To Infinity and Beyond? Pa. Supreme Court Casts Doubt Upon Presumptive Constitutional Limit for Punitive Damages
In 2017, four employees with nonsolicitation agreements left their employment with The Bert Co. d/b/a Northwest Insurance Services and joined First National Insurance Agency, LLC. They moved as part of what is known in business parlance as a "lift-out," a practice in which a group of employees from one company are hired by a competitor.
November 02, 2023 at 10:35 AM
9 minute read
1995 was a watershed year. Michael Jordan returned to the NBA after a two-year hiatus, Brad Pitt was named "Sexiest Man Alive" by People magazine, and the world met Buzz Lightyear for the first time. Today, Buzz remains a constant fixture in pop culture, thanks largely to his signature catchphrase: "To Infinity and … Beyond!" Indeed, Buzz himself may use that phrase to describe the Pennsylvania Supreme Court's recent decision in Bert v. Turk, 298 A.3d 44 (Pa. 2023), which calls into question the presumptive constitutional limit for punitive damages awards.
Background
In 2017, four employees with nonsolicitation agreements left their employment with The Bert Co. d/b/a Northwest Insurance Services and joined First National Insurance Agency, LLC. They moved as part of what is known in business parlance as a "lift-out," a practice in which a group of employees from one company are hired by a competitor. Northwest filed suit and obtained a preliminary injunction enforcing the agreements. At the ensuing trial, the jury exonerated three employees from any liability and exonerated the corporate defendants on two claims. While they found the remaining employee and corporate defendants liable on other claims, the jury only awarded Northwest $250,000 of the roughly $4 million in compensatory damages sought; the award was joint and several. However, the jury awarded Northwest $2.8 million in punitive damages—representing an 11.2:1 ratio of punitive-to-compensatory damages on a per-judgment basis.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllPa. Superior Court Rules Pizza Chain Liable for Franchisee Driver's Crash
4 minute readUS Supreme Court Considers Further Narrowing of Federal Fraud Statutes
4 minute readPlaintiff Argues Jury's $22M Punitive Damages Finding Undermines J&J's Talc Trial Win
4 minute readPa. High Court: Concrete Proof Not Needed to Weigh Grounds for Preliminary Injunction Order
4 minute readLaw Firms Mentioned
Trending Stories
- 1Public Notices/Calendars
- 2Wednesday Newspaper
- 3Decision of the Day: Qui Tam Relators Do Not Plausibly Claim Firm Avoided Tax Obligations Through Visa Applications, Circuit Finds
- 4Judicial Ethics Opinion 24-116
- 5Big Law Firms Sheppard Mullin, Morgan Lewis and Baker Botts Add Partners in Houston
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250