Category: Punitive Damages

Florida Courts of Appeal Scrutinizing Punitive Damages Claims

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It is not uncommon for a product liability plaintiff to base a claim for punitive damages on little more than the same allegations that undergird a strict liability or negligence claim, while adding that the defendant knew that the product was unsafe or that the warnings were inadequate and marketed the product regardless. While that approach has worked at times in the past, recent decisions from Florida’s Third and Fourth District Courts of Appeal remind us that Florida imposes a high bar on punitive damages claims. Specifically, these courts highlighted several key points related to claims of punitive damages in product liability cases: (1) Florida’s statutory requirements for punitive damages are more stringent than some other states (specifically, California) and, therefore, orders from other states awarding punitive damages are unpersuasive; (2) Florida law presumes a product is not defective if it complies with applicable government regulations; (3) the level of negligence required to plead punitive damages in Florida requires conduct equivalent to establishing criminal manslaughter; and (4) the Florida Supreme Court has all but eliminated punitive damage awards in product liability cases. These cases are discussed in further detail below.

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Tort Reform is Top of Mind in 2025: Legislative Updates in Georgia, South Carolina, Louisiana and Arkansas

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The American Tort Reform Foundation’s list of “Judicial Hellholes” often are all-too-familiar jurisdictions for product liability defendants. Some states who are home to these infamous venues, often known for producing nuclear verdicts, have recently rallied for successful tort reform. In the most recent state legislative sessions, Georgia, South Carolina, Louisiana and Arkansas implemented tort reform bills which may serve to neutralize the nuclear verdicts coming out of their courts.

Georgia

Following several nuclear verdicts, including a $1.7 billion verdict in Hill v. Ford Motor Co. and a $2.5 billion verdict in Brogdon v. Ford Motor Co., Georgia has recognized the impact that excessive tort costs have on Georgia’s economy and its ability to attract businesses. Georgia Governor Brian Kemp unveiled a tort reform package in early 2025 that sought to address these issues.

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Florida Rule Change Permits Immediate Appeals on Punitive Damages

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The Florida Supreme Court has accepted a proposed rule amendment to permit interlocutory appeals of court orders on punitive damages claims. On January 6, 2022, the Florida Supreme Court approved by 6-1 an amendment to Florida Rule of Appellate Procedure 9.130 to allow interlocutory appeals of nonfinal orders granting or denying leave to amend a complaint to assert a claim for punitive damages. Prior to this amendment, a party could only appeal such an order by petitioning for a writ of certiorari. And in that posture, the appellate court’s review was limited only to whether the trial court complied with the procedural requirements for making such a claim.

Practically, this means Florida appellate courts will be able to immediately review trial court orders regarding punitive damages claims on both procedural and substantive grounds. With this amendment, the merits of a plaintiff’s punitive damages claim can now be appealed prior to any discovery of a defendant’s financial information. The new rule takes effect April 1, 2022.

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510(k) Clearance Precludes Punitive Damages in Arizona

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We know the plaintiffs’ bar’s feelings about the FDA’s 510(k) clearance process. They tell the jury and the court it is antiquated. They say it does not constitute a finding of safety or efficacy. They do all they can to paint the FDA’s regulatory clearance process as meaningless and not worthy of consideration by a judge or jury. Such arguments may have some vitality in some jurisdictions. But, as we learned twice again in the last month, not in Arizona.

Back in 2012, the Arizona legislature passed a law stating that a manufacturer may not be held liable for exemplary or punitive damages if “[t]he product alleged to have caused the harm was designed, manufactured, packaged, labeled, sold or represented . . . according to the terms of an approval, conditional approval, clearance, license or similar determination of a government agency.” A.R.S. § 12-689(A)(1). The statute broadly defined “manufacturer” to include those engaged in designing, manufacturing, or formulating a product. A.R.S. § 12-689(D)(3). And it further defined “government agency” to mean any federal or Arizona agency with authority “to issue rules, regulations, orders or standards concerning the design, manufacture, packaging, labeling or advertising of a product[.]” A.R.S. § 12-689(D)(2).

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California [Again] Confronts the High Cost of Litigation Uncertainty

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The first appellate shoe has dropped in the litigation involving the herbicide Roundup, Johnson v. Monsanto Co., decided July 20, 2020, by California’s 1st District Court of Appeal, Division One. We discussed the verdict and the trial court’s post-trial rulings here, and we now follow through with an update.

Initially, the price tag for allowing questionable science into the courtroom, as measured by this verdict, has been reduced. The court of appeal lowered the compensatory damages award from $39 million to about $10.25 million, concluding the jury had improperly awarded noneconomic damages that plaintiff would likely never suffer. Because plaintiff’s counsel had argued to the jury that plaintiff’s Non-Hodgkins Lymphoma had reduced his future life expectancy to two years, the jury could not award pain and suffering damages beyond that two-year span. And, agreeing with the trial court that constitutional limits required a 1:1 ratio between compensatory and punitive damages, the court slashed the $78 million punitive award to about $10.5 million.

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California Confronts the High Liability Costs of Scientific Uncertainty

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Much has been said about the eye-popping verdict and the post-trial rulings in the Roundup case tried in San Francisco earlier this year. Johnson v. Monsanto Co., 2018 WL 5246323 (S.F. Super. Ct. Oct. 22, 2018). The court sustained the jury’s award of ~$39 million in compensatory damages, including $37 million in non-economic damages, and its finding that Monsanto was liable for punitive damages. The court reduced the punitive award on due process grounds to a one-to-one ratio, slashing it from $250 million to approximately $39 million. Monsanto recently filed its notice of appeal, and as we await the briefing and argument, a few issues and takeaways merit further discussion, particularly several disturbing issues surrounding the award of punitive damages. We will save for another day (or post) other significant liability and damages issues.

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