The Changing Landscape of Blockbuster Punitive Damages Awards

Del Rossi, Alison F.; Viscusi, W. Kip

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The Changing Landscape of Blockbuster Punitive Damages Awards

American Law and Economics Review, Forthcoming

Vanderbilt Law and Economics Research Paper No. 09-33

65 Pages Posted: 2 Dec 2009

See all articles by Alison F. Del Rossi

Alison F. Del Rossi

Saint Lawrence University - Department of Economics

Vanderbilt University - Law School; National Bureau of Economic Research (NBER); Vanderbilt University - College of Arts and Science - Department of Economics; Vanderbilt University - Owen Graduate School of Management; Vanderbilt University - Strategy and Business Economics

There are 3 versions of this paper

Date Written: October 19, 2009

Abstract

This article investigates the determinants of the blockbuster punitive damages awards of at least $100 million. As of the end of 2008, there had been 100 such awards with an average value of $3.0 billion. The U.S. Supreme Court decision in State Farm v. Campbell suggested a single digit upper bound on the punitive damages/compensatory damages ratio, which reduced the annual number of blockbuster awards, the total annual value of blockbuster awards, and the punitive damages/compensatory damages ratio. Applying the 1:1 ratio from Exxon Shipping Co. et al. v. Baker et al. broadly would eliminate most of the blockbuster awards.

Keywords: punitives, punitive damages, blockbuster awards, compensatory damages, damages ratio, Exxon

JEL Classification: K40, K10

Suggested Citation: Suggested Citation

Del Rossi, Alison F. and Viscusi, W. Kip, The Changing Landscape of Blockbuster Punitive Damages Awards (October 19, 2009). American Law and Economics Review, Forthcoming, Vanderbilt Law and Economics Research Paper No. 09-33, Available at SSRN: https://ssrn.com/abstract=1516007