U.S. Chamber Calls for Federal Limits on Punitive Damage Awards

WASHINGTON, D.C. – The United States Chamber of Commerce today called the $600 million in punitive damages awarded in an Illinois case against State Farm Insurance earlier this month further evidence of the need for Federal legal reform.

"Congress must protect consumers, employees and shareholders from the cost of a legal system gone haywire, by making legal reform a top priority," said Jim Wootton, Executive Director of the U.S. Chamber's Institute for Legal Reform.

Excessive punitive damage awards have a nationwide effect on insurance rates for consumers, even though a single state court judge imposes the awards, Wootton noted. Congress must ensure that these types of awards do not have a damaging effect on the national economy.

"Punitive damages now amount to 59% of total damages awarded," said Wootton. "That's outrageous. Instead of awarding punitive damages in a few clear cases of egregious misconduct, multimillion dollar awards have become routine."

The United States Chamber of Commerce is the world's largest business federation, representing more than three million businesses and organizations of every size, sector and region. The mission of the U.S. Chamber Institute for Legal Reform is to encourage the adoption of a civil justice system that is fair, fast and predictable.

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