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St. Thomas Law Review

Authors

Anthony Geraci

First Page

1

Document Type

Article

Abstract

This paper discusses the significance of State Farm v. Campbell and how it removes what little effectiveness punitive damage awards were left with after Leatherman.1 Part II briefly explores the past of punitive damages and explains the modem jurisprudence of punitive damages in America. Part III sets forth State Farm v. Campbell. Part IV, Section A argues that State Farm has removed the deterrence function from punitive damages because the Court has given corporations all the tools they need to make an effective cost/benefit analysis. Furthermore, State Farm has removed the punishment function from punitive damages because it has instituted a ratio system without thought to an optimal level of deterrence. Part IV, Section B explores whether and when a state has an interest in punishing unlawful out-of-state conduct and attempts to provide a solution to that question, which has been left unanswered by the Court.

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