'Grossly excessive' punitive damages struck down

Article Abstract:

The US Supreme Court ruled in BMW of North America v. Gore that the punitive damages assessed against the car manufacturer for selling a repainted car as new were grossly excessive and in violation of substantive due process. An Alabama jury had awarded $4 million in punitive damages on the fraud and breach of contract claims, and the award was reduced to $2 million by the Alabama Supreme Court. The US Supreme Court majority focused on the relationship between the harm and the damages, and the dissenters focused on whether the Court should be resolving state law matters.

Laws, regulations and rules, Fraud, Damages, Damages (Law)

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Punitive damages survive in non-media case

Article Abstract:

The US Supreme Court ruled in TXO Production Corp v. Alliance Resources Corp that a punitive damage award of $10 million in a case with actual damages of just $19,000 did not constitute a due process of law violation. Three of the justices wrote that there was no 'bright line' test for determining the propriety of a punitive damage award but that this particular award was reasonable in view of TXO's wealth. Justice Kennedy suggested that punitive damages be upheld as long as they are not motivated by juror prejudice.

Due process of law

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Judge reverses record-setting punitive damages award against Wall Street Journal

Article Abstract:

The US District Court for the Southern District of Texas ruled that Money Management Analytical Research Group did not show that Dow Jones & Co acted with malice and so rejected the $200 million punitive damages jury award. The award against the reporter, Laura Jereski, stood because of the evidence of malice in the use of five false and defamatory sentences. However, the management of Dow Jones & Co would have had to ratify the malicious conduct to be liable.

Libel and slander, DJ, Dow Jones & Company Inc., MMAR Group Inc.

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