On August 29, 2007, the California Supreme Court declined to review a lower court ruling that upheld a jury award of three million dollars in punitive damages in a case that constituted a typical breach of contract. The amount of punitive damages was arbitrarily based on the value of the stock of the defendant’s parent company. In its brief to the Supreme Court, WLF argued that the lower court impermissibly allowed an award of punitive damages in a case that was inextricably linked to a breach of contract. The hospital merely exercised its contractual rights to terminate the contract for any reason, and was willing to incur contractual damages for doing so.
Omari v. Kindred Healthcare, Inc.