MLJ Volume 36-1.pdf - Robson Hall Faculty of Law
MLJ Volume 36-1.pdf - Robson Hall Faculty of Law MLJ Volume 36-1.pdf - Robson Hall Faculty of Law
314 MANITOBA LAW JOURNAL|VOLUME 36 ISSUE 1 different plaintiffs. Unlike Fisher J in Mainland Sawmills, Joyce J concluded that “it would not be appropriate to award punitive damages to the various plaintiffs in differing amounts depending upon my view of the severity of the sexual assault in each particular case.” 96 He did not wish to engage in the complicated exercise of determining the relative severity of specific sexual acts inflicted on the various plaintiffs. In addition, he found that this exercise would not advance the objectives of punitive damages: “the fact that the particular acts of misconduct may have had greater or lesser impact on the lives of the plaintiffs is something to be considered in determining the compensation to which each plaintiff is entitled. But I am not concerned with compensation. I am concerned with punishment.” 97 Thirty victims were compensated through the award in MacDougall, but more victims existed. MacDougall was also convicted criminally for his actions and sentenced to a four-year term of imprisonment. Joyce J did not account for this criminal penalty when assessing punitive damages as none of the plaintiffs in his matters were victims in the incidents prosecuted criminally. What happens to those who were the victims in the criminal case, or others who may come forward in the future? In MacDougall, Joyce J determined what he thought was an appropriate global punishment in the form of punitive damages. If MacDougall has already been punished appropriately, it would be unfair for any subsequent plaintiffs to be awarded punitive damages, even though the abuse they suffered may have been as bad or worse than those who were apportioned $10,000. Again, the windfall problem arises: there is no reasoned basis for awarding punitive damages to the first claimants other than simply because they were first. One case could be put forward later than another for a multitude of reasons not related to the merits of the claim. One further problem identified by David Owen is that in cases of mass torts, early awards of punitive damages may deprive subsequent claimants of compensatory damages. 98 Owen uses litigation against asbestos companies as an example, where large, early punitive damage awards have depleted the assets of a number of companies. When subsequent plaintiffs come forward, the company is bankrupt and they are 96 Ibid at para 21. 97 Ibid. 98 Owen, supra note 54 at 393-94.
Pine Tree Justice 315 denied even compensation while the early plaintiffs benefit from large punitive awards. V. POTENTIAL SOLUTIONS Different jurisdictions have tried different solutions to the many problems posed by punitive damages. This section will review a number of solutions, tested and untested, and provide recommendations on what action should be taken to improve the law in relation to punitive damage awards. A. Class actions Many cases attracting punitive damage claims are class actions. Because there is such a high threshold of misbehaviour for the imposition of punitive damages, it is often the case that defendants liable for punitive damages have engaged in a pattern of misconduct, directed at more than one plaintiff. There are many reported cases of class actions where punitive damages are also pleaded. 99 Class actions are the vehicle most suited to adjudicating mass tort claims. Since the decision of the Supreme Court in Rumley v British Columbia, it is beyond doubt that punitive damages can be certified as a common issue in class actions. 100 The nature of class actions is such that an unsuccessful defendant can expect to pay a substantial award of damages. Punitive damages can be added on top of compensatory damages. However, the objectives of punitive damages can often be satisfied in a class action simply through a general award of damages. Consider the case of BMW v Gore: Mr. Gore suffered damage of approximately $4,000 to his BMW when the company re-touched the factory paint after damage in shipping. 101 During the trial, it was established that BMW had secretly re-touched the paint of 99 See e.g. Walls et al v Bayer Inc, 2005 MBQB 3, [2006] 4 WWR 720 (consumers of a cholesterol-lowering drug); Brimner v Via Rail Canada Inc, 50 OR (3d) 114, 1 CPC (5th) 185 (passengers in a train derailment); Wuttunee v Merck Frosst Canada Ltd, 2008 SKQB 229, 312 Sask R 265 (consumers of Vioxx); Chalmers v AMO Canada Company, 2010 BCCA 560, 504 WAC 186 (purchasers of a dangerous contact lens solution); Griffiths v British Columbia, 2003 BCCA 367, 19 CR (6th) 367 (victims of sexual assault in a foster home). 100 Rumley v British Columbia, 2001 SCC 69, [2001] 3 SCR 184 at para 34. 101 BMW v Gore, supra note 41.
- Page 275 and 276: Social Incrimination 263 private Fa
- Page 277 and 278: Social Incrimination 265 woman fell
- Page 279 and 280: Social Incrimination 267 oversight
- Page 281 and 282: Social Incrimination 269 an acciden
- Page 283 and 284: Social Incrimination 271 preserve r
- Page 285 and 286: Social Incrimination 273 followed a
- Page 287 and 288: Social Incrimination 275 unconnecte
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- Page 291 and 292: Social Incrimination 279 While ther
- Page 293 and 294: Social Incrimination 281 issues aft
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- Page 297 and 298: Social Incrimination 285 new forms
- Page 299 and 300: Pine Tree Justice: Punitive Damage
- Page 301 and 302: Pine Tree Justice 289 “exemplary
- Page 303 and 304: Pine Tree Justice 291 account of th
- Page 305 and 306: Pine Tree Justice 293 $1,000,000 wa
- Page 307 and 308: Pine Tree Justice 295 The difficult
- Page 309 and 310: Pine Tree Justice 297 nature, punit
- Page 311 and 312: Pine Tree Justice 299 B. Confusion
- Page 313 and 314: Pine Tree Justice 301 damages. It w
- Page 315 and 316: Pine Tree Justice 303 4. Analysis T
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- Page 319 and 320: Pine Tree Justice 307 trial judge,
- Page 321 and 322: Pine Tree Justice 309 court and pun
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- Page 325: Pine Tree Justice 313 suffered? In
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- Page 337 and 338: Pine Tree Justice 325 VIII. APPENDI
- Page 339 and 340: Pine Tree Justice 327 facts at tria
- Page 341 and 342: C O M M E N T A R Y Leveling the Pl
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- Page 345 and 346: Levelling the Playing Field 333 [f]
- Page 347 and 348: Levelling the Playing Field 335 evo
- Page 349 and 350: Levelling the Playing Field 337 in
- Page 351 and 352: Levelling the Playing Field 339 fin
- Page 353 and 354: B O O K R E V I E W Dams of Content
- Page 355 and 356: Dams of Contention 343 puppet who i
- Page 357 and 358: Dams of Contention 345 A detailed s
- Page 359 and 360: Dams of Contention 347 Environment
- Page 361 and 362: Dams of Contention 349 could be con
- Page 363 and 364: C O M M E N T A R Y The “Great Wr
- Page 365 and 366: The “Great Writ” Reinvigorated?
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- Page 371 and 372: The “Great Writ” Reinvigorated?
- Page 373 and 374: C O M M E N T A R Y The DeLloyd Gut
- Page 375 and 376: Habeas Corpus, Legal History, and G
314 MANITOBA LAW JOURNAL|VOLUME <strong>36</strong> ISSUE 1<br />
different plaintiffs. Unlike Fisher J in Mainland Sawmills, Joyce J concluded<br />
that “it would not be appropriate to award punitive damages to the various<br />
plaintiffs in differing amounts depending upon my view <strong>of</strong> the severity <strong>of</strong><br />
the sexual assault in each particular case.” 96 He did not wish to engage in<br />
the complicated exercise <strong>of</strong> determining the relative severity <strong>of</strong> specific<br />
sexual acts inflicted on the various plaintiffs. In addition, he found that<br />
this exercise would not advance the objectives <strong>of</strong> punitive damages: “the<br />
fact that the particular acts <strong>of</strong> misconduct may have had greater or lesser<br />
impact on the lives <strong>of</strong> the plaintiffs is something to be considered in<br />
determining the compensation to which each plaintiff is entitled. But I am<br />
not concerned with compensation. I am concerned with punishment.” 97<br />
Thirty victims were compensated through the award in MacDougall,<br />
but more victims existed. MacDougall was also convicted criminally for his<br />
actions and sentenced to a four-year term <strong>of</strong> imprisonment. Joyce J did not<br />
account for this criminal penalty when assessing punitive damages as none<br />
<strong>of</strong> the plaintiffs in his matters were victims in the incidents prosecuted<br />
criminally. What happens to those who were the victims in the criminal<br />
case, or others who may come forward in the future? In MacDougall, Joyce<br />
J determined what he thought was an appropriate global punishment in<br />
the form <strong>of</strong> punitive damages. If MacDougall has already been punished<br />
appropriately, it would be unfair for any subsequent plaintiffs to be<br />
awarded punitive damages, even though the abuse they suffered may have<br />
been as bad or worse than those who were apportioned $10,000. Again,<br />
the windfall problem arises: there is no reasoned basis for awarding<br />
punitive damages to the first claimants other than simply because they<br />
were first. One case could be put forward later than another for a<br />
multitude <strong>of</strong> reasons not related to the merits <strong>of</strong> the claim.<br />
One further problem identified by David Owen is that in cases <strong>of</strong><br />
mass torts, early awards <strong>of</strong> punitive damages may deprive subsequent<br />
claimants <strong>of</strong> compensatory damages. 98 Owen uses litigation against<br />
asbestos companies as an example, where large, early punitive damage<br />
awards have depleted the assets <strong>of</strong> a number <strong>of</strong> companies. When<br />
subsequent plaintiffs come forward, the company is bankrupt and they are<br />
96<br />
Ibid at para 21.<br />
97<br />
Ibid.<br />
98<br />
Owen, supra note 54 at 393-94.