Business Services Industry

Punitives ruling at center of last high court term; Health care cases also affect business.(News)

Business Insurance, July, 2003 by Hofmann, Mark A.

Byline: MARK A. HOFMANN WASHINGTON-Employers will long remember the just-ended Supreme Court term for a single decision among the various rulings handed down by the justices. In an otherwise lackluster term for liability cases, the justices reaffirmed in State Farm Mutual Automobile Insurance Co.

vs. Curtis Campbell et ux. that a punitive damage award can be so disproportionate to underlying compensatory damages as to violate the Constitution. The case involved a claims-handling dispute in which the Utah Supreme Court reinstated a $145 million punitive damage award levied atop a compensatory award of only $1 million (BI, April 14). But the court didn't stop with merely saying that the awards could be unconstitutionally large-the justices held that under...

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