Summary of a Recent
Judicial Development in
Commercial Transactions

Request for New Trial Due to Passion or Prejudice by the Jury is Denied

Walt McCarter
National AgLaw Center Research Associate

Summary of Decision

In WSH Properties, L.L.C. v. Daniels, No. 05-0404 --- N.W.2d ---, 2008 WL 4603453 (Iowa Oct. 17, 2008), the Iowa Supreme Court held that an excessive jury award did not create a presumption of passion or prejudice, and the defendants were not entitled to a new trial.

Background

Defendants owned and operated a hog confinement facility on real estate that was sold to the plaintiff at a tax sale after the defendants stopped paying taxes. Id. at *1. After receiving the deed to the property, the plaintiff brought an action against the defendants for removing equipment and fixtures from the facilities. Id. At trial, the jury found in favor of the plaintiff and awarded damages for the value of the property as well as $533,952 for wrongful detention of the property. Id. The defendants filed a motion for a new trial, claiming that the damage amounts were not supported by the evidence and that the jury sought to punish the defendants and were prejudiced against them. Id. The trial court found no evidence of prejudice, but agreed that the award was not supported by the evidence and had the impression that the jury sought to punish the defendants. Id. at *2. The trial court conditionally denied the motion for a new trial unless the plaintiff filed a remittitur, which it did, and the defendants appealed. Id. at *2. The court of appeals reversed and held that once the trial court had determined that the excessive award was the result of the jury's anger with the defendants and a desire to punish them, it was required to grant the request for a new trial, and the plaintiff appealed. Id.

Arguments

Defendants argued that they were entitled to a new trial rather than remittitur, because the jury's award of damages was the result of passion or prejudice and was not supported by the evidence. Id. at *1-2.

Analysis and Holdings

Iowa Rule of Civil Procedure 1.1004 provides that a request for new trial should be granted in cases of "excessive or inadequate damages appearing to have been influenced by passion or prejudice" or "error in fixing the amount of the recovery, whether too large or too small, in an action upon contract or for injury to or detention of property." Id. at *3. The Iowa Supreme Court pointed out that the basis of the trial court's decision was key, because "if the verdicts are the result of passion and prejudice a new trial should be granted, but if they are merely excessive because not supported by sufficient evidence even in the absence of passion and prejudice justice may be effectuated by ordering a remittitur of the excess as a condition for avoiding a new trial." Id. at *4. The court determined that a new trial was not appropriate because the only evidence of the jury's "passion" was the excessive amount of damages, which the court found was not sufficiently excessive to raise a presumption of passion or prejudice. Id. at *4-5.

The case was decided on October 17, 2008.