STEFAN R. UNDERHILL, District Judge.
Barbara Izzarelli smoked Salem King cigarettes for over twenty-five years until she was treated for larynx cancer in 1997. On December 6, 1999, she brought suit against R.J. Reynolds Tobacco Co. ("R.J. Reynolds"), the manufacturer of Salem Kings. On June 4, 2001, Izzarelli timely filed an Offer of Judgment, under seal, with the court (doc. # 47). Almost nine years later, on May 26, 2010, a jury returned a verdict in Izzarelli's favor, finding that R.J. Reynolds was liable for her injuries under theories of strict liability and negligent design. Doc. # 429. On December 30, 2010, judgment entered in favor of Izzarelli in the amount of $7,982,250 in compensatory damages and $3,970,289.87 in punitive damages. Izzarelli moved for award of offer of judgment interest (doc. # 417). R.J. Reynolds objects to the award of offer of judgment interest on the grounds that Izzarelli failed to serve a "notice of filing of the Offer of Judgment" and that such an award, in this case, would not comport with due process. Doc. # 477. For the following reasons, Izzarelli's motion (doc. # 417) is granted.
R.J. Reynolds maintains that Izzarelli's Offer of Judgment is invalid because Izzarelli failed to notify R.J. Reynolds that she filed the Offer with the court. At the time Izzarelli filed her Offer of Judgment, Section 52-192a of the Connecticut General Statutes set forth, in pertinent part, that:
Conn. Gen.Stat. § 52-192a(a) (2001) (emphasis added). The parties do not dispute that Izzarelli filed an offer of judgment (doc. # 47) or that R.J. Reynolds contemporaneously received the offer. See doc. # 476, Declaration of M. Seiden at 112 (hereafter "Seiden Decl.") ("On June 4, 2001, Plaintiff served an offer of judgment in the amount of $400,000."). Rather, R.J. Reynolds contends that it never received a separate document presumably to be titled "notice of filing of the offer of judgment."
R.J. Reynolds' argument lacks any merit. Connecticut law imposes no requirement on a plaintiff to file and serve a separate "notice of filing of the offer of judgment." The Connecticut Superior Court procedural rules do not require the filing of a separate document as notice of relief requested from the court. Cf. N.Y. C.P.L.R. § 2214 (McKinney's 2010) (requiring the service of a "Notice of Motion" in conjunction with the filing of a motion). Nor do the District's local rules require the filing of a separate "Notice" document when filing an offer of judgment. See D. Conn. L. Civ. R. 40 (2001) ("When an offer of judgment is filed pursuant to Connecticut General Statute § 52-192a, the offer of judgment shall be filed in a sealed envelope bearing the caption of the case, the case number and the caption of the document.").
R.J. Reynolds has not identified any case law in support of its contention that the term "notice" in section 52-192a requires the filing and service of a separate "Notice" document. Nor does the statute say as much. See Conn. Gen.Stat. § 1-2z. ("The meaning of a statute shall, in the first instance, be ascertained from the text of the statute itself and its relationship to other statutes."); see also Conn. Gen.Stat. § 52-192a (2001). To the contrary, the text of the statute makes no mention of the filing and service of "a notice" and sets forth only that a plaintiff "give notice" of the offer of judgment to the defendant's attorney. Notably, the statute also provides that the defendant's time to respond runs "after being notified of the filing of the offer" and not after receiving "a notice" of the filing of the offer.
Entitlement to offer of judgment interest under 52-192a expressly requires the following sequential steps: (1) the plaintiff files the offer with the court; (2) the plaintiff provides defendant's attorney with notice of the offer; and (3) the defendant fails to accept within the time provided. This sequence is revealed by a plain reading of the statute. See Conn. Gen.Stat. § 1-2z. See Conn. Gen.Stat. § 52-192a(a) ("If the `offer of judgment' is not accepted within sixty days and prior to the rendering of a verdict by the jury or an award by the court, the `offer of judgment' shall be considered rejected and not subject to acceptance unless refiled."). When this sequence has been followed, the plaintiff is entitled to offer of judgment interest if the judgment equals or exceeds the offer of judgment. Id. at § 52-192a(b) (2001) ("After trial the court shall examine the record to determine whether the plaintiff made an
The Connecticut Rules for Superior Court Practice further provide that service of a pleading upon an attorney may be effected by delivering or mailing a copy to the last known address of the attorney or party. Conn. R. Sup.Ct. P. § 10-13. Proof of service may be made by affidavit of the person making service. Id. at § 10-14; D. Conn. L. Civ. R. 5(c) ("Proof of service may be made by ... affidavit of the person making the service.").
Izzarelli effected service of the Offer of Judgment by hand delivery on June 4, 2001. (Doc. # 47). R.J. Reynolds concedes it received the offer of judgment and that the offer received is the document entered on the docket as doc. # 47. Seiden Decl. at 112. Izzarelli's counsel provided a certificate of service that comports with the proof of service requirements. See Conn. R. Sup.Ct. P. § 10-14; D. Conn. L. Civ. R. 5(c). The service of the Offer of Judgment furnished actual notice to R.J. Reynolds that the offer had been made and filed. To the extent that one court has construed service of an Offer of Judgment to require actual notice, i.e., that the defendant must receive the offer, see TA Operating Corp. v. Kenan Advantage Group, Inc., 2007 WL 2938683 (Conn.Super.2007), Izzarelli complied with that requirement.
R.J. Reynolds also argues that an award of offer of judgment interest under the circumstances of this case would be unconstitutional. First, R.J. Reynolds contends that interest on Izzarelli's total award when added to the punitive damages already awarded would amount a punitive award that is nearly 2.5 times the amount of her compensatory award. This, R.J. Reynolds argues, would result in a final award, comprised principally of punitive sums, that exceeds the boundaries of punitive damages awards as discussed in BMW of North America v. Gore, 517 U.S. 559, 116 S.Ct. 1589, 134 L.Ed.2d 809 (1996). Second, R.J. Reynolds maintains
R.J. Reynolds' attacks on the constitutionality of an award of offer of judgment interest in this case are unfounded. The principles set forth by the Supreme Court in Gore, instruct the district court, when assessing the excessiveness of an award, to identify the state interest the punitive provision is designed to serve. Id. at 568, 116 S.Ct. 1589. The purpose of section 52-192a is "to encourage pretrial settlements and, consequently, to conserve judicial resources. The strong public policy favoring the pretrial resolution of disputes ... is substantially furthered by encouraging defendants to accept reasonable offers of judgment. Section 52-192a encourages fair and reasonable compromise between litigants by penalizing a party that fails to accept a reasonable offer of settlement. In other words, interest awarded under § 52-192a is solely related to a defendant's rejection of an advantageous offer to settle before trial and his subsequent waste of judicial resources." Blakeslee Arpaia Chapman, Inc. v. EI Constructors, Inc., 239 Conn. 708, 742, 687 A.2d 506 (1997) (internal citations, quotations and alterations omitted).
Gore concerned a fraud case brought in Alabama by the purchaser of a new automobile against a car manufacturer and dealer in light of the dealer's failure to disclose that the car had been repainted after being damaged prior to delivery. The jury awarded Gore $4,000 in compensatory damages and $4 million in punitive damages. The Alabama Supreme Court conditionally affirmed a reduced award of $2 million in punitive damages. In Gore the Supreme Court expressed concern that the punitive damages award was "grossly excessive" in relation to the State's legitimate interest, and that BMW lacked adequate notice of the magnitude of the sanction that would be imposed. Neither concern is present in the instant case.
First, although offer of judgment interest is punitive, "interest awarded under [section] 52-192a is solely related to a defendant's rejection of an advantageous offer to settle before trial and his subsequent waste of judicial resources." DiLieto
Furthermore, neither the amount that Izzarelli has already been awarded nor the protracted history of the case controls the ultimate award of offer of judgment interest. Interest pursuant to section 52-192a is mandatory and must be awarded where an offer of judgment in an amount less than the ultimate judgment was filed by the plaintiff and not timely accepted by defendant. DiLieto, 297 Conn. at 153, 998 A.2d 730 (2010); see also Ceci Bros., Inc. v. Five Twenty-One Corp., 81 Conn.App. 419, 840 A.2d 578 (App.Ct.), cert denied, 268 Conn. 922, 846 A.2d 881 (2004) (holding that section 52-192a provides for mandatory imposition of interest at a set rate and affords no allowance for the discretion of the court); Cardenas v. Mixcus, 264 Conn. 314, 321, 823 A.2d 321 (2003) ("Our courts have consistently held that prejudgment interest is to be awarded by the trial court when a valid offer of judgment is filed by the plaintiff, the offer is rejected by the defendant, and the plaintiff ultimately recovers an amount greater than the offer of judgment after trial ... Moreover, an award of interest under [section] 52-192a is mandatory, and the application of [section] 52-192a does not depend on an analysis of the underlying circumstances of the case or a determination of the facts."). In sum, because Izzarelli complied with the requirements of section 52-192a, and because the punitive award is not grossly excessive when compared to the compensatory award, the particular circumstances of this case do not affect her entitlement to a full interest award.
Finally, with respect to R.J. Reynolds' request that I award offer of judgment interest only on Izzarelli's compensatory award, Connecticut law makes clear that the award is calculated on the entire amount recovered, including both punitive and compensatory damages. Gionfriddo v. Avis Rent A Car System, Inc., 192 Conn. 301, 472 A.2d 316 (1984) (holding that offer of judgment interest must be awarded on all amounts recovered, even treble damages); see also Kregos v. Stone, 88 Conn.App. 459, 467, 872 A.2d 901 (App. Ct.), cert. denied, 275 Conn. 901, 882 A.2d 672 (2005); Conn. R. Sup.Ct. P. § 17-18
Izzarelli filed a valid offer of judgment in the amount of $400,000 and provided R.J. Reynolds with the required notice of her offer. R.J. Reynolds possessed the ability, at any point in the years leading up to trial, to settle this case and thereby avoid the imposition of offer of judgment interest. R.J. Reynolds did not do so, and Izzarelli ultimately recovered $11,952,539.87 in compensatory and punitive damages for her injuries. Accordingly, Izzarelli's motion for an award of offer of judgment interest is granted (doc. # 471). The award shall be calculated from December 6, 1999 (the date Izzarelli's complaint was filed) to the date the amended judgment enters. See Conn Gen. Stat. § 52-192a (2001) (when offer of judgment is filed after October 1, 1981, trial court is required to award interest to the prevailing plaintiff from the date of the filing of the complaint if such offer was filed within eighteen months of the filing of the complaint); see also Willow Springs Condominium Ass'n. v. Seventh BRT Development Corp., 245 Conn. 1, 56, 717 A.2d 77 (1998) (when offer of judgment is timely filed, trial court shall award interest to the prevailing plaintiff from the date of the filing of the complaint to the date of judgment); see also Stiffler v. Continental Ins. Co., 288 Conn. 38, 49-50, 950 A.2d 1270 (2008) (interest award pursuant section 52-192a is based on the judgment amount). The award shall be at a rate of 12% per annum
It is so ordered.