X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
in a 6-3 decision, the justices held that a punitive damages award of $145 million, where full compensatory damages are $1 million, is excessive and violates the due process clause of the 14th Amendment. State Farm Mutual Automobile Insurance Co. v. Campbell, No. 01-1289. According to the court, compensatory damages are intended to redress a plaintiff’s concrete loss, while punitive damages are aimed at deterrence and retribution. The due process clause prohibits the imposition of grossly excessive or arbitrary punishments. It should be presumed that a plaintiff’s injuries have been rectified by compensatory damages. Therefore, punitive damages should be awarded only if the defendant’s culpability is so reprehensible to warrant the imposition of further sanctions to achieve punishment or deterrence. Kennedy’s opinion was joined by Rehnquist, Stevens, O’Connor, Souter and Breyer. Scalia, Thomas and Ginsburg filed dissenting opinions.

Want to continue reading?
Become a Free ALM Digital Reader.

Benefits of a Digital Membership:

  • Free access to 3 articles* every 30 days
  • Access to the entire ALM network of websites
  • Unlimited access to the ALM suite of newsletters
  • Build custom alerts on any search topic of your choosing
  • Search by a wide range of topics

*May exclude premium content
Already have an account?

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.