The Case: Hodges v. S.C. Toof and Company , 833 S.W.2d 896 (Tenn. 1992).
The Basic Facts: Plaintiff, a long-time employee of Defendant company, was fired after Plaintiff served jury duty for approximately three months. Plaintiff brought suit against Defendant, alleging a retaliatory discharge.
The Bottom Line:
FN3 Clear and convincing evidence means evidence in which there is no serious or substantial doubt about the correctness of the conclusions drawn from the evidence."Id.
Other Sources of Note: In Flax v. DiamlerChrysler Corp., 272 S.W.3d 521, (Tenn. 2008), the Tennessee Supreme Court reinstated a punitive damages judgment against a motor vehicle manufacturer that had been vacated by the Tennessee Court of Appeals. The opinion discusses whether the evidence supported an award of recklessness (and held that it did), the impact of compliance with government regulations and industry standards on the availability and amount of punitive damages, and also addresses due process issues (excessiveness and harm to non-parties). Readers who are filing or defending a punitive damages case are encouraged to read this opinion, including the dissenting opinions on this issue filed by Justice Clark and Justice Koch; Culbreath v. First Tennessee Bank Nat. Ass'n, 44 S.W.3d 518, 529 (Tenn. 2001) (holding that a trial court shall make findings of fact and conclusions of law adequately addressing each of the relevant factors listed in Hodges to arrive at the appropriate amount of punitive damages); Metcalfe v. Waters, 970 S.W.2d 448, 451-2 (Tenn. 1998) (recognizing that punitive damages may be awarded in a legal malpractice claim, provided the culpable conduct established in Hodges, i.e., intentional, fraudulent, malicious, or reckless, is proven by clear and convincing evidence). Note also that the United States Supreme Court has weighed in on this issue on multiple occasions over the last few years and that the decisions in those cases may impact the application of Hodges.
Recent Cases: Davis v. Conner , No. M2008-00661-COA-R3-CV, 2009 WL 3415284 (Tenn. Ct. App. Oct. 22, 2009) (upholding punitive damages award in promissory fraud case); Fisher v. Johnson, No. W2008-02165-COA-R3-CV, 2009 WL 2588906 (Tenn. Ct. App. Aug. 24, 2009) (affirming summary judgment on punitive damages claim in automobile wreck case involving underage drinking finding affidavit of police officer opining defendant could operate a motor vehicle safely that evening went unrebutted by the plaintiff); Ellis v. Sprouse, No. E2009-00654-COA-RM-CV, S.W.3d, No. E2009-00654-COA-RM-CV, 2009 WL 1871930 (Tenn. Ct. App. Jun. 30, 2009) (upholding punitive damages award in trespass claim); Sanford v. Waugh, No. M2007-02528-COA-R3-CV, 2009 WL 1910957 (Tenn. Ct. App. Jun. 30, 2009) (reversing directed verdict on punitive damages finding material evidence to support a finding by the jury by clear and convincing evidence that the defendants filed a lawsuit against the plaintiff in bad faith); Smartt v. NHC Healthcare/McMinnville, LLC, No. M2007-02026-COA-R3-CV, 2009 WL 482475 (Tenn. Ct. App. Feb. 24, 2009) (reversing directed verdict on punitive damages claims finding trial court applied incorrect legal standard, reasonable minds could differ as to recklessness of defendants, and liability for punitive damages could have been imposed indirectly on defendants as principal or employer); Estate of French v. The Stratford House, No. E2008-00539-COA-R3-CV, 2009 WL 211898 (Tenn. Ct. App. Jan. 29, 2009) (reversing trial court's grant of summary judgment on punitive damages claim finding the defendants had not successfully shifted the burden of persuasion to the plaintiff); Mohr v. DaimlerChrysler Corp., No. W2006-01382-COA-R3-CV, 2008 WL 4613584 (Tenn. Ct. App. Oct. 14, 2008) (reducing punitive damages award to comply with due process requirements of the United States Constitution); Anderson v. U.S.A. Truck, Inc., No. W2006-01967-COA-R3-CV, 2008 WL 4426810 (Tenn. Ct. App. Oct. 1, 2008) (upholding directed verdict dismissing punitive damages claim finding insufficient evidence to support claim); Duran v. Hyundai Motor America, Inc., No. M2006-00282-COA-R3-CV, 2008 WL 425942 (Tenn. Ct. App. Feb. 13, 2008) perm. appeal denied (Aug. 25, 2008) (upholding directed verdict on punitive damages claim finding no reasonable person would conclude plaintiff met the relevant burden of proof on this claim); Collins v. Arnold, No. M2004-02513-COA-R3-CV, 2007 WL 4146025 (Tenn. Ct. App. Nov. 17, 2007) perm. appeal denied (Apr. 14, 2008) (reversing the award of punitive damages because the conduct of defendant bar's personnel in attempting to prevent its customer from driving while impaired did not reach the level of recklessness necessary to sustain an award for punitive damages).