Compensatory Damages

News & Analysis as of

Courts Impose Breach of Fiduciary Duty Penalties on Officers, Directors

Officers and directors of companies can face substantial financial liability for breaching their fiduciary duties to the companies they manage, regardless of their ability to pay such damages, and sometimes regardless of the...more

The Difficulty Of Challenging FCA Fine As Excessive

Last month, in U.S. ex rel. Drakeford v. Tuomey, No. 13-2219, (4th Cir. July 2, 2015), the Fourth Circuit affirmed a False Claims Act verdict against a nonprofit hospital in Sumter, South Carolina. In an area of the law where...more

Address Businesses Liabilities With Sound Compliance, Experienced Litigation Counsel

One of the points we mention fairly frequently on this blog is that proactive regulatory compliance is critical for businesses. One reason for this is that the costs for failing to comply with federal laws and regulations can...more

Jury slaps AutoZone with $186M verdict for pregnancy bias

Earlier this summer, a California jury awarded nearly $186 million – $800,000 in compensatory damages and $185 million in punitive damages – to a former AutoZone store manager who filed suit against the auto parts retailer...more

Third Circuit Court of Appeals Predicts That Pennsylvania Supreme Court Would Prevent an Insured from Recovering Punitive Damages...

Wolfe v. Allstate Prop. & Cas. Ins. Co., No. 12-4450, 2015 WL 3634779 (3d Cir. June 12, 2015). The Third Circuit Court of Appeals holds that evidence of punitive damages award against insured in underlying suit was not...more

The Sixth Circuit Finds Complaints to Harassing Supervisor Constitute Protected Activity Under Title VII

A recent U.S. Court of Appeals for the Sixth Circuit (“Sixth Circuit”) decision could have major implications for employers within its jurisdiction. In EEOC v. New Breed Logistics, No. 13-6250, 2015 U.S. App. LEXIS 6650, the...more

Just Perfect: Compensatory Patent Damages in Apotex Inc v Merck & Co, Inc

The Federal Court of Appeal has decided that when computing compensatory damages for patent infringement, the availability of a non-infringing alternative is now a legally relevant consideration that can reduce the lost...more

For “At-Issue Waiver,” The Best Defense May Not Be An Affirmative Defense

As this blog has repeatedly documented, it can be hard for insurers to assert the attorney-client privilege in the context of bad faith litigation. One difficulty arises in states that enforce a presumption against the...more

Insurance Fraud Act Suits by Insurers Held to Trigger Right to Jury Trials in New Jersey

Last week, the New Jersey Supreme Court unanimously held that a civil defendant sued by an insurance company for violations of the state’s Insurance Fraud Prevention Act (IFPA) has the right to trial by jury. In Allstate New...more

50 Cent Files for Bankruptcy, Trades In Da Club for In Da Courthouse

The rapper Curtis James “50 Cent” Jackson III filed a voluntary chapter 11 bankruptcy petition in Connecticut bankruptcy court on Monday, July 13, 2015. Jackson rose to prominence with songs like In Da Club and P.I.M.P. from...more

Beware! Long Term Care Class Actions are Coming

Long term care providers beware, class action suits are coming. Due to allegations of chronic understaffing, long term care providers are beginning to face massive class action lawsuits nationwide. The trend began in 2010,...more

Missouri Court Of Appeals Finds Juror Research Into Who Receives Punitive Damages Awards Non-Prejudicial

The Missouri courts seem to provide more than their share of material worthy of comment. In Ross-Paige v. St. Louis Metropolitan Police Department, decided on June 30, a jury had found for the plaintiff, a St. Louis police...more

New CT Law Bars “Pay Secrecy”

On July 2, 2015, Connecticut Governor Dannel P. Malloy signed into law Public Act No. 15-196, entitled An Act Concerning Pay Equity and Fairness.  The new law is intended to end pay secrecy, and specifically bars employers...more

Third Circuit Holds That Under Pennsylvania Law An Insured Against Whom Punitive Damages Have Been Imposed May Not Recover Those...

As a matter of public policy, Pennsylvania (like a number of other states) prohibits insuring against punitive damages. But what happens if an insurer refuses to settle a case against a policyholder within policy limits and...more

Montana Supreme Court Upholds $5 Million Punitive Award That Is Five Times The Compensatory Damages

Montana is known fondly to many as Big Sky Country, but it also is quickly gaining a reputation for big punitive damages awards. Not only are juries imposing breathtaking amounts of punitive damages with increasing...more

Arizona Reduces Punitive Damages in Insurance Bad Faith Case Again: Arellano v. Primerica Life Insurance

In Arellano v. Primerica Life Insurance Company, 235 Ariz. 371, 332 P.3d 597 (App. 2014), despite finding an insurer’s conduct moderately to highly reprehensible, the Arizona Court of Appeals recently reduced a punitive...more

Score Card for DePuy ASR Trials – Two Wins and One Loss

In August of 2010, DePuy shocked the orthopedic community and thousands of patients by announcing the recall of its ASR metal-on-metal hip implant due to an excessive failure rate. ...more

Worthless Services Investigations and Settlements: The Enforcement Trend Continues

In recent years, state and federal governments have shown their willingness to criminally pursue skilled nursing home owners and operators for allegedly administering “worthless” or substandard quality of care to their...more

Recall Mishandling and Dangerous Child Products

Last year, Graco recalled almost 6 million car seats due in large part to a safety defect. The recall began with around 3.8 million car seats, but it grew over the course of 2014. When the buckle mechanism on the car seats...more

Increase in UK Employment Compensation Limits

The maximum compensation that the Employment Tribunal can award for “ordinary” unfair dismissal claims will increase from 6 April 2015, as will the weekly wage figure for calculating an employee's entitlement to a statutory...more

Religious Accommodations: May Be Required by Law, Unless the Request is Unlawful

Several weeks ago, the EEOC secured a jury verdict of $150,000 in compensatory damages against an employer for failure to accommodate an employee’s religious objection to a workplace rule. But last week, the Sixth Circuit...more

Two Men Receive $7.6 Million in Goldman Sachs Wrongful Firing Suit

A pair of former brokers for Goldman Sachs & Company’s Los Angeles offices earned $7.6 million in monetary awards after filing a wrongful termination and discrimination suit against the company. The men, Chris Barra and Luis...more

OSHA Hands Down Record Award Under Federal Railroad Safety Act

The Occupational Health and Safety Administration (OSHA) gave a MTA Metro-North railroad employee a record award under the Federal Railroad Safety Act after they suffered an injury in 2011. The $250,000 in punitive damages...more

Department Of Revenue Barks Up The Wrong Tree (Again): Indiana Tax Court Allows Claim For Compensatory Damages To Proceed

In its final ruling of 2014, the Indiana Tax Court held that the Department of Revenue could not wrongly confiscate a taxpayer’s inventory, sell the inventory for pennies on the dollar, and avoid a refund by arguing the Court...more

Employment Client Alert: Punitive Damages Award in Title VII Sexual Harassment Case Does Not Violate Due Process

In State of Arizona v. ASARCO LLC, WL 6918577, published December 10, 2014, the Ninth Circuit Court of Appeals held that an award of $300,000 in punitive damages did not violate due process even though no compensatory damages...more

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