Third Circuit Moves Closer to 1:1 Ratio for Punitive Damages Awards

January 28, 2009
In Jurinko v. The Medical Protective Co., the U.S. Court of Appeals for the Third Circuit reduced a punitive damage award, requiring almost a 1:1 ratio between punitive and compensatory damages. This update examines the 1:1 ratio rule embraced in Jurinko, which may not eradicate uncertainty and inconsistency from future punitive damages award calculations, but may portend higher stringency in punitive awards – at least in cases where compensatory damages are already large.