Mohr v. DaimlerChrysler Corp., is a significant recent decision since the Court of Appeals reviewed a punitive damages award in accordance with the standards set forth in the Tennessee Supreme Court’s July 2008 decision in Flax v. DaimlerChrysler Corp. In Mohr, the Court of Appeals reduced the jury's punitive award from over $48,000,000 to $13,800,000. The reduction brought the award within a compensatory to punitive damages ratio of 1:4, which the United States Supreme Court has indicated may be the maximum constitutionally permissible ratio.
Mohr is also significant in that the court did not disturb the jury’s $7,500,000 wrongful death award, for one of the two people killed in the subject accident. The majority of the compensatory award was apparently attributable to loss of consortium. Although the opinion does not contain a breakdown of the award, there was proof of loss of earning capacity of between $500,000 and $1,000,000, and some conscious pain and suffering at the accident scene. The portion of the opinion addressing the reasonableness of the award is relatively brief and reflects that the appellate court will rarely disturb the jury’s determination, once the award is approved by the trial judge court, in the capacity as thirteenth juror. Commenting on the proof supporting the consortium element of the award, the Court merely acknowledged the close relationship between the decedant and her surviving family.
See my July 31 post for discussion and links to the Flax opinion. Recently, DaimlerChrysler's petition to rehear Flax was denied by the Tennessee Supreme Court.
Dan Berexa
Nashville, Tennessee
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