Court of Appeals Applies Federal Due Process Lilmitations on Punitive Damages, Orders Remititur in Deceptive Trade Practices Case
An award of punitive damages was affirmed but remitted in Jim Ray, Inc. v. Duane Williams, No. 06-789 (6/27/07).
The case is another gem of an opinion from Court of Appeals Judge Price Marshall. It applies the federal due-process limitations on punitive damages derived from BMW of America v. Gore, 517 U.S. 559 (1994), among other cases, in the context of a relatively small-value sale of a pickup truck.
The opinion also contains the well-written judicial turn of phrase:
"As tempered by our common law and statutes, the salutary principle of caveat emptor is not a license for deceit."
In 2005, Mr. Williams purchased a 2004 Nissan truck from Jim Ray Nissan. The sticker price was $29,700. However, the total invoice price was $34,125.87. When Mr. Williams pointed this out to Austin Cauthron, the finance manager, Cauthron told him that figure reflected points or credits rather than dollars. Cauthron also told Mr. Williams he was required to buy an extended warranty.
Mr. Williams filed suit for violation of the Arkansas Deceptive Trade Practices Act. A.C.A. § 4-88-101, et seq.The jury awarded him $4,425.87 in compensatory damages and $75,000 in punitive damages. After a thorough discussion of punitive damages, the court of appeals remitted the punitive damages award to $30,000.
Judges Griffen and Baker both dissented, in separate, well-written opinions that would have affirmed the entire punitive damages award.