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the wrongdoer." See also S.D. Codified Laws sec. 21-3-2 (Michie
Supp. 2000) (the jury, in addition to the actual damage, may give
punitive damages for the sake of example, and by way of punishing
the defendant); Veeder v. Kennedy, 589 N.W.2d 610, 622 (S.D.
1999) (punitive damages may properly be imposed to further
State's legitimate interests in not only punishing unlawful
conduct but also in deterring its repetition). Contrary to
petitioners' assertion, we conclude that the punitive damages
were not compensatory.
No Physical Injury or Physical Sickness
The Omnibus Budget Reconciliation Act of 1989 (OBRA), Pub.
L. 101-239, sec. 7641(a), 103 Stat. 2106, 2379, amended section
104(a) by adding the sentence "Paragraph (2) shall not apply to
any punitive damages in connection with a case not involving
physical injury or physical sickness." OBRA section 7641(b)(2)
provided that the amendment is applicable to amounts received
pursuant to suit filed after July 10, 1989. Because petitioners
filed suit more than 2 months after this date, the amendment is
applicable to the instant case.
The complaint in petitioners' suit was based upon several
claims. Although petitioners claimed to have suffered "emotional
injuries" on account of the defendant's actions, the complaint
did not mention any physical injury or physical sickness
resulting from those actions. The fact that a taxpayer suffers
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