State Farm Mutual Automobile Insurance Co. v. Campbell

State Farm Mutual Automobile Insurance Co. v. Campbell
Argued December 11, 2002
Decided April 7, 2003
Full case nameState Farm Mutual Auto Insurance v. Curtis Campbell
Docket no.01-1289
Citations538 U.S. 408 (more)
123 S. Ct. 1513; 155 L. Ed. 2d 585; 2003 U.S. LEXIS 2713
Case history
PriorCampbell v. State Farm Mutual Automotive Insurance Co., 2001 WL 1246676 (Utah 2001)
Holding
145 million dollars of punitive damages, when the compensatory damages are 1 million is excessive and a violation of the Due Process Clause of the Fourteenth Amendment.
Court membership
Chief Justice
William Rehnquist
Associate Justices
John P. Stevens · Sandra Day O'Connor
Antonin Scalia · Anthony Kennedy
David Souter · Clarence Thomas
Ruth Bader Ginsburg · Stephen Breyer
Case opinions
MajorityKennedy, joined by Rehnquist, Stevens, O'Connor, Souter, Breyer
DissentScalia
DissentThomas
DissentGinsburg
Laws applied
U.S. Const. amend. XIV

State Farm Mutual Automobile Insurance Co. v. Campbell, 538 U.S. 408 (2003), was a case in which the United States Supreme Court held that the due process clause usually limits punitive damage awards to less than ten times the size of the compensatory damages awarded and that punitive damage awards of four times the compensatory damage award is "close to the line of constitutional impropriety".

The Court reached this conclusion applying guideposts first noted in BMW of North America, Inc. v. Gore, 517 U.S. 559 (1996), requiring courts to consider:

  1. the degree of reprehensibility of the defendant's misconduct;
  2. the disparity between the actual or potential harm suffered by the plaintiff and the punitive damages award; and
  3. the difference between the punitive damages awarded by the jury and the civil penalties authorized or imposed in comparable cases.