CALIFORNIA IN BRIEF : CALIFORNIA : Punitive Damage Awards Up

The Assn. for California Tort Reform said punitive damage awards by juries have risen 266% since 1987. Association President Frank Schubert issued a statement with a report saying, “When one out of 10 jury verdicts is likely to result in a punitive damage award averaging more than $4 million, it is not difficult to understand why business leaders are leery of California’s legal climate. It is a major reason why California is slowly losing its competitive edge to lesser competitors.” A review of 1,868 verdicts by Jury Verdicts Weekly showed that the average punitive damage award is nearly $4.4 million. While the percentage of cases resulting in punitive damages has declined from 16.1% in 1987 to 9.9% in 1989, the average dollar amount being awarded has increased from $1.64 million in 1987 to $4.38 million in 1989.