Calif. Supreme Court Overturns Rulings Limiting Punitive Damages

June 20, 2005

  • June 20, 2005 at 7:43 am
    Roger Poe says:
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    When consumers find out that A LOT of insurers-insurance agents have used / are using Replacement-Reconstruction Cost Values for calculating homeowners policy’s, and then (unbeknown to customers and some adjusters), are using NEW construction cost values to “settle”-“close” (wind, flood, hail, hurricane, moisture, etc.) homeowner claims, other shock waves will ripple.

    New Construction costs are commonly 35-50% lower that Replacement-Reconstruction costs.

    http://financialservices.house.gov/media/pdf/041405sk.pdf

    Also, leaving out other prefactored premium costs-to-claim loss values (Primary-General-Sub Contractors overhead and profit dollars) can underpay a homeowners claim loss value by an additional 20-49%, and is unfair to insureds.

    http://www.tdi.state.tx.us/commish/bulletins/b-0045-8.html

    Utilize either or both of the two claim underpayment protocols to daily, or tens of thousands of catastrophe claims loss values, and the following can happen;

    http://www.insurancejournal.com/news/east/2005/06/09/55854.htm

    Roger Poe
    Reconstruction Specialist
    insuranceclaimsandsettlements@hotmail.com

  • June 20, 2005 at 7:51 am
    ATS says:
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    Punitive damages are like fines: they are pounishment. The full amount of any punitive damage award ought to be turned over to the state, just as a fine would be. Lawyers would then have little reason to seek them.

    Allowing plaintiffs to collect punitive damages is akin to vigilantism. “Citizens’ Justice” is no justice at all.

  • June 20, 2005 at 10:39 am
    maynard g krebs says:
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    Just another chapter in
    the search for deep-pockets

  • June 20, 2005 at 1:02 am
    anon says:
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    You just don’t get it. It’s a punishment and some people/companies deserve to be punished for reprehensible behavior. Deep pocket is NOT ALWAYS the reason but the idea is making sure that these companies DO NOT do what they did to anyone else. How else would you suggest this be done? By say no, no don’t do that again? It doesn’t work punishment in a financial sense always has to the fools who think they can get away with hurting people and behaving in a harmful ways to benefit themselves. Its a darn shame but it is what it is.

  • June 20, 2005 at 1:21 am
    Bruce Lyons says:
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    I agree that punitive damages should go to the state not to the attorneys. A small portion should probably go to the injured party. Less incentive for attorneys but it will still hurt the business.

  • June 20, 2005 at 3:05 am
    Get a grip says:
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    You give all that money to the state and what will they do with it? That is like putting gasoline on a fire to put it out. That stupid state will give it to the non tax paying people it panders to anyway or perhaps to further support the Dems (come to think of it, many are one and the same). Accidents are accidents and need to be treated that way once again for anything to change in our country. What is the definition of indemnity? Rest assured, no plaintiff attorney has that word in their vocabulary or spell check. Punishment? Yes but not in the way it is being done now. If there were stronger laws and regulations in effect AND enforcement of them, the attorneys would not have all of these loopholes to sink through (slime, get it?). If someone has a scratched finger, they do not deserve a million dollars for their pain and suffering and that is the way it is anymore. Put responsibility back where it belongs.

  • June 20, 2005 at 3:24 am
    Joe K. Longley says:
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    Punitive damages awarded in accordance with the culpability of the wrongdoer is as American as apple pie. Companies guilty of corporate wrongdoing should be punished. Punishment by punitive damage awards sends a message to the owners and shareholders based upon the profit motive–Corporate fraud or crime can be unprofitable and therefore, detrimental to shareholder value.

    Profits GOOD. No profits BAD.

  • June 20, 2005 at 3:26 am
    ECCS says:
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    And we wonder why corporations and jobs are going over seas.

  • June 20, 2005 at 3:47 am
    CURT says:
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    “Punitive damages are like fines: they are pounishment. The full amount of any punitive damage award ought to be turned over to the state, just as a fine would be.”

    Better yet, turn them over to cancer research or deficeit reduction.
    You’re right, lawyers would quickly lose their incentive to plead them if they couldn’t line their pockets (oh, I forgot; their CLIENT’S pockets) with the cash!

  • June 20, 2005 at 4:38 am
    Tom says:
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    The Supreme Court also said that if the compensatory damages were adequate, punitive damages should be limited. There’s a lot in the Campbell case and it’s probably subject to interpretation.

    Having said that, punitive damages are insurable in many states, so the punishment concept is pretty vague in terms of the actual wrongdoer – the fact that the wrongdoer may have their insurance policy cancelled or pay higher premiums in the future is all well and good, but it’s sure not like being punished.

    Second, many cases routinely include claims for punitive damages or bad faith – it’s the manifestation of a real lottery mentality – try to survive the summary judgment motions, maybe you get lucky with the jury.

    I agree with the idea that the punitive award should go to the state – it’s still punishment regardless of who gets the money. It that was the rule, we would soon see how vigorously these claims were pursued.



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