Punitive damages violate due process
In Jones v. UPS, the Tenth Circuit ruled that an award of $2 million in punitive damages was too big. The jury had awarded $630,000 in compensatory damages on a retaliatory discharge claim, in addition to the $2 million in punitive damages. The determination of the constitutionality of an award of punitive damages is reviewed de novo. Citing State Farm Mut. Auto. Ins. Co. v. Campbell, 538 U.S. 408, 419 (2003), and finding it a “close question,” the court found the award of punitive damages was excessive. The jury awarded Plaintiff a substantial amount of actual compensatory damages, in light of the injuries suffered. As a result, while the ratio of punitive to actual damages was not per se unconstitutional, the jury’s punitive damage award was grossly excessive and therefore in violation of UPS’ due process rights. The court states:
having considered the degree of reprehensibility, the size of the punitive damage award compared to the compensatory damage award, and comparable cases, we conclude that the jury’s award of $2 million was constitutionally excessive.
So, the case was sent back down for the plaintiff to choose between a new trial on punitive damages or remittur as ordered by the trial court.
