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Punitive award vacated; Supreme Court orders review of scale of award.(News)

Business Insurance, May, 2003

Byline: MARK A. HOFMANN WASHINGTON-The Supreme Court's order last week vacating a large punitive damage award in a California product liability case demonstrates that the justices are serious about reining in "excessive'' punitive damages in cases of all kinds, say tort reform advocates. The case-Ford Motor Co.

vs. Juan Ramon Romo-involved a 1993 fatal accident that killed three members of a family. The plaintiffs alleged that the Ford Bronco involved was defective, and in 1999 a Stanislaus County, Calif., court awarded the plaintiffs slightly less than $5 million in compensatory damages but added another $290 million in punitive damages. Ford appealed, but the Court of Appeals of California, Fifth Appellate Division, held in June 2002, that the punitive...

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