SHAW, Justice.
In these consolidated appeals, Pensacola Motor Sales, Inc., d/b/a Bob Tyler Toyota ("BTT"), one of two named defendants below, appeals in case no. 1110840 from a judgment entered on a jury verdict in favor of Daphne Automotive, LLC, d/b/a Eastern Shore Toyota ("EST"), and Shawn
In December 2007, Esfahani, who was born in Iran but who is a United States citizen, opened EST, an automobile dealership selling Toyota vehicles, in Daphne. Esfahani serves as both owner and manager of EST. EST is a direct competitor of BTT, which has, since 1997, operated a Toyota-brand automobile dealership in Pensacola, Florida. Bob Tyler, president and sole owner of BTT, had competed with Esfahani for a new Toyota dealership that was to be opened in Baldwin County. The record suggests a history of "bad blood" between Esfahani and Tyler in that in 2010 they were also involved in federal litigation related to alleged "cybersquatting" by EST based on EST's online advertising practices; EST successfully defended against BTT's claims.
Esfahani ultimately learned of slanderous statements made about him and/or EST by employees of BTT, including, in an apparent effort to discourage potential customers from purchasing from EST, BTT's agents' purportedly informing customers that Esfahani and/or EST "are engaged in illegal activity, are terrorists, or otherwise support terrorist organizations." More specifically, BTT and its employees purportedly referred to EST as "Middle Eastern Shore [Toyota]" or "Taliban Toyota."
In January 2010, EST and Esfahani sued BTT and Keener in the Mobile Circuit Court, seeking damages based on claims of slander per se, slander per quod, and intentional interference with business relationships. As a result of the alleged slanderous remarks by the defendants or their agents, Esfahani and EST alleged that they "ha[d] been deprived of public confidence that they had prior to said acts... and [their] business reputation has been damaged and the business has lost profits and has otherwise been devalued."
The matter ultimately proceeded to a jury trial, during which, according to the trial court, the evidence demonstrated the following:
In addition, Esfahani and EST offered testimony from an economist who specializes in the automobile industry, Dr. Ernest H. Manuel, Jr., Ph.D., who, by means of a "lost profits analysis," opined that, as a result of the slanderous comments by the defendants, EST had suffered damage in the form of lost sales totaling approximately $7.1 million. Esfahani testified that, in his estimation, not only was Manuel's estimate of EST's losses conservative, but he had also personally been damaged by BTT's and Keener's conduct in excess of that amount.
At the conclusion of the four-day trial, the jury found for Esfahani and EST against both BTT and Keener on the remaining slander claims.
BTT and Keener filed various postjudgment motions seeking relief from or an amendment of the trial court's judgment or a new trial and/or a remittitur of the jury's damages awards. After the time for ruling on those motions was extended by agreement of the parties, see Rule 59.1, Ala. R. Civ. P., the trial court, following a hearing, entered a lengthy order denying the motions in full. Both BTT and Keener appeal.
On appeal, BTT and Keener contend that the trial court erred in failing to grant
Wood v. Hayes, 104 So.3d 863, 870 (Ala. 2012).
Keener initially contends that the trial court erred in excluding evidence concerning the prior "cybersquatting" litigation initiated by BTT against Esfahani and EST in federal court. The trial court concluded that "the excluded evidence, if admitted, would have likely resulted in undue delay and waste of time on this case" and that it was, thus, "properly excluded under Rules 402 and 403, [Ala. R. Evid.]."
Keener argues that the exclusion of the referenced evidence "[kept] the jury from hearing about [EST and Esfahani's] alleged improper advertising techniques." (Keener's brief, at 42.) In support of his assertion that the exclusion of the evidence amounted to error, Keener points to Rules 401 and 402, Ala. R. Evid., which generally allow for the admission of "[a]ll relevant evidence" unless otherwise excluded. Rule 401, Ala. R. Evid. Keener maintains that "evidence of the issues raised in the cybersquatting lawsuit was clearly relevant" as a possible "motivation for [EST and Esfahani's] filing of the instant litigation" and that "[e]vidence of [EST and Esfahani's] reputation was certainly relevant and material" as a defense to their slander claims. (Keener's brief, at 42, 43.) He further argues that the evidence would have aided jurors in understanding the competitive nature of the automobile sales industry.
According to EST and Esfahani, this issue was not preserved for review. Specifically, they contend that Keener did not attempt to introduce this evidence at trial. When there is no indication in the record that a trial court's ruling on a motion in limine was absolute or unconditional, the proponent of the contested evidence
Both BTT and Keener contend that the trial court erred in permitting the introduction of inadmissible hearsay testimony. See Rule 801(c), Ala. R. Evid. ("`Hearsay' is a statement, other than one made by the declarant while testifying at the trial or hearing, offered in evidence to prove the truth of the matter asserted."), and Rule 802, Ala. R. Evid. ("Hearsay is not admissible except as provided by these rules, or by other rules adopted by the Supreme Court of Alabama or by statute."). More specifically, according to BTT and Keener, the allegedly inadmissible evidence
(BTT's brief, at 48; Keener's brief, at 46.) Both BTT and Keener include selected excerpts of testimony they say demonstrate the multiple levels of hearsay inherent in the challenged testimony. Further, BTT and Keener clearly dispute the trial court's finding
Other than the argument that the identified statements were clearly offered to demonstrate the truth of the matter asserted, i.e., "that an employee of BTT made slanderous statements regarding [EST and Esfahani]," they do not identify any actual authority demonstrating that, in reaching its conclusion quoted above, the trial court erred. (BTT's brief, at 52; Keener's brief, at 49.) Instead, in support of this claim, BTT and Keener rely solely on Armstrong v. HRB Royalty, Inc., 392 F.Supp.2d 1302 (S.D.Ala.2005), which, they say, represents "[t]he reported decision that is closest to the facts of this case." (BTT's brief, at 53; Keener's brief, at 50.) There is no discussion of those purportedly comparable facts or application of those facts to the trial court's conclusion here, nor is there a pinpoint citation to the portion of Armstrong where the district court purportedly rejected the rationale embraced by the trial court in this case.
In any event, the challenged testimony was cumulative of testimony given by numerous other witnesses, whose testimony BTT and Keener do not challenge. As the trial court noted in its order denying the defendants' postjudgment motions:
Therefore, BTT and Keener fail to demonstrate either that the trial court exceeded its discretion in admitting the challenged testimony or that the alleged erroneous admission of any of the statements "probably injuriously affected [their] substantial rights." Wood, supra.
BTT and Keener next contend that the trial court erred in excluding from evidence at trial Esfahani's personal tax returns as well as tax returns from a Hyundai dealership also owned by Esfahani and in preventing the questioning of Esfahani regarding personal losses he had sustained in the stock market. According to BTT and Keener, this ruling prevented them from countering Esfahani's damages claims by demonstrating that "any alleged decline in the sales of EST was the result of a decline [in Esfahani's personal] financial situation." (Keener's brief, at 52.) Relying on Rules 401 and 402, Ala. R. Evid., they argue that all the excluded evidence was "relevant to the issue of whether or not [Esfahani and EST] had sufficient financial resources to effectively operate [EST]" and was, thus, improperly excluded. (BTT's brief, at 56; Keener's brief, at 54.)
Esfahani argues — and BTT and Keener fail to dispute — that Esfahani's personal tax returns were, in fact, ultimately introduced into evidence, because they were included on a disk containing all the information reviewed by the damages expert retained by EST and Esfahani and the disk was admitted into evidence at trial. Therefore, any challenge with respect to the exclusion of those particular documents is without merit.
Finally, this Court is unconvinced that either Esfahani's personal tax returns
BTT and Keener raise claims of error with regard to the trial court's admission of the testimony of Manuel, the damages expert retained by Esfahani and EST: that Manuel was improperly allowed to testify as to opinions based on facts that were inadmissible or that were not in evidence and that Manuel's testimony was due to be excluded based on the alleged failure of Esfahani and EST to timely supplement Manuel's initial report. There is no merit to these claims for several reasons.
The record shows that BTT and Keener moved the trial court to exclude Manuel's testimony on numerous grounds, including the ground that a 62-page supplemental report from Manuel was produced after the discovery deadline established by the trial court's scheduling order; alternatively, BTT and Keener requested that they be allowed to re-depose Manuel. The trial court denied the motion to exclude but ordered that they be afforded the opportunity to re-depose Manuel.
After this second deposition, BTT and Keener moved the trial court, pursuant to Rule 26, Ala. R. Civ. P., to exclude Manuel's testimony and reports as a discovery sanction on grounds that EST and Esfahani had failed to properly supplement their expert's disclosures and had produced Manuel's supplemental reports "less than one month before the scheduled trial date and after ... the extended discovery deadline." (BTT's brief, at p. 4.) This motion was also denied.
At trial, BTT continuously objected to Manuel's testimony on the ground that Manuel was purportedly basing his opinion on facts and/or information that had not been admitted into evidence; the trial court, citing Rule 703, Ala. R. Evid.,
The trial court similarly denied that objection by BTT based on its conclusion that Rule 703 permitted an expert to testify as to all "information perceived by or made available to [him]" and noted that "if [BTT had] a problem with the information [Manuel] perceived or that's been made available to him, [BTT] would be permitted to attack that on cross[-examination]."
On appeal, BTT and Keener contend that certain facts relied upon by Manuel were not in evidence or were not admissible and that the trial court thus erred in permitting his testimony. In support of this claim of error, BTT and Keener rely on authority stating that Rule 703 did not alter the rule requiring that the information upon which the expert relies must be in evidence. See, e.g., Ex parte Deardorff, 6 So.3d 1235, 1242 (Ala.2008) ("It is clear that under Alabama law the State must introduce into evidence the information upon which an expert relies." (citation omitted)); Ex parte Wesley, 575 So.2d 127, 129 (Ala.1990). Specifically, the Advisory Committee Notes to Rule 703, citing C. Gamble, McElroy's Alabama Evidence § 127.01(5) (4th ed.1991), state: "Rule 703 leaves unaffected the preexisting Alabama law requiring that the facts or data relied upon by the expert, and gotten by the expert other than by firsthand knowledge, generally must be admitted into evidence." However, that same note explains that facts about which an expert testifies and that may be made known to him or her outside the hearing "include[] data presented to the expert by means other than personal perception, such as through the opinions, records, or reports of others." Id. The note further explains that "the Alabama case law generally precluding an opinion based upon the unadmitted records or reports of others does recognize exceptions." Id. (emphasis added).
BTT and Keener point to data purportedly relied upon by Manuel, including prior studies of how dealers react to new dealers in the market, data supporting a damages model, "registration data," projections as to automobile industry growth, "discount rates," and "etc.," as not having been admitted into evidence. There is no discussion in BTT's and Keener's briefs as to whether the disk entered in evidence containing "all" of Manuel's data, as mentioned in Part I.C., supra, contained this data. Further, there is no discussion as to whether Manuel's testimony fell within one of the recognized exceptions in Rule 703 and mentioned above. Finally, and most importantly, there is no discussion of how the failure to admit this allegedly missing data prejudiced BTT and Keener. Rule 45, Ala. R.App. P. ("No judgment may be reversed ... on the ground of ... the improper admission or rejection of evidence... unless in the opinion of the court to which the appeal is taken or application is made, after an examination of the entire cause, it should appear that the error complained of has probably injuriously affected substantial rights of the parties."). Instead, we have a list of data, an assertion that the data was not in evidence, and a conclusion that reversible error therefore occurred. This is not sufficient to convince this Court that the trial court exceeded its discretion in allowing Manuel's testimony.
BTT and Keener separately point to "the Auto Pacific Projections" as data relied on by Manuel, which, they argue, was neither "properly admitted" into evidence nor admissible. (BTT's brief, at 58; Keener's brief, at 56.) They cite Rules 701 and 702, Ala. R. Evid., as support for their contention that the evidence represented opinion testimony from other than a qualified expert.
BTT's and Keener's briefs assert, but do not demonstrate, that the "Auto Pacific Projections" were opinions and were not competent data upon which Manuel could rely as a basis for his testimony. There is no discussion as to how the projections
Finally, BTT and Keener argue that the trial court erred in failing to exclude Manuel's testimony and reports as a discovery sanction. This Court has repeatedly recognized that a trial court has broad and considerable discretion in controlling the discovery process. See, e.g., Ex parte Vulcan Materials Co., 992 So.2d 1252, 1259 (Ala.2008). The authorities cited by BTT and Keener emphasize the "absolute duty" imposed upon parties by Rule 26(e), Ala. R. Civ. P. (and by the scheduling order entered by the trial court in this case), to properly and timely supplement discovery when appropriate. As BTT and Keener also acknowledge in their briefs to this Court, however, that rule provides no explicit sanction should a party fail to supplement, and the Committee Comments to that rule suggest both that sanctions for violating the rule will typically be imposed only "sparingly" and in "limited instances" and that the options, at the trial court's discretion, in such cases include "`exclusion of evidence, continuance, or other action, as the Court may deem appropriate.'" (BTT's brief, at 63; Keener's brief, at 67) (quoting Committee Comments on 1973 Adoption of Rule 26, Ala. R. Civ. P. (emphasis added)).
BTT and Keener cite nothing showing that the trial court's actions here, which denied the requested exclusion but alternatively permitted BTT and Keener the opportunity to re-depose Manuel on the allegedly untimely supplementation, exceeded the latitude afforded it. Moreover, although they cite federal caselaw establishing a four-factor test to be applied in evaluating the propriety of sanctions pursuant to Rule 26, there is no discussion or argument actually applying those factors to the circumstances presented here. Instead, they reference — solely by means of citation to other authorities — only the time when they initially learned of the withheld information and the alleged willfulness behind the purported failure to timely supplement.
The trial court resolved this particular claim in its order denying the postjudgment motions of BTT and Keener as follows:
(Emphasis added.) BTT and Keener do not address the trial court's findings, as set out above, or counter its conclusion that, given the general nature of the jury's verdict, they cannot demonstrate the prejudice necessary to support a finding of reversible error, even assuming that Manuel's testimony and reports were improperly admitted. They are, therefore, due no relief on this claim.
Although BTT and Keener maintain that this case presents an issue of first impression for this Court, namely "the amount of proof necessary for an award of substantial damages in a slander action," the standard for reviewing a jury's damages award in an action involving claims of slander per se is well established. (BTT's brief, at I; Keener's brief, at 1.) As both BTT and Keener acknowledge, this Court has previously explained:
Liberty Nat'l Life Ins. Co. v. Daugherty, 840 So.2d 152, 157 (Ala.2002) (emphasis added).
BTT and Keener initially appear to contend that evidence presented by Esfahani, which was aimed at establishing both damage to his reputation and mental anguish suffered by him as a result of the slanderous statements made by BTT and Keener, was insufficient to sustain the jury's compensatory award. They cite, in support of that claim, cases aimed at establishing the quality of the evidence necessary to establish actual damages. Those cases, however, excepting Daugherty, supra, appear inapposite in that they do not involve a finding of slander per se and a corresponding award; instead, they concern, generally, the sufficiency of evidence to sustain a jury's award of mental-anguish damages.
In Daugherty, this Court reiterated the general rule "that when a defamatory statement is slanderous per se, the law infers injury to reputation and the plaintiff is relieved of the requirement of proving actual harm to reputation or any other damage." 840 So.2d at 160. Nonetheless, we analyzed the defendants' argument that the jury's compensatory-damages award
Here, the jury clearly returned a verdict in favor of both Esfahani and EST and against BTT and Keener on the claim of slander per se. As the trial court noted in its postjudgment order:
(Emphasis in original.)
In light of the applicable standard discussed in Daugherty, Esfahani need not have presented evidence of either damage to his reputation or mental anguish, because both were presumed. Regardless, as in Daugherty, Esfahani did present evidence establishing the fear and worry — for his safety and the safety of his business and his family — that he had experienced after being repeatedly linked to terrorist activity. See Daugherty, 840 So.2d at 163 ("`Mental anguish includes anxiety, embarrassment, anger, fear, frustration, disappointment, worry, annoyance, and inconvenience.'") (quoting Horton Homes, Inc. v. Brooks, 832 So.2d 44, 53 (Ala.2001)). He further explained the political persecution that led him to leave Iran and come to the United States as a teenage refugee and the resulting horror he felt on being accused of both funding terrorism and of being an enemy of the country he loves and is proud to call "home." According to Esfahani's own testimony, his fears in this regard were so strong that he considered selling his businesses and moving his family to Spain. Additionally, as touched on previously, Esfahani, without objection, estimated the value of the damage to his personal reputation as "be[ing] in excess of 7.2 million dollars."
We need not engage in any discussion of society's attitude toward and opinion of terrorists and terrorist activity and how allegations of such activity may have impacted Esfahani. As Esfahani and EST note, BTT and Keener fail to identify authority mandating a different result than that reached by the trial court.
BTT and Keener similarly challenge the amount of the jury's compensatory-damages award to EST. More specifically, they argue that "[t]he award of compensatory damages to EST is excessive and based on speculation as to the amount of lost sales." (BTT's brief, at 80; Keener's brief, at 80.) In support of this
As discussed above, Manuel's testimony was properly admitted into evidence at trial. He indicated that EST had suffered $7.1 million in damage. Such evidence supports the jury's award of $1,250,000 in compensatory damages on EST's slander per se and slander per quod claims, which was significantly less than the lost profits to which Manuel actually testified.
As the trial court noted, nothing suggests that the majority of the compensatory-damages award to EST was related to EST's slander per quod claim. Instead, EST also asserted — and proved — the same slander per se arguments advanced by Esfahani; therefore, the damage to its reputation, which resulted in a compensatory-damages award in an amount identical to that awarded to Esfahani, was both similarly presumed and, as discussed above, demonstrated by the evidence. See, e.g., Daugherty, 840 So.2d at 157.
Finally, in Super Valu Stores, Inc. v. Peterson, 506 So.2d 317 (Ala.1987), this Court provided the following explanation with regard to a lost-profits analysis:
506 So.2d at 327. "The holding in Morgan is that Alabama jury verdicts awarding lost profits will be affirmed if the plaintiff provides a `basis upon which the jury could, with reasonable certainty, calculate the amount of profits which were lost as a result of' defendant's wrongful actions." Id.
Here, despite engaging in a thorough and sifting cross-examination aimed at undermining Manuel's calculations, BTT and Keener fail to demonstrate that the estimations of Manuel, who they conceded was an expert in the field, as to the business EST likely lost as a result of BTT's and Keener's slander is unreasonable.
Finally, BTT and Keener contend that, in the absence of a new trial, they are entitled to a remittitur of the jury's punitive-damages awards to Esfahani and EST based on alleged excessiveness. BTT and Keener urge this Court that an evaluation of the challenged awards pursuant to the guideposts set forth in BMW of North America, Inc. v. Gore, 517 U.S. 559, 116 S.Ct. 1589, 134 L.Ed.2d 809 (1996), and the factors outlined in Hammond v. City of
As recently reiterated by the Court of Civil Appeals in Tanner v. Ebbole, 88 So.3d 856 (Ala.Civ.App.2011), the requisite analysis includes consideration of the following factors:
88 So.3d at 870-71.
In connection with BTT's and Keener's postjudgment motions, the trial court heard and evaluated the evidence presented by BTT and Keener, which was aimed at establishing each of the Gore guideposts and the Hammond-Green Oil factors. As reflected in its postjudgment order, following a lengthy analysis, the trial court ultimately concluded that "each factor under Hammond, Green Oil, Gore, and State Farm [Mut. Auto. Ins. Co. v. Campbell, 538 U.S. 408 (2003)] (to the extent it applies in this case), weighs against a finding of excessiveness and supports the propriety of the Jury's punitive damages assessment." The trial court further explained its decision declining to reduce the punitive-damages awards:
First, BTT and Keener contend that EST and Esfahani demonstrated little to no economic impact as a result of the slanderous statements. BTT and Keener rely, in making this statement, on the supposition that Manuel's testimony that EST likely lost approximately $7,000,000 in sales was entirely speculative. The record clearly refutes this claim.
Although, as BTT and Keener argue, and, as mentioned previously, the jury obviously discounted the figures quoted by Manuel, there was, nonetheless, evidence of a negative economic impact on EST's sales. BTT and Keener, therefore, do not demonstrate that this factor supports the requested remittitur.
BTT and Keener next argue that the 2:1 ratio of punitive damages to compensatory damages in this case also requires remittitur. Although BTT and Keener inexplicably note that "Alabama courts have previously held that punitive damages awards that exceed ten times the amount of a compensatory damage award are subject to higher scrutiny," those cases are clearly inapplicable here. (BTT's brief, at 84; Keener's brief, at 89.) Further, although they appear to contend that the award here should also be subjected to heightened scrutiny "because the compensatory award itself contains an element of punitive damages," they fail to cite any authority supporting their claim. (BTT's brief, at 84-85; Keener's brief, at 89.) They similarly fail to cite any case involving similar facts or comparable conduct that would illustrate that the jury's award is disproportionate; in fact, neither BTT nor Keener appears to pursue a disparity argument despite including that phrase in the applicable subheading for this issue.
With regard to this particular guidepost, the United States Supreme Court has
Life Ins. Co. of Georgia v. Johnson, 701 So.2d 524, 529 (Ala.1997).
Here, the punitive damages are exactly twice the jury's compensatory-damages award and are actually less than the actual compensatory damages claimed by EST and Esfahani. BTT and Keener cite no authority demonstrating that, in light of the present facts, the punitive-damages award is disproportionate and constitutionally infirm. Further, as the Court of Civil Appeals has previously observed, we have upheld substantial punitive-damages awards when the evidence demonstrates a pattern and practice of such behavior by the defendant. See Mercy Med. v. Gray, 864 So.2d 354, 365 (Ala.Civ.App.2002) (and cases cited therein). We therefore find that the ratio of compensatory damages to punitive damages, given the facts, is reasonable.
BTT and Keener also argue that they are entitled to a remittitur because, they say, nothing suggests that they were guilty of the same or similar conduct in the past.
Contrary to this argument, and as the trial court noted, "[t]he evidence indicates that the defamatory conduct here was not a case of a few isolated incidents of a rogue salesman or of salesmen making false statements about a competitor in passing." Instead, Esfahani and EST "offered testimony from former and present BTT employees that BTT's slanderous statements were part of BTT's company policy for competing against EST" and "that these sales practices were still being used even after this lawsuit was filed." Therefore, the record clearly contains evidence indicating "similar incidents."
Although BTT and Keener cite Johnson, they fail to actually explain how our remittitur of the punitive-damages award in Johnson mandates a similar result here. In Johnson, this Court ultimately remitted the jury's punitive-damages award upon reconsideration and review of the case as directed by the United States Supreme Court in light of its opinion in Gore. 701 So.2d at 534. BTT and Keener, however, fail to acknowledge the multiple considerations influencing that decision. Instead, they simply argue that because the facts demonstrated repetitive instances of the tortious behavior in Johnson and the defendants, there, obtained a remittitur, BTT and Keener must be entitled to the same. That is not the law, and this factor also does not weigh in favor of remittitur.
BTT and Keener next contend that because they received only one — allegedly limited — complaint referencing the slanderous statements before Esfahani and EST initiated the underlying litigation and because BTT purportedly immediately questioned the employee referenced in that complaint, they "took ... appropriate steps to remedy the alleged wrong." (BTT's brief, at p. 87.)
The trial court rejected this claim as follows:
Although the trial court rejected application of this particular factor in favor of a remittitur on the basis of BTT's and Keener's post judgment failures, a review of their pretrial conduct produces a similar result. As Tyler testified, some type of minimal internal investigation aimed primarily at Carp, the employee named by Esfahani and BTT in the July 2009 cease-and-desist letter, who was under the direct supervision of Keener, did occur. Further, BTT employees were allegedly instructed that such slanderous statements were prohibited. However, the evidence suggests that the slanderous statements continued after those initial efforts without further investigation by or repercussion from BTT. Further, Tyler's testimony reflected that, sometime before trial, it became apparent to him that the slanderous statements had, in fact, occurred as Esfahani and EST had alleged. Despite that knowledge, neither Keener nor BTT issued a retraction. Thus, this factor also does not weigh in favor of a reduction of the jury's punitive-damages award.
BTT and Keener maintain that the July 2009 cease-and-desist letter represented the only opportunity presented to them to remedy the wrong of which they were accused but that it contained insufficient information to allow them to do so. The evidence recounted above, however, indicates that this conduct was an ongoing practice of BTT and its agents. BTT received and Keener learned of the cease-and-desist letter in July 2009; Esfahani and EST filed the underlying litigation approximately six months later in January 2010. Within that time frame, and even after the filing date, as set out above, despite BTT's learning that the allegations made by Esfahani and EST apparently were true, the slanderous statements continued.
BTT and Keener acknowledge, as the trial court also observed, that this particular factor, namely the degree of reprehensibility of their conduct, is the single most important factor in the remittitur analysis. See Gore, 517 U.S. at 575, 116 S.Ct. 1589. BTT and Keener attempt to lessen the reprehensibility of their self-claimed "moderately" reprehensible conduct by comparing it to the tortious conduct of defendants in other cases, by noting the lack of any resulting physical harm, and by arguing that Esfahani and EST are not members of a class typically regarded as financially vulnerable.
As demonstrated by its postjudgment order, the trial court clearly disagreed. Specifically, it applied the following criteria and considerations established in the State Farm and Green Oil cases, supra, for gauging the degree of reprehensibility:
The trial court conducted a lengthy analysis of each of the foregoing factors; we include only a brief sampling of its conclusions as to each:
Although BTT and Keener maintain that the testimony establishing their slanderous statements, as reported by EST and Esfahani's witnesses, were isolated incidents, the evidence suggested otherwise. Further, though EST and Esfahani were able to identify merely a handful of BTT customers who personally heard the remarks, there are potential untold numbers of others about whom Esfahani and EST never learned. See Ebbole, 88 So.3d at 872 (explaining that Alabama's presumption of damage in cases of per se defamation stems from the fact that "`[i]t would frequently
BTT and Keener note that a punitive-damages award should be aimed at removing any profits the defendants gained from their tortious conduct. See Ross v. Rosen-Rager, 67 So.3d 29, 44 (Ala. 2010) ("`"[I]f the wrongful conduct was profitable to the defendant, the punitive damages should remove the profit and should be in excess of the profit, so that the defendant recognizes a loss."'") (quoting Green Oil, 539 So.2d at 223, quoting in turn Aetna Life Ins. Co. v. Lavoie, 505 So.2d 1050, 1062 (Ala.1987) (Houston, J., concurring specially)). Both BTT and Keener argue that this factor requires a reduction of the punitive-damages award because, they say, there is no evidence suggesting that they actually profited from the slanderous statements aimed at Esfahani and EST.
Contrary to their arguments, the trial court concluded that this factor, too, weighs against remittitur:
BTT and Keener do not produce any authority demonstrating that the trial court erred with regard to the foregoing finding. Although it might have been difficult for Esfahani and EST to demonstrate the precise profits BTT and/or Keener gained, their intent to profit from their actions is indisputable.
Neither BTT nor Keener advances any argument that the potential impact of the jury's punitive-damages award on their respective financial postures justifies remittitur.
BTT and Keener appear to believe that a remittitur is due because, they contend, the punitive damages awarded far exceed the criminal sanctions they could have faced if prosecuted for the same conduct at which the punitive-damages award is aimed — which they indisputably have not been. See Gore, 517 U.S. at 583, 116 S.Ct. 1589. They rely, however, solely on a statute this Court has previously declared unconstitutional as support for the extent of the criminal sanctions they say could be legally imposed. Regardless, as noted previously, "[t]here is no evidence indicating that [either BTT or Keener] has been subject to any criminal sanctions for similar conduct; therefore, this factor does not require a remittitur." Shiv-Ram, Inc. v. McCaleb, 892 So.2d 299, 319 (Ala.2003) (citing Lance, Inc. v. Ramanauskas, 731 So.2d 1204 (Ala.1999)).
Finally, Keener maintains that because he has not been sued in the past for
In consideration of the foregoing, BTT's and Keener's contentions that at least eight of the applicable factors demonstrate the excessiveness claimed and mandate a reduction of the jury's punitive-damages awards are without merit. Instead, it appears that only a single factor, namely the absence of any particular financial vulnerability of the targets, supports BTT and Keener's request. Therefore, the requisite analysis overwhelmingly supports an affirmance of the jury's punitive-damages awards. The trial court correctly denied BTT and Keener's request for a new trial and appropriately refused to remit the jury's punitive-damages awards.
In consideration of the foregoing, the judgment of the trial court is affirmed.
1110840 — AFFIRMED.
1110857 — AFFIRMED.
MOORE, C.J., and STUART, BOLIN, PARKER, MURDOCK, MAIN, WISE, and BRYAN, JJ., concur.