Hughes A. and Marilyn B. Bagley - Page 6

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                  damages, and the amount thereof, are matters confided to you for                      
                  decision.                                                                             

            The District Court Judge instructed the jury respecting punitive damages                    
            generally that--                                                                            
                        In addition to the actual damages set out above, plaintiff's                    
                  complaint seeks to recover what is known in law as punitive                           
                  damages.  These damages are not compensatory in the ordinary sense                    
                  but are allowed by way of punishment to restrain defendant or                         
                  others from the commission of like acts in the future.  You are                       
                  instructed that the law permits but does not require a jury to                        
                  allow punitive damages in certain cases if it is found by the jury                    
                  that the act causing the injury complained of is malicious or                         
                  wanton.                                                                               

                  On December 30, 1982, the jury returned verdicts in favor of petitioner               
            on all four remaining claims and awarded petitioner actual and punitive                     
            damages in the following amounts:                                                           
                   Claim                               Damages                                          
                                                       Actual           Punitive                       
            Tortious interference                                                                       
            with present employment                    $150,000    $500,000                             
            Tortious interference                                                                       
            with future employment            100,000        250,000                                    
            Libel                         1,000,000      5,000,000                                      
            Invasion of privacy                      250,000      1,500,000                             
            Total                               1,500,000      7,250,000                                

                  On January 10, 1983, IBP filed a motion for judgment notwithstanding the              
            verdict or alternatively for a new trial.  IBP's motion contained a number of               
            arguments, including the argument that the damages awarded on the libel claim               
            were duplicated by the awards on the other claims.  On June 24, 1983, the                   
            District Court entered an order granting IBP's motion with respect to the                   
            invasion of privacy claim on the grounds that the award on that claim was                   
            duplicative of the award on the libel claim and dismissed that claim.  IBP                  
            appealed the judgment on the three remaining claims to the Court of Appeals                 
            for the Eighth Circuit.  The Court of Appeals for the Eighth Circuit, sitting               
            en banc:  (1) Reversed the judgment on the libel claim and remanded it for a                
            new trial with instructions; (2) affirmed the judgment on the tortious                      





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