Law Commons^™

The Decision To Award Punitive Damages: An Empirical Study, Theodore Eisenberg, Michael Heise, Nicole L. Waters, Martin T. Wells

Cornell Law Faculty Publications

Empirical studies have consistently shown that punitive damages are rarely awarded, with rates of about 3 to 5 percent of plaintiff trial wins. Using the 2005 data from the Bureau of Justice Statistics Civil Justice Survey, this article shows that knowing in which cases plaintiffs sought punitive damages transforms the picture of punitive damages. Not accounting for whether punitive damages were sought obscures the meaningful punitive damages rate, the rate of awards in cases in which they were sought, by a factor of nearly 10, and obfuscates a more explicable pattern of awards than has been reported. Punitive damages were …

Epstein's Razor, David G. Owen

Faculty Publications

Richard Epstein, over a long and distinguished career, has offered inspired insights into how a legal system should be framed to serve the goals of those it governs. In that pursuit, he has relentlessly applied a sharp logic - call it Epstein's Razor - to shave away the detritus of complexity and confusion that surround perplexing problems, leaving standing only truths unscathed by competition among ideas. Over decades of diverse writings on law and political theory, highlighted by his elegant Simple Rules for a Complex World, Professor Epstein offers a vision of law constructed on the view that simplicity in …

Hiding Behind Policy: Confusing Compensation With Indemnification, Jennifer A. Emmaneel

Golden Gate University Law Review

In PPG Industries, Inc. v. Transamerica Insurance CO., the California Supreme Court held that an insurer may not indemnify its insured for a punitive damages judgment in a third party action. Even if the excess judgment is the result of the insurer's bad faith breach of its duty to settle a third party action on behalf of its insured, an insured may not recover if it seeks compensatory damages that include a punitive damages judgment. The California Supreme Court found that to conclude otherwise would violate California's long established public policy precluding indemnification of punitive damages. This Note examines the …

Taxing Punitive Damages, Gregg D. Polsky, Dan Markel

Scholarly Works

There is a curious anomaly in the law of punitive damages. Jurors assess punitive damages in the amount that they believe will best “punish” the defendant. But, in fact, defendants are not always punished to the degree that the jury intends. Under the Internal Revenue Code, punitive damages paid by business defendants are tax deductible and, as a result, these defendants often pay (in real dollars) far less than the jury believes they deserve to pay.

To solve this problem of under-punishment, many scholars and policymakers, including President Obama, have proposed making punitive damages nondeductible in all cases. In our …

Punitive Damages In Commercial Arbitration: A Due Process Analysis, Ira P. Rothken

Golden Gate University Law Review

This comment theorizes that awarding punitive damages in commercial arbitration is "state action" requiring due process. Unlike the traditional contract remedy of compensatory damages, punitive damages have for centuries been under the exclusive control of the State. The Supreme Court has found that a traditional and exclusive State power exercised by a private individual is "state action" requiring due process. Therefore when punitive damages are at issue, the arbitration agreement must consist of a minimum quantum of procedures that balance the protection against erroneous punishment with the State's interest in limiting the burden on arbitration. This comment also theorizes that …

Los Daños Punitivos En El Derecho Argentino, Carlos Molina Sandoval

Carlos Molina Sandoval

Esta contribución analiza la incoporación de los daños punitivos en la reforma de la Ley de Defensa del Consumidor y propone algunos puntos conflictivos para su discusión

Doling Out Environmental Justice To Nicaraguan Banana Workers: The Jose Adolfo Tellez V. Dole Food Company Litigation In The U.S. Courts, Armin Rosencranz, Stephen Roblin, Nicole Balloffet

Golden Gate University Environmental Law Journal

In this article, we will explore the circumstances that led to this landmark ruling and verdict in Los Angeles, how Judge Chaney’s rulings changed the trajectory of the case, the recent developments concerning fraud by at least one U.S. lawyer, and how all of these factors might impact the future practices of transnational corporations.

Punitive Damages In Securities Arbitration: An Empirical Study, Stephen Choi, Theodore Eisenberg

Cornell Law Faculty Publications

This article provides the first empirical analysis of punitive damages in securities arbitrations. Using a data set of over 6,800 securities arbitration awards, we find that claimants prevailed in 48.9 percent of arbitrations and that 9.1 percent of those claimant victories included a punitive damages award. The existence of a punitive damages award was associated with claims that suggested egregious misbehavior and with claims that provided higher compensatory awards. The pattern of punitive awards is more consistent with a traditional view of punitive damages that incorporates a retributive component than with a law and economics emphasis on efficient deterrence. We …

Cleaning Up Punitive Damages: A Statutory Solution For Unguided Punitive-Damages Awards In Maritime Cases, Richard A. Chastain

Vanderbilt Law Review

Intentionally destroying property-boundary markers by sawing down the posts.' Causing environmental disasters. Fraudulently refusing to settle insurance claims within coverage limits. Bad-faith dealing in big oil contracts. Hiding mild weather damage to new vehicles. Creating and marketing cigarettes while knowing about their carcinogenic risks. Contributing to automobile accidents. No, these are not items on some nefarious villain's to-do list. These are all examples of cases where courts have awarded punitive damages against the tortfeasors on top of their compensatory liability. While each tort is unquestionably wrong, some certainly appear more wrong than others.

In recent years, punitive damages have become …

Filling In The Blank: Defining Breaches Of Contract Excepted From Discharge As Willful And Malicious Injuries To Property Under 11i U.S.C. § 523(A)(6), Bryan Hoynak

Washington and Lee Law Review

No abstract provided.

Aggravating Punitive Damages, David G. Owen

Faculty Publications

No abstract provided.

What Is The Point Of The Tort Remedy?, Avihay Dorfman

Avihay Dorfman

A tort remedy, as the conventional wisdom has it, might serve any number of masters (ranging from justice to economic efficiency) by vindicating the status quo ante the tort. I shall argue that this view forces one to accept the proposition that the duty to restore the victim to the status quo ante the wrong done her represents a contingency – that is, one among different permissible extensions of the core of the remedial regime animating tort law. Anything outside the core of the remedial regime of tort law, which is the victim’s entitlement to have her rights vindicated by …

Saving Lives Through Punitive Damages, W. Kip Viscusi, Joni Hersch

Vanderbilt Law School Faculty Publications

This Article proposes that the value of statistical life ("VSL ") be used to set the total damages amount needed for deterrence when punitive damages are warranted in wrongful death cases. The appropriate level of total damages should be achieved by adjusting the value of punitive damages. Compensatory damages should not be distorted to establish the total damages level needed for efficient deterrence. Attempts to introduce hedonic damages as a compensatory damages component, and proposals to use the VSL on a routine basis when setting compensatory damages awards, are misguided and will undermine the insurance and compensation functions of compensatory …

Punitive Damages By Numbers: Exxon Shipping Co. V. Baker, Joni Hersch, W. Kip Viscusi

Vanderbilt Law School Faculty Publications

The U.S. Supreme Court decision in Exxon Shipping Co. v. Baker is a landmark that establishes an upper bound ratio of punitive damages to compensatory damages of 1:1 for maritime cases, with potential implications for other types of cases as well. This article critiques the Court’s reliance on the median ratio of punitive to compensatory damages in samples of verdicts to set an upper bound for punitive damages awards. Our critique of the approach draws on the properties of statistical distributions and a new analysis of cases with punitive damages awards. The Court’s conclusion that a 1:1 ratio establishes a …

Penalizing Punitive Damages: Why The Supreme Court Needs A Lesson In Law And Economics, Steve P. Calandrillo

Articles

The recent landmark Supreme Court decision addressing punitive damages in the infamous Exxon Valdez oil spill case has brought the issue of punitive awards back into the legal limelight. Modern Supreme Court jurisprudence, most notably BMW of North America, Inc. [517 U.S. 559 (1996)], State Farm [538 U.S. 408 (2003)], Philip Morris [549 U.S. 346 (2007)], and now Exxon Shipping Co. [128 S.Ct. 2605 (2008)] in 2008, has concluded that such judgments are justified to punish morally reprehensible behavior and to send a message to evildoers. The Court, however, has increasingly emphasized that the U.S. Constitution's Due Process Clause presumptively …

American Punitive Damages Vs. Compensatory Damages In Promoting Enforcement In Democratic Nations Of Civil Judgments To Deter State-Sponsors Of Terrorism, Jeffrey F. Addicott

Faculty Articles

The primary consequence of the attacks on 9/11 on the U.S. was a fundamental legal shift in the approach that the U.S. has taken when confronting terrorism and the States that support them. The new challenge of the post 9/11 approach focused on ways to effectively combat not only terrorist organizations but also the States that sponsor them. This new thinking demands that Western democracies adopt an internationally based functional legal methodology that can deter rogue States from sponsoring terrorism.

Civil litigation against States that sponsor or support terrorism is a potential legal tool which could be used with great …

Class Dismissed: Contemporary Judicial Hostility To Small-Claims Consumer Class Actions, Myriam E. Gilles

Articles

I start from the view that small-value consumer claims are a primary reason that class actions exist, and that without class actions many - if not most - of the wrongs perpetrated upon small-claims consumers would not be capable of redress. It would then seem to follow that the class action device should be readily available in small-claims consumer cases. And yet, over the past decade, federal district courts have repeatedly declined to certify class actions on grounds that are specific to small-claims consumer cases. Foremost among those grounds is the notion that the federal class action rule carries within …

The New Calculus Of Punitive Damages For Employment Discrimination Cases, Sandra F. Sperino

Faculty Articles and Other Publications

To determine whether a punitive damages award is constitutionally excessive, courts are required, among other things, to consider the ratio of compensatory to punitive damages. No longer is the total sum of remedies the only relevant calculation in determining whether an award is excessive. The numbers the judge decides to use in the ratio comparison also become important, in many cases determining whether excessiveness review is even warranted.

Owing in part to the complexities of the employment discrimination remedies regime, courts make numerous errors when undertaking the required comparison in the employment discrimination context. When conducting the excessiveness calculus, some …

Saving Lives Through Punitive Damages, Joni Hersch, W. Kip Viscusi

Vanderbilt Law School Faculty Publications

This Article proposes that the value of statistical life ("VSL ") be used to set the total damages amount needed for deterrence when punitive damages are warranted in wrongful death cases. The appropriate level of total damages should be achieved by adjusting the value of punitive damages. Compensatory damages should not be distorted to establish the total damages level needed for efficient deterrence. Attempts to introduce hedonic damages as a compensatory damages component, and proposals to use the VSL on a routine basis when setting compensatory damages awards, are misguided and will undermine the insurance and compensation functions of compensatory …

A Common Lawyer’S Perspective On The European Perspective On Punitive Damages, Michael Wells

Scholarly Works

Punitive damages are generally available in common law jurisdictions, but are disfavored in civil law systems. This paper argues that the main reasons for the difference are historical and cultural. Roman law and the French Revolution heavily influenced the civil law. Civilians were taught that legal development comes from the top down. They learned to treat law as a system of general principles and to resist anomalies. They found it relatively easy to reject the intrusion of criminal themes into private law. The common law developed one case at a time, with no particular emphasis on systematic coherence. It was …