Under State Farm v. Campbell, the ratio of punitive to compensatory damages is one of three guideposts for due process review. The Court indicated that few awards exceeding a single-digit ratio will satisfy due process.
Substantial compensatory awards suggest a lower permissible ratio.
Alternative Names:
Punitive Ratio, Compensatory to Punitive Ratio
Why it Matters?
The guidance that a substantial compensatory award may support a ratio approaching one to one is the point defendants underuse, since a large compensatory verdict compresses rather than expands the permissible punitive range. Reprehensibility remains the most important guidepost, so the ratio argument works best paired with evidence that the conduct fell at the lower end of the reprehensibility scale.
Frequently Confused with
Related terms
Frequently asked questions
What ratio satisfies due process?
Which guidepost matters most?
