Both Sides Claiming Victory in Supreme Court Punitives Case

Lawyers USAMarch 13, 2007

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Summary


A recent decision from the U.S. Supreme Court that a punitive damages award based in part on a jury's desire to punish a defendant for harming nonparties amounts to a taking of property in violation of the Due Process Clause of the Constitution has both the plaintiffs' and defense bars claiming victory.

The Court agreed to review a $79.5 million punitive award in a tobacco case from Oregon to determine both if juries could consider harm to nonparties and whether the ratio of punitive to compensatory damages - in this case, 97 to 1 - could exceed a single-digit ratio based on the reprehensibility of the defendant's conduct.

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Both Sides Claiming Victory in Supreme Court Punitives Case

But the Court never reached the issue of ratios. Instead, the justices focused on harm to others and tried to strike a delicate balance: while plaintiffs may introduce evidence of harm to nonparties to help establish the reprehensibility of a defendant's conduct, that information may not be used by jurors to actually punish the defendant.

Both sides of the bar found something to like in the opinion.

E...

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