Punitive Damages Exceeding Single-Digit Multiplier Likely Excessive

In State Farm Mut. Automobile Ins. Co. v. Campbell, 538 U.S. 408 (Apr. 7, 2003), the U.S. Supreme Court revisited the issue of when an award of punitive damages is unconstitutionally excessive, and, among other things, limited the types of reprehensible conduct that may be considered in calculating a punitive damages award. Amplifying its decision in BMW of North America, Inc. v. Gore, 517 U.S. 559 (1996), the Court held that while a punitive damage award is to be based on the degree of reprehensibility of the defendant’s conduct, the disparity between the actual or potential harm and the punitive damage award, and the difference between the punitive damage award and available civil penalties, a court may not consider dissimilar acts or punish a defendant for conduct directed at another person in another state unless that other plaintiff is joined and an appropriate choice of law analysis applied. The Court also reiterated that “few [punitive] damage awards exceeding a single-digit ratio between punitive and compensatory damages, to a significant degree, will satisfy due process.” State Farm Mutual, 538 U.S. at 425.