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Punitive
Damages Against Ford Were Roller-Coaster Ride: How Much Is Needed to Deter Ford from
Reprehensible Conduct?
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Punitive Damages Against Ford Were Roller-Coaster Ride: How Much Is Needed to Deter Ford from Reprehensible Conduct?
By James B. Bleeker
In a California lemon law case, a jury awarded the plaintiff $17,811 in actual damages and $10 million in punitive damages, for concealing a used car's repair history. Ford Motor Company, the defendant, thought the punitive damage award was some too much and appealed. The appeals court agreed and lowered the punitive damage award to $53,435, almost exactly 3 times the actual damages, something of a judicial rule of thumb. The case was appealed to the California Supreme Court which ruled that the appeals court must take into account Ford's reprehensibility in the matter and remanded it to the appeals court. The appeals court upped it to $175,000.
Punitive damages are awarded, in part, to deter the defendant from future conduct of a similar sort.
Source: "Court Again Adjusts Damages Against Ford," Bloomberg News, Los Angeles Times, www.latimes.com, December 28, 2005
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