California Punitives by Horvitz & Levy
  • 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

  • Tennessee appellate court vacates $28 million punitive damages award

    The Daily News of Memphis reports that the Tennessee Court of Appeals has vacated a $28 million punitive damages award based on allegedly negligent care provided by a nursing home.

    This case involved multiple defendants who got whacked for a collective award of $1.9 million in compensatory damages and $28 million in punitive damages. The Court of Appeals affirmed the finding of liability against one of the defendants, but found insufficient evidence to support liability as to the others.  The court then concluded that the punitive damages must be retried even as to the one defendant that was properly held liable, because the amount of the award was based partly on the conduct of the other defendants. 

  • 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.

  • Tennessee appellate court vacates $28 million punitive damages award

    The Daily News of Memphis reports that the Tennessee Court of Appeals has vacated a $28 million punitive damages award based on allegedly negligent care provided by a nursing home.

    This case involved multiple defendants who got whacked for a collective award of $1.9 million in compensatory damages and $28 million in punitive damages. The Court of Appeals affirmed the finding of liability against one of the defendants, but found insufficient evidence to support liability as to the others.  The court then concluded that the punitive damages must be retried even as to the one defendant that was properly held liable, because the amount of the award was based partly on the conduct of the other defendants.

  • Proposal to enhance punitive damages for sex trafficking moving forward in California Legislature (AB 2105)

    I previously reported on this bill, which would authorize enhanced penalties against those who participate in sex trafficking and other related crimes involving minors. The Senate has approved the bill with minor amendments, and it has returned to the Assembly for approval of the amended version.  The bill appears likely to pass.

  • Proposal to enhance punitive damages for sex trafficking moving forward in California Legislature (AB 2105)

    I previously reported on this bill, which would authorize enhanced penalties against those who participate in sex trafficking and other related crimes involving minors. The Senate has approved the bill with minor amendments, and it has returned to the Assembly for approval of the amended version.  The bill appears likely to pass.

  • Court of Appeal affirms $1 million punitive damages award in fraud case (Melvin v. Harkey)

    In this unpublished opinion the Fourth Appellate District, Division Three, rejects a defendant’s argument that a jury award of $1 million in punitive damages should be reversed because the plaintiffs failed to prove malice, oppression, or fraud.  The court finds sufficient evidence in the record that the defendant, the owner of an investment firm, engaged in a Ponzi scheme and maliciously disregarded the rights of his investors.

    In the process, the Court of Appeal makes some unfortunate comments about the role of the clear and convincing evidence standard of proof in punitive damages cases, and how it impacts appellate review.

    As we have noted in the past, published opinions have repeatedly held that the clear and convincing evidence standard applies both on appeal and in the trial court, and requires appellate courts to decide whether a reasonable jury could find that the plaintiff’s evidence met the clear and convincing standard.  (See, for example, this recent opinion and this one.)  This opinion, however, perpetuates the contrary (and outdated) view that the clear and convincing standard applies solely to the trier of fact, and does not play any role on appeal.