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Punitive Damages

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California Appellate Court Limits Punitive Damages in a Commercial Setting to a 1:1 Ratio

May 2007 California’s Fourth Appellate District certified for publication a significant decision addressing the constitutionality of punitive damages awards. In a decision that will apply to the majority of business tort cases, the Court ruled when: “… the conduct in question only involves economic damage to a single plaintiff who is not particularly vulnerable, an [...]

California’s New Punitive Damage Tax Creates Attorney Conflicts-Of-Interest, And Tax Problems For Successful Plaintiffs

April 2005 In enacting its new punitive damages tax, California failed to consider the plaintiff's likely federal income tax impact. As a result, plaintiffs in certain cases are better off not getting any punitive damage award at all. Because of (i) the conflict of interest between the plaintiff lawyer and his client and (ii) the [...]