U.S. Chamber's Litigation Center Seeks Punitive Damages Relief for American Businesses

WASHINGTON, D.C.-The United States Supreme Court should affirm its 2003 ruling in State Farm v. Campbell that punitive damages must have some reasonable relationship to compensatory damages when it hears Philip-Morris v. Williams, according to an amicus brief recently filed by the National Chamber Litigation Center.

"Activist courts around the country have ignored the Supreme Court's decision in State Farm," stated Robin Conrad, NCLC senior vice president. "Consequently, businesses continue to face excessive punitive damages awards that are destroying jobs and companies and hurting the economy."

In Philip-Morris v. Williams, Oregon's Supreme Court upheld a $79.5 million punitive damages award that is almost 100-times the amount of the plaintiff's compensatory damages. In its brief, NCLC argued that the Oregon Supreme Court ignored a crucial element of the Supreme Court's punitive damages guidance because the award bears no correlation to compensatory damages.

The brief also argues the state court's refusal to prohibit the jury from punishing the defendant for injuries presumed to have been suffered by Oregonians who were not part of this case violated the defendant's due process rights because it allowed the defendant to be punished repeatedly for harms to the same people.

"The Oregon Supreme Court has created a one-sided procedure that unless corrected will cause an increase in the number and size of punitive damages awards," Conrad said.

NCLC-the public policy law firm of the U.S. Chamber of Commerce-is a membership organization that advocates fair treatment of business in the courts and before regulatory agencies. The U.S. Chamber of Commerce is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

Note-The Chamber's amicus brief can be viewed here.

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