In a much-watched case, the California Supreme Court last week gave businesses a new reason to be honest by ruling they could be hit with punitive damages for fraudulently breaching contracts. The 6-1 decision affirmed $6 million in punitive damages that jurors had awarded to Robinson Helicopter for faulty safety clutches built by Ohio-based Dana Corp. The justices held that the state's economic loss rule doesn't bar fraud claims if they are independent of the underlying breach.
December 28, 2004 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
The California Supreme Court on Thursday gave businesses a new incentive to be honest by ruling that they could be hit with punitive damages for fraudulently breaching contracts.
The 6-1 decision affirms $6 million in punitive damages that Los Angeles jurors awarded Torrance-based Robinson Helicopter Co. for faulty safety clutches built by the Dana Corp. of Toledo, Ohio.
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