Business Hails Supreme Court Punitive Damages Ruling

Jan. 13, 2005
By John S. McClenahen Not surprisingly, the Washington, D.C.-based National Association of Manufacturers (NAM) and U.S. Chamber of Commerce are pleased with this week's pro-business ruling in a closely watched punitive damages case. By a 6-to-3 ...
ByJohn S. McClenahen Not surprisingly, the Washington, D.C.-based National Association of Manufacturers (NAM) and U.S. Chamber of Commerce are pleased with this week's pro-business ruling in a closely watched punitive damages case. By a 6-to-3 margin, the court ruled that "few awards exceeding a single-digit ratio between punitive and compensatory damages, to a significant degree, will satisfy due process." In a case against State Farm Mutual Life Insurance Co., a Utah jury had awarded Curtis and Inez Campbell $145 million in punitive damages, 145 times the $1 million in compensatory damages assessed by a lower court judge. "The punitive award of $145 million . . . was neither reasonable nor proportionate to the wrong committed, and it was an irrational and arbitrary deprivation of the property of the defendant," wrote Justice Anthony Kennedy. "This decision shows the court has come down squarely behind reason and fairness -- punitive damages must be in line with actual damages," says Thomas J. Donohue, the U.S. Chamber's president and CEO. However, the court's decision is only one favorable step, contends Jan Amundson, the NAM's general counsel. "Of course, one favorable decision in the area of punitive damages does not solve all the problems facing manufacturers in the courts," she says "Class actions, expansive theories of liability, suits by foreign nationals in our courts and a variety of other tactics by trial lawyers that all work to undermine our competitiveness and destroy jobs still demand intervention by federal and state lawmakers." The NAM is leading a coalition for comprehensive legal reform.

Popular Sponsored Recommendations

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Discrete and Process Manufacturing 2024 Trends and Outlook for North America

Oct. 29, 2023
Manufacturers are reaping the benefits of automation and cloud-based solutions. Discover what is driving today's industry trends and how they can shape your growth priorities ...

What Is Your Smart Factory IQ?

Sept. 24, 2023
It’s time to put Smart, data-driven manufacturing operations to the test. In this comprehensive whitepaper we show you how to determine the Artificial Intelligence Quotient (AIQ...

7 Crucial Steps to Improve Your OT Security

Oct. 23, 2023
Enhance OT security in manufacturing and production. Uncover the crucial steps to safeguard your operational technology. Protect against evolving threats and bridge the IT-OT ...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!