Article: Justices to Consider Limiting Punitive Damages; Supreme Court Responds to Business Concerns About Constitutionality of Huge Awards

The Supreme Court, responding to complaints by business groups about an "explosion" in huge damage awards, said yesterday it would decide whether punitive damage awards that far exceed actual damages violate the Eighth Amendment's prohibition against "excessive fines."

The justices agreed to review a Vermont jury's award of $51,000 in compensatory damages and $6 million in punitive damages against a Houston-based waste disposal company for trying to drive a competitor out of business.

The high court, which has failed twice in recent terms to resolve the issue, said it would determine whether the Eighth Amendment, generally seen as a bar against extreme criminal sentences or fines, also ...

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