Forum

U.S. Supreme Court

Case Status

Decided

Docket Number

05-1256

Term

2006 Term

Oral Argument Date

October 31, 2006

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Questions Presented

1. Whether, in reviewing a jury's award of punitive damages, an appellate court's conclusion that a defendant's conduct was highly reprehensible and analogous to a crime can "override" the constitutional requirement that punitive damages be reasonably related to the plaintiffs harm.

2. Whether due process permits a jury to punish a defendant for the effects of its conduct on non-parties.

3. Whether, in reviewing a punitive award for excessiveness, an appellate court is permitted to give the plaintiff the benefit of all conceivable inferences that might support a finding of high reprehensibility even if the jury made no such specific factual findings.

Case Updates

Supreme Court addresses punitive damages, reprehensible conduct & harm to non-parties

February 20, 2007

Following the approach outlined in NCLC’s brief, the Supreme Court concluded that subjecting defendants to punitive damages awards for conduct not directed at the parties before the court was a violation of due process.

U.S. Chamber files amicus brief

July 28, 2006

This case was the first punitive damages case to be heard by the Supreme Court since its 2003 landmark decision in State Farm v. Campbell. As urged by NCLC, the Supreme Court granted review of an Oregon Supreme Court decision to clarify whether juries may impose punitive damages for conduct that occurred to others not before the court. The court also agreed to consider whether extraordinary reprehensibility of the alleged conduct could nullify the single digit ratio limitation provided in State Farm.

In this case, the Oregon Supreme Court upheld a massive punitive damages award of $79 million against Philip Morris for “harm[ing] a much broader group of Oregonians” than the individual plaintiff who brought the suit. In its brief, NCLC argued the state court, by basing a punitive damages award on harm to non-parties, denied Philip Morris its due process rights to defend hypothetical claims against itself. NCLC also argued that punitive damages should bear a reasonable relationship to the compensatory damages awarded, and that the jury should use a ratio guidepost to calculate any extra damages.

Cert. petition granted

June 05, 2006

U.S. Chamber urges Supreme Court to review punitive damages, reprehensible conduct & harm to non-parties

May 01, 2006

NCLC urged the Supreme Court to grant review of an Oregon Supreme Court decision to clarify whether juries may impose punitive damages for conduct that occurred to others not before the court. In this case, the Oregon Supreme Court upheld a massive punitive damages award of $79 million against Philip Morris for “harm[ing] a much broader group of Oregonians” than the individual plaintiff who brought the suit.

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