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CASE STUDY: DO-RIGHT INCENTIVE OR PANDORA'S TORT-BOX?

A $6 million punitive award in a contract lawsuit has raised both of J. Craig Williams' eyebrows.

After he weighs the merits of both majority and dissenting opinions in Robinson Helicopter Co. v. Dana Corp., Williams wonders what will become of California's legal tradition of preventing companies who sued for breach of contract from recovering punitive damages:

"That chasm provided predictability for businesses that damages would be limited solely to economic losses -- those losses that come from damages as a direct result of the contract breach (not punitive damages). The so-called economic loss rule, however, just got hammered by the Supreme Court. Flattened may be a better word. Like a steamroller."

Posted by Laurel Newby on December 29, 2004 at 10:10 AM | Permalink | TrackBack (0)

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