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- Title
A Constitutional Limit on Punitive Damages Awards.
- Authors
Roszkowski, Christie L.
- Abstract
This article cites a court cases between BMW of North America Inc. v. Gore, highlighting the constitutional limit on punitive damages. Although punitive damages are intended only to punish conduct that is especially harmful, critics argue that they unnecessarily encourage litigation. The case arose from a marketing policy adopted by BMW of North America Inc. (BMW NA), the American distributor of BMW automobiles manufactured in Germany by BMW AG. As part of its vehicle preparation, BMW NA repaired cars damaged in transit. Under BMW NA's policy, damaged vehicles requiring repairs in excess of 3 percent of the manufacturer's suggested retail price were placed in company service and later sold as used. Cars costing less than 3 percent to repair, however, were sold as new and distributed to a dealer without disclosure of the repairs. In analyzing the harm to the injured party, the court looked to the ratio of punitive damages to compensatory damages. A gross disparity between actual damages and punitive damages suggests an excessive punitive damage award. The Court indicated that a punitive damage award exceeding 10 times actual damages would be improper.
- Subjects
BMW of North America Inc. v. Gore; COMMERCIAL law; APPELLATE courts; EXEMPLARY damages; BMW of North America LLC; BMW automobiles; ACTIONS &; defenses (Law); RETROFITTING; REPAIRING
- Publication
Journal of the Academy of Marketing Science, 1997, Vol 25, Issue 2, p179
- ISSN
0092-0703
- Publication type
Article