Mr. Bobbie Izell, a homebuilder who was diagnosed with mesothelioma in 2011, has had his $18 million punitive damages award upheld by a California appeals court. The trial court originally awarded $48 million to Mr. Izell – $30 million in compensatory damages and $18 million in punitive damages – but Union Carbide Corp. filed a motion for a new trial on the compensatory damages, which it was granted.
One of the case’s five original defendants, Union Carbide was found to be 65% responsible for Mr. Izell’s illness. Although Union Carbide was one of two defendants found to have acted with “malice, oppression, or fraud,” only Union Carbide is responsible for the cost of punitive damages, as the other company had already settled. The accusation that Union Carbide acted with “malice, oppression, or fraud” stems from the fact that the company issued a 1967 internal report that acknowledged the hazardous nature of asbestos, including its status as the primary cause of mesothelioma.
“All this suggests Union Carbide knew the dangers of its product, but failed to warn consumers of those dangers, while seeking to maintain profits from the sale of asbestos,” the panel wrote in its decision.
A dissenting panel member, Justice Patti Kitching, felt that the decision to uphold the punitive damages claim should require a new trial, which Union Carbide agreed with. “Defendants in asbestos litigation cannot expect proper application of California law in California’s trial or appellate courts,” said a spokeswoman on behalf of Union Carbide. “UCC intends to vigorously pursue its appellate options, including petitioning the California Supreme Court for review, as the time is now for the California Supreme Court to level the playing field and abandon the relaxed rules governing asbestos litigation.”
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