Free Republic

NEW YORK: A U.S. judge on Monday said that General Motors Co may be liable for punitive damages in lawsuits it faces over an ignition switch problem that prompted the recall of millions of vehicles last year. The decision from U.S. Bankruptcy Judge Robert Gerber in Manhattan could increase GM's financial exposure to claims for injuries, deaths or loss of vehicle value stemming from the 2014 recall. Unlike compensatory damages, which are meant to make up for plaintiffs' losses, punitive damages are designed to punish defendants for egregious or negligent conduct, and to deter future misbehavior. Gerber said, however, post-bankruptcy...

High Court tosses Philip Morris judgment By GINA HOLLAND, Associated Press Writer WASHINGTON - The Supreme Court on Monday threw out an $80 million verdict against cigarette-maker Philip Morris. The verdict, for the family of an Oregon janitor who died in 1997 of lung cancer, should be reviewed by lower courts to ensure it is not unconstitutionally excessive, justices said. The court's action was encouraging for businesses, which hope a Supreme Court ruling earlier this year will lead to reductions in large punitive damage verdicts. It was the second victory for Philip Morris in its legal battles with the family...

A $28 billion award shows that Californians are willing to hit cigarette makers in the pocketbook -- but don't expect the award to stand, attorneys and academics who monitor tobacco litigation say. "A judge would have no trouble knocking off a zero," said David Levine, who teaches civil procedure and remedies at Hastings College of the Law. "I see no prospect at all that this $28 billion award is going to hold up." Levine made his assessment Friday after a jury returned the record punitive damages award for Betty Bullock, a Newport Beach, Calif., woman suffering from lung cancer that...