California Punitives by Horvitz & Levy
  • Court of Appeal affirms trial court’s decision not to award punitive damages in bench trial (Williams v. Pep Boys)

    The First Appellate District, Division Four, certified this opinion for partial publication, but the punitive damages discussion is unpublished.  That discussion is an interesting read anyway, especially for anyone involved in asbestos litigation.

    J.D. Williams died of mesothelioma.  His children brought this lawsuit claiming their father’s disease was caused by exposure to asbestos in a number of ways, including through his occasional use of asbestos-containing replacement brakes he purchased from The Pep Boys.  After a bench trial, the trial court found the Pep Boys liable and awarded compensatory damages, but rejected the plaintiffs’ claim for punitive damages.  The plaintiffs appealed, challenging that ruling (and a few other rulings not relevant for our purposes).

    On appeal, the plaintiffs cited other recent opinions that have affirmed punitive damages awards in asbestos cases, and argued that they had presented a “classic case” for punitive damages.  I.e., they offered evidence that the defendant sold asbestos-containing products, and that there was scientific information available at the time showing that asbestos could cause disease.  The Court of Appeal found those cases distinguishable for two primary reasons: (1) the plaintiffs failed to show that Pep Boys was actually aware of any dangers posed by its products at the time of Mr. Williams’ alleged exposures, and (2) the trial court could reasonably conclude the defendant did not act with malice “because of the how the state of scientific knowledge regarding the risks of asbestos exposure evolved over time.”

    That second point is particularly interesting.  In the early days of California asbestos litigation, punitive damages claims were rare, because it was understood that scientific and medical information about asbestos-related diseases had evolved considerably between the time of exposures and the time of trial. But hindsight bias powerfully suggests that something that has in fact come to pass was foreseeable all along. For that reason, it has become all too easy in recent years for judges and jurors, especially those who are too young to remember a time when asbestos did not have the stigma it has today, to conclude that any company that used asbestos, at any time, had necessarily ignored a known health risk.  This opinion shows there’s still at least a little resistance to that way of thinking in some corners of the California judicial system.

  • $4.69 billion talc verdict in Missouri heads towards appellate court

    The St. Louis Post-Dispatch reports that a Missouri trial judge has “affirmed” the $4.69 billion talc verdict against Johnson & Johnson.  It seems like a bit of a non-story.  Johnson & Johnson elected not to file post-trial motions, so the trial judge did not really affirm anything, he just entered judgment based on the jury’s verdict.  J&J says it plans to appeal.

  • $4.69 billion talc verdict in Missouri heads towards appellate court

    The St. Louis Post-Dispatch reports that a Missouri trial judge has “affirmed” the $4.69 billion talc verdict against Johnson & Johnson.  It seems like a bit of a non-story.  Johnson & Johnson elected not to file post-trial motions, so the trial judge did not really affirm anything, he just entered judgment based on the jury’s verdict.  J&J says it plans to appeal.

  • WSJ editorial blames Roundup verdict on junk science

    The Wall Street Journal ran an editorial yesterday entitled Round Up the Usual Lawyers, about the huge San Francisco jury verdict against Monsanto.  The editorial discusses the scientific evidence that Roundup does not cause cancer, and notes that the trial judge described the plaintiffs’ punitive damages case as “thin.”  Perhaps that means she will be inclined to grant Monsanto’s post-trial motions and vacate the punitive award.

  • WSJ editorial blames Roundup verdict on junk science

    The Wall Street Journal ran an editorial yesterday entitled Round Up the Usual Lawyers, about the huge San Francisco jury verdict against Monsanto.  The editorial discusses the scientific evidence that Roundup does not cause cancer, and notes that the trial judge described the plaintiffs’ punitive damages case as “thin.”  Perhaps that means she will be inclined to grant Monsanto’s post-trial motions and vacate the punitive award.

  • San Francisco jury awards $250 million in punitive damages against Monsanto

    Law 360 reports that a jury today awarded $39 million in compensatory damages and $250 million in punitive damages to a man who alleged he developed cancer as a result of exposure to Monsanto’s  weedkillers, Roundup and Ranger Pro.

    This is a hugely significant verdict.  As the article mentions, Roundup and Ranger Pro contain glyphosate, one of the most popular herbicides used around the world (over 290 million pounds were used in 2012).  The link between glyphosate and cancer was hotly disputed at trial.  Monsanto presented evidence that multiple epidemiological studies show no correlation between glyphosate and cancer, but the plaintiffs presented expert witnesses who testified that glyphosate can cause lymphoma.

    Under California law, punitive damages are supposed to be awarded only when a defendant has consciously disregarded a “known” risk.  That means that punitive damages should not be imposed on a defendant for disregarding a speculative, theoretical risk.  If published peer-reviewed epidemiology  shows that a product does not cause cancer, and a defendant acts in reliance on those studies, that conduct does not meet the definition of malice under California.  But our courts have not always been consistent in applying this principles.  This case may prove to be a major indicator of the direction in which our courts are heading.

  • San Francisco jury awards $250 million in punitive damages against Monsanto

    Law 360 reports that a jury today awarded $39 million in compensatory damages and $250 million in punitive damages to a man who alleged he developed cancer as a result of exposure to Monsanto’s  weedkillers, Roundup and Ranger Pro.

    This is a hugely significant verdict.  As the article mentions, Roundup and Ranger Pro contain glyphosate, one of the most popular herbicides used around the world (over 290 million pounds were used in 2012).  The link between glyphosate and cancer was hotly disputed at trial.  Monsanto presented evidence that multiple epidemiological studies show no correlation between glyphosate and cancer, but the plaintiffs presented expert witnesses who testified that glyphosate can cause lymphoma.

    Under California law, punitive damages are supposed to be awarded only when a defendant has consciously disregarded a “known” risk.  That means that punitive damages should not be imposed on a defendant for disregarding a speculative, theoretical risk.  If published peer-reviewed epidemiology  shows that a product does not cause cancer, and a defendant acts in reliance on those studies, that conduct does not meet the definition of malice under California.  But our courts have not always been consistent in applying this principles.  This case may prove to be a major indicator of the direction in which our courts are heading.

  • $4 billion punitive damages award against JPMorgan Chase reduced to $945,000

    When we reported on the jury’s $4 billion punitive damages award in this Texas probate case, we noted that the wildly excessive award could not survive judicial review.  Sure enough, the trial judge reduced the punitive damages from $4 billion to $945,000, per Courthouse News Service

    Even the plaintiff’s attorney recognized that the jury went overboard, and voluntarily asked the trial judge to cut the punitive award to $7.8 million. In comments to to Courthouse News, the plaintiff’s attorney said that he and his client completely respect the judge’s decision to reduce the award. 

  • $4 billion punitive damages award against JPMorgan Chase reduced to $945,000

    When we reported on the jury’s $4 billion punitive damages award in this Texas probate case, we noted that the wildly excessive award could not survive judicial review.  Sure enough, the trial judge reduced the punitive damages from $4 billion to $945,000, per Courthouse News Service.

    Even the plaintiff’s attorney recognized that the jury went overboard, and voluntarily asked the trial judge to cut the punitive award to $7.8 million. In comments to to Courthouse News, the plaintiff’s attorney said that he and his client completely respect the judge’s decision to reduce the award.

  • North Carolina awards $450 million in punitive damages, but award is capped under state law

    Associated Press reports (via WLOS.com) that a North Carolina jury last week awarded $23.5 million in compensatory damages and $450 million punitive damages in a nuisance case against Smithfield Foods, which operates a major hog farming operation near the plaintiffs’ property.

    If that sounds familiar, it’s because we blogged about a very similar case a few months ago.

    The $450 million number will be reduced under North Carolina law, which caps punitive damages at the greater of $250,000 or three times the amount of compensatory damages.  The plaintiffs in the prior case challenged the constitutionality of that statute, but lost that argument