The Evolution of Punitive Damages in Product Liability Litigation for Unprincipled Marketing Behavior

Abstract

Punitive damages claims have increased substantially in the 1980s for both manufacturing and marketing practices, resulting in several well-publicized awards to injured consumers. In this article the current status of punitive damages for intentional marketing wrongdoing is reviewed. Likely future developments and suggestions for marketers are provided.

Get full access to this article

View all access options for this article.

References

Allen

Richard

(1987), “Controlling the Growth of Punitive Damages in Products Liability,” Corporate Practice Commentator, 29 (Fall), 389–412.

American Cyanamid Co. v. Frankson (1987), 732 S.W.2d 648 (Tex. Ct. App.).

Attanasio

John B.

(1988), “The Principle of Aggregate Autonomy and the Calabresian Approach to Products Liability,” Virginia Law Review, 74 (May), 677–750.

Ausness

Richard C.

(1986), “Retribution and Deterrence: The Role of Punitive Damages in Products Liability Litigation,” Kentucky Law Journal, 74 (Winter), 1–125.

Bell

Griffin

and Pearce

Perry E.

(1987), “Punitive Damages and the Tort System,” University of Richmond Law Review, 22 (Fall), 1–17.

Belli

Melvin M.

(1980), “Punitive Damages: Their History, Their Use and Their Worth in Present-Day Society,” University of Missouri-Kansas City Law Review, 49 (Fall), 1–23.

Berger

Robert G.

(1988), “The Impact of Tort Law Development on Insurance: The Availability/Affordability Crisis and Its Potential Solutions,” American University Law Review, 37 (Winter), 285–321.

Brogdon

Gino M.

(1987), “Insuring Punitive Damages: A Closer Look at Public Policy Analysis,” Federation of Insurance & Corporate Counsel Quarterly, 37 (Summer), 369–97.

Browning-Ferris Industries v. Kelco Disposal (1989), Lexis 3285, Genfed library, Courts file (June 26), 845 F.2d 404 (1988 2d Cir.).

10.

Business Week (1989a), “Punitive Damages: How Much Is Too Much?” (March 27), 54, 56.

11.

Business Week (1989b), “A Right Turn, But No Free Ride for Business,” (July 10), 27.

12.

Conference Board (1988), “The Impact of Product Liability,” The Conference Board, Research Report No. 908.

13.

Campolongo v. Celotex Corp. (1988), 681 F. Supp. 261 (D. N.J.).

14.

Cropper v. Caterpillar Tractor Co. (1989), No. 948, Slip Op. (Tex. App.), 754 S.W.2d 646 (Tex. 1988).

15.

Cunningham v. Subaru of America, Inc. (1988), 684 F. Supp. 1567 (D. Kan.), 631 F. Supp. 132 (D. Kan. 1986).

16.

Dresser Industries, Inc. v. Gradall Co. (1988), 702 F. Supp. 726 (E.D. Wis.).

17.

Dworkin, Terry Morehead and Mary Jane Sheffet (1985), “Product Liability in the ‘80s,” Journal of Public Policy & Marketing, 4 (1985), 69–79.

18.

Elsroth v. Johnson & Johnson (1988), 700 F. Supp. 151 (S.D. N.Y.).

19.

Fischer v. Johns-Manville Corp. (1984), 472 A.2d 577 (N.J.).

20.

Folkman

Benjamin

(1989), “Self Insurers and Risk Managers: Case Notes,” Tort & Insurance Law Journal, 24 (Winter), 510–18.

21.

Ford Motor Co. v. Northbrook Insurance Co. (1988), 838 F.2d 829 (6th Cir.).

22.

Friedman v. General Electric Co. (1989), No. 88–3033, Slip Op. (E.D. Pa., March 20).

23.

Genay v. Norris (1784), 1 S.C. 3.

24.

Glasscock, Judith Camile (1987), “Emptying the Deep Pocket in Mass Tort Litigation,” St. Mary's Law Journal, 18 (Winter), 977–1017.

25.

Gold v. Johns-Manville Sales Corp. (1982), 535 F.Supp. 482 (D. N.J.).

26.

Grass

Jefferey W.

(1985), “The Penal Dimensions of Punitive Damages,” Hastings Constitutional Law Quarterly, 12 (Winter), 241–314.

27.

Greenman v. Yuba Power Products, Inc. (1963), 59 Cal.2d 57, 377 P.2d 895, 27 Cal.Rptr. 697.

28.

Grimshaw v. Ford Motor Co. (1981), 119 Cal.App.3d 757, 174 Cal.Rptr. 348.

29.

Hagen v. Richardson-Merrell, Inc. (1988), 697 F. Supp. 334 (N.D. Ill.).

30.

Hodder v. Goodyear Tire & Rubber Co. (1988), 426 N.W.2d 826 (Minn.).

31.

Hurley v. Lederle Laboratories Division of American Cyanamid Co. (1988), 851 F.2d 1536 (5th Cir.), In re School Asbestos Litigation (1986), 789 F.2d 996 (3rd Cir.).

32.

Jane Doe v. Miles Laboratories, Inc. (1987), 675 F. Supp. 1466 (D. Md.).

33.

Jeep Corp. v. Walker (1988), 528 So.2d 1203 (Fla. Dist. Ct. App.).

34.

Johnston

Jason S.

(1987), “Punitive Liability: A New Paradigm of Efficiency in Tort Law,” Columbia Law Review, 87 (November), 1385–1446.

35.

Juzwin v. Amtorg Trading Corp. (1989), No. 87–3876, Slip Op. (D. N.J., March 9).

36.

Karns v. Emerson Electric Co. (1987), 817 F.2d 1452 (10th Cir.).

37.

Kenefick

Andrew M.

(1987), “The Constitutionality of Punitive Damages Under the Excessive Fines Clause of the Eighth Amendment—Ingraham v. Wright, 430 U.S. 651 (1977),” Michigan Law Review, 85 (June), 1699–1726.

38.

Klein v. Sears Roebuck and Co. (1985), 773 F.2d 1421 (4th Cir.).

39.

Kociemba v. G. D. Searle & Co. (1988), 680 F. Supp. 1293 (D. Minn.).

40.

Kotler

Marvin A.

(1988), “Motivation and Tort Law: Acting for Economic Gain as a Suspect Motive,” Vanderbilt Law Review, 41 (January), 63–113.

41.

Leichtamer v. American Motors Corp. (1981), 424 N.E.2d 568 (Ohio).

42.

Leigh Furniture and Carpet Co. v. Isom (1982), 657 P.2d 293 (Utah).

43.

Lewy v. Remington Arms Co. (1988), 836 F.2d 1104 (8th Cir.).

44.

Lexis (1985), Learning Lexis, Dayton, OH: Mead Data Central.

45.

Lipke v. Celotex Corp. (1987), 153 Ill. App.3d 498, 505 N.E.2d 1213, 106 Ill. Dec. 422.

46.

Loitz v. Remington Arms Co. (1988), 171 Ill.App.3d 1034, 532 N.E.2d 1091, 127 Ill.Dec. 262.

47.

Marema

Lenore S.

(1989), “Public Regulation of Insurance Law: Annual Survey,” Tort & Insurance Law Journal, 24 (Winter), 472–.

48.

Martin v. Johns-Manville Corp. (1983), 469 A.2d 655 (Pa. Super. Ct.).

49.

Morgan

Fred W.

(1984), “Punitive Damages Awards for Flagrant Mismarketing of Products,” Journal of Public Policy & Marketing, 3, 113–24.

50.

O'Donnell, Nanette A. (1988), “Punitive Damages in Florida Negligence Cases: How Much Negligence is Enough?” University of Miami Law Review, 42 (January), 803–28.

51.

O'Gilvie v. International Playtex, Inc. (1988), cert denied, 108 S.Ct. 2014, aff'd in part, rev'd in part and rem'd, 821 F.2d 1438 (10th Cir. 1987), 609 F. Supp. 817 (D. Kan. 1985).

52.

Owen

David G.

(1976), “Punitive Damages in Products Liability Litigation,” Michigan Law Review, 74 (June), 1258–1371.

53.

Owen

David G.

(1982), “Problems in Assessing Punitive Damages Against Manufacturers of Defective Products,” University of Chicago Law Review, 49 (Spring), 1–58.

54.

Palmer v. A. H. Robins Co., Inc. (1984), 684 P.2d 187 (Colo.).

55.

Parnell

Albert H.

(1987), “An Aggressive Defense Against Punitive Damages Claims,” For The Defense, 29 (November), 25–31.

56.

Patton v. Mid-Continent Systems, Inc. (1988), 841 F.2d 742 (7th Cir.).

57.

Petrus Chrysler-Plymouth v. Davis (1984), 283 Ark. 172, 671 S.W.2d 749.

58.

Priest

George L.

(1987), “The Current Insurance Crisis and Modern Tort Law,” Yale Law Journal, 96 (June), 1521–73.

59.

Roginsky v. Richardson-Merrell, Inc. (1967), 378 F.2d 832 (2d Cir.).

60.

School District of the City of Independence, Missouri v. U.S. Gypsum Co. (1988), 750 S.W.2d 442 (Mo. Ct. App.).

61.

Schwartz

Alan

(1988), “Proposals for Products Liability Reform: A Theoretical Synthesis,” Yale Law Journal, 97 (February), 353–82.

62.

Seltzer

Richard A.

(1983), “Punitive Damages in Mass Tort Litigation: Addressing the Problem of Fairness and Control,” Fordham Law Review, 52 (October), 37–92.

63.

Sheehan

Lorraine M.

(1987), “Setting the Appropriate Standard for Punitive Damages in Florida Products Liability Cases—Chrysler Corp. v. Wolmer, 499 So.2d 923 (Fla. 1986),” Stetson Law Review, 17 (Fall), 275–93.

64.

Sterling v. Velsicol Chemical Corp. (1988), 855 F.2d 1188 (6th Cir.).

65.

Stern

Robert J.

and Loughhead

D. Jackson

(1987), “Vicarious Liability for Punitive Damages: The Worst Side of a Questionable Doctrine,” Defense Counsel Journal, 54 (January), 29–36.

66.

Tetuan v. A. H. Robins Co. (1987), 241 Kan. 441, 738 P.2d 1210.

67.

Toole v. Richardson-Merrell, Inc. (1967), 251 Cal.App.2d 689, 60 Cal.Rptr. 398.

68.

The Wall Street Journal (1989a), “California High Court Makes Mark on Law by Limiting Damages,” (July 7), A1, A6.

69.

The Wall Street Journal (1989b), “Constitution 1, Punitive Damages 0,” (March 10), A14.

70.

The Wall Street Journal (1989c), “If Pennzoil Won $11 Billion, Why Not Me?” (April 20), A14.

71.

The Wall Street Journal (1989d), “Is the Constitution Punitive?” (April 20), A14.

72.

The Wall Street Journal (1989e), “Justices Express Skepticism on Bid to Limit Damages,” (April 19), B11.

73.

Wammock v. Celotex Corp. (1988), aff'd, 835 F.2d 818 (11th Cir.), withdrawn, 826 F.2d 990 (11th Cir. 1988), cert. denied, 245 Ga. 803, 353 S.E.2d 809, aff'd in part, 793 F.2d 1518 (11th Cir. 1986).

74.

Wheeler v. General Tire & Rubber Co. (1987), 142 Wis.2d 798, 419 N.W.2d 331 (App.).

75.

Wheeler

Malcolm E.

(1983), “The Constitutional Case for Reforming Punitive Damages Procedures,” Virginia Law Review, 59 (March), 269–351.

76.

Wooderson v. Ortho Pharmaceutical Corp. (1984), 681 P.2d 1038 (Kan.), cert. denied, 105 S.Ct. 365.