PUNITIVEDAMAGESARTICLE
004
Has Exposure to
punitive damages
increased in arizona?
AUTHOR: David L. Stout, Jr.
EMAIL: [email protected] BIO: jshfirm.com/davidlstoutjr
Until recently, it was generally accepted that punitive damages
awards are to track awards of compensatory damages on a 1:1
ratio. This ratio was convenient for defendants, as it provided
some amount of certainty when evaluating potential exposure
to punitive damages. But in August 2014, the Arizona Court of
Appeals altered this understanding with its ruling in Arellano v.
Primerica Life Ins. Co., 235 Ariz. 371, 332 P.3d 597 (App. 2014).
Specifically, the Court of Appeals reduced a punitive damages
award from a 13:1 ratio to a 4:1 ratio. While the reduction was
welcome, it was a clear signal that the amount of punitive
damages awardable in Arizona is likely to increase.
Limitations on Punitive Damages
An award of punitive damages is an extraordinary civil remedy
that is recoverable only for the most egregious of wrongs.
Punitive damages are not intended to compensate plaintiffs,
but exist to punish the wrongdoer and deter future harmful
conduct. Exxon Shipping Co