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In early 1976, P purchased a used 6-year-old Honda CB750 motorcycle. P was its third owner. P was injured when he was thrown from the motorcycle while riding at night on a lighted road. P was driving at approximately 30-35 miles per hour when he saw in the road a repair ditch approximately four inches deep and ten feet long. He testified that he slowed down, retained control of the motorcycle, and maneuvered it straight through the ditch. As he was exiting the ditch, the motorcycle's rear wheel hit the back edge of the ditch and collapsed. The collapsed rear of the motorcycle jerked into the air, tossing him to the ground. Plaintiff sustained multiple injuries, including four fractured vertebrae, a broken femur, and a punctured liver. P brought this action against Honda (D), the manufacturer of the motorcycle; Daido Kogyo, the company responsible for manufacturing and assembling the rear wheel; and American Honda (D), the motorcycle's distributor. P stated causes of action in negligence, strict product liability under section 402A of the Restatement (Second) of Torts, and breach of implied warranty of merchantability, alleged defective design and manufacture of the rear wheel, as well as a failure to warn that the wheel was too weak to withstand contact with the rim of the ditch. The court instructed the jury on negligence and strict liability, as well as on the availability of punitive damages. The jury found Ds liable on the strict liability count and awarded the plaintiff $175,000 in compensatory damages, along with punitive damages of $210,000 against each defendant. Ds moved for judgment notwithstanding the verdict on the ground that there was insufficient evidence to support either compensatory or punitive damages. The court affirmed the award of compensatory damages. The court also stated, without elaboration, that the evidence disclosed sufficiently 'outrageous or reckless conduct' on the part of Honda (D) and Daido (D) to warrant sustaining the punitive damages against them. The court granted American Honda (D) judgment n.o.v. as to that aspect of the verdict. P appealed from the grant of judgment n.o.v. for American Honda (D), and Defendants Honda (D) and Daido Kogyo (D) cross-appealed from the court's denial of their motions for judgment n.o.v.

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