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Williams v. Wilson4/16/1998
Graves, Lambert, Stumbo, Wintersheimer, JJ., and Special Justice Ronald P. Hillerich concur. Stephens, C.J., concurs with separate opinion. Cooper, J., Dissents by separate opinion.
OPINION OF THE COURT BY JUSTICE LAMBERT
AFFIRMING
This Court granted discretionary review (CR 76.20) to consider whether KRS 411.184 violates one or more provisions of the Constitution of Kentucky, thereby rendering the statute invalid and unenforceable. To resolve this question of constitutional law, it is necessary to first determine whether, in material respects, the statute impairs the common law of this Commonwealth as it existed prior to adoption of our present Constitution, thereby implicating the doctrine of jural rights. In the event we determine that the statute does change well settled common law with respect to recovery of punitive damages, we will proceed to re-examine the doctrine of jural rights as it has been attacked in this forum as erroneous and unsound.
In 1988 the Kentucky General Assembly considered broad tort reform legislation embodied in HB 551. From among the proposals, the Legislature enacted a statute codified at KRS 411.184 intended to modify Kentucky law with respect to punitive damages. Sparks, A Survey of Kentucky Tort Reform, 17 Northern Ky. L. Rev. 473 (1989). In general, the intent of the Legislature was to redefine the circumstances in which punitive damages were recoverable, and toward that end a new legal standard was established. Departing from the traditional common law standard which permitted a jury to impose punitive damages upon a finding of gross negligence as measured by an objective standard, the new statutory Standard, here under review, requires a determination that the defendant acted with "flagrant indifference to the rights of the plaintiff and with a subjective awareness that such conduct will result in human death or bodily harm." It also requires proof by clear and convincing evidence. The Fayette Circuit Court and the Court of Appeals decided the constitutional question and invalidated the statute on the view that it offends Sections 14, 54 and 241 of the Constitution of Kentucky. Both courts below held that the statute effectively destroyed the common law right of action for punitive damages and that such was precluded by the doctrine of jural rights.
The facts which give rise to this litigation are unremarkable but not unimportant. On May 18, 1990, at 7:00 a.m., appellee, Patricia Lynn Herald Wilson, was en route to the place of her employment as a school teacher. As she approached the intersection of Man-O-War and Palumbo in Lexington, she was struck by the vehicle being driven by appellant, a person who was intoxicated. At the scene, appellant was arrested and charged with DUI. She subsequently pled guilty to DUI in the Fayette District Court.
Appellee commenced litigation in the Fayette Circuit Court claiming compensatory and punitive damages. Appellant did not personally participate in the litigation although she was before the court and was represented by counsel. Appellee was unable to take appellant's deposition and appellant did not appear at trial or make an in-person defense.
At trial and after the close of all the evidence, appellant objected to the giving of an instruction on punitive damages. She asserted that the evidence did not support such an instruction due to the absence of evidence of her subjective awareness that her conduct would result in death or bodily harm. In response to this contention the trial court agreed with appellant, and for appellee's failure to present proof required by KRS 411.184, refused to give a punitive damages instruction. Appellee then modifie
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