Law services cut: But will Gramm-Rudman fly? [pp. 27-27]Big firms: Small clients see advantages [pp. 28-28]'Yuppie tax': Health clubs fight levy [pp. 28-28]Formula bonuses: An incentive for associates [pp. 31-31]Alien search: Churches allege U.S. spying [pp. 31-31]Military benefit: Medical injury suits win OK [pp. 32-32]Foreigner ban: Suits hit government criteria [pp. 32-33]Empty love nests: Apartment prize in divorces [pp. 33-33]College sacked: Football coach keeps his job [pp. 35-35]Settling disputes: Law firms get into ADR act [pp. 37-37]

    At Issue: Is law a profession or a business? [pp. 38, 40]LawPoll: Lawyer advertising is on the rise [pp. 44-45]Better Off Never Born? [pp. 46-49]The "Baby Doe" Cases [pp. 50-53]Stop Playing Hide and Seek With Your Documents [pp. 54-56]The President's Lawyer [pp. 58-61]LITIGATIONHow to Make a Complex Case Come Alive for a Jury [pp. 62-66]

    A Tax Letter to a Small-Business Client [pp. 68-69]Books for LawyersReview: untitled [pp. 70-70]Review: untitled [pp. 70-70]Review: untitled [pp. 70, 72]Review: untitled [pp. 74, 80]Noted in Brief [pp. 80-80]

    Supreme Court Preview [pp. 83-83]Supreme Court ReportSection 1983: no liability for simple negligence [pp. 84-86, 88-89]

    What's New [pp. 90-95]Your FinancesWhat to look for in a stock prospectus [pp. 96-96]

    Persuasive WritingThe definitive word on definitions [pp. 98-98]

    Computer Corner [pp. 100-100]Inside ABANews Update [pp. 102, 104, 106-107]Correction: NEWS UPDATE [pp. 106-106]

    Must Reading [pp. 108-108]Legal Aids [pp. 110, 113]INSIDE ABAPUBLIC SERVICE PROFILES [pp. 114-114]EVENTS [pp. 115-115]

    War Stories [pp. 120-120]Back Matter