A Tennessee statute capping punitive damages is unconstitutional, a panel for the U.S. Court of Appeals Sixth Circuit has ruled. The Sixth Circuit panel ruled 2-1 on Dec. 21 that state case law shows an award of punitive damages is a “finding of fact” that is allowed by jurors, Courthouse News Service reported. The case involved a dispute between Tamarin Lindenberg, individually and as guardian for her minor children, and Jackson National Life Insurance Co., which had a $350,000 life insurance policy on Lindenberg’s ex-husband. The panel’s ruling is available here. The panel cited the Tennessee Constitution of 1796 and its relation to the constitution and common laws of North Carolina when Tennessee adopted the document. The panel found that a right to jury trials and punitive damages existed at the time. The panel’s ruling states: Defendant Jackson National Life Insurance Company (“Defendant”) appeals from the district court’s judgment enforcing a jury trial verdict of $350,000 in actual damages, $87,500 in bad faith damages, and $3,000,000 in punitive damages in favor of Plaintiff Tamarin Lindenberg (“Plaintiff”), individually and in her capacity as natural guardian of her minor children, ZTL and SML. Plaintiff cross-appeals, challenging a statutory cap that the district…
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