The Arizona Republic
August 1, 2003
By Max Jarman

A U.S. District judge said Arizona Corporation Commissioner Jim Irvin influenced a $2 billion bidding war for Southwest Gas Corp. in secret, abused the public's trust and deserved a $60 million punitive judgment against him.

U.S. District Judge Roslyn Silver made the comments in her formal ruling to uphold the $60 million in punitive damages a jury assessed against Irvin in December. The judge released the text of the ruling Thursday.

"The harm was the result of Irvin's intentional conduct, which the jury determined was accomplished with an evil mind, manifested by deception and trickery," Silver wrote.

Irvin's attorneys argued that the plaintiff, spurned bidder Southern Union Co., did not show enough evidence to support the award and asked the judge to either reduce it or set it aside. The attorneys could not be reached for comment late Thursday.

The decision also challenges Irvin's claim that he was acting in the scope of employment and that the state should pay the award.

"The court notes that Commissioner Irvin should be responsible for payment of the punitive damages award," the decision said.

The award followed a six-week civil trial where the plaintiff argued that Irvin improperly used his office to influence Southwest's directors to sell the company to Oneok Inc. of Tulsa instead of Houston's Southern Union. Southern Union filed suit when it learned of Irvin's efforts on behalf of Oneok.

Silver concluded that Irvin's position of public trust on the powerful regulatory panel and his actions were ample justification for the award.

She added that evidence showing that Irvin tried to conceal his activities from his fellow commissioners in 1999 and his attempt, three years later, to fabricate evidence at his trial, could readily convince a jury that he would engage in further "reprehensible" acts if not deterred by an appropriate award of punitive damages.

"The attempted fabrication of evidence clearly shows the reprehensibility of Irvin's conduct," Silver said. "In short, he participated in a scheme to impede the jury's search for truth at trial.

"Irvin's abuse of power included disregarding the interests of the ratepayers of Arizona, which is a centerpiece of his public duties as an Arizona Corporation Commissioner."