ELR Citation: ELR 20254
No(s). M2006-02660-SC-R11-CV (Tenn. Nov 3, 2009)

The Supreme Court of Tennessee reduced from $1 million to $500,000 a punitive damages award granted to property owners in their nuisance lawsuit against a highway construction company for burying tires and other debris on their land. Evidence supports the jury's award of punitive damages. There are strong public policy reasons against burying waste tires, and the company was aware of these policies. In addition, the trial court's consideration of statutes and policies against pollution and unauthorized landfills was legally permissible and factually appropriate. The trial court was merely referencing the state's solid waste disposal laws to explain why the creation of a nuisance by burying whole waste tires was egregious enough to warrant punitive damages. The amount of the punitive damages award, however, violates the company's due process rights. The ratio of punitive damages to compensatory damages as approved by the trial judge is over 300 to 1. This ratio is excessive in light of the circumstances presented. And the company's conduct did not rise to the highest level of reprehensibility. The court, therefore, modified the award to $500,000, which is more rationally related to the non-physical harm suffered in this case.