On October 4, 2021, the Supreme Court dismissed a case about outsized judgments unmoored from any actual harm after the parties settled the case. Both the Excessive Fines Clause and Due Process Clause of the Constitution limit the permissible size of civil penalties. The Kentucky Supreme Court, however, held that the Constitution allows any civil penalty so long as it is calculated using a mathematical formula. WLF’s brief explained how that holding deepens a split amongst state courts of last resort and federal courts of appeals while ignoring Supreme Court precedent. The $300 million settlement in this case shows the power States can exert on companies by not complying with the Constitution’s requirements.
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