Article: A narrow ruling on punitive damages.

The most important thing to know about the Supreme Court's recent decision in Exxon Shipping Co. v. Baker is that the decision is about punitive damages only in maritime cases. (1) In the ruling, the Court was clear and emphatic that it was not relying on the Constitution in its analysis of punitive damages, and, in fact, it denied certiorari on Exxon's constitutional challenge to the punitive damages awarded against it.

Justice David Souter, writing for the 5-3 majority, concluded that under maritime common law, punitive damages should be in a 1-to-1 ratio with compensatory damages. Souter stressed the need for predictability and consistency in punitive damages ...

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