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Amicus News

No. 2. May 1, 1996

Supreme Court Weighs Judges Power to Set Aside Awards

On April 16, the U.S. Supreme Court heard oral arguments in Gasperini v. Center For Humanities, No. 95-719, a case of great potential significance to preserving the right to trial by jury.

The Center lost a number of photographic transparencies belonging to photo-journalist Gasperini. The trial focused primarily on the amount of damages. The jury awarded plaintiff $450,000, on the basis of expert testimony as to the value of the transparen cies. The Second Circuit ordered a reduction to $100,000, based on awards for the value of transparencies in other cases.

Plaintiff argued to the Supreme Court that the Second Circuits review of the award exceeded the authority of federal appellate courts. AAJ filed an amicus brief arguing the broader position that, while federal courts have authority to review verdicts t hat are against the manifest weight of the evidence or the result of passion or prejudice, the Seventh Amendment prohibits any federal court, trial or appellate, from setting aside the jury's verdict on the basis of external factors, such as awards in com parable cases.

Much of the oral argument focused on whether the common law permitted appellate review of jury verdicts, as distinguished from review by trial judges. In addition, Justice Ginsberg expressed concern that maintaining separate standards of review for state and federal courts would create different outcomes, offending the Erie doctrine. Interestingly, Justice Scalia suggested in questions to both counsel that punitive damages might be viewed as questions of law, as distinguished from compensatory awards, wh ich are issues of fact for the jury.

The oral argument was featured in the April 22 issue of the National Law Journal.

A decision is expected before the Courts summer recess, probably in late June. A copy of AAJs amicus brief can be downloaded from AAJ/NET at www.justice.org in the Courts section. A limited number of bound copies are available upon request to Jeffrey White.

Phone: 202-965-3500 x310

FAX: 202-955-0920

E-Mail: jeffrey.white@justice.org

Balancing the Scales of Justice
American Association for Justice
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