## Facts

- A house-moving crew for Searcy House Moving Co. stopped on Highway 167 to adjust a house that could not clear a bridge; traffic was flagged through a single open lane.
- National By-Products’ employee Robert Foley drove a tractor-trailer toward the slowed/stopped traffic and struck the rear of a passenger car, pushing it into the house-moving rig and into bystanders.
- Two occupants of the passenger car, Stacy McGee and Lorene Staggs, died from the collision.
- Evidence indicated Foley was driving about 70 mph in a 55 mph zone, in an overweight truck, and made no visible attempt to slow or stop despite having substantial distance to observe the obstruction.
- The tractor-trailer’s brakes were not properly adjusted; the employer was overdue for brake adjustment, though Foley performed regular inspections described as diligent.
- Evidence also showed Foley had previously driven overweight loads for National By-Products without company discipline.
- In the resulting wrongful-death litigation, Searcy and National By-Products asserted cross-claims against each other seeking compensatory and punitive damages; the only issue on appeal concerned the punitive damages awarded to Searcy against National By-Products.

## Issues

1. Whether substantial evidence supported submitting and sustaining a jury award of punitive damages against National By-Products in favor of Searcy House Moving Co.

## Decision

- The Arkansas Supreme Court reversed the punitive damages judgment for Searcy against National By-Products.
- The court held the evidence, even viewed most favorably to Searcy, showed at most gross negligence and did not establish wantonness or conscious indifference from which malice could be inferred.
- Because punitive damages were unsupported by substantial evidence, National By-Products was entitled to judgment notwithstanding the verdict on that award.

## Legal Principles

- Punitive damages require proof that the defendant acted wantonly or with such conscious indifference to the consequences that malice may be inferred.
- Gross negligence, even if serious or reckless, is insufficient without evidence of the heightened culpable mental state.
- Punitive damages may be imposed only when the evidence shows the defendant knew, or had reason to believe, the conduct was about to inflict injury and continued with conscious indifference to the consequences.
- On review of a denial of JNOV, the evidence and reasonable inferences are viewed in the light most favorable to the nonmovant; the verdict must still rest on substantial evidence.

## Conclusion

The court set aside Searcy’s punitive damages award because the proof of speeding, overweight hauling, and late brake maintenance established negligence but did not show that National By-Products acted with wantonness or conscious indifference supporting an inference of malice.


National By-Products, Inc. v. Searcy House Moving Co., 292 Ark. 491, 731 S.W.2d 194 (Ark. 1987)