In the wake of its decision in State Farm Mut. Automobile Ins. Co. v. Campbell, 123 S. Ct. 1513 (2003), regarding the due process limits on awards of punitive damages, the U.S. Supreme Court has granted 10 petitions for writ of certiorari and summarily vacated and remanded the cases for further consideration to a variety of state and federal courts.
The two most recent of those rulings are Philip Morris USA v. Williams, No. 02-1553, 2003 WL 21020159 (U.S. Oct. 6, 2003); and Chrysler Corp. v. Clark, No. 02-1748, 2003 WL 21313765 (U.S. Oct. 6, 2003). Philip Morris USA involved an Oregon case in which the jury had awarded over $79.5 million in punitive damages, which the judge reduced to $32 million. The appellate court had affirmed in 2002, allowing punitive damages with a ratio of more than 60:1. In Chrysler Corp., the Sixth Circuit had affirmed a jury award of $3 million in a products liability case where compensatory damages were $236,000 (more than 12:1). The Supreme Court's order suggests that even low awards are constitutionally suspect if the ratio to compensatory damages exceeds a single-digit number.
The other vacated cases are:
• Cass v. Stephens, [02-983] 123 S.Ct. 2213 (May 27, 2003), vacating No. 08-97-00582-CV, 2001 WL 28092 (Tex. App. 8th Dist. Jan. 11, 2001) (25 times compensatory damages after remittitur)
• Ford Motor Co. v. Ramon Romo, [02-1097] 123 S.Ct. 2072 (May 19, 2003), vacating 99 Cal.App.4th 1115, 122 Cal. Rptr. 2d 139 (5th Dist. 2002) (46.4 times original compensatory damages, or 58.6 times reduced compensatory damages)
• Ford Motor Co. v. Smith, [02-1096] 123 S.Ct. 2072 (May 19, 2003), vacating 83 S.W.3d 483 (Ky 2002) (reducing award of 6.7 times compensatory damages to 5 times compensatory damages)
• DeKalb Genetics Corp. v. Bayer CropScience, S.A., [02-130] 123 S.Ct. 1828 (Apr. 21, 2003), vacating 272 F.3d 1335 (Fed. Cir. 2002) (3.33 times compensatory damages)
• National Union Fire Ins. Co. of Pittsburgh, Pa. v. Textron Financial Corp., [02-966] 123 S.Ct. 1783 (Apr. 21, 2003), vacating No. G020323, 2002 WL 1399105 (Cal. App. 4th Dist.
June 28, 2002) (10.2 times compensatory damages after remittitur)
• San Paolo U. S. Holding Co., Inc. v. Simon, [01-1722] 123 S.Ct. 1828 (Apr. 21, 2003), vacating No. B121917, 2001 WL 1380836 (Cal. App. 2d Dist. Nov. 7, 2001) (340 times compensatory damages)
• Key Pharmaceuticals, Inc. v. Edwards, [02-342] 123 S.Ct. 1781 (Apr. 21, 2003), vacating Bocci v. Key Pharmaceuticals, Inc., 178 Or.App. 42, 35 P.3d 1106 (2002) (45
times compensatory damages)
• Anchor Hocking, Inc. v. Waddill, [02-370] 123 S.Ct. 1781 (Apr. 21, 2003), vacating 175 Or.App. 294, 27 P.3d 1092 (2002) (9.9 times compensatory damages)
Of those ten cases, three have been decided on remand. The DeKalb court has reconsidered its
original decision and held that the award of $50 million in punitive damages was not unconstitutional under State Farm when compared with the $15 million in compensatory damages awarded (a ratio of 3.33:1). Rhone-Poulenc Agro, S.A. v. DeKalb Genetics Corp., 345 F.3d 1366 (Fed. Cir. Sept. 29, 2003). In Key Pharmaceuticals, the punitive damages award was vacated and remanded with instructions to allow defendants' motion for a new trial unless plaintiff agreed to remittitur of punitive damages to $3.5 million, down from $22.5 million. The remittitur would result in a ratio of 7:1, down from 45:1. Bocci v. Key Pharmaceuticals, Inc., 189 Or.App. 349, 76 P.3d 669 (Sept. 10, 2003). In the Anchor Hocking case, the appellate court ordered a new trial unless plaintiff agreed to remittitur of punitive damages to $403,416, down from $1 million. The reduction would yield a ratio of 4:1 instead of 9.9:1. Anchor Hocking, Inc. v. Waddill, 190 Or.App. 172, 2003 WL 22404943 (Oct. 22, 2003).
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