Jacque v. Steenberg Homes, Inc.

Supreme Court of Wisconsin
209 Wis. 2d 605, 563 N.W.2d 154 (1997)
ELI5:

Rule of Law:

When nominal damages are awarded for an intentional trespass to land, punitive damages may also be awarded at the jury's discretion to punish the wrongdoer and deter similar future conduct.


Facts:

  • Steenberg Homes, Inc. (Steenberg) sold a mobile home to a neighbor of Harvey and Lois Jacque.
  • Steenberg determined that the easiest and most direct route to deliver the home was across the Jacques' property.
  • The Jacques repeatedly and explicitly denied Steenberg's requests for permission to cross their land, partly due to a previous negative experience with an adverse possession lawsuit.
  • Despite the Jacques' adamant refusals, Steenberg's assistant manager instructed employees to deliver the home across the Jacques' land anyway.
  • Steenberg employees then used a bobcat to plow a path through the snow on the Jacques' field and delivered the mobile home across their property.
  • The assistant manager was later informed of the successful trespass and reacted by giggling and laughing.

Procedural Posture:

  • Harvey and Lois Jacque sued Steenberg Homes, Inc. in Manitowoc County Circuit Court (trial court) for intentional trespass, seeking compensatory and punitive damages.
  • At trial, Steenberg conceded it had intentionally trespassed.
  • The jury awarded the Jacques $1 in nominal damages and $100,000 in punitive damages.
  • On a post-verdict motion by Steenberg, the circuit court judge set aside the $100,000 punitive damage award, ruling that it could not be sustained without an award of compensatory damages.
  • The Jacques appealed to the court of appeals, which reluctantly affirmed the circuit court's decision, stating it was bound by existing precedent.
  • The Jacques then petitioned the Supreme Court of Wisconsin for review.

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Issue:

Does an award of nominal damages for an intentional trespass to land support a punitive damage award?


Opinions:

Majority - Bablitch, J.

Yes, an award of nominal damages for intentional trespass to land can support a punitive damage award. The court reasoned that the general rule requiring compensatory damages to support punitive damages is inapplicable to the tort of intentional trespass to land. The court emphasized that a landowner's right to exclude others is a fundamental property right, and its violation constitutes actual harm, even if it cannot be measured in compensatory damages. Society has a significant interest in protecting this right to preserve the integrity of the legal system and to deter wrongdoers from concluding that it is more profitable to trespass and pay a nominal fee than to obey the law. Therefore, punitive damages serve the crucial purposes of punishment and deterrence in cases of egregious, intentional trespass.



Analysis:

This decision carves out a significant exception to the traditional common law rule that punitive damages are unavailable without an award of actual, compensatory damages. It elevates the right to exclude as a legally protected interest, recognizing that its intentional violation is a harm in and of itself, deserving of punishment. The ruling strengthens property rights by ensuring that intentional trespassers cannot simply treat potential nominal damage awards as a cheap cost of doing business. It provides a powerful deterrent against intentional torts where the tangible harm is minimal but the affront to individual rights is substantial.

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