Pacific Mutual Life Insurance Co. v. Haslip
"Pacific Mutual Life Insurance Co. v. Haslip" is a significant Supreme Court case that addresses the constitutionality of punitive damages awarded by juries, particularly in the context of the Fourteenth Amendment's due process clause. In a 1991 ruling, the Court upheld a substantial punitive damage award made by an Alabama jury against Pacific Mutual Life Insurance Company. Justice Harry A. Blackmun, writing for the 7-1 majority, affirmed that the jury's decision did not violate due process, emphasizing the importance of maintaining a common-law framework for judicial determinations. Despite acknowledging that there could be extreme cases where a jury's award might be deemed irrational, Blackmun defended the procedural safeguards available in Alabama courts. The decision reflects a tension between state jury powers and constitutional protections, highlighted by a dissent from Justice Sandra Day O'Connor, who argued that the Alabama procedures lacked sufficient rationality. This case is pivotal in discussions about the limits and responsibilities of jury awards and their implications for businesses and individuals alike.
Pacific Mutual Life Insurance Co. v. Haslip
Date: March 4, 1991
Citation: 111 S.Ct 1032
Issue: Trial by jury
Significance: In the face of a challenge brought by business, the Supreme Court upheld sizable punitive awards made by juries.
Justice Harry A. Blackmun wrote the opinion for the 7-1 majority, upholding a sizable punitive damage award made in Alabama. Earlier, the Supreme Court had rejected a challenge to such jury awards on Eighth Amendment grounds. In this case, the Court rejected the argument that the jury decision was so irrational and unrelated to the plaintiff’s actual injuries as to run afoul of the Fourteenth Amendment’s due process guarantee. Although Blackmun acknowledged there might be cases in which an exceedingly irrational jury award might violate due process protections, generally he defended the common-law process of judicial determinations and found that the Alabama courts had reasonably well provided for rational decision making. Justices Antonin Scalia and Anthony M. Kennedy concurred. Justice Sandra Day O’Connor dissented, finding that the Alabama procedure did not provide for “rational implementation.”

