So it is hardly surprising that on the eve of St. Louis being named by the American Tort Reform Association as the number one Judicial Hellhole in the country, juries in Jackson County (home to Kansas City) would stake their own claim to that dubious distinction by returning two jaw-dropping punitive awards in consecutive days.

On December 8, a jury awarded a former Orkin worker $120,892 in compensatory damages and a whopping $10 million in punitive damages—a punitive/compensatory ratio of more than 82:1—for allegedly discriminatorily terminating him because of his age and disability.

Not to be outdone, the following day a jury awarded a former manager at American Family Insurance $450,000 in compensatory damages and $20 million in punitive damages—a punitive/compensatory ratio of more than 44:1—for alleged retaliatory discharge and age and sex discrimination.

It is possible that the punitive awards in these cases will be reduced to the 5:1 maximum set by Mo. Rev. Stat. § 510.265. Although the Missouri Supreme Court has held that this cap provision is unconstitutional as applied to causes of action that pre-dated the enactment of the Missouri Constitution in 1820, it would seem self-evident that the statutory employment-discrimination claims in these cases do not predate the 1820 Constitution. Nonetheless, given the predilection of the Missouri courts to thwart legislative tort reform, it is hardly a sure thing that they will apply the cap in these cases.

Either way, it would seem that both defendants have strong arguments that even a 5:1 ratio of punitive to compensatory damages would be unconstitutionally excessive. The Supreme Court held in State Farm that "[w]hen compensatory damages are substantial," a 1:1 ratio "can reach the outermost limit of the due process guarantee."

There can be little doubt that compensatory awards in the six figures are "substantial." And as reported by the media, the facts in these case don't stand out as being so reprehensible as to warrant deviating from the 1:1 presumption established in State Farm.

We will report on developments in these two cases (as well as the several other large Missouri verdicts from 2016) as they occur.

Originally published January 3, 2017

Visit us at mayerbrown.com

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2017. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.