BMW of North America, Inc. v. Gore by Supreme Court of the United States

BMW of North America, Inc. v. Gore

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The Due Process Clause of the Fourteenth Amendment prohibits a State from imposing a "`grossly excessive" punishment on a tortfeasor. TXO Production Corp. v. Alliance Resources Corp., 509 U. S. 443, 454 (1993) (and cases cited). The wrongdoing involved in this case was the decision by a national distributor of automobiles not to advise its dealers, and hence their customers, of predelivery damage to new cars when the cost of repair amounted to less than 3 percent of the cars suggested retail price. The question presented is whether a $2 million punitive damages award to the purchaser of one of these cars exceeds the constitutional limit.

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