Business Services Industry

Punitive jury still out. (BMW of North America Inc. vs. Gore)

Business Insurance, May, 1996 by Hofmann, Mark A.

Business laments justices' refusal to draw bright line WASHINGTON - A Supreme Court decision that may eventually curb punitive damage awards may first generate much more litigation to determine when an award is unconstitutionally excessive. The high court, in its 5-4 decision in BMW of North America Inc.

vs. Gore, did not spell out any formula or draw any legal "bright line" that would indicate when a punitive damage award crosses the constitutional boundary. Instead, the majority looked to what it called "guideposts" in finding that a $2 million punitive damage award levied by an Alabama court against BMW was grossly excessive. "As in Haslip, we are not prepared to draw a bright line marking the limits of a constitutionally acceptable punitive damages award,"...

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