No Punitive Damages for Title Company
By: Myles, January 23rd, 2008
In a significant case that may very well shape the way real estate title underwriters operate amongst themselves in the hyper-competive world they reside in, the Supreme Court today rejected Chicago Title Co.’s attempt to revive part of a $43 million award it won from competitor First American Title Co.
The case centered on an Ohio employee, James Magnuson, who left for First American, allegedly in violation of Chicago Title’s non-compete agreement. A jury awarded Chicago Title $10.8 million in compensatory damages and $32.4 million in punitive damages.
In May the 6th U.S. Circuit Court of Appeals ordered a new trial on compensatory damages and said First American’s actions weren’t sufficiently egregious to warrant punitive damages.
Chicago appealed on the latter point but the Supreme Court let the decision stand.
Tags: Legal Action, Title Underwriters
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