
Read about a shocking $4,000,000.00 judgement for missed
paintwork... see why you need a FenderSplendor™ Paint Meter.
Birmingham News
(AL)
SUPREME COURT OVERTURNS "EXCESSIVE' BMW
JUDGMENT
May 20, 1996
Section: NEWS
Page: 01-A
Michael Brumas News Washington correspondent
WASHINGTON - The Supreme Court today overturned Birmingham
Dr. Ira Gore's $2 million judgment against German automaker BMW, ruling
that the award is grossly excessive.
The due process clause of the 14th Amendment
prohibits a state from imposing a "grossly excessive' punishment, wrote Justice John Paul Stevens for the
majority.
By a 5-4 vote, the justices said the judgment
violated BMW's due process rights.
Gore sued BMW of North America
and won $4,000 in actual damages and $4 million in punitive damages - or $4,000 for each of the estimated 1,000
1990 model BMWs sold nationwide in the same condition. The Alabama Supreme
Court cut the original $4 million verdict in half.
Gore's car, a 535i model, had been partly repainted to touch some damage sustained during shipping. Gore learned about the
touch-up nine months after buying it.
The high court said the economic penalties a
state imposes must be supported by the state's interest in protecting its own consumers and economy, rather than
those of other states or the entire nation.
Gore's award must therefore be analyzed in the
light of conduct that occurred solely within Alabama, with consideration being given only to the interests of
Alabama consumers, the court said.
The court ruled that the harm BMW inflicted on
Gore was purely economic and that the repainting had no effect on the car's performance, safety features or
appearance.
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