A welcome court decision

While politicians from the legislative and executive branches of the US government jousted over war costs and tax cuts this month, the judicial branch made what should come to be seen as an historic improvement in the American business climate.On Apr. 7, the US Supreme Court set new limits on the punitive damages courts can award in civil cases. The decision is an important move toward bringing under control a tort liability system now weighing on the US economy like a large and growing tax.The caseIn a case involving State Farm Mutual Insurance Co., the court ruled unconstitutional $145 million in punitive damages awarded by a Utah jury and upheld by the Utah Supreme Court. Compensatory ...

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