But that isn't the end of the issue, because the Legislature amended the law in 1991, and again 2002 and 2004. Because the Supreme Court did not rule on the latest version of the law, in which the state still confiscates 50 percent of the amount of punitive damages in excess of $20,000, its constitutionality remains an open question.
We are unconvinced that the state is morally entitled to half of these awards. The state does not assume any of the burden of filing the lawsuit or suffering through the emotionally excruciating months or years of depositions, testimony and legal wrangling while the wheel of justice grinds slowly.
Then, after all the torment is over and the plaintiff emerges victorious, the state swoops in and claims a share of the prize. That strikes us as greedy, confiscatory and, well, wrong.
It also should be unconstitutional, as both the state and federal constitutions prohibit the government from taking someone's property without just compensation.
The argument for the law is that it helps to encourage greedy plaintiffs and their attorneys to settle lawsuits, because even if they win a huge punitive damage award from a sympathetic jury, they will forfeit half of it to the state.
Besides, punitive damages, which are designed to punish bad behavior and deter others from doing the same, should not benefit the plaintiff, or so the argument goes. In this light, punitive damages are akin to criminal fines. The plaintiff already has recovered his legal costs, attorneys' fees and the actual damages he suffered before any punitive damages are awarded.
But reality is that there are relatively few huge punitive damage awards that run into millions of dollars, especially in Utah. Even if they are the windfalls for plaintiffs and trial lawyers that the tort-reform lobby or the film "Erin Brockovich" portray them to be, they are relatively rare.
The Legislature should repeal Utah's so-called "split recovery" law. Successful plaintiffs shouldn't have to split the proceeds from punitive damage judgments with anyone, except, perhaps, as taxable income.


