Damage Issues Pending In California Supreme Court
USE NOTE: The information in this bulletin, including the framing of the issue presented, is taken from the California Supreme Court’s official website. Citations to the court of appeal's opinion are for informational purposes only. The grant of review automatically vacates the opinion, which cannot be cited as precedent.
Punitive damages. When an inventor or researcher contracts with another for the other to develop, patent, and commercially exploit the discovery in return for royalties, does a fiduciary relationship arise between the two parties, a breach of which may support tort and punitive damages, or should the arrangement be treated like an ordinary contractual agreement, a breach of which supports only contract damages. City of Hope National Medical Center v. Genentech, Inc., S129463, formerly at 123 Cal.App.4th 306, mod. 123 Cal.App.4th 1501b, review granted 2/2/05.
Punitive damages. When an inventor or researcher contracts with another for the other to develop, patent, and commercially exploit the discovery in return for royalties, does a fiduciary relationship arise between the two parties, a breach of which may support tort and punitive damages, or should the arrangement be treated like an ordinary contractual agreement, a breach of which supports only contract damages. City of Hope National Medical Center v. Genentech, Inc., S129463, formerly at 123 Cal.App.4th 306, mod. 123 Cal.App.4th 1501b, review granted 2/2/05.
Punitives/tobacco. Responding to one of the first in a spate of tobacco big punitive awards affirmed on appeal, the California Supreme Court has granted review on the constitutionality of a $28 million punitive award to a single plaintiff. Bullock v. Philip Morris USA, Inc., formerly at 138 Cal.App.4th 1029, mod. 139 Cal.App.4th 588a. Issues are whether the 33:1 ratio of punitives to compensatories violates due process, and should the jury have been instructed it can assess punitives for the effects of defendant's conduct on non-parties. The state high court deferred briefing pending the U.S. Supreme Court's decision in Philip Morris USA v. Williams (Ore. 2005) 127 P.3d 1165, cert. granted 5/30/06, No. 05-1256.
