Another Significant Decision on Punitive Damages
We believe, it is worthy to note that in the case of Motorola Credit Corp v. Uzan, the Second Circuit Court of Appeals held that the state law was not violated when a Billion Dollar punitive damage award was granted by a federal trial court in a case in which Defendants refused to provide economic information.
The decision in the Motorola matter resulted when the Second Circuit, applying Illinois law, three factors must be considered in the granting of punitive damages. (1) The nature and enormity of the wrong, (2) The financial status of Defendant, and (3) The potential liability of Defendant.
We recognize that in order to respond to the second element, namely the financial status of the Defendant, the Defendant is obligated to provide financial information. When a defendant, through what might be considered reprehensible conduct, fails to provide that information, the Court concluded that punitive damages were appropriate.
