Supreme Court vacates $290m punitive award. (Washington Beat).(Ford Motor Co. v. Romo)

National Underwriter Property & Casualty-Risk & Benefits Management, May, 2003 by Brostoff, Steven

Insurance and business groups are lauding a decision by the U.S. Supreme Court to vacate a $290 million product liability punitive damage award. In the case of Ford Motor Co. v. Romo, the high court ordered the Supreme Court of California to reconsider the punitive damage award in light of the recent decision in the case of State Farm v.

Campbell. In the State Farm case, the U.S. Supreme Court overturned a $145 million punitive damage award against the Bloomington, Ill.-based company, saying it was unfairly punished for actions that were legal in the jurisdictions where they curred and for conduct that was unrelated to issues on which it was being sued. The high court also said that the $145 million punitive damage award unfairly exceeded the compensatory...

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