USLegal Reporter

The US Fifth Circuit Court of Appeals has vacated a $2.5 million punitive damage award granted in a lawsuit against State Farm insurance. Mississippi homeowners Norman and Geneviere Broussard filed suit against State Farm to collect benefits under their homeowners policy after their Biloxi property was completely destroyed during Hurricane Katrina. The Broussards had argued that State Farm had breached their contract for rejecting their insurance claim and a lower court agreed. A jury later awarded punitive damages after concluding that State Farm had acted in bad faith.

However, the Fifth Circuit reversed and held on Monday that punitive damages were unwarranted in the case. Furthermore, because the District Court judge found for the Broussards under a motion for judgement as a matter of law, the case has also been remanded for a new trial.

Source: http://www.ca5.uscourts.gov/opinions/pub/07/07-60443-CV0.wpd.pdf

Walmart has ended a lawsuit aimed at recovering money from a former employee who suffered brain damage following a vehicle accident. Debbie Shanks received $417,000 from a settlement after a tractor-trailer slammed into her mini van.

Walmart sued Shanks for $470,000 to recoup medical expenses it says it was entitled to because it’s health care plan lets the retail chain recover funds if an employee collect damages in a lawsuit.

A lower court agreed that Walmart could indeed collect the money and Shanks appealed to the Supeme Court which declined to hear the case last month.

Earlier this week, Walmart sent a letter to Shanks’ husband, Jim, letting him know that the company would no longer seek the money and plans to exercise “more discretion” in such cases going forward.

Source: http://www.cnn.com/2008/US/law/04/02/walmart.decision/?iref=hpmostpop

A federal jury in Manhattan today ruled that New York Knicks head coach and general manager Isiah Thomas sexually harassed a former female executive, Anucha Browne Sanders. The jury also found that Madison Square Garden Chairman James Dolan wrongfully terminated Browne Sanders in retaliation for complaining about it. The jury awarded Browne Sanders $11.6 million in damages.

During the trial, Browne Sanders said that Thomas had made unwanted sexual advances toward the her and called her a “bitch” and “ho.”  Her attorneys argued that this created a hostile working environment based on gender. Thomas denied the allegations.

The jury could not reach a decision on whether or not the actions of Thomas warranted punitive damages. The judge declared a mistrail on this point.

Sources: 

http://cityroom.blogs.nytimes.com/2007/10/02/sexual-harassment-at-the-garden/

http://www.newsday.com/news/local/newyork/ny-limsg1003,0,5396994.story?coll=ny-about-utility

A federal jury today awarded a Louisiana man who lost his home during hurricane Katrina nearly $3 million in a lawsuit against Allstate Insurance company. The case turned on whether or not wind or storm damage lead the destruction of Robert Weiss’ home.

Allstate had argued that damage to the property was caused by storm surge, an event not covered by its policy. The plantiff’s lawyer presented evidence that the home was too far above sea level to have been destroyed by storm surge.

The jury’s verdict included a penalty of $1.5 million for Allstates failure to quickly pay Weiss’ claim.

Sources: http://public.findlaw.com/pnews/news/ap/f/66/04-16-2007/3bc0000a9f5d1eb2.html, http://www.chron.com/disp/story.mpl/ap/business/4719817.html

A U.S. federal judge has ordered a new trial in the case of an Oklahoma couple who sued Ford Motor Company after their son was killed in a roll over crash. The judge said on Tuesday that trial error and the size of the award warranted a new trial.

Kevin and Veronica Moody received a multi-million dollar jury verdict in November 2006. Their 18-year-old son, Tyler, died in 2003 after he lost control of his Ford Explorer and it flipped more than one and a half times before coming to rest upside down.

A new trial date has been set for July 16th.

The case is Moody v. Ford Motor Company (N.D. OK)

Source http://www.chron.com/disp/story.mpl/ap/fn/4652633.html

A New Jersey jury has awarded Frederick Humeston and his wife $20 million in damages after Humeston suffered a heart attack while reportedly taking Vioxx. The jury found that the makers of Vioxx failed to put adequate warnings on the medication regarding cardiovascular risks. They also concluded that there was enough evidence to link the painkiller to Humeston’s heart attack.

The money that was awarded was for compensatory damages. The jury is now set to decide whether Merck & Co., the makers of the drug, should be liable for any punitive damages 

The case is Humeston v. Merck, 03-2272, Superior Court of New Jersey, Atlantic County.

Source: http://www.app.com/apps/pbcs.dll/article?AID=/20070312/BUSINESS/70312007

On February 20, 2007, the US Supreme Court remanded to the Oregon Courts a case where the jury awarded 79.5 million in punitive damages to the estate of a deceased smoker.  The Court stated that such an award amounted to taking of property without due process of law.  See Phillip Morris, USA v. Williams.  http://www.supremecourtus.gov/opinions/06pdf/05-1256.pdf