In a case closely watched by tort reformers, a federal appeals court has whittled a $25.5 million punitive damages award to $1.95 million in a carbon monoxide poisoning lawsuit out of Wyoming.

Reversing much of the lower court’s decision, the U.S. Court of Appeals for the Tenth Circuit on April 1 found that punitive damages in the case were “excessive and arbitrary” in violation of the 14th Amendment’s due process clause.

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