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Alexandra B. Klass

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Punitive Damages And Valuing Harm, Alexandra B. Klass Mar 2007

Punitive Damages And Valuing Harm, Alexandra B. Klass

Alexandra B. Klass

In 2003, the Supreme Court created a presumption that only single-digit ratios of punitive damages to compensatory damages would satisfy substantive due process limits. The exception to this presumption is when the defendant’s misconduct results in only a small amount of compensatory damages or when harm is difficult to value. This Article proposes that while lower courts have properly departed from single-digit ratios where the compensatory damage are small, they have had more difficulty doing so when harm is difficult to value. As a result, lower courts are mechanically applying a single-digit ratio in cases where the Court’s current framework …