punitive damages have clearly gotten out of hand. Tonight, I want to share with you a case involving punitive damages in my home State of Tennessee. Sadly, it involved the death of an individual from Alabama by carbon monoxide poisoning. The plaintiff claimed that the carbon monoxide poisoning was caused by a natural gas water heater made in Tennessee. It was a used heater obtained by a homeowner and installed by someone with no plumbing background. It was installed behind a wall without combustion air, with no vent, and was connected to an LP gas line. The local gas company wasn't notified, and that was a violation of local law. In short, the heater was altered from its original manufactured condition and was installed improperly and illegally. Nevertheless, a jury verdict was rendered against State industries. The jury awarded $5.5 million in compensatory damages and $6.5 in punitive damages. In fact, one of the jurors wanted to give $25 million. On appeal, the Alabama Supreme Court reduced the compensatory damages to $850,000, but the punitive damages stood. Now I am not criticizing in any way, shape, or form the person who installed the heater. In his mind's eye, he was lending a helping hand. And I am truly sorry for the death of anyone. But what I am criticizing is the award the jury made. Punitive damages are intended to punish--not to redistribute wealth.
Editor's note · Context
Discussing punitive damages in a case related to a carbon monoxide poisoning incident in Tennessee.
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