Wednesday, February 01, 2006

Sixth Circuit Reduces Punitive Damages Award in Light of State Farm v. Campbell

Today the Sixth Circuit issued an opinion in Clark v. Chrysler Corp., No. 04-5279, in which they reduced a $3 million punitive damages award to $471,258.26 in light of the Supreme Court's holding in State Farm Mutual Automobile Ins. Co. v. Campbell, in which the high Court indicated that punitive damages awards exceeding a single-digit multiple of compensatory damages would likely be unconstitutionally excessive. In Clark, the Sixth Circuit ultimately concluded that the defendant's wrongdoing was insufficiently reprehensible to warrant a punitive award beyond twice the level of compensatory damages.

The full text of the Sixth Circuit's opinion can be viewed by clicking here.


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