California Punitives by Horvitz & Levy
  • Sumpter v. Matteson—California Court of Appeal reaffirms plaintiffs are never entitled to punitive damages as a matter of right

    In this published opinion, the Second Appellate District, Division Three, rejected an argument that punitive damages must be assessed as a matter of law.

    “[E]ven though there was abundant evidence that Matteson acted with a conscious disregard for the safety of others, it was the jury’s prerogative, after being duly instructed, to find that Matteson acted without malice and thereby decline to award punitive damages. We reiterate the principle that a plaintiff is never entitled to punitive damages as a matter of right, not even ‘”[u]pon the clearest proof of malice in fact.’” (Brewer v. Second Baptist Church (1948) 32 Cal.2d 791, 801.)”

    This opinion does not blaze any new ground. California law has long held that plaintiffs are never entitled to punitive damages as a matter of right. Justice Traynor’s opinion 1948 in Brewer made this point unmistakably clear, but the Court of Appeal evidently felt that enough time had passed since Brewer to warrant a reiteration of the principle in a published opinion.

  • California Senate Judiciary Committee to Hold Hearing on Proposed Punitive Damages Cap

    The California Senate Judiciary Committee will conduct a hearing tomorrow, January 15, on a proposal to cap punitive damages in California. The bill, SB423, was introduced by Senator Tom Harman (R-Huntington Beach) and is sponsored by the California Chamber of Commerce. The bill would limit punitive damages to no more than three times compensatory damages. 22 other states already have caps, including 13 states that impose a cap of 3-to-1 or smaller. Nevada, for example, caps punitive damages at a ratio of 3-to-1, with a fixed limit of $300,000.

    According to the Chamber, adoption of this bill would address California’s reputation as hostile litigation environment for businesses; California’s punitive damages system ranked ranks 48th out of 50 states in the 2007 U.S. Chamber/Harris nationwide survey of in-house counsel and senior attorneys representing businesses. Only Mississippi and West Virginia ranked worse.