12/08/2022
Wanting to claim punitive damages? Make sure you plead accordingly!
PLAINTIFF FAILED TO ESTABLISH ENTITLEMENT TO PUNITIVE DAMAGES AGAINST CORPORATE DEFENDANT UNDER EITHER DIRECT OR VICARIOUS LIABILITY
Grove Isle Assoc. v. Lindzon, 47 Fla. L. Weekly D2293 (Fla. 3rd DCA Nov. 10, 2022):
A condo owner claimed that his unit suffered severe water damage due to a failing roof assembly. Once the association finally agreed to repair the roof, other problems were discovered, prompting the plaintiff to amend his complaint to include a claim for punitive damages.
Punitive damages are utilized in order to punish a defendant for its wrongful conduct (not to award additional compensation) and to deter similar misconduct in the future by the defendant as well as other actors.
Plaintiff asserted that in an effort to save money, the association had not retained a structural engineer to pull the necessary permits, even though the associationâs own contractor advised it to.
The plaintiff sued the association, but failed to name the property manager in said suit. In revising his claim so as to include punitive damages, the plaintiff necessarily intended to impute the property managerâs alleged intentional misconduct or gross negligence to the association.
In order to do this a plaintiff has to establish that the employeesâ conduct meets the criteria outlined in § 768.72(2) (intentional misconduct or gross negligence) and also establish that (a) the employer, principal, corporation, or other legal entity actively and knowingly participated in such conduct; (b) the officers, directors or managers of the employer, principal, et al., knowingly condoned, ratified, or consent to such conduct; or (c) the employer, principal, corporation, et al., engaged in conduct that constituted gross negligence and contributed to the loss, damages, or injury.
In his amended complaint, the plaintiff failed to specify whether the claim for punitive damages was based on direct or vicarious liability, and further, allegations of wrongdoing by the association were conspicuously absent (the complaint only included allegations of wrongdoing by the property manager while using the term association broadly).
The complaint did not contain any separate independent allegations setting forth any actions taken by an association officer, director, or managing member. While the complaint referenced a single unnamed board member, said references did not allege active, knowing participation by the association with the misconduct by the property manager or the contractorâs employees.
As a result of the foregoing, there was also no vicarious liability properly alleged. To hold a corporate employer vicariously liable for punitive damages, the plaintiff must establish (1) fault on the part of the employee that rises to the level of willful and wanton misconduct and (2) some fault on the part of the corporate employer that rises to the level of at least ordinary negligence.
Since the complaint did not contain any allegations of even simple negligence against the association, the plaintiff failed to meet his heightened evidentiary standard for imposing punitive damages on the employer based on vicarious liability.