Business Services Industry

Appeals to review punitives: Court.(Cooper Industries, Leatherman Tool Group case)(Brief Article)

Business Insurance, May, 2001 by Hofmann, Mark A.

WASHINGTON-Federal appeals courts should scrutinize large punitive damage awards handed down by trial courts, the U.S. Supreme Court ruled. The case, Cooper Industries vs. Leatherman Tool Group Inc., involved a dispute between two tool manufacturers. Leatherman alleged, among other things, that Cooper had engaged in false advertising and unfair competition by using pictures of a modified version of a Leatherman pocket tool in advertisements promoting its own tool.

A U.S. District Court jury in Oregon awarded Leatherman $50,000 in compensatory damages and then added $4.5 million in punitive damages. Cooper appealed to the 9th U.S. Circuit Court of Appeals, which let the award stand in late 1999 after it subjected the lower court's ruling to a so-called ``abuse...

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