State Farm Mut. Automobile Ins. Co. v. Campbell, 538 U.S. 408, 11 (2003)

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418

STATE FARM MUT. AUTOMOBILE INS. CO. v. CAMPBELL

Opinion of the Court

does not permit a State to classify arbitrariness as a virtue. Indeed, the point of due process—of the law in general—is to allow citizens to order their behavior. A State can have no legitimate interest in deliberately making the law so arbitrary that citizens will be unable to avoid punishment based solely upon bias or whim"). Our concerns are heightened when the decisionmaker is presented, as we shall discuss, with evidence that has little bearing as to the amount of punitive damages that should be awarded. Vague instructions, or those that merely inform the jury to avoid "passion or prejudice," App. to Pet. for Cert. 108a-109a, do little to aid the decisionmaker in its task of assigning appropriate weight to evidence that is relevant and evidence that is tangential or only inflammatory.

In light of these concerns, in Gore, supra, we instructed courts reviewing punitive damages to consider three guide-posts: (1) the degree of reprehensibility of the defendant's misconduct; (2) the disparity between the actual or potential harm suffered by the plaintiff and the punitive damages award; and (3) the difference between the punitive damages awarded by the jury and the civil penalties authorized or imposed in comparable cases. Id., at 575. We reiterated the importance of these three guideposts in Cooper Industries and mandated appellate courts to conduct de novo review of a trial court's application of them to the jury's award. 532 U. S. 424. Exacting appellate review ensures that an award of punitive damages is based upon an " 'application of law, rather than a decisionmaker's caprice.' " Id., at 436 (quoting Gore, supra, at 587 (Breyer, J., concurring)).

III

Under the principles outlined in BMW of North America, Inc. v. Gore, this case is neither close nor difficult. It was error to reinstate the jury's $145 million punitive damages award. We address each guidepost of Gore in some detail.

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