# United States v. Rupp

> District Court, E.D. Missouri · January 31, 2022

URL: https://www.frixlaw.com/law-library/cases/10236432

## Case

- **Court:** District Court, E.D. Missouri
- **Decided:** January 31, 2022
- **Opinion:** 100trialcourt
- **Cited by:** 0 later opinions in the Frix Law Library

## Citator (automated)

- No negative treatment found by the automated citator. That is not the same as a confirmation that the case is good law; read the citing cases.
- Full citator and citing cases: https://www.frixlaw.com/law-library/cases/10236432

## How later opinions describe it (automated extraction)

- finding “significant noneconomic harm” where the plaintiff had been removed Campbell from his home, detained against his will, and required to attend court hearings on two different days

## Opinion text

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MISSOURI
EASTERN DIVISION

UNITED STATES OF AMERICA, )
)
Plaintiff, )
)
v. ) Case No. 4:19-CV-02644-SEP
)
LOUIS A. RUPP, II, et al., )
)
MEMORANDUM AND ORDER
Defendants. )

1
Before the Court is Defendant’s Rule 50 Motion to Set Aside the Punitive Damages
Award, or in the Alternative, Defendant’s Rule 59 Motion to Reduce the Amount of Punitive
Damages Awarded. Doc. 113. For FthAeC TrSe aAsNoDn Bs AsCeKt GfoRrOtUhN bDe low, the Motion is denied.
In 2016, Laura Erwin and Martin Teal applied to lease an apartment from Defendant.
Id.
Doc. 56 at 1. Defendant provided the Erwin-Teals with a lease that included the clause, “NO
Id.
CHILDREN.” The Erwin-Teals wrote on the application that their six-year-old son would
be living with them and returned it to Defendant. Defendant agreed to lease an apartment
Id.
to them for a term of one year but stated that the lease was “being entered on a trial basis in
consideration of the ‘NO CHILDREN’ clause[.]” Throughout the term, the Erwin-Teals
Id.
often paid their rent late, but the resulting notices threatened only the imposition of late fees,
Id.
which Plaintiffs paid. After the lease expired, they remained tenants on a periodic, month-
Id.
to-month basis. In May 2017, they accepted an offer from Defendant to renew their lease,
which purported to incorporate the terms of the original lease. Six weeks later, Defendant
sent them a notice to vacate the premises by July 31st, stating that they had underpaid their
Id.
last late fee by $15, and “more importantly,” he had learned that their son had been living in
the apartment full-time and that Ms. Erwin had recently given birth to a second child. at

1
This case originally included two defendants, Louis and Pauline Rupp, in their capacity as trustees
for the Louis A. Rupp II Revocable Trust. After judgment was entered, and prior to the filing of this
Id.
1-2. Defendant concluded that he had “no alternative” but to terminate their lease, due to
their “total disregard for the terms and conditions” of the contract. at 2.
The Erwin-Teals filed a complaint with the Department of Housing and Urban
Development, which investigated the complaint and issued a Charge of Discrimination on
. Id.
July 11, 2019. Doc. 56 at 2. Defendant elected to resolve the complaint in federal court, and
the United States subsequently initiated this action
On§ May 2e 8t , s 2e 0q 2.
1, the Court ruled
that Defendant had violated the Fair Housing Act, 42 U.S.C. 3601 , by discriminating
against the Erwin-Teals and their two minor children based on familial status. Doc. 56 at 8.
A jury trial was held on the sole issue of damages in August 2021. Docs. 92, 94, 95. The
evidence included live witness testimony from Ms. Erwin, Mr. Teal, Mr. Rupp, the former
Missouri Commission on Human Rights investigator who investigated the Erwin-Teal’s HUD
complaint, and video deposition testimony of the Erwin-Teals’ former neighbors. Docs. 93,
117, 118. At both the close of the United States’ case and the close of evidence, Defendant
moved for judgment as a matter of law. The Court denied the motions, finding that the
inquiry depended “on credibility determinations that are in the proper domain of the jury,”
and declining to “substitute [its] credibility determination for theirs.” Doc. 117 at 250:3-20;
Doc. 118 at 106:12-107:5. The jury returned a verdict awarding $14,400 in compensatory
2 3
damages and $60,000 in punitive damages. Doc. 109.
Defendant now argues that the punitive damages award should be set aside under
Federal Rule of Civil Procedure 50(b) because there was not a legally sufficient basis for the
Court to submit the issue of punitive damages to the jury. Doc. 113 at 1. In the alternative,
Defendant argues that the $40,000 in punitive damages awarded to the two children was
grossly excessive in violation of the Due Process Clause of the Fourteenth Amendment, and
Id.
that, pursuant to Federal Rule of Civil Procedure 59(e), the Court should reduce the award
from $40,000 to $5,000. at 3. The United States counters that there was sufficient
evidence to submit the issue of punitive damages to the jury and that the resulting award of
punitive damages was not excessive. Doc. 120 at 2, 8.

2
LEGAL STANDARD

Federal Rule of Civil Procedure 50(b) allows a party to renew a motion for judgment
as a matter of law previously made under Rule 50(a). In ruling on the motion, a court may
allow judgment on the verdict, order a new trial, or direct the entry of judgment as a matter
of law. Fed. R. Civ. Proc. 50(b)(1)–(3). “The law places a high standard on overturning a jury
Bavlsik v. General Motors, LLC
verdict because of the danger that the jury’s rightful province will be invaded when judgment
as a matter of law is misused.” , 870 F.3d 800, 805 (8th Cir.
2017) (quotation marks and citation omitted). “Judgment as a matter of law is appropriate
Allstate Indemnity Co. v. Dixon
only when all of the evidence points one way and is susceptible of no reasonable inference

sustaining the position of the nonmoving party.” , 932 F.3d
696, 702 (8th Cir. 2019)(quotation marks and citation omitted). A court should review all
Reeves v. Sanderson Plumbing Products, Inc.
of the evidence in the record and “draw all reasonable inferences in favor of the nonmoving
party.” , 530 U.S. 133, 150 (2000) (citations
Id.
omitted). “Credibility determinations, the weighing of the evidence, and the drawing of
legitimate inferences from the facts are jury functions, not those of a judge.” (quotation
Bavlsik
marks and citation omitted). The court must “deny the motion if reasonable persons could
differ as to the conclusions to be drawn from the evidence.” , 870 F.3d at 805.
See
Federal Rule of Civil Procedure 59(e) allows a party to file a motion to alter or amend
a judgment on grounds that, among other th§ings, the damages award was excessive.
WRIGHT & MILLER, 11 Fed. Prac. & Proc. Civ. 2807 (3d ed.). “A Rule 59(e) motion ‘is not
Clemens v. Local One, Serv. Emps. Int’l Union
intended to routinely give litigants a second bite at the apple, but to afford an opportunity
Barnett v. Roper
for relief in extraordinary circumstances.’” , 2019
WL 5579584, at n.1 (E.D. Mo. Oct. 29, 2019) (quoting , 941 F. Supp. 2d 1099,
1104 (E.D. Mo. 2013)). “Rule 59(e) motions serve the limited function of correcting manifest
Harris v. United States
errors of law or fact or to present newly discovered evidence, and allow a court to correct its
Innovative Home Health Care, Inc. v. P.T.-O.T.
own mistakes in the time immediately following judgment.” , 2018 WL
Assocs. of the Black Hills
6305593, at * 1 (E.D. Mo. Dec. 2, 2018) (citing
, 141 F.3d 1284, 1286 (8th Cir. 1998)).
DISCUSSION
I. Submission of punitive damages to the jury was proper.

The FHA permits an award of punitive damages for victims of discriminatory housing
practices “‘when the defendant’s conduct is shown to be motivated by evil motive or intent,
Badami v. Flood Smith v. Wade
or when it involves reckless or callous indifference to the federally protected rights of
Eighth Circuit
others.’” , 214 F.3d 994, 997 (8th Cir. 2000) (quoting , 461 U.S.
Model Civil Jury Instructions
30, 56 (1983)). Jury Instruction No. 19—modeled on Instruction 5.72 of the
(2020)—provided that the jury could award punitive damages
against Defendant if they determined that he had “acted with malice or reckless indifference
to the rights” of the Erwin-Teals. Doc. 96 at 28-29. It further instructed the jury that “Mr.
Rupp acted with malice or reckless indifference” if “it has been proved that Mr. Rupp knew
his conduct was in violation of the law prohibiting discrimination against families with
children in housing, or acted with reckless disregard of that law.” Doc. 96 at 28.
Defendant argues that “the jury lacked a legally sufficient evidentiary basis to find for
the claimants on their claim for punitive damages,” because “the record was devoid of any
e§vidence concerning Mr. Rupp’s knowledge of the Fair Housing Act and, specifically, 42 U.S.C.
3604 prohibiting discrimination against families with children.” Doc. 113n aot t3. Defendant
id.
claims that “the only evidence going to Mr. Rupp’s knowledge is that he was aware of the
prohibition,” at 2, though he neglects to cite any evidence. Notably, Defendant’s Motion
addresses only the character of the evidence related to his awareness of the FHA, and
specifically of its prohibition of discrimination against families with children; it does not
address whether Defendant might have “acted with reckless disregard of the law.” Doc. 96
at 28.
In response, the United States argues that the evidence was sufficient for a reasonable
jury to conclude that Defendant knew discrimination on the basis of familial status was
unlawful, but also that a showing of actual knowledge was not necessary, because there was
sufficient evidence for a reasonable jury to conclude that Defendant acted with reckless
disregard of the law. Doc. 120 at 3-5.
or
As provided in Instruction No. 19, the jury was allowed to impose punitive damages
if it found that Defendant “knew his conduct was in violation of the law . . . acted with
Exxon Shipping Co. v. Baker
intentional or malicious, nor is it necessarily callous toward the risk of harming others, as
opposed to unheedful of it.” , 554 U.S. 471, 493 (2008). Conduct
is reckless if the actor “had reason to know of facts which create a high degree of risk of harm
Id.
to another, and deliberately proceeds to act, or fail to act, in conscious disregard of, or
indifference to, that risk.” at 493-94 (cleaned up and quotation marks omitted) (quoting
Restatement (Second) of Torts § 500 (1965)). Thus, in the FHA context, the Eighth Circuit
Badami
has counseled that a defendant can be liable for punitive damages if he “discriminate[s] in
the face of a perceived risk that [his] actions will violate federal law . . . .” , 214 F.3d
at 997 (quotation marks and citation omitted).
Based on Defendant’s own testimony, he has owned rental properties since the
1970s; he currently owns eight properties comprising 32 units; and he has had more than
100 tenants over his career as a landlord. Doc. 117 at 101:14-102:19, 108:22-109:5.
Defendant also testified that, at the time of his unlawful discrimination against the Erwin-
Id.
Teals, he knew that it was unlawful to discriminate on the basis of race, disability, sex, or
Id.
religion. at 122:20-123:20. Defendant has a mechanical engineering degree and worked
id.
as “Director of Packaging” at both Ralston Purina (for 26 years) and a construction firm.
id.
at 118:9-119:23. He testified that he consumes the news “profusely,” at 119:6-20; that he
is aware that “laws change over time,” 120:6-23; and that he has experience with legal
Id.
requirements related to rental property management, such as inspections, rent and late fees,
bookkeeping, taxes, maintenance, and eviction proceedings. at 112:22-118:8, 119:6-20,
120:6-23.
Notwithstanding all of the above, Defendant claimed to have been wholly unaware
Id.
that it was illegal to discriminate on the basis of familial status right up until he became
aware of the Erwin-Teals complaint to the Missouri Human Rights Commission. at
Id.
108:22-109:7. And he denied ever researching “housing discrimination” or “fair housing”
between 1990 and 2017. at 109:8-112:16.
Based on Defendant’s testimony, a reasonable jury could have concluded that he
discriminated against families with children in the face of a perceived risk that his actions
4
violated federal law. Given his admitted awareness of anti-discrimination law generally and
his evident familiarity with other laws governing landlord-tenant relationships, a reasonable
factfinder could have found that he “had reason to know” that the categorical exclusion of
Exxon Shipping Co.
applicants with children posed “a high degree of risk” of violating prospective tenants’ legal
rights, and that he acted in “conscious disregard” of that risk. , 554 U.S. at
493. That conclusion would have found support in evidence introduced by the United States
after id.
that Defendant included the illegal “NO CHILDREN” provision in a lease signed seven months
he learned of the Erwin-Teals’ FHAs eceo mplaint against him, at 92:10-93:7, which
5
arguably contradicted his own testimony, Doc. 118 at 23:17-24:1; 89:15-90:11.
Thus, based on the trial record, a reasonable jury could have found that Defendant
acted with reckless disregard of the law in discriminating against the Erwin-Teals on the
basis of their family status. Therefore, the Court’s decision to submit the issue of punitive
damages to the jury was justified. Because reasonable minds could differ as to the
Bavlsik
conclusions to be drawn from the evidence, Defendant has not met the high standard
necessary to overturn a jury verdict. , 870 F.3d at 805. Defendant’s Rule 50(b) Motion
mII.u st thTehreef opruen bitei vdee ndiaemd. a g es award was not excessive.
Defendant argues in the alternative that the jury’s verdict should be altered under
Federal Rule of Civil Procedure 59(e) to reduce the punitive damages awarded to the two
minor children from $20,000 per child to $2,500 per child. Doc. 113 at 3. Defendant claims
that the punitive damages award was grossly excessive in violation of due process. Doc. 113
at 3. Upon consideration of the facts of this case in light of the applicable legal standards, the
Court disagrees.
Ondrisek v. Hoffman
“The Due Process Clause of the Fourteenth Amendment prohibits ‘grossly excessive’
civil punishment.” , 698 F.3d 1020, 1028 (8th Cir. 2012) (citations

4
Because this finding is sufficient to support its decision to send the quest ion of punitive damages
to the jury, the Court declines to consider whether a reasonable jury could have found that
D5 efendant acted with actual knowledge that his conduct violated the FHA.
Defendant’s counseSle ed iRde eelviceist testimony intended to reconcile the apparent contradiction, Doc.
118 at 94:16-95:2, and this Court does not presume to substitute its own credibSileitey determination
Id. Stogsdill v.
omitted). “[P]unitive damages are grossly excessive if they ‘shock the conscience . . . [or]
Healthmark Partners, LLC
demonstrate a passion or prejudice on the part of the trier of fact.’” (quoting
, 377 F.3d 827, 832 (8th Cir. 2004)). The Supreme Court has
provided three “guideposts” to follow when determining whether a punitive damages award
was excess ive:
[1] the degree of reprehensibility of the defendant’s misconduct;
[2]the disparity between the actual or po tential harm suffered by the plaintiff
and the punitive damages award; and
[3]the difference between the punitive damages awarded by t he jury and the
State Farm Mutual Auto Ins. Co. v. Campbell BMW of N. Am.,
civil penalties authorized or imposed in comparable cases.
Inc. v. Gore
, 538 U.S. 408, 418 (2003) (citing
, 517 U.S. 559, 575 (1996)).
Dean v. Olibas
“The Supreme Court has stated that ‘a judgment that is a product of fair procedures
TXO Prod. Corp. v. Alliance Res. Corp.
is entitled to a strong presumption of validity.’” , 129 F.3d 1001, 1006 (8th Cir.
1997) (cleaned up) (quoting , 509 U.S. 443, 454 (1993)).
Gore
Defendant does not dispute the fairness of the procedures employed at his trial. This Court
Dean
therefore begins its review of ’s three guideposts with a presumption that the punitive
damageAs. awReaprdr eish ceonnssibtiitluittiyo nal. , 129 F.3d at 1006.
Boerner v. Brown & Williamson Tobacco Co.
The most important guidepost is the degree of reprehensibility of a defendant’s
Campbell Gore
conduct. , 394 F.3d 594, 602 (8th Cir. 2005)
(quoting , 538 U.S. at 419; , 517 U.S. at 575). The degree of reprehensibility of
a defendan t’s conduct is analyzed in light of five factors, including whether:
[1] the harm caused was physical as opposed to economic;
[2]the tortious conduct evinced an indifference to or a reckless disregard of
the health or safety of others;
[3] the target of the conduct had financial vulnerability;
[4] the conduct involved repeated actions or was an isolated incident; and
[5]the harm was the result of intentional malice, trickery, or deceit, or mere
Campbell Gore
accident.
See e.g. Dean
Applied to this case, the first factor weighs in favor of finding Defendant’s conduct
reprehensible, because it did cause the Erwin-Teals noneconomic harm. , , , 129
F.3d at 1007 (finding “significant noneconomic harm” where the plaintiff had been removed
Campbell
from his home, detained against his will, and required to attend court hearings on two
different days); , 538 U.S. at 426 (fact that “harm arose from a transaction in the
economic realm, not from some physical assault or trauma [and] there were no physical
injuries” militated against reprehensibility). Most notably, the Erwin-Teals were required to
Dean
physically move out of their home. They were not forcibly removed from their home by the
Dean
police as in , but the Erwin-Teals—a family of 4, including a newborn—were
See, e.g.
permanently evicted, not just temporarily removed as in , and they had to quickly find
a new place to live and then pack and move their belongings. , Doc. 116 at 198:24-
199:9. In addition, Ms. Erwin testified that she had planned to take two-and-a-half months
off work to recover from her C-section and bond with both children, but because the family
needed proof of income to find a new apartment, she had to go back “about five weeks or so
after [the baby] was born.” Doc. 116 at 182:7-22; 197:9-198:17. Such noneconomic harms
support a finding of reprehensibility.
The second factor also favors reprehensibility. Evicting the Erwin-Teals shortly after
the arrival of their second child by C-section does evince indifference to or reckless disregard
for the health and safety of at least the recently delivered mother and the newborn, if not
also the firstborn child, who was still very young. And that conclusion is only bolstered by
Defendant’s admitted awareness of the Erwin-Teals’ financial vulnerability, which is the
6
third factor supporting reprehensibility. Doc. 113 at 5.
The fourth factor—whether “the conduct involved repeated actions or was an
isolated incident”—also supports finding Defendant’s conduct reprehensible. Defendant
admits to violating the FHA’s prohibition of discrimination against families with children
consistently for more than 30 years. Defendant points to the lack of evidence that he had
all
ever before been accused of violating the FHA. Doc. 113 at 5. But he also admitted to having
consistently used the “NO CHILDREN” clause in of his leases for more than four decades—

6
three decades of which post-dated the enactment of the FHA’s prohibition on familial status
discrimination. Doc. 117 at 103:20-104:1. There is no way to assess how many prospective
tenants were alienated by that practice. Moreover, Defendant’s claim that “once he was
informed that the conduct at issue was improper, [he] changed his leases to remove the
see supra
offending language,” Doc. 113 at 5-6, was called into question by his testimony on cross
examination. Doc. 118 at 90:14-93:7; at n. 5 and accompanying text. Thus,
although it is true that the United States introduced no evidence of previous complaints
Campbell
against Defendant, it is also undeniable that Defendant’s discriminatory conduct was not an
“isolated incident.” , 538 U.S. at 419.
The fifth factor does not weigh in favor of either party’s position. There is no evidence
that the harm was the result of malice, trickery, or deceit; however, there is likewise no
evidence that the harm was the result of mere accident. Therefore, the Court will not
consider this factor.
In sum, four of the five factors support reprehensibility, and no factor weighs against.
Because the degree of reprehensibility is the most important of the three guideposts, that
finding significantly reinforces the presumption that the jury’s award of punitive damages
was conBs.t itDuitsiponaaril.t y Between Compensatory and Punitive Damages
Gore
The second guidepost invites examination of “the disparity between the actual
Campbell Gore
or potential harm suffered by the plaintiff”—that is, compensatory damages—"and the
punitive damages award.” , 538 U.S. at 418 (citing , 517 U.S. at 575). The ratio
Gore
between the two is “perhaps [the] most commonly cited indicium of an unreasonable or
excessive punitive damages award.” , 517 U.S. at 580. Although the analysis primarily
potential harm
focuses on the disparity between compensatory and punitive damages, it is also appropriate
TXO
for the court “to consider the magnitude of the . . . to other victims that might
have resulted if similar future behavior were not deterred.” , 509 U.S. at 460 (emphasis
in original). The Supreme Court has declined “to impose a bright-line ratio which a punitive
Campbell
damages award cannot exceed”; however, “in practice, few awards exceeding a single-digit
ratio . . . will satisfy due process.” , 538 U.S. at 425.
The jury awarded $20,000 in punitive damages and $1,000 in compensatory damages
See Quigley v. Winter
damages awarded to each minor child is excessive and should be reduced. Doc. 113 at 7-9.
Szwast v.
Defendant offers several cases to support reduction. , 598 F.3d 938,
Carlton Apts.
955-56 (8th Cir. 2010) (reduced an award from an 18-to-1 ratio down to 4-to-1);
Walsh
, 102 F. Supp. 2d 777, 784 (E.D. Mich. 2000) (reduced a punitive damages award
v. National Computer Systems, Inc.
from $400,000 to $30,000, finding the issue of reprehensibility to be a “mixed bag”);
, 332 F.3d 1150, 1162 (8th Cir. 2003) (affirming a 3-to-1
ratio).
The United States argues that, by analyzing each child’s award individually, rather
than the general damages award collectively, Defendant has improperly inflated the relevant
ratio. Doc. 120 at 10. According to the United States, the Erwin-Teals’ damages should first
Id.
be aggregated as a whole and only then should the Court compare the two types of damages.
general
The Court agrees. “[C]ourts must ensure that the measure of punishment is both
damages recovered Campbell
reasonable and proportionate to the amount of harm to the plaintiff and to the
.” , 538 U.S. at 426 (emphasis added). Where a monetary
U.S. v. Veal
judgment will eventually be paid to multiple individuals, it is still appropriate to view the
see also U.S. v. Big D Enters., Inc.
punitive and compensatory damages collectively. , 365 F. Supp. 2d 1034, 1040 n.3
(W.D. Mo. 2004); , 184 F.3d 924, 933 (8th Cir. 1999)
one
(aggregating damages among two defendants and three victims to form one determinable
Veal .
ratio). This is especially true when, as is the case here, “there is only plaintiff in [the]
case—the United States of America.” , 365 F. Supp. 2d at 1040 n.3 In the aggregate, the

damages awarded in this case were $60,000 in punitive damages and $14,400 in
7
compensatory damages. Thus, the correct ratio to scrutinize is approximately 4-to-1.
The 4-to-1 ratio of aggregate punitive to compensatory damages in this case does not
See Masters v. City of Independence
so clearly violate due process that it could justify this Court overturning the jury’s verdict. It
Campbell
is not a constitutionally suspect double-digit ratio. , 998
See,
F.3d 827, 841 (8th Cir. 2021) (quoting , 538 U.S. at 425). Moreover, some courts
e.g. Veal
have upheld higher ratios where, as here, there is a relatively low compensatory award.
, , 365 F. Supp. 2d at 1039-40 (upholding $1,055,000 punitive award based on a 22-
to-1 ratio, “given the relatively low compensatory award [of $47,804], the reprehensibility
. . . and the fact that the harm was primarily noneconomic”).
Big D Enters. Pacific Mut. Life
Defendant’s degree of reprehensibility is not “weak,” such that “a 4 to 1 ratio would
Ins. Co. v. Haslip
test the outer limits of acceptability.” , 184 F.3d at 933 (citing
Id.
, 499 U.S. 1, 23 (1991)). In fact, in a case where the other guideposts are
TXO
strong, the Eighth Circuit has indicated that a 526-to-1 ratio may be appropriate. (citing
, 509 U.S. at 443).
Big D Enters.
Additionally, “a defendant’s financial worth is traditionally admissible for the purpose
Campbell
of evaluating the amount of punitive damages that should be awarded,” , 184
Gore TXO
F.3d at 932, especially because one of the goals of punitive damages is deterrence. ,
538 U.S. at 419 (citing , 517 U.S. at 576-77); , 509 U.S. at 460. Given Defendant’s net

worth of more than $4 million and his long history of using the unlawful “NO CHILDREN”
clause, the jury could have intended the 4-to-1 ratio as a deterrent. Finally, Defendant
SeeQuigley McKee
himself cites several cases where ratios of 4-to-1 or higher were either upheld or imposed
v. Reuter Ogden v. Wax Works,
on reduction from an unacceptable award. , 598 F.3d at 955-56 (4-to-1);
Inc. Masters
, 2019 WL 6250845, at *9 (E.D. Mo. Nov. 17, 2016) (5-to-1);
, 214 F.3d 999, 1011 (8th Cir. 2000) (6.5-to-1); , 998 F.3d at 842 (9-to-1).
TherefoCr.e , Cthoem Cpoaurrits foinnd tso tChiavti lt hPee 4n-atlot-i1e sr atio does not violate due process in this case.
Gore
The third and final guidepost directs a court to compare the punitive damages
award with the potential civil penalties authorized by statute in comparable cases. For the
purposes of that comparison, aggregating the punitive damages award—i.e., taking the
relevant number to be $60,000, rather than Defendant’s preferred per-child amount of
$20,000—works in favor of Defendant. Nonetheless, it does not decisively support reduction
of the damages award.
§ Defendant claims that the most comparable civil penalty is found at 42 U.S.C.
See
3612(g)(3)(A). Adjusted for inflation, that provision provides for a maximum penalty in a
comparable case of $20,111. Adjustment of Civil Monetary Penalty Amounts for 2017,
82 Fed. Reg. 24,521, 24,523 (May 20, 2017§). The United State§s claims that the more
comparable civil penalty is found at 42 U.S.C. 3614 and 28 C.F.R. 85.5. Those provisions
The Court does not have to determine which civil penalty is more comparable to the
award in this case, because the choice of comparator does not affect its conclusion. Even
assuming that Defendant is correct that the $60,000 punitive damages award is three times
the $20,111 comparable civil penalty, that disparity would not outweigh the other two Gore
factors. The Gore factors are but “guideposts,” and should be evaluated “as a whole.” Gore,
517 U.S. at 574; Bid D Enters., 184 F.3d at 934. Gore did not make comparable civil penalties
a cap on punitive damages awards; rather, it stated that courts should afford “substantial
deference to legislative judgments concerning appropriate sanctions for the conduct at
issue.” 517 U.S. at 574 (quotation marks and citation omitted). Later, in a case involving a
comparable civil penalty of $10,000, the Supreme Court observed that a punitive damages
award “at or near” $1 million likely would have been justified. Campbell, 538 U.S. at 429. In
this case, in light of the other Gore factors, the Court finds that the punitive damages award
is justified even at three times the comparable civil penalty.
In light of the foregoing, the punitive damages awarded in this case were not grossly
excessive. The presumption of constitutionality owed to the jury’s decision is reinforced by
two of the three Gore guideposts, including the “most important” of the three. Boerner, 394
F.3d at 602 (quoting Campbell, 538 U.S. at 419; Gore, 517 U.S. at 575). Therefore, “evaluating
the Gore guidepost factors as a whole,” the Court concludes that the jury’s award does not
violate due process. Big D Enters., 184 F.3d at 934.
Accordingly,
IT IS HEREBY ORDERED that Defendant’s Rule 50 Motion to Set Aside the Punitive
Damages Award, or in the Alternative, Defendant’s Rule 59 Motion to Reduce the Amount of
Punitive Damages Awarded (Doc. [113]) is DENIED.
Dated this 315 day of January, 2022.

Chosck Li ig
SARAH E. PITL
UNITED STATES DISTRICT JUDGE

12

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Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/10236432. Public record. Not legal advice.