No Constitutional Limit on Punitve Damage Awards in Arbitration?
Read this post from the Construction Law Blog briefing the Connecticut Supreme Court's holding in Medvalusa Health Programs, Inc. v. Membership, Inc that neither the due process clause in the 14th Amendment nor state public policy limit the amount an arbitration panel may award in punitive damages.
The panel awarded no compensatory damages because the plaintiff failed to prove the amount of damages with reasonable certainty, but did award $5 million in punitive damages because of the defendant's unfair and deceptive acts. Here's the pdf of the decision. Download file
The lesson--don't assume arbiters won't be as outraged by a party's wrongdoing as jurors and won't feel a need to send the message--not here, not ever again!
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