Punitive Damages: Pacific Mutual v. Haslip

The Supreme Court decided Pacific Mutual v. Haslip this week. In this case, the Court said that due process was granted to the insurance company when a jury awarded over a million dollars in punitive damages to the defendant in a civil case. This decision confirms that in civil cases, the jury has the right to decide whether punitive damages are appropriate and how much money should compensate. This clarified the system of punitive damage allocation in Alabama and will now serve as a model for similar cases. Another element of the case was “vicarious liability.” An agent of Pacific Mutual committed serious misconduct, but the corporation was held responsible, to some degree, for that employee’s conduct. Andrew Popper, Washington College of Law, called the case a victory for consumers, referring to how it may affect the quality of consumer goods and services. close