SJC: Punitive Damages Only For “Egregious” Acts

The Massachusetts Supreme Judicial Court has created a new standard for bias cases, deciding that punitive damages can be awarded only for “egregious” behavior.  The court vacated a $1 million damages award against Wal-Mart, stating that "an award of punitive damages requires a heightened finding beyond mere liability and also beyond a knowing violation of the statute. Punitive damages should only be awarded where the defendant's conduct is outrageous or egregious, thereby warranting punishment and not merely compensation.”

Jo Ann Shotwell Kaplan, who wrote an amicus brief in the case on behalf of the New England Legal Foundation, urging the adoption of new standards for the award of punitive damages, agreed that the ruling offered a clear set of criteria on which to base such awards.

Click here to view Jo Ann’s comments and the complete Massachusetts Lawyers Weekly article regarding the decision in Haddad v. Wal-Mart Stores, Inc.