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\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\i\fs20\insrsid16669878 Park v. Mobil}{\fs20\insrsid16669878 , Opinion\tab \tab Page }{\field{\*\fldinst {\fs20\insrsid16669878 PAGE }}{\fldrslt {\fs20\lang1024\langfe1024\noproof\insrsid2757293 19}
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\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\insrsid16669878\charrsid2757293 IN THE SUPREME COURT OF GUAM}{\insrsid2757293 
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\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid16669878\charrsid2757293 MICHAEL JE PARK}{\insrsid16669878\charrsid2757293 ,
\par Plaintiff-Appellant/Cross-Appellee,
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\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid16669878\charrsid2757293 MOBIL OIL GUAM, INC.}{\b\insrsid16669878\charrsid2757293 ,}{\insrsid16669878\charrsid2757293 
\par Defendant-Appellee/Cross-Appellant.}{\insrsid2757293 
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\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2757293 {\insrsid16669878\charrsid2757293 Supreme Court Case No.: CVA03-001 
\par Superior Court Case No.: CV0844-00}{\insrsid2757293 
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\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid16669878\charrsid2757293 Filed:}{\b\insrsid2757293  }{\b\insrsid16669878\charrsid2757293 November 16, 2004}{\insrsid2757293 
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\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2757293 {\insrsid16669878\charrsid2757293 Appeal from the Superior Court of Guam
\par Argued and submitted on November 6, 2003
\par Hag\'e5t\'f1a, Guam}{\insrsid2757293 
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\par }{\ul\insrsid16669878\charrsid2757293 Appearing for Plaintiff-Appellant and 
\par Cross-Appellee, Michael Je Park}{\insrsid16669878\charrsid2757293 :
\par Lawrence J. Teker, Esq.
\par TEKER CIVILLE TORRES & TANG, PLLC
\par 330 Hernan Cortez Avenue
\par Hag\'e5t\'f1a, Guam 96910\cell 
\par }{\ul\insrsid16669878\charrsid2757293 For Defendant-Appellee and 
\par Cross-Appellant, Mobil Oil Guam, Inc.}{\insrsid16669878\charrsid2757293 :}{\b\insrsid16669878\charrsid2757293 
\par }{\insrsid16669878\charrsid2757293 David M. Axelrad, Esq.
\par Curt Cutting, Esq.
\par HORVITZ & LEVY LLP
\par 15760 Ventura Boulevard
\par 18th Floor
\par Encino, CA 91436-3000
\par 
\par Richard L. Johnson, Esq.
\par Thomas C. Moody, Esq.
\par KLEMM, BLAIR, STERLING & JOHNSON
\par A Professional Corporation
\par Suite 1008, Pacific News Building
\par 238 Archbishop F.C. Flores Street
\par Hag\'e5t\'f1a, Guam 96910
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\par }{\insrsid16669878\charrsid2757293 BEFORE: F. PHILIP CARBULLIDO, Chief Justice; FRANCES M. TYDINGCO-GATEWOOD, Associate Justice;}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 PETER C. SIGUENZA, Jr., }{\i\insrsid16669878\charrsid2757293 
Justice Pro Tempore}{\insrsid16669878\charrsid2757293  }{\insrsid2757293 
\par 
\par }{\b\insrsid16669878\charrsid2757293 CARBULLIDO, CJ.:}{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [1]}{\insrsid16669878\charrsid2757293 \tab 
This case arises from a civil action for fraud and breach of contract filed by Plaintiff-Appellant and Cross-Appellee Michael Je Park against Defendant-Appellee and Cross-Appellant}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Mobil Oil Guam, Inc., wherein the jury awarded Park $50,000 in compensatory damages and $2.8 million in punitive damages.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Park appeals from the trial court}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s Amended Judgment awarding Park $150,000 in punitive damages despite the jury}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst 
SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s $2.8 million punitive damages award.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Mobil cross-appeals from the Amended Judgment, challenging the award of punitive damages.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 This case presents two issues of first impression.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
First, we consider whether Mobil, a corporation, may be held directly liable for punitive damages based on the wrongful conduct of its employees, and if so, whether there is substantial evidence to support the jury}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s award of punitive damages.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Second, assuming an award of punitive damages may be assessed against Mobil, we consider whether the trial court erred in reducing the award of punitive damages from $2.8 million to $150,000.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
In adopting section 909 of the Restatement (Second) Torts (1979), and applying it to the facts of this case, we hold that substantial evidence exists to support the jury}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s award of punitive damages against Mobil.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 We further hold that in light of the jury}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
s award of $50,000 in compensatory damages, the punitive damages award of $2.8 million is unconstitutional and therefore, the trial court}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293 s reduction of the punitive damages award to $150,000 was proper.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Accordingly, we affirm the trial court}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s Amended Judgment.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par 
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\par }{\b\insrsid16669878\charrsid2757293 [2]}{\insrsid16669878\charrsid2757293 \tab In 1996, as part of a franchise agreement to sell Mobil Oil petroleum products, Michael Je Park subleased a portion of his Barrigada Heights property to Mobil Oil Guam, Inc.}{
\insrsid2757293  }{\insrsid16669878\charrsid2757293 In turn, Mobil constructed the underground storage tanks, canopy and gasoline dispensing units on the leased portion of the property.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Mobi
l later subleased the same property to Park.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
During this time period, Park decided to construct a three-story building on the property, consisting of an office space, a mini-mart and his personal residence.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
The total cost of the construction was approximately $3 million.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Park paid $2 million from his personal money and borrowed a little over $1 million from Mobil to finance the construction.}{
\insrsid2757293  }{\insrsid16669878\charrsid2757293 Park gave Mobil a leasehold mortgage to secure repayment of the note.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 In September of 1996, Park began operating
 a Mobil service station on the property (}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 the service station}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 ).
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [3]}{\insrsid16669878\charrsid2757293 \tab The service station is built on sloped, elevated land.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Upon delivering fuel to the service station, Mobil}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s drivers would park the delivery tanker on the sloped ground.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 At an incline, Mobil drivers would transfer the fuel from the delivery tank to the service station}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s underground storage tank.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Parking at an incline caused the fuel in the delivery tank to be unevenly distributed, and some fuel would travel to the lowered portion of the inclined tank.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [4]}{\insrsid16669878\charrsid2757293 \tab Fuel is transferred from the delivery tank to the underground tank by the flow of gravity.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
However, because the drainage valve is not located at the lowered end of the delivery tank, parking the tanker at an incline caused some fuel to remain in the tank, despite the appearance that the tank had been completely drained.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 Moreover, although the delivery tanks are equipped with a viewing glass through which the contents of the tank may be inspected, the fuel which had moved to the lowered end of the tank escaped view.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 This meant that, at least for some of Park}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
s deliveries, although gravity flow and the viewing glass indicated that the delivery tank had been completely drained and delivered to the service station}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s underground tank, there was in reality anywhere from forty to sixty gallons of purchased fuel which remained in the tank, unbeknownst to Park for three and a half years.
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [5]}{\insrsid16669878\charrsid2757293 \tab In March of 2000, a Mobil driver informed Park of the problems caused by the slope at the s
ervice station, and specifically informed Park that he was not receiving all the fuel that he had in fact paid for.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Without prior warning to the Mobil driver, after the next fuel delivery, Park requested that the tanker be driven to a flat surface, and su
bsequently drained an additional sixty gallons of fuel from the tank, despite the apparent completed transfer of all the fuel from the delivery tank to the undergrou}{\insrsid2757293 nd tank at the service station.}{\insrsid16669878 
\par }{\insrsid2757293\charrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [6]}{\insrsid16669878\charrsid2757293 \tab At some time prior to Park}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s discovery of the slope problem, Park was unable to make several payments to Mobil on his loan and was approximately $84,000 behind in his loan payments. 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [7]}{\insrsid16669878\charrsid2757293 \tab On May 23, 2000, Park filed suit against Mobil, claiming, }{\i\insrsid16669878\charrsid2757293 inter alia}{\insrsid16669878\charrsid2757293 , fraud and breach of contract.}{
\insrsid2757293  }{\insrsid16669878\charrsid2757293 Mobil in turn filed its Answer and Counterclaim for Foreclosure of a Mortgage on Park}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293 s service station.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Mobil}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s motion for judgment of foreclosure was subsequently granted by the court on May 6, 2002, and the jury trial on the fraud and breach of contract claims commenced on the same day.}{\insrsid16669878 
\par }{\insrsid2757293\charrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [8]}{\insrsid16669878\charrsid2757293 \tab The jury returned a verdict in Park}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s favor on both causes of action, awarding Park $50,000 in compensatory damages and $2.8 million in punitive damages.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Mobil filed a motion for judgment notwithstanding the verdict, contending, first, that there was no substantial evidence to support the j
ury finding of fraud against Mobil and thus the award of punitive damages should be vacated, and second, that the jury award of punitive damages exceeded constitutional limits.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 The trial court}{
\insrsid2757293  }{\insrsid16669878\charrsid2757293 reduced the amount of punitive damages from $2.8 million to $150,000, but allowed the jury finding of fraud to stand.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [9]}{\insrsid16669878\charrsid2757293 \tab The trial court entered its Amended Judgment on January 13, 2003, from which Park}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s appeal and Mobil}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s cr
oss-appeal arise. 
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid16669878\charrsid2757293 II.}{\insrsid16669878\charrsid2757293 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [10]}{\insrsid16669878\charrsid2757293 \tab This court has jurisdiction to hear this appeal and cross-appeal from a final judgment pursuant sections 3107(b) and 3108(a) of Title 7 of the Guam Code Annotated (1994).}{
\insrsid16669878 
\par }{\insrsid2757293\charrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [11]}{\insrsid16669878\charrsid2757293 \tab We review the jury}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
s verdict to determine whether it is supported by substantial evidence or it is against the clear weight of the evidence.}{\i\insrsid16669878\charrsid2757293  O}{\i\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\i\insrsid16669878\charrsid2757293 Mara v. Hechanova, }{\insrsid16669878\charrsid2757293 2001 Guam 13, }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293  6.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
Substantial evidence is such relevant evidence which reasonable minds might accept as adequate to support a conclusion even if it is possible to draw two inconsistent conclusions from the evidence.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst 
SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  (quoting }{\i\insrsid16669878\charrsid2757293 Leon Guerrero v. DLB Const. Co.}
{\insrsid16669878\charrsid2757293 , 1999 Guam 9, }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  21).}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 A trial court}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s ruling on a motion for judgment notwithst
anding the verdict is reviewed }{\i\insrsid16669878\charrsid2757293 de novo}{\insrsid16669878\charrsid2757293 . }{\i\insrsid16669878\charrsid2757293 Leon Guerrero}{\insrsid16669878\charrsid2757293 , 1999 Guam 9 at }{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 11.}{\insrsid16669878 
\par }{\insrsid2757293\charrsid2757293 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid16669878\charrsid2757293 III.}{\insrsid16669878\charrsid2757293 
\par }\pard \qj \fi-720\li720\ri0\nowidctlpar\tx-1440\faauto\rin0\lin720\itap0\pararsid2757293 {\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 A. \tab Mobil}{\b\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\b\insrsid16669878\charrsid2757293 s Cross-Appeal}{
\cs15\b\super\insrsid16669878\charrsid2757293 \chftn {\footnote \pard\plain \ql \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\super\insrsid16669878 \chftn }{\fs20\insrsid16669878 
  Generally, the issues raised on appeal are addressed before the issues raised on cross-appeal. Although each
\par }\pard \qj \li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 {\fs20\insrsid16669878 party}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 
s arguments are rooted in the punitive damages issue, Park specifically appeals from the trial court}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 
s reduction of the punitive damages award of $2.8 million to $150,000, while Mobil cross-appeals from the jury}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 
s award of punitive damages in its entirety.  Based on the issues presented, logic dictates that we address the propriety of the punitive damages award before we reach the issue of the trial court}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 s reduction of the punitive damages award.  To this end, discussion of the cross-appeal precedes discussion of the appeal.}}}{\insrsid16669878\charrsid2757293 
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [12]}{\insrsid16669878\charrsid2757293 \tab The jury found Mobil liable for breach of contract and fraud and awarded compensatory and punitive damages to Park.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
The sole issue raised by Mobil is whether, under the law of corporate liability for punitive damages, the jury}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s award of punitive damages is supported by substantial evidence.}{\insrsid16669878 
\par }{\insrsid2757293\charrsid2757293 
\par }\pard \qj \fi720\li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid16669878\charrsid2757293 1.\tab Corporate Liability for Punitive Damages }{\insrsid16669878\charrsid2757293 
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [13]}{\insrsid16669878\charrsid2757293 \tab The United States Supreme Court has recognized that in our judicial system, compensatory and punitive damages each serve a different purpose.}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 See Cooper Indus., Inc. v. Leatherman Tool Group, Inc.,}{\insrsid16669878\charrsid2757293  532 U.S. 424, 432, 121 S. Ct. 1678, 1683 (2001); }{\i\insrsid16669878\charrsid2757293 State Farm Mut. Auto. Ins. Co. v. Campbell}
{\insrsid16669878\charrsid2757293 , 538 U.S. 408, 416, 123 S. Ct. 1513, 1519 (2003). }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
Compensatory damages are }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 62 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
intended to redress the concrete loss that the plaintiff has suffered by reason of the}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 defendant's wrongful conduct.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 By contrast, punitive damages serve a broader function; they are aimed at deterrence and retribution.}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Campbell}{\insrsid16669878\charrsid2757293 , 538 U.S. at 416, 123 S. Ct. at 1519 (citation omitted);}{
\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 see Pac. Mut. Life Ins. Co. v. Haslip}{\insrsid16669878\charrsid2757293 , 499 U.S. 1, 19, 111 S. Ct. 1032, 1044 (1991) (}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 [P]unitive damages are imposed for purposes of retribution and deterrence}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 );}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 BMW v. Gore}{\insrsid16669878\charrsid2757293 , 517 U.S. 559, 568, 116 S. Ct. 1589, 1595 (1996) (}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
Punitive damages may properly be imposed to further a State's legitimate interests in punishing unlawful conduct and deterring its repetition}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293 ); }{\i\insrsid16669878\charrsid2757293 Fajardo v. Liberty House}{\insrsid16669878\charrsid2757293 , 2000 Guam 4, }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  18 (recognizing that punitive damages are for punishment and deterrence ).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [14]}{\insrsid16669878\charrsid2757293 \tab Moreover, Guam}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
s remedies code also authorizes, under certain circumstances, the assessment of punitive damages in order to deter unlawful conduct and punish a defendant.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Title 20 GCA }{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  2120 (1992).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Specifically, section 2120 provides:
}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }\pard \qj \li0\ri720\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin720\lin0\itap0\pararsid2757293 {\insrsid2757293 
\par }\pard \qj \li720\ri720\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin720\lin720\itap0\pararsid2757293 {\insrsid16669878\charrsid2757293 
In an action for the breach of an obligation not arising from contract, where the defendant has been guilty of oppression, fraud, or malice, express or implied, the plaintiff, in addition to the actual damages, may recover dam
ages for the sake of example and by way of punishing the defendant.
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0\pararsid2757293 {\insrsid16669878\charrsid2757293 
\par }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 While section 2120 authorizes the assessment of punitive damages against a defendant, it alone does resolve the issue before us today, that is, under what circ
umstances may a corporation be held liable for punitive damages based on the conduct of its employees.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [15]}{\insrsid16669878\charrsid2757293 \tab In determining whether there is substantial evidence to support an award of punitive damages, there must be a legal basis for assessing such damag
es against a corporation for the acts of its employees.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 In }{\i\insrsid16669878\charrsid2757293 Fajardo}{\insrsid16669878\charrsid2757293 , 2000 Guam 4, we addressed the issue of whether an employer}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s insurer must indemnify the employer for punitive damages properly assessed upon th
e employer, for the acts of its employees, based on the theory of vicarious liability.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 The propriety of holding a corporation }{\i\insrsid16669878\charrsid2757293 directly}{
\insrsid16669878\charrsid2757293  liable for punitive damages was not before the court in }{\i\insrsid16669878\charrsid2757293 Fajardo}{\insrsid16669878\charrsid2757293 .
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [16]}{\insrsid16669878\charrsid2757293 \tab It has been recognized that }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 [d]erivative or vicarious liability of an employer for the intentional misconduct of an employee is to be distinguished, of course, from an employer}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s direct liability.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 Doe v. Forrest}{\insrsid16669878\charrsid2757293 , 853 A.2d 48, 71 n.7 (Vt. 2004).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 To be clear, }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 [v]icarious liability is a form of strict liability without fault.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 A master may be held liable for a servant}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s torts regardless of whether the master}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL
 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s own conduct is tortious.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Kerl v. Dennis Rasmussen, Inc.}{\insrsid16669878\charrsid2757293 , 682 N.W. 2d 328, 334 (Wis. 2004).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Stated another way:}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 
\par }\pard \qj \li0\ri720\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin720\lin0\itap0\pararsid2757293 {\insrsid2757293 
\par }\pard \qj \li720\ri720\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin720\lin720\itap0\pararsid2757293 {\insrsid16669878\charrsid2757293 
Although a plaintiff who suffers a single injury may plead both vicarious and direct liability claims against a party who is asserted to be a master . . . vicarious liability is a separate and distinct theory of liability, and should 
not be confused with any direct liability that may flow from the master}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
s own fault in bringing about the plaintiff}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s harm.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 Vicarious liability is imputed liability.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 It may be imposed upon an innocent party for the torts of another because of the nature of the agency relationship }{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 66 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  specifically the element of control or right of control }{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 66 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  justifies it.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0\pararsid2757293 {\insrsid16669878\charrsid2757293 
\par }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [17]}{\insrsid16669878\charrsid2757293 \tab 
Thus, the issue of whether and under what circumstances punitive damages may be assessed against a corporation based on direct liability principles is one of first impression for this court.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Where the defendant is a corporate entity, other courts have struggled to craft a rule of liability for punitive damages }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 which best tailors the scope of the employer}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s responsibility
 for employee misconduct - the primary reason for assessing punitive damages at all; namely, the effective deterrence of violations of substantive tort law.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Philip Corboy, }{\i\insrsid16669878\charrsid2757293 Vicarious Liability for Punitive Damages: The Effort to Constitutionalize Tort Reform}{\insrsid16669878\charrsid2757293 
, }{\scaps\insrsid16669878\charrsid2757293 2 Seton Hall Const. L.J.}{\insrsid16669878\charrsid2757293  5, 16 (1991).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 As a result, in determining a corporation}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s liability for punitive damages resulting from the wrongful acts
 of its employees, either as imputed liability or direct liability, most courts apply one of two rules: the scope of employment rule or the complicity rule.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
In search of a rule of corporate liability for punitive damages, we examine the competing legal principles underlying the scope of employment and complicity rules.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [18]}{\insrsid16669878\charrsid2757293 \tab 
Regarded as the more liberal of the two, the scope of employment rule holds a corporation liable for the acts committed by its employees where the employees act within the scope of their employment.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 
See Mobile & O.R. Co. v. Seals}{\insrsid16669878\charrsid2757293 , 13 So. 917, 919 (Ala. 1893) (holding that a low level employee }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 is fully authorized to act for the company, within the range of his employment, as the president is within the limits of his office.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 ); }{\i\insrsid16669878\charrsid2757293 Stroud v. Denny}{\i\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\i\insrsid16669878\charrsid2757293 s Rest., Inc.}{\insrsid16669878\charrsid2757293 , 532 P.2d 790 (Or. 1975).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Under this rule, corporate participation, whether by authorization or rati
fication, is not a requisite to liability.}{\cs15\super\insrsid16669878\charrsid2757293 \chftn {\footnote \pard\plain \ql \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {
\cs15\super\insrsid16669878 \chftn }{\fs20\insrsid16669878  We find it appropriate to note that the court in }{\i\fs20\insrsid16669878 Fajardo v. Liberty House}{\fs20\insrsid16669878 , 2000 Guam 4, to some extent,
\par }\pard \qj \li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 {\fs20\insrsid16669878 erroneously merged the doctrine of respondeat superior (or scope of employment) with the corporate complici
ty rule, which, as will be discussed, requires some form of corporate participation, including authorization or ratification, in order to a hold a corporation liable for punitive damages.  }{\i\fs20\insrsid16669878 See id. }{\fs20\insrsid16669878 at }{
\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878  10 (stating that }{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt
\f36\fs20}}}{\fs20\insrsid16669878 the doctrine of respondeat superior will not hold the principal vicariously liable to the third party unless the principal had authorized or ratified the conduct.}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 ); }{\i\fs20\insrsid16669878 cf. Jannotta v. Subway Sandwich Shops, Inc.}{\fs20\insrsid16669878 , 125 F.3d 503, 513 (7th Cir. 1997)}{\i\fs20\insrsid16669878  }{
\fs20\insrsid16669878 (stating that under the corporate complicity rule, punitive damages cannot be assessed against a corporation for acts of its agents under the theory of respondeat superior; }{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 65 \\f 
"WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 it must be shown, rather, that }{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 62 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 
the responsible employee was acting in managerial capacity}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878  or that his acts }{\fs20\insrsid16669878 {\field{\*\fldinst 
SYMBOL 62 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 were authorized or ratified by the corporation.}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{
\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 ) (quoting }{\i\fs20\insrsid16669878 West v. Western Cas. & Sur. Co.}{\fs20\insrsid16669878 
, 846 F.2d 387, 399 (7th Cir. 1988)).  Notwithstanding the confusion which may have been created by paragraph 10 of the }{\i\fs20\insrsid16669878 Fajardo}{\fs20\insrsid16669878  opinion, we agree with the court}{\fs20\insrsid16669878 {\field{\*\fldinst 
SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 s ultimate holding that }{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 
some authorization or ratification by the employer is necessary before he is vicariously liable for a punitive damages award.}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{
\fs20\insrsid16669878  }{\i\fs20\insrsid16669878  Fajardo}{\fs20\insrsid16669878 , 2000 Guam 4 at }{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878  12.}}}{\insrsid2757293  
}{\insrsid16669878\charrsid2757293 The rationale behind this rule is that liability should be }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
grounded in the deterrent function of punitive damages.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 The punishment role of punitive damages as well as the potential unfairness of condemning an innocent employer are largely viewe
d as irrelevant, trumped by the overriding necessity of maximizing incentives for safety.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 Corboy, }{\i\insrsid16669878\charrsid2757293 supra}{\insrsid16669878\charrsid2757293 , at 16.
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [19]}{\insrsid16669878\charrsid2757293 \tab The second rule of corporate liability for punitive damages is the compli
city rule, which holds a corporation liable for the acts committed by its employees only where employees who possess a requisite level of authority in the corporation participate in or affirm the misconduct.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 Linda K. Hollander, }{\i\insrsid16669878\charrsid2757293 Tort Law - New Mexico Holds Corporations Liable for Punitive Damages Based Upon Actions of Managerial Agents}{\insrsid16669878\charrsid2757293 :}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 Albuquerque Concrete Coring Co. v. Pan Am World Services, Inc., }{\scaps\insrsid16669878\charrsid2757293 26 N.M. L. Rev. 617, 619}{\insrsid16669878\charrsid2757293  (1996).}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 The rationale behind this rule is that an innocent party, including a corporation, should not be liable for punitive damages arising from a third party}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s actions.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 The complicity rule requires some corporate}{
\insrsid2757293  }{\insrsid16669878\charrsid2757293 participation in the wrongful act, beyond the mere status as an employer, before punitive damages can be assessed against the corporation.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{
\insrsid2757293  }{\insrsid16669878\charrsid2757293 A majority of states have adopted some version of the complicity rule, which comes in two forms:}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 the }{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 whole executive power rule}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293  and the }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 Restatement rule.}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293 ;}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 see Jannotta v. Subway Sandwich Shops, Inc.}{\insrsid16669878\charrsid2757293 , 125 F.3d 503, 513-14 (7th Cir. 1997); }{\i\insrsid16669878\charrsid2757293 CEH, Inc. v. F/V Seafarer}{\insrsid16669878\charrsid2757293 
, 70 F.3d 694, 703 (1st Cir. 1995); }{\i\insrsid16669878\charrsid2757293 Williams v. City of New York}{\insrsid16669878\charrsid2757293 , 508 F.2d 356, 361 (2d Cir. 1974).}{\insrsid16669878 
\par }{\insrsid2757293\charrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [20]}{\insrsid16669878\charrsid2757293 \tab Under the whole executive power rule, a corporation may be held liabl
e for punitive damages where its highest ranking executive officers authorize, ratify, or otherwise participate in the misconduct.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Lake Shore & Mich. So. Ry. v. Prentice}{
\insrsid16669878\charrsid2757293 , 147 U.S. 101, 114-15, 13 S. Ct. 261, 265-66 (1893).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Unlike the complicity rule, the
 whole executive power rule focuses only on the participation of officers at the very top of the corporate ladder, namely, the chief executive officer or in his or her absence, the vice-president.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.
}{\i\insrsid2757293  }{\insrsid16669878\charrsid2757293 The rationale behind the whole executive power rule is that only those holding the whole executive power represent the intent and participation of the corporation itself.}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 Id.}{\i\insrsid2757293  }{\insrsid16669878\charrsid2757293 Thus, if the purpose of punitive damages is to punish the wrongdoer, only actions of highest ranking corporate officers can give ris
e to corporate liability for punitive damages.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293 ;}{\i\insrsid16669878\charrsid2757293  cf. Albuquerque Concrete Coring Co. v. Pan Am World Svcs}{
\insrsid16669878\charrsid2757293 ., 879 P.2d 772, 778 (N.M. 1994) (rejecting the whole executive power rule in light of the modern business world in favor of the }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 managerial capacity}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  rule).}{
\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par 
\par }{\b\insrsid16669878\charrsid2757293 [21]}{\insrsid16669878\charrsid2757293 \tab The second and more common form of the complicity rule finds its source in section 909 of the Second Restatement of Torts (}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 the Restatement rule}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293 ).}{\cs15\super\insrsid16669878\charrsid2757293 \chftn {\footnote \pard\plain \ql \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {
\cs15\super\insrsid16669878 \chftn }{\insrsid16669878  }{\fs20\insrsid16669878 The Restatement (Second) Torts }{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 
 909 reads in its entirety: 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 {\fs20\insrsid16669878 
\par }\pard \qj \fi360\li720\ri720\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\tx1440\tx1800\tx2880\faauto\rin720\lin720\itap0 {\fs20\insrsid16669878 
Punitive damages can properly be awarded against a master or other principal because of an act by an agent if, but only if, 
\par }\pard \qj \fi360\li1080\ri720\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\tx1440\tx1800\tx2880\faauto\rin720\lin1080\itap0 {\fs20\insrsid16669878 (a) the principal or a managerial agent authorized the doing of the act, or 
\par (b) the agent was unfit and the principal or a managerial agent was reckless in employing or retaining him, or 
\par (c) the agent was employed in a managerial capacity and was acting within the scope of employment, or 
\par (d) the principal or a managing agent of the principal ratified or approved the act. 
\par }}}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Under the Restatement rule, punitive damages are premised on the corporation}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s participation in the misconduct.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 See }{\scaps\insrsid16669878\charrsid2757293 Restatement (Second) Torts}{\insrsid16669878\charrsid2757293  }{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  909; }{\i\insrsid16669878\charrsid2757293 Egan v. Mutual of Omaha}{\insrsid16669878\charrsid2757293 
, 620 P.2d 141 (Cal. 1979).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
The Restatement rule thus holds a corporation liable for punitive damages only if: the corporation authorizes, ratifies, or approves employee misconduct; the corporation recklessly employs or retains an unfit employee; the misconduct is co
mmitted by managerial employees acting within the scope of employment; or the principal or managerial agent of the corporation ratifies or approves the misconduct. }{\i\insrsid16669878\charrsid2757293 See}{\i\scaps\insrsid16669878\charrsid2757293  }{
\scaps\insrsid16669878\charrsid2757293 Restatement (Second) Torts }{\scaps\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\scaps\insrsid16669878\charrsid2757293  909}{
\insrsid16669878\charrsid2757293 ; }{\i\insrsid16669878\charrsid2757293 Egan}{\insrsid16669878\charrsid2757293 , 620 P.2d at 151.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 This second form of the complicity rule }{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 shifts the emphasis from effective deterrence to fair punishment,}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  by seeking to protect innocent third parties, while encouraging the responsible delegation of corporate authority.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 Corboy, }{\i\insrsid16669878\charrsid2757293 supra}{\insrsid16669878\charrsid2757293 , at 24.}{\insrsid16669878 
\par }{\insrsid2757293\charrsid2757293 
\par }\pard \qj \fi-360\li1080\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin1080\itap0\pararsid2757293 {\b\insrsid16669878\charrsid2757293 2.\tab Punitive Damages Under section 2120 of Title 20 GCA}{\insrsid16669878\charrsid2757293 
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [22]}{\insrsid16669878\charrsid2757293 \tab The court is persuaded by precedent and policy to adopt the corporate complicity rule, pending exploration of any statutory limitations on this rule.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 As stated previously, section 2120 of Title 20 GCA narrows the circumstances in which punitive damages may be available.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Under section 2120, for breach of an obligation not arising from contract, punitive damages may be assessed against }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 a defendant,}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
 only if the defendant is guilty of oppression, fraud or malice.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 This language is identical to the pre-1980 version of Ca
lifornia Civil Code section 3294 and therefore, cases construing the prior version of section 3294 lend guidance to our consideration of}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
whether punitive damages may be assessed against Mobil under the facts of this case.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [23]}{\insrsid16669878\charrsid2757293 \tab In 1979, the California Supreme Court in }{\i\insrsid16669878\charrsid2757293 Egan}{\insrsid16669878\charrsid2757293 
, addressed the issue of whether, and in what circumstances, punitive damages may be assessed against a corporation.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Egan}{\insrsid16669878\charrsid2757293 , 620 P.2d 141.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 There, the plaintiff sued Mutual for breach of an insurance contract due to the acts of its claims manager and claims adjuster, who failed to investigate the claim before denying coverage.}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  at 146.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 The }{\i\insrsid16669878\charrsid2757293 Egan}{\insrsid16669878\charrsid2757293 
 court began its analysis with a citation to section 3294, recognizing that it cannot usurp the legislature}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s determination that punitive damages are recoverable in cases of oppression, fraud or malice.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Mutual argued that punitive damages cannot be assessed against the corporate entity because the employees were not involved in }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 high-level policy making}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  and thus were not }{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 managerial employees}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  under the Restatement rule.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  at 147-48.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 Observing that California follows the Rest}{\insrsid2757293 atement rule, the court opined:}{\insrsid16669878 
\par }{\insrsid2757293\charrsid2757293 
\par }\pard \qj \li720\ri720\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin720\lin720\itap0\pararsid2757293 {\insrsid16669878\charrsid2757293 
In a broad sense, it is correct to state that California follows the Restatement rule regarding assessment of punitive damages against a principal:}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
Punitive damages can properly be awarded against a master or other principal because of an act by an agent if, but only if, (a) the principal authorized the doing and the manner of the act, or (b) the agent was u
nfit and the principal was reckless in employing him, or (c) the agent was employed in a managerial capacity and was acting in the scope of employment, or (d) the principal or a managerial agent of the principal {\*\bkmkstart Document0zzSDUNumber25}
{\*\bkmkend Document0zzSDUNumber25}ratified or approved the act.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0\pararsid2757293 {\insrsid16669878\charrsid2757293 
\par }{\i\insrsid16669878\charrsid2757293 Id. }{\insrsid16669878\charrsid2757293 (quoting Rest.2d Torts (Tent. Draft No. 19, 1973) }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293  909).
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [24]}{\insrsid16669878\charrsid2757293 \tab Interpreting the Restatement rule, the court rejected Mutual}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293 s argument that the employees must occupy a certain level in the corporate hierarchy to be considered }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 managerial employees.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 Choosing to focus its inquiry on the discretion o}{\insrsid2757293 f the employee, the court held:}{\insrsid16669878 
\par }{\insrsid2757293\charrsid2757293 
\par }\pard \qj \li720\ri720\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin720\lin720\itap0\pararsid2757293 {\insrsid16669878\charrsid2757293 
The determination whether employees act in a managerial capacity, however, does not necessarily hinge on their "level" in the corporate hierarchy. Rather, }{\i\insrsid16669878\charrsid2757293 the critical in
quiry is the degree of discretion the employees possess in making decisions that will ultimately determine corporate policy}{\insrsid16669878\charrsid2757293 
. When employees dispose of insureds' claims with little if any supervision, they possess sufficient discretion for the law to impute their actions concerning those claims to the corporation.
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0\pararsid2757293 {\insrsid16669878\charrsid2757293 
\par }{\i\insrsid16669878\charrsid2757293 Id. }{\insrsid16669878\charrsid2757293 at 148 (emphasis added). 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [25]}{\insrsid16669878\charrsid2757293 \tab Thus, applying the above standard to the acts of the claims manager and claims adjuster, the court found that the employees }{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 exercised broad discretion in the disposition of plaintiff}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s claim,}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
 and thus, this authority was sufficient to justify imposing punitive damages against Mutual.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Moreover, the court pointed to the claims manager
}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s testimony that he was a }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 managerial employee}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293  and that he had }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
ultimate supervisory and decisional authority regarding the disposition of all claims.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 In light of this, the court held that he had }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293 policy-making authority}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  and is thus a }{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 managerial employee.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 However, unlike the claims manager, the claims adjuster testified that he acted only }{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 with directions from above.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Notwithstanding this testimony, the court found that he }{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 exercised broad discretion}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293  in dealing with plaintiff}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s claim.}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 The court held that }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 the authority exercised by both employees }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
necessarily results in the ad hoc formulation of policy}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
 and thus punitive damages were properly assessed against Mutual.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [26]}{\insrsid16669878\charrsid2757293 \tab From the }{\i\insrsid16669878\charrsid2757293 Egan }{\insrsid16669878\charrsid2757293 case, we extract}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
several principles.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
First, punitive damages may be assessed against a defendant, for breach of an obligation not arising from contract, where the defendant is found liable for oppression, fraud or malice.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{
\insrsid16669878\charrsid2757293  at 146 (discussing section 3294 of the California Civil Code, which is identical to section 2120 of Title 20 GCA).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Second, where the defendant is a corporation, we turn to the Restatement rule, which delineates four instances upon which punitive damages may be assessed against a corporation.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{
\insrsid16669878\charrsid2757293  at 148.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Finally, under the Restatement rule, a }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 managerial agent}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
 is an employee who exercises substantial discretionary authority which results in the ad hoc formulation of policy over an aspect of the corporation}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s business.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [27]}{\insrsid16669878\charrsid2757293 \tab Because section 2120 of Title 20 GCA is identical to the California statute as it existed at the time of }{\i\insrsid16669878\charrsid2757293 Egan}{
\insrsid16669878\charrsid2757293 , we expressly adopt the Restatement (Second) Torts }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
 909 as the rule of corporate liability for punitive damages in this jurisdiction.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 In so doing, we reject the whole executive power rule because we recognize that }{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
[i]n the modern world of multinational corporations, corporate control must be delegated to managing agents who may not possess the requisite upper-level executive authority traditionally considered ne
cessary to trigger imposition of corporate liability for punitive damages.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 
Albuquerque Concrete Coring Co. v. Pan Am World Svcs}{\insrsid16669878\charrsid2757293 ., 879 P.2d 772, 778 (N.M. 1994).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 We agree with court}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL
 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s observation in }{\i\insrsid16669878\charrsid2757293 Albuquerque Concrete}{\insrsid16669878\charrsid2757293 , that the Restatement rule }{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
retain[s] the philosophy that corporations should not be liable for punitive damages absent corporate culpability,}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293  but }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
tends to deter the employment of unfit persons for important positions}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  and }{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 encourage their supervision.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\i\insrsid2757293  }{\insrsid16669878\charrsid2757293 There, the court}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst 
SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s holding changed New Mexico}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s long standing whole executive power rule, which held only the actions of executives with plenary }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 whole executive power}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  as equal to that of the corporation for punit
ive damages purposes.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [28]}{\insrsid16669878\charrsid2757293 \tab We similarly reject the scope of employment rule, which holds a corporation liable for all acts of employees falling within the scope of employment.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 Such doctrine, now rejected by most states, requires no corporate participation and thus undermines the policy behind punitive damages that an innocent wrongdoer should not be punished.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [29]}{\insrsid16669878\charrsid2757293 \tab While Mobil urges this court to adopt the definition of managerial agent found in a later California Supreme Court case, }{\i\insrsid16669878\charrsid2757293 
White v. Ultramar, Inc.}{\insrsid16669878\charrsid2757293 , 981 P.2d 944 (Cal. 1999), we note that subsequent to the }{\i\insrsid16669878\charrsid2757293 Egan}{\insrsid16669878\charrsid2757293 
 decision, and likely as a result of such decision, California Civil Code section 3294 was amended in several respects.}{\cs15\super\insrsid16669878\charrsid2757293 \chftn {\footnote \pard\plain \ql \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 
\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\super\insrsid16669878 \chftn }{\fs20\insrsid16669878   The current version of Cal. Civ. Code }{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt
\f36\fs20}}}{\fs20\insrsid16669878  3294 reads, in relevant part:
\par }\pard \ql \li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0 {\fs20\insrsid16669878 
\par }\pard \qj \li1080\ri720\sa240\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin720\lin1080\itap0 {\fs20\insrsid16669878 
(a) In an action for the breach of an obligation not arising from contract, where it is proven by clear and convincing evidence that the defendant has been guilty of oppr
ession, fraud, or malice, the plaintiff, in addition to the actual damages, may recover damages for the sake of example and by way of punishing the defendant.\tab 
(b) An employer shall not be liable for damages pursuant to subdivision (a), based upon acts of a
n employee of the employer, unless the employer had advance knowledge of the unfitness of the employee and employed him or her with a conscious disregard of the rights or safety of others or authorized or ratified the wrongful conduct for which the damage
s
 are awarded or was personally guilty of oppression, fraud, or malice. With respect to a corporate employer, the advance knowledge and conscious disregard, authorization, ratification or act of oppression, fraud, or malice must be on the part of an office
r, director, or managing agent of the corporation.\tab (c) As used in this section, the following definitions shall apply:\tab \tab 
(1) "Malice" means conduct which is intended by the defendant to cause injury to the plaintiff or despicable conduct which is carried on by the defendant with a willful and conscious disregard of the rights or safety of others.\tab 
(2) "Oppression" means despicable conduct that subjects a person to cruel and unjust hardship in conscious disregard of that person's rights.\tab (3) "Fraud" means an in
tentional misrepresentation, deceit, or concealment of a material fact known to the defendant with the intention on the part of the defendant of thereby depriving a person of property or legal rights or otherwise causing injury. . . . }}}{\insrsid2757293 
 }{\insrsid16669878\charrsid2757293 The amendments }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
codif[ied] and refine[d] further the requirements for employer punitive damages liability.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 White}{\insrsid16669878\charrsid2757293 , 981 P.2d at 950.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 The }{\i\insrsid16669878\charrsid2757293 White }{\insrsid16669878\charrsid2757293 
case, decided after the amendment to section 3294, involved a claim for wrongful termination in retaliation for testifying at an unemployment hearing.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  at 947-48.
}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Punitive damages were assessed against the corporation for the wrongful act of its zone manager in firing the plaintiff.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 On appeal, the corporation argued that the zone manager was not a }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
managerial agent}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  under the California provision.}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  at 949.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 The court in }{\i\insrsid16669878\charrsid2757293 White}{\insrsid16669878\charrsid2757293  found that the superv
ision of eight stores and sixty-five employees was a }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 significant aspect}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  of the corporation}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s business.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id. }{\insrsid16669878\charrsid2757293 at 954.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Most, if not all of the responsibility of running these stores were delegated to her.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 See id.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
In sum, the zone manager exercised substantial discretionary authority over }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 vital aspects}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  of the corporation}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s business.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Affirming the award of punitive damages against the corporation, the court held that the zone manager }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 exercised substantial discretionary authority over decisions that ultimately determined corporate policy in a most crucial aspect of [the corporation}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s] business.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [30]}{\insrsid16669878\charrsid2757293 \tab A review of both }{\i\insrsid16669878\charrsid2757293 Egan}{\insrsid16669878\charrsid2757293  and }{\i\insrsid16669878\charrsid2757293 White}{
\insrsid16669878\charrsid2757293  reveals that each case requires that the employee possess a certain degree of discretion and authority to ultimately determine corporate policy, before the employee can qualify as a }{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 managerial agent}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}
{\insrsid16669878\charrsid2757293  (under the Restatement) or }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 managing agent}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  (under the section 3294 of the California code).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
However, under }{\i\insrsid16669878\charrsid2757293 White}{\insrsid16669878\charrsid2757293 , the definition of a managing agent appears narrower than that found in }{\i\insrsid16669878\charrsid2757293 Egan}{\insrsid16669878\charrsid2757293 .}{
\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Egan}{\insrsid16669878\charrsid2757293  focuses on whether the employee had substantial discretionary authority to make decisions with respect to the plaintiff and whether this exercise of di
scretionary authority ultimately determines corporate policy.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 See Egan}{\insrsid16669878\charrsid2757293 , 620 P.2d at 148 (}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 We are satisfied that }{\i\insrsid16669878\charrsid2757293 with respect to plaintiff's claim herein}{\insrsid16669878\charrsid2757293 
, the authority vested in McEachen and Segal was sufficient to justify the imposition of punitive damages against Mutual. The record demonstrates they exercised broad discretion }{\i\insrsid16669878\charrsid2757293 in the disposition of plaintiff's claim}
{\insrsid16669878\charrsid2757293 .}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 ) (emphases added).}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 The critical inquiry under }{\i\insrsid16669878\charrsid2757293 Egan}{\insrsid16669878\charrsid2757293 
 is: what is the degree of discretionary authority that the employee possesses in making decisions that will ultimately determine corporate policy?}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 See id.}{\insrsid16669878\charrsid2757293 ;}{
\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 White}{\insrsid16669878\charrsid2757293 , 981 P.2d at 954 (Mosk, J., concurring).}{\insrsid16669878 
\par }{\insrsid2757293\charrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [31]}{\insrsid16669878\charrsid2757293 \tab Under }{\i\insrsid16669878\charrsid2757293 White}{\insrsid16669878\charrsid2757293 , the employee must exercise }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL
 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 substantial}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293  independent authority over }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 significant aspects}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  of a corporation}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s business}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 in corporate decision-making and the employee}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL
 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s decisions must ultimately determine corporate policy.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
The focus is neither on the plaintiff nor on the act which gave rise to the cause of action, but on the corporation itself.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 The inquiry under }{\i\insrsid16669878\charrsid2757293 White}{
\insrsid16669878\charrsid2757293  is:}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
what is the degree of discretionary authority that the employee possesses in making decisions that will ultimately determine corporate policy over significant aspects of the corporation}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s business?
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [32]}{\insrsid16669878\charrsid2757293 \tab Indeed, Justice Mosk, who authored the }{\i\insrsid16669878\charrsid2757293 Egan}{\insrsid16669878\charrsid2757293  opinion, filed a concurring opinion in }{
\i\insrsid16669878\charrsid2757293 White}{\insrsid16669878\charrsid2757293 , explaining and applying what he understood to be }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 the correct test}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
 under the California provision, and observing that the facts can and should be guided by the principles laid out in }{\i\insrsid16669878\charrsid2757293 Egan}{\insrsid16669878\charrsid2757293 .}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{
\insrsid2757293  }{\insrsid16669878\charrsid2757293 The rule under }{\i\insrsid16669878\charrsid2757293 Egan}{\insrsid16669878\charrsid2757293  is that }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 a corporation may be liable for punitive da
mages based on the wrongful conduct of an employee who exercises substantial discretionary authority over decisions that ultimately determine corporate policy over an aspect of the corporation}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL
 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s business.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  at 955.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Addressing the facts in }{\i\insrsid16669878\charrsid2757293 White}{\insrsid16669878\charrsid2757293 
, Justice Mosk conceded that the employee in question was not a high level manager or final policy maker for the corporation, but a local supervisor for a corporation that owned and operated a chain of stores located throughout the state.}{
\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  at 956.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 However, observing the employee}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s actions with respect to the particular plaintiff, Justice Mosk determined, under the }{\i\insrsid16669878\charrsid2757293 Egan}{\insrsid16669878\charrsid2757293 
 test, that the employee engaged in a }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 local practice}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  of retaliating against the plaintiff-employee for testifying at an unemployment hearing.}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Thus, in discharging the employee, the zone manager}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293 s authority }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
necessarily resulted in the ad hoc formulation of policy that adversely affected plaintiff.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 Id. }{\insrsid16669878\charrsid2757293 at 958.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [33]}{\insrsid16669878\charrsid2757293 \tab Notably, the majority in }{\i\insrsid16669878\charrsid2757293 White }{\insrsid16669878\charrsid2757293 
thoroughly examined the legislative intent in enacting the amended statute.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 It noted, }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293 we believe that in amending section 3294, the Legislature intended .
 . . to limit corporate punitive damage liability to those employees who exercise substantial independent authority and judgment over decisions that ultimately determine corporate policy.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  at 951.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Because 
our legislature has not similarly adopted amendments to section 2120 of Title 20 GCA, we reject the California Supreme Court}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s most recent articulation of the definition of a managerial agent found in }{\i\insrsid16669878\charrsid2757293 White}{\insrsid16669878\charrsid2757293 .}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [34]}{\insrsid16669878\charrsid2757293 \tab By contrast, section 2120 is identical to the pre-1980 version of the California provision which was in effect in }{\i\insrsid16669878\charrsid2757293 Egan}{
\insrsid16669878\charrsid2757293 .}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Therefore, we adopt the }{\i\insrsid16669878\charrsid2757293 Egan}{\insrsid16669878\charrsid2757293  definition of ma
nagerial agent as the term is used in the Restatement rule, and hold that a managerial agent under the Restatement is an employee who exercises substantial discretionary authority which results in the ad hoc formulation of policy over an aspect of the cor
poration}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s business.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Egan}{\insrsid2757293 
, 620 P.2d at 148.}{\insrsid16669878 
\par }{\insrsid2757293\charrsid2757293 
\par }\pard \qj \fi-360\li1080\ri1080\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin1080\lin1080\itap0\pararsid2757293 {\b\insrsid16669878\charrsid2757293 3. \tab Mobil}{\b\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\b\insrsid16669878\charrsid2757293 s Liability for Punitive Damages Based on the Restatement Rule as articulated in Egan
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid16669878\charrsid2757293 
\par }\pard \qj \fi-360\li1440\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin1440\itap0\pararsid2757293 {\b\insrsid16669878\charrsid2757293 a. \tab Managerial Agent}{\insrsid16669878\charrsid2757293 
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [35]}{\insrsid16669878\charrsid2757293 \tab We review the trial record for substantial evidence that Joseph Pereda, Mobil}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s Cabras Terminal Manager, is a }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
managerial agent}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  of Mobil for purposes of assessing punitive damages against Mobil.}{\insrsid2757293 
 }{\insrsid16669878\charrsid2757293 Stated another way, we must determine whether Joseph Pereda is an employee who exercises substantial discretionary authority which results in the ad hoc formulation of policy over an aspect of the corporation}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s business.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Egan}{
\insrsid16669878\charrsid2757293 , 620 P.2d at 148. 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [36]}{\insrsid16669878\charrsid2757293 \tab Mobil is a Guam corporation.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 It has a General Manager and five different departments.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 Transcript (}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 Tr.}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 ) vol. IV, p. 9 (Jury Trial, May 9, 2002).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
The Operations department is headed by Noel Enriquez.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Within the Operations department is the Cabras terminal.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 Plaintiff-Appellant}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s Excerpts of Record }{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 ER,}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  Exhibit 1 (Exhibit 54 of Plaintiff}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
s Trial Exhibits).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 The Terminal Manager at Cabras terminal is Joseph Pereda.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
The evidence is undisputed that only the General Manager and the five department heads have the authority to create }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 business policy.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Tr. vol. IV, p. 9 (Jury Trial, May 9, 2002).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
It is also undisputed that Pereda, as Terminal Manager, does not create business policy, nor does he hire or fire employees, give pay raises, demotions or suspensions.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Tr. vol. IV, pp.
 7, 9, 86 (Jury Trial, May 9, 2002).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Pereda, however, has }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 overall charge}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  of }{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 everything that goes on inside [the] terminal.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Tr. vol. IV, pp. 20, 88 (Jury Trial, May 9, 2002).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
He oversees the terminal on a day-to-day basis and exercises discretionary and supervisory authority over approximately twenty-five employees, with little supervision to no supervision by Noel Enriquez, who visits the terminal approximately once a month.}
{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Tr. vol. IV, pp. 18-21, 23, 27-28, 88 (Jury Trial, May 9, 2002).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Noel Enriquez testified that he delegates important matters to Pereda and did so with respect to the facts which gave rise to the causes of action in this case.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Tr. vol. IV, pp. 27-28.}{\insrsid2757293 
 }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [37]}{\insrsid16669878\charrsid2757293 \tab Second, in exercise of his discretionary authority, Pereda authorized his employees to take the fuel which remained in the delivery tanks after a delivery to Park}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s service station, without Park}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s knowledge, and without issuing the appropriate credit to Park.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Tr. vol. II, pp. 63-64, 69, 121-23, 128-31, 137-43 (Jury Trial, May 7, 2002).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [38]}{\insrsid16669878\charrsid2757293 \tab Finally, the procedures authorized by Pereda resulted in the ad hoc formulation of corporate policy over an aspect of Mobil}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s business.}{\i\insrsid2757293  }{\insrsid16669878\charrsid2757293 This is because }{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 corporate policy forming a basis for imposition of punitive damages does not require a showing of a for
mal adoption of the policy by resolution or formal direction by a managing official, but may be established as a de facto policy upon a showing of uniform course of conduct by lower level employees.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst 
SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 See Egan}{\insrsid16669878\charrsid2757293 , 620 P.2d at 155 (Clark, J., concurring and dissenting).}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 The procedures authorized by Pereda occurred on a regular basis and }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
all the drivers}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  were aware of and participated in the wrongful acts.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 Tr. vol. II, pp. 130-31 (Jury Trial, May 7, 2002).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [39]}{\insrsid16669878\charrsid2757293 \tab Accordingly, there exists substantial evidence that Joseph Pereda, Mobil}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s Terminal Manager, had substantial discretionary authority over an aspect of Mobil}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293 s business and therefore, we hold that Pereda is a managerial agent within the meaning of the Restatement rule.}{\insrsid16669878 
\par }{\insrsid2757293\charrsid2757293 
\par }\pard \qj \fi-360\li1440\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin1440\itap0\pararsid2757293 {\b\insrsid16669878\charrsid2757293 b.}{\b\insrsid2757293  }{\b\insrsid16669878\charrsid2757293 \tab Authorization}{
\insrsid16669878\charrsid2757293 
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [40]}{\insrsid16669878\charrsid2757293 \tab In light of our finding that Pereda is a m
angerial agent of Mobil, we review the trial record for substantial evidence that Pereda authorized the wrongful conduct of the drivers.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [41]}{\insrsid16669878\charrsid2757293 \tab Bruce Taitano, a Mobil driver, testified that he informed Pereda that there was fuel which remained in the delivery tank as a result of the slope at Park}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s station and that Park was not getting the full amount he ordered.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 Tr. vol. II, p. 122 (Jury Trial, May 7, 2002).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Pereda was aware since 1996 that the sloped land at Park}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL
 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s service station resulted in undelivered fuel.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Tr. vol. II, p. 139.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 (Jury Trial, May 7, 2002).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Bruce Taitano, as well as other drivers, testified that all the drivers knew about the undelivered fuel and the drivers would contact Pereda for permission to take the fuel for personal use.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Tr. vol. II, pp. 63-64, 69, 121-23, 128-31 (Jury Trial, May 7, 2002).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Pereda authorized the drivers to take the undelivered fuel.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Tr. vol II, pp. 63-64, 121-23, 128-31, 194-95 (Jury Trial, May 7, 2002).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [42]}{\insrsid16669878\charrsid2757293 \tab Mobil directs this court to evidence that Pereda only gave the drivers permission to take }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 residual fuel,}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
 which is a few gallons of undelivered fuel that ordinarily settles at the bottom of the delivery tank after each delivery, and did not authorize the drivers to take }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 backhaul,}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
 which is a quantifiable amount of undelivered fuel which, under Mobil}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s policy, must be credite
d to the customer.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Tr. vol. II, pp. 199-201 (Jury Trial, May 7, 2002); vol. III, pp. 33-34, 39-41 (Jury Trial, May 8, 2002); vol. IV, pp. 40-41 (Jury Trial, May 9, 2002).}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 However, while the drivers testified that they knew they were not supposed to take }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 backhaul}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
 for personal use, they did not consider undelivered fuel which returned after a delivery to Park}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
s service station to be }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 backhaul,}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  but instead regarded the fuel as }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 excess gas,}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  which they took only with Pereda}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s permission.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Tr. vol. II, pp. 137-43 (Jury Trial, May 7, 2002).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [43]}{\insrsid16669878\charrsid2757293 \tab Regardless of whether the undelivered fuel is referred to by drivers as excess gas or backhaul or residua
l gas, according to the testimony by the accounting representative at Mobil, sixty gallons of undelivered fuel is a quantifiable amount which constitutes }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 backhaul}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  and
 must be credited to the customer who purchased the fuel.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Tr. vol. IV, p. 130 (Jury Trial, May 9, 2002).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
However, the drivers did not earmark the sixty gallons as }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 backhaul,}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  and thus Park was not credited.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Tr. vol. II, pp. 137-43 (Jury Trial, May 7, 2002).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 This is because }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 it was an attitude of not wanting to honor that it}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s backhaul.}{
\insrsid2757293  }{\insrsid16669878\charrsid2757293 It}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s basically so minute that it}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s how we ended up getting permission just to take it.}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Tr. vol. II, p. 139 (Jury Trial, May 7, 2002).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
The jury could also infer that Pereda}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 knew that the drivers were not giving Park credit for the sixty gallons;}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
had the drivers appropriately credited Park, the undelivered fuel would have to be stored or topped off to be resold later, and under these circumstances, could not be taken by the drivers for their personal use.
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [44]}{\insrsid16669878\charrsid2757293 \tab In sum, there exists substantial evidence that Pereda authorized the wrongful conduct of the drivers.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [45]}{\insrsid16669878\charrsid2757293 \tab Because the trial record reveals substantial evidenc
e to support the jury finding that a managerial agent of Mobil authorized the fraud committed upon Park, we hold that the trial court}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s denial of Mobil}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s motion for jud
gment notwithstanding the verdict with respect to the jury}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
s award of punitive damages was not in error.}{\cs15\super\insrsid16669878\charrsid2757293 \chftn {\footnote \pard\plain \ql \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {
\cs15\super\insrsid16669878 \chftn }{\fs20\insrsid16669878   While we affirm the trial court}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 s denial of Mobil}{
\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 s motion for judgment notwithstanding the verdict with
\par }\pard \qj \li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 {\fs20\insrsid16669878 respect to the jury}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 
s finding of fraud, we reject Park}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 s argument that Mobil}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 s policies authorizing the resale of undelivered fuel amounts to fraud.  Rather, according to Mobil}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols"
 \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 s policies, the resale of undelivered fuel occurred after the drivers reported the undelivered fuel, so that the customer who paid for the fuel was properly credited.  }{\i\fs20\insrsid16669878 See}{
\fs20\insrsid16669878 
 Tr. vol II, pp. 73, 134, 199-201 (Jury Trial, May 7, 2002); vol. III, p. 33 (Jury Trial, May 8, 2002); vol. IV, pp. 105, 107, 114-16, 130 (Jury Trial, May 9, 2002); vol. V, pp. 9-10 (Jury Trial, May 10, 2002); Defendant-Appellee and Cross-Appellant}{
\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 
s Supplemental Excerpts of Record, pp. 64 (Memorandum to All T/T Drivers from M.D. Anderson dated September 14, 1995, Defendant}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{
\fs20\insrsid16669878 s Trial Exhibit F), 67 (Work Instructional Manual, }{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 Tank Truck Discharge at Delivery Point,}{
\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878  Defendant}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{
\fs20\insrsid16669878 s Trial Exhibit G), 85 (Safe Practice and Procedures Guidelines, Defendant}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 
s Trial Exhibit I), 88 (Drivers Meeting Attendance Sheet and Agenda - June 11, 1998, Defendant}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 
s Trial Exhibit J), 90 (Drivers Meeting Attendance Sheet and Agenda - November 6, 1998, Defendant}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 
s Trial Exhibit L).  Thus, to the extent the policies are followed, because a customer would be properly credited, we see no reason why Mobil}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{
\fs20\insrsid16669878 s actions in reselling the undelivered fuel are fraudulent.   }}}{\insrsid16669878\charrsid2757293  
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 B.\tab Park}{\b\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\b\insrsid16669878\charrsid2757293 s Appeal }{\insrsid16669878\charrsid2757293 

\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [46]}{\insrsid16669878\charrsid2757293 \tab Park appeals from the trial court}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s reduction of the jury}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
s award of punitive damages from $2.8 million to $150,000.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [47]}{\insrsid16669878\charrsid2757293 \tab Where the constitutionality of a punitive damage award is challenged on the ground that the amount of punitive damages is excessive under the standards set forth in }{
\i\insrsid16669878\charrsid2757293 BMW v. Gore}{\insrsid16669878\charrsid2757293 , 517 U.S. 559, 568, 116 S. Ct. 1589 (1996), appellate courts must conduct a }{\i\insrsid16669878\charrsid2757293 de novo}{\insrsid16669878\charrsid2757293 
 review of the trial court's application of the }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293  standards to the jury's award.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 
See State Farm Mut. Auto. Ins. Co. v. Campbell}{\insrsid16669878\charrsid2757293 , 538 U.S. 408, 123 S. Ct. 1513, 1520 (2003) (quoting }{\i\insrsid16669878\charrsid2757293 Cooper Indus., Inc. v. Leatherman Tool Group, Inc.}{
\insrsid16669878\charrsid2757293 , 532 U.S. 424, 431, 121 S. Ct. 1678 (2001)). 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [48]}{\insrsid16669878\charrsid2757293 \tab In 1996, the United States Supreme Court in }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293  stru
ck down a $2 million punitive damages award against an automobile maker for repainting new, but damaged cars, without disclosing such fact to its customers.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293 
, 517 U.S. at 563, 116 S. Ct. at 1593.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 In that case, plaintiff paid more than $40,000 for a }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293 new}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
 car, but later discovered that BMW had repainted the car, presumably due to acid rain damage which occurred during shipping.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 The plaintiff sued on behalf of himse
lf and all other similarly situated BMW owners.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293 , 116 S. Ct. at 1593.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
The jury awarded the plaintiff $4,000 in compensatory damages and $4 million in punitive damages.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  at 565, 116 S. Ct. at 15931593-94.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 The Alabama Supreme Court reduced the punitive damages to $2 million.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  at 567, 116 S. Ct. at 1595.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 On appeal to the United States Supreme Court, the Court held that under the facts of the case, the award of $2 million in punitive damages, which constitutes a 500 to 1 ratio (punitive damages t
o compensatory damages), was a violation of substantive due process.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
Elementary notions of fairness enshrined in our constitutional jurisprudence dictate that a person receive fair notice not only of the conduct that will subject him to punishment, but also of the severity of the penalty that a State may impose.}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id. }{\insrsid16669878\charrsid2757293 
at 575, 116 S. Ct. at 1598.
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [49]}{\insrsid16669878\charrsid2757293 \tab The }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293  Court declined to fix a bright line mathemat
ical rule, but articulated three guideposts for trial courts to use in determining whether a punitive damages award is }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 grossly excessive}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  and thus violative of due process:}{
\insrsid2757293  }{\insrsid16669878\charrsid2757293 (1) the degree of reprehensibility of the defendant}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s misconduct; (2) the disparity between the actual or potential harm suffered by the plaintiff and the punitive damages award; and (3) the difference bet
ween the punitive damages awarded by the jury and the civil penalties authorized or imposed in comparable cases.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  at 575, 116 S. Ct. at 1598-99.
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [50]}{\insrsid16669878\charrsid2757293 \tab The Supreme Court recently elaborated upon the }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293  principles governing punitive damages in }{
\i\insrsid16669878\charrsid2757293 State Farm Mut. Ins. Co. v. Campbell}{\insrsid16669878\charrsid2757293 , 538 U.S. 408, 123 S. Ct. 1513 (2003).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
There, the plaintiff Campbell sued his insurer, State Farm.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Campbell had killed one person and permanently disabled another in an auto accident.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 
Id.}{\insrsid16669878\charrsid2757293  at 412, 123 S. Ct. at 1517.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 State Farm}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
refused to settle the claims, despite the fact that its investigators knew that Campbell was at fault and had recommended settlement.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293 
 at 413, 123 S. Ct. at 1517-18.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 State Farm promised Campbell that it would cover him in the event of an excess liability judgment and further promised him that his assets would be safe.}{
\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293 , 123 S. Ct. at 1518.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Campbell lost at trial and State Farm reneged on its promise to pay the judgment.}{
\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293 , 123 S. Ct. at 1518.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 State Farm suggested to Campbell, instead, that he put up a }{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 for sale}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  sign at his house.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293 , 123 S. Ct. at 1518.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Campbell sued State Farm for bad faith, fraud and intentional infliction of emotional distress.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  at 414, 123 S. Ct. at 1518.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 At trial against State Farm, the jury awarded Campbell $1 million in compensatory damages and $145 million in punitive damages.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293 
 at 415, 123 S. Ct. at 1519.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 The trial court reduced the punitive damages to $25 million.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293 
, 123 S. Ct. at 1519.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 The Utah Supreme Court reinstated the $145 million punitive damages award, finding the defendant}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s conduct reprehensible.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293 , 123 S. Ct. at 1519.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 On appeal to the United States Supreme Court, the }{\i\insrsid16669878\charrsid2757293 Campbell}{\insrsid16669878\charrsid2757293 
 Court reversed the Utah court, finding that the punitive damages award violated due process.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  at 412, 123 S. Ct. at 1517.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 In applying the }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293  criteria to the facts of the case, the }{\i\insrsid16669878\charrsid2757293 Campbell }{\insrsid16669878\charrsid2757293 
court further refined each guidepost.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 An analysis of each }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293  guidepost, as clarified by }{\i\insrsid16669878\charrsid2757293 
Campbell}{\insrsid16669878\charrsid2757293 ,}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 follows.
\par }\pard \qj \li0\ri1080\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin1080\lin0\itap0\pararsid2757293 {\b\insrsid2757293 
\par }\pard \qj \fi-360\li1080\ri1080\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin1080\lin1080\itap0\pararsid2757293 {\b\insrsid16669878\charrsid2757293 1.\tab The Degree of Reprehensibility of the Defendant}{\b\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\b\insrsid16669878\charrsid2757293 s Misconduct}{\insrsid16669878\charrsid2757293 
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [51]}{\insrsid16669878\charrsid2757293 \tab The degree of reprehensibility of the defendant}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s conduct is the }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
most important indicium of the reasonableness of a punitive damages award.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 
Campbell}{\insrsid16669878\charrsid2757293 , 538 U.S. at 419, 123 S. Ct. at 1521 (quoting }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293 , 517 U.S. at 575, 116 S. Ct. at 1599) (brackets omitted).}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 Campbell}{\insrsid16669878\charrsid2757293  further instructs, }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
it should be presumed that a plaintiff has been made whole for his injuries by compensatory damages, so punitive damages should only be awarded if the defendant}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s culpability, after having paid compensatory damages, is so reprehensible as to warrant the imposition of further sanctions to achieve punishment or deterrence.}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 538 U.S. at 419, 123 S. Ct. at 1521.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 In assessing the reprehensibility of a defendant}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
s conduct, courts must consider the following factors:}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 (1) }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 the harm caused was physical as opposed to economic}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 ; (2) }{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 the tortious conduct evinced an 
indifference to or a reckless disregard of the health or safety of others}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 ; (3) }{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 the target of the conduct had financial vulnerability}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 ; (4) }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 the conduct involved repeated actions or was an isolated incident}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
; and (5) }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 the harm resulted from intentional malice, trickery, or deceit, or mere accident.}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  at 419, 123 S. Ct. at 1521.}{
\insrsid2757293  }{\insrsid16669878\charrsid2757293 Any one of the above five factors }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
weighing in favor of a plaintiff may not be sufficient to sustain a punitive damages award;}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 and the absence of all of them renders any award suspect.}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  at 419, 123 S. Ct. at 1521.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [52]}{\insrsid16669878\charrsid2757293 \tab Applying the first factor, it is clear that the harm suffered by Park was economic harm as opposed to physical harm.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 
See id.}{\insrsid16669878\charrsid2757293  at 419, 123 S. Ct. at 1521.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Relatedly, applying the second factor, the fraud committed upon Park did not evince an indifference t
o or a reckless disregard for the health or safety of others.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 See id.}{\insrsid16669878\charrsid2757293 , 123 S. Ct. at 1515-16.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 
Cf. Campbell v. State Farm Mut. Auto. Ins. Co.}{\insrsid16669878\charrsid2757293 , 98 P.3d 409, 418 (Utah 2004) (on remand)}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 (}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 [C]onduct which causes $1 million of emotional distress and humiliation is markedly more egregious than conduct which results in $1 million of economic harm.}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 ), }{\i\insrsid16669878\charrsid2757293 cert. denied}{\insrsid16669878\charrsid2757293 , }{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 67 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  U.S. }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 67 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 , 125 S. Ct. 114 (Oct. 4, 2004). 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [53]}{\insrsid16669878\charrsid2757293 \tab The third factor, which requires that we determine whether Park was financially vulnerable, is more difficult to assess based on the record before us.}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 See Campbell}{\insrsid16669878\charrsid2757293 , 538 U.S. at 419, 123 S. Ct. at 1521.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 In }{\i\insrsid16669878\charrsid2757293 Campbell}{
\insrsid16669878\charrsid2757293 , the court found that the plaintiff, who suffered from a stroke and Parkinson}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s disease, was }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 financially vulnerable.}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 538 U.S. at 434, 123 S. Ct. at 1529.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 State Farm promised the plaintiff that his assets would be safe from an excess liability judgment, but when he sought payment arrangements, he was told to sell his house instead.}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  at 419, 123 S. Ct. at 1521.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
By contrast, Park possesses a degree in business, and further, has ownership interest in 98% of Wushin Corporation, which manages the mini-mart and the service station.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
While Park was behind in his loan payments to Mobil, which ultimately led to the foreclosure of his property, such delinquency cannot be equated with financial vulnerability.}{\cs15\super\insrsid16669878\charrsid2757293 \chftn {\footnote \pard\plain 
\ql \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\super\insrsid16669878 \chftn }{\insrsid16669878  }{\fs20\insrsid16669878  Moreover, it cannot reasonably be argued that Park}{
\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 s financial woes were a result of Mobil}{\fs20\insrsid16669878 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols"
 \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid16669878 s wrongful
\par }\pard \qj \li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 {\fs20\insrsid16669878 conduct.  While Park was delinquent in his loan payments by approximately $84,000, this amount significantly exceeds the $50,000 of actual damages caused by Mobil.  }}}{
\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 See id.}{\insrsid16669878\charrsid2757293  at 434, 123 S. Ct. at 1529 (discussing how plaintiff, who was a stroke victim and suffered from Parkinson}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s disease, was financially vulnerable).
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [54]}{\insrsid16669878\charrsid2757293 \tab The fourth factor requires us to determine whether the wrongful conduct involved repeated actions or was an isolated incident.}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293  at 419, 123 S. Ct. at 1521.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Although the wrongful acts committed against Park spanned several years and therefore may be considered }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 repeated actions,}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  the Supreme Court cases refer to the frequency of 
}{\i\insrsid16669878\charrsid2757293 past}{\insrsid16669878\charrsid2757293  similar conduct of the defendant in question, similar to a repeat offender status in a criminal case.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Citing prior Supreme Court cases, the }{\i\insrsid16669878\charrsid2757293 Campbell}{\insrsid16669878\charrsid2757293  court stated, }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 [a]lthough our holdings that a recidivist may be punished more severely than a first offender recognize that repeated misconduct is more reprehensible than an individual instance of mal
feasance, in the context of civil actions courts must ensure the conduct in question replicates the prior transgressions.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid2757293  }{\insrsid16669878\charrsid2757293 538 U.S. at 423, 116 S. Ct. at 1523.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Further, the Court recognized its prior holding that }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL
 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 courts should look to the existence and frequency of similar past conduct.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid16669878\charrsid2757293 , 116 S. Ct. at 1523 (citing }{\i\insrsid16669878\charrsid2757293 TXO Prod. Corp. v. Alliance Res. Corp.}{
\insrsid16669878\charrsid2757293 , 509 U.S. 443, 462 n.28, 113 S. Ct. 2711, 2722 n.28 (1993) (internal quotation marks and citation omitted)).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
The trial court found that this was an isolated incident because of the nature of the sloped land at Park}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s service station.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 This court agrees and finds that the wrongful conduct which occurred, according to the evidence, was an isolated incident.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [55]}{\insrsid16669878\charrsid2757293 \tab The fifth factor looks to whether the harm resulted from }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293 intentional malice, trickery, or deceit, or mere accident.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 Campbell}{\insrsid16669878\charrsid2757293 , 538 U.S. at 419, 123 S. Ct. at 1521.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 The degree of reprehensibility here is evident in the jury}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s finding of fraud on the part of Mobil, which constitutes deceit.
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [56]}{\insrsid16669878\charrsid2757293 \tab  It must be emphasized that }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 exemplary damages imposed on a defendant should reflect }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 the en
ormity of his offense. . . . This principle reflects the accepted view that some wrongs are more blameworthy than others.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293 , 517 U.S. at 575, 116 S.Ct. at 1599 (quotation marks, citations and footnote omitted).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
While an application of the above five factors shows that Mobil engaged in reprehensible conduct sufficient to support an award of punitive damages to }{\i\insrsid16669878\charrsid2757293 some}{\insrsid16669878\charrsid2757293 
 extent, we hold that, based the first }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293  guidepost, }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 a more modest punishment for this reprehensible conduct could have satisfied the [] legitimate objectives}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293  of punishing wrongdoing and deterring future misconduct by Mobil and others.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Campbell}{\insrsid16669878\charrsid2757293 , 538 U.S. at 4
19, 123 S. Ct. at 1521; }{\i\insrsid16669878\charrsid2757293 see Inter Med. Supplies Ltd. v. EBI Med. Sys., Inc.}{\insrsid16669878\charrsid2757293 , 975 F.Supp. 681, 700-01 (D.N.J. 1997) (}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL
 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 [I]t would be a mistake to equate the purely economic harm . . . with the harm to an unsuspecti
ng public . . . . At bottom, this case . . . is about the collapse of a contractual relationship [which] usually concern private rights, not public rights.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
. . . In light of their limited purpose, punitive damages ought to play a much more circumscribed role in enforcing private rights.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 ) (citation omitted).}{\insrsid16669878 
\par }{\insrsid2757293\charrsid2757293 
\par }\pard \qj \fi-360\li1080\ri1080\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin1080\lin1080\itap0\pararsid2757293 {\b\insrsid16669878\charrsid2757293 2.\tab 
The Disparity Between the Actual or Potential Harm Suffered by the Plaintiff and the Punitive Damages Award}{\insrsid16669878\charrsid2757293 
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0\pararsid2757293 {\insrsid16669878\charrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [57]}{\insrsid16669878\charrsid2757293 \tab In assessing the constitutionality of a punitive damages award, under the second }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293 
 guidepost, we look to the ratio between the compensatory and punitive damages. In the face of a jury verdict which represents a 145 to 1 ratio between punitive and compensatory damages, the }{\i\insrsid16669878\charrsid2757293 Campbell}{
\insrsid16669878\charrsid2757293  court stated:}{\insrsid16669878 
\par }{\insrsid2757293\charrsid2757293 
\par }\pard \qj \li720\ri720\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin720\lin720\itap0\pararsid2757293 {\insrsid16669878\charrsid2757293 Turning to the second }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293 
 guidepost, we have been reluctant to identify concrete constitutional limits on the ratio between harm, or potential harm, to the plaintiff and the punitive damages award.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Gore}{
\insrsid16669878\charrsid2757293 , supra, at 582, 116 S. Ct. 1589 (}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
[W]e have consistently rejected the notion that the constitutional line is marked by a simple mathematical formula, even one that compares actual }{\i\insrsid16669878\charrsid2757293 and potential}{\insrsid16669878\charrsid2757293 
 damages to the punitive award}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 );}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 TXO, supra,}{
\insrsid16669878\charrsid2757293  at 458, 113 S. Ct. 2711.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 We decline again to impose a bright\_line ratio which a punitive damages award cannot exceed.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 Our jurisprudence and the principles it has now established demonstrate, however, that, in practice, }{\i\insrsid16669878\charrsid2757293 few awards exceeding a single\_
digit ratio between punitive and compensatory damages, to a significant degree, will satisfy due process.}{\i\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 In Haslip, in upholding a punitive {\*\bkmkstart Document1zzSDUNumber34}
{\*\bkmkend Document1zzSDUNumber34}damages award, we concluded that an award of more than four times the amount of compensatory damages might be close to the line of constitutional impropriety}{\insrsid16669878\charrsid2757293 .}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 499 U.S., at 23\_24, 111 S. Ct. 1032.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 We cited that 4\_to\_1 ratio again in Gore.}{\insrsid16669878\charrsid2757293  517 U.S., at 581, 116 S. Ct. 1589.}{
\insrsid2757293  }{\insrsid16669878\charrsid2757293 The Court further referenced a long legislative history, dating back over 700 years and going forward to today, providing for sanctions of double, treble, or quadruple damages to deter and punish.}{
\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.,}{\insrsid16669878\charrsid2757293  at 581, and n. 33, 116 S. Ct. 1589.}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 While these ratios are not binding, they are instructive.}{
\insrsid2757293  }{\insrsid16669878\charrsid2757293 They demonstrate what should be obvious:}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Single\_
digit multipliers are more likely to comport with due process, while still achieving the State's goals of deterrence and retribution, than awards with ratios in range of 500 to 1, }{\i\insrsid16669878\charrsid2757293 id.,}{
\insrsid16669878\charrsid2757293  at 582, 116 S. Ct. 1589, or, in this case, of 145 to 1.
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0\pararsid2757293 {\insrsid16669878\charrsid2757293 
\par }{\i\insrsid16669878\charrsid2757293 Campbell}{\insrsid16669878\charrsid2757293 , 538 U.S. at 424-25, 123 S. Ct. at 1524 (emphases added). 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [58]}{\insrsid16669878\charrsid2757293 \tab The }{\i\insrsid16669878\charrsid2757293 Campbell}{\insrsid16669878\charrsid2757293  court further carved out an exception to the general rule that }{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 few awards exceeding a single\_
digit ratio between punitive and compensatory damages, to a significant degree, will satisfy due process.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 It held that }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 because there are no rigid benchmarks that a punitive damages award may not surpass, ratios }{\i\insrsid16669878\charrsid2757293 greater than we have previously upheld}{\insrsid16669878\charrsid2757293 
 may comport with due process}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  only under three circumstances:}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 (1) where }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 the injury is hard to detect}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 ; (2) where }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 a particularly egregious act has resulted in only a small amount of economic damages}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293 ; or (3) where }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
the monetary value of noneconomic harm might have been difficult to determine.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 
Id.}{\insrsid16669878\charrsid2757293  at 425, 123 S. Ct. at 1524 (quoting }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293 , 517 U.S. at 582, 116 S}{\insrsid2757293 . Ct. at 1602) (emphases added)}{
\insrsid16669878\charrsid2757293 .
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [59]}{\insrsid16669878\charrsid2757293 \tab Applying the above proportionality requirements to the facts of this case, we find that the $2.8 million punitive damages award does not comport with due process.}{
\insrsid2757293  }{\insrsid16669878\charrsid2757293 More specifically, compared to the $50,000 award of compensatory damages, the punitive damages award is 56 times the amount of actual harm.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
This results in a ratio of punitive to compensatory damages which equals 56 to 1.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Such disproportionality is not allowed under the facts of this case.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 That is, the three exceptions expressed by }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293  and reiterated in }{\i\insrsid16669878\charrsid2757293 Campbell}{\insrsid16669878\charrsid2757293 
 which would allow for a greater ratio than 4 to 1, do not apply to the facts of this case.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 In particular, Park}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s injury was not hard to detect.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Apparently, Pereda and the Mobil drivers were fully aware of the }{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 injury}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293  to Park.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Moreover, the extent of the economic injury resulting from Mobil}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s failure to credit Park was known, mathematically determined and presented to the jury.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Further, Mobil}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s conduct was not }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293 a particularly egregious act}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  which }{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 resulted in only a small amount of economic damages.}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id}{\insrsid16669878\charrsid2757293 
. Rather, Park suffered purely economic damages in the amount of $50,000, for which he was fully compensated.}{\insrsid16669878 
\par }{\insrsid2757293\charrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [60]}{\insrsid16669878\charrsid2757293 \tab Accordingly, applying the second }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293  guidepost, we hold that disparity between the}{\insrsid2757293  
}{\insrsid16669878\charrsid2757293 punitive damages award and the actual harm, which amounts to a ration of 56 to 1, fails to satisfy due process.}{\insrsid16669878 
\par }{\insrsid2757293\charrsid2757293 
\par }\pard \qj \fi-360\li1080\ri1080\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin1080\lin1080\itap0\pararsid2757293 {\b\insrsid16669878\charrsid2757293 3.\tab 
The Difference Between the Punitive Damages Awarded by the Jury and the Civil Penalties Authorized or Imposed in Comparable Cases.
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid16669878\charrsid2757293 
\par [61]}{\insrsid16669878\charrsid2757293 \tab The final }{\i\insrsid16669878\charrsid2757293 Gore }{\insrsid16669878\charrsid2757293 guidepost requires that we consider the }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 civil penalties authorized or imposed in comparable cases.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293 , 517 U.S at 575. 116 S. Ct. at 1598-99.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Park directs the court}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s attention to Guam}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s Deceptive Trade Practices Act, wherein }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 charging or attempting to charge a consumer for goods or services not provided}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293  gives rise to a }{\i\insrsid16669878\charrsid2757293 maximum}{\insrsid16669878\charrsid2757293  penalty of $5,000 }{\i\insrsid16669878\charrsid2757293 per violation}{\insrsid16669878\charrsid2757293 .}{\insrsid2757293  }{
\i\insrsid16669878\charrsid2757293 See}{\insrsid16669878\charrsid2757293  Title 5 GCA }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
 32201(b)(10) (1996); Title 5 GCA }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  32127 (1996).}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 Further, Park argues that because the sale of fuel involves interstate and foreign commerce, the Federal Trade Commission}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s prohibition of unfair and deceptive trade practices, 15 U.S.C. }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293  45(m)(1)(A), provides yet another comparable civil penalty.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Park argues that under the federal statute, each violation is subject to a $10,000 maximum penalty for each violation.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
In sum, Park argues that these maximum fines should therefore be multiplied by 443, the number of }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
violations}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  committed by Mobil, which would equal approximately 
$2.2 million under the local statute and $4.43 million under the federal statute.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
Park concludes that the $2.8million punitive damages amount awarded by the jury falls within a range of comparable civil penalties, and thus, the jury award does not violate due process.}{\cs15\super\insrsid16669878\charrsid2757293 \chftn {\footnote 
\pard\plain \ql \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\super\insrsid16669878 \chftn }{\insrsid16669878  }{\fs20\insrsid16669878 
The third guidepost also requires us, in the alternative, to consider penalties actually imposed in comparable
\par }\pard \qj \li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 {\fs20\insrsid16669878 cases.  }{\i\fs20\insrsid16669878 In re Exxon Valdez}{\fs20\insrsid16669878 , 270 F.3d 1215, 1245-46 (9th Cir. 2001) (vacating punitive award in light of }{
\i\fs20\insrsid16669878 Gore}{\fs20\insrsid16669878 
; in evaluating penalties for comparable conduct, looking not only to maximum statutory penalties, but to the fine actually imposed for violating the statutory mandate).  We note that neither Park nor Mobil have provided this court with any actual compara
ble cases and we have found none.  }}}{\insrsid2757293  }{\b\insrsid16669878\charrsid2757293 [62]}{\insrsid16669878\charrsid2757293 \tab In }{\i\insrsid16669878\charrsid2757293 Johansen v. Combustion Eng}{\i\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\i\insrsid16669878\charrsid2757293 g, Inc}{\insrsid16669878\charrsid2757293 
., 170 F.3d 1320 (11th Cir. 1999), the Eleventh Circuit disagreed with an argument similarly raised by the plaintiff and chose not to rely solely on the maximum civil penalty in making its comparison to the punitive damages under the third }{
\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293  prong.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 In }{\i\insrsid16669878\charrsid2757293 Johansen}{\insrsid16669878\charrsid2757293 
, the Eleventh Circuit explained that as a matter of due process, }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 it cannot be pr
esumed that the defendant had notice that the state's interest in the specific conduct at issue in the case is represented by the }{\i\insrsid16669878\charrsid2757293 maximum}{\insrsid16669878\charrsid2757293  fine provided by the statute.}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id. }{\insrsid16669878\charrsid2757293 at 1337 (emphasis added).}{\insrsid2757293 
 }{\insrsid16669878\charrsid2757293 Rather, }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
constitutionally adequate notice of potential punitive damage liability in a particular case depends upon whether th[e] defendant had reason to believe that his specific conduct could result in a particular damage award.}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 This is because }{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 [t]he point at which an award falls within the available range should bear some relation to the egregiousness of the case.}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Iannone v. Frederic R. Harris, Inc.}{\insrsid16669878\charrsid2757293 
, 941 F.Supp. 403, 415 (S.D.N.Y. 1996) (finding that an award which represented more than eighty percent of the maximum civil penalty available under the law was unreasonably high in relation to the egregiousness of defendant}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s conduct). 
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [63]}{\insrsid16669878\charrsid2757293 \tab Assuming }{\i\insrsid16669878\charrsid2757293 arguendo}{\insrsid16669878\charrsid2757293  that the local and federal statutes prohibit Mobil}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s actions in this case, we find that while t
he aggregate maximum civil penalties are arguably comparable to the $2.8 million punitive damages award, the jury}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s award of $2.8 million is unreasonably high and bears no }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
relation to the egregiousness of the case.}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Id.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 Thus, we agree with the trial court}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
s holding that the $2.8 million punitive damages award violates due process.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 This conclusion is underscored by the Supreme Court}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s directive that }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 the }{\i\insrsid16669878\charrsid2757293 most important indicium}{\insrsid16669878\charrsid2757293  of the reasonableness of a punitive damages award is the degree of reprehensibility of the defendant's conduct.}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293  }{\i\insrsid16669878\charrsid2757293 Campbell}{\insrsid16669878\charrsid2757293 
, 538 U.S. at 419, 123 S. Ct. at 1521 (quoting }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293 , 517 U.S. at 575, 116 S. Ct. at 1599) (brackets omitted, emphasis added).}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 
As we have previously stated, our application of the five factors to determine the degree of reprehensibility indicates that }{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 a more modest punishment for this reprehensible conduct could have satisfied the [] legitimate objectives of punishing wrongdoing and deterring future misconduct by Mobil and others.}{\insrsid16669878\charrsid2757293 
{\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2757293  }{\i\insrsid16669878\charrsid2757293 Campbell}{\insrsid16669878\charrsid2757293 , 538 U.S. at 419, 123 S. Ct. at 1521.
\par }{\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [64]}{\insrsid16669878\charrsid2757293 \tab Accordingly, applying the three guideposts articulated in }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293  and refined by }{
\i\insrsid16669878\charrsid2757293 Campbell}{\insrsid16669878\charrsid2757293 , we hold that the trial court}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid16669878\charrsid2757293 s grant of the judgment notwithstanding the verdict, which reduced the amount of punitive damages in this case to $150,000, was proper.
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid16669878\charrsid2757293 IV.}{\insrsid16669878\charrsid2757293 
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1080\tx-720\tx0\tx720\tx1080\faauto\rin0\lin0\itap0\pararsid2757293 {\b\insrsid2757293 
\par }{\b\insrsid16669878\charrsid2757293 [65]}{\insrsid16669878\charrsid2757293 \tab We hold that substantial evidence exists to support the jury}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid16669878\charrsid2757293 s finding that a managerial agent of Mobil authorized the fraud inflicted upon Park and thus, we uphold the award of punitive damages against the corporate entity of Mobil Oil Guam, Inc.}{\insrsid2757293  }{
\insrsid16669878\charrsid2757293 We further hold, in the face of the jury}{\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 
s award of $50,000 in compensatory damages, that the punitive damages award of $2.8 million is unconstitutional under the principles articulated in }{\i\insrsid16669878\charrsid2757293 Gore}{\insrsid16669878\charrsid2757293 
, and therefore, the trial court properly reduced the punitive damages award to $150,000.}{\insrsid2757293  }{\insrsid16669878\charrsid2757293 Accordingly, we }{\b\insrsid16669878\charrsid2757293 AFFIRM}{\insrsid16669878\charrsid2757293  the trial court}{
\insrsid16669878\charrsid2757293 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid16669878\charrsid2757293 s Amended Judgment.
\par }}