Kekona v. Bornemann

Summary

The Hawaiʻi Supreme Court reviewed whether a punitive damages award against Michael Bornemann for participating in fraudulent property transfers was grossly excessive under state law and the Fourteenth Amendment. The court held that the evidence justified the full $1,642,857.13 punitive damages award imposed by the third jury and rejected the Intermediate Court of Appeals’ reduction of the award.

Holdings

1. The $1,642,857.13 punitive-damages award was supported by the evidence and was not excessive under Hawaiʻi law.
2. The jury could include reasonable and necessary attorney's fees and litigation expenses in the punitive-damages award, but those fees could not be awarded separately in addition to punitive damages.
3. A fraudulent transfer undertaken with the intent required for punitive damages justifies a punitive award at a two-to-one ratio to the plaintiff's actual damages.
4. The punitive-damages award was not grossly excessive and did not violate Bornemann's Fourteenth Amendment due-process rights.

Questions Presented

1. Whether the $1,642,857.13 punitive-damages award was excessive under Hawaiʻi law.
2. Whether the punitive-damages award was grossly excessive and therefore violated Bornemann's rights under the Fourteenth Amendment's Due Process Clause.
3. Whether Bornemann's intentional participation in the fraudulent transfer justified punitive damages at a two-to-one punitive-to-compensatory ratio, together with additional amounts based on attorney's fees and aggravating circumstances.

Disposition

reversed_and_remanded