Page 2 -The Michigan Daily -Thursday, October 4, 1990 0 Supreme Court considers awards for punitive damages WASHINGTON (AP) - The Supreme Court, in a case that could reshape how the American legal sys- tem penalizes wrongdoers in law- suits, wrestled yesterday with con- flicting theories and accounts of sky- rocketing punitive awards. The outcome of the Alabama case, in which an insurance company was ordered to pay $1 million dollars. for fraud, could have enormous im- pact on business and consumers. The dispute pits the Pacific Mu- tual Life Insurance Company of Newport Beach, California, against Cleopatra Haslip, a former $8,000-a- year librarian from Roosevelt City, Alabama. Haslip discovered her insurance coverage had lapsed after incurring $3,500 in medical and hospital bills in 1982 for treatment of a kidney in- fection. The hospital demanded $600 be- fore it would discharge Haslip; her. doctor turned her case over to the collection agency and her credit suf- fered from her inability to pay the bills. Bruce Beckman, a lawyer for the insurance company, said the jury that awarded the money to a mother of five was a violated the company's constitutional due-process right to" receive fair treatment. "In the jury room, all it had to go on was its own notion of right from wrong," Beckman said."That is ex- actly the arbitrary and discriminatory enforcement due process condemns." The system means wealthy com- panies are hit with multi-million dollar awards "even if the fault is small," he said. But Bruce Ennis, representing the woman, said the penalty was based on a 200 year tradition that gives ju- ries broad but not unfettered discre- tion to award punitive damages. "You should not throw subtle state tort law into disarray without substantial evidence that the major- ity of awards are unfair," Ennis told the court. Urging "judicial restraint," he said,"there does not have to be a constitutional remedy for every problem." Punitive damages have been, "used throughout the land for 200 years," he said. Only nine states, he said, have placed monetary limits o9 the awards after extensive re-exami- nation by legislatures. Haslip, who was in the audience during the proceedings, said she still owes money on her medical bills and has not yet collected the $1,040,000 awarded by the Alabama jury. A 4-4 split among the justices who took part yesterday could prompt the court to rehear the dis- pute liter in its new 1990-91 term. 0 Since the case is not likely to be reargued until next year David Souter, confirmed by the Senate on Tuesday should be in- cluded in the final judgement of the case. The justices extensively ques- tioned both lawyers on yesterday, in- dicating their apparent uncertainty about deciding the case. Justice Sandra Day O' Connor in questioning Ennis said she is trou- bled when juries impose big awards without guidelines. Giving juries limitless discretion, "is a very strange notion of what due process means," she said. be divided. Think it over because there is still time," De Villa said. A bomb exploded at a wate pumping station at the Philippine AMY FELDMAN/Daily Gourmet cooking LSA senior Andy Holcomb squeezes out Spatzle noodles from his special Spatzle noodle maker. 2 Nuts and Bolts HiEY LU3MUS,HROW-HAT GLFR1EI4 OF YOURS. " "WATSON.. . r IM GONA LET You CFF Ra N L A D 2 BOZL K -Y O ' LET YOU U E ... 7 TZ HDI S U Z- I ) / .AI ' PLOY J PLOP __V ,W by Judd Winick YO DZ'T REALYTHN H~SEY LUMUS O'SO THA GRL'3 Calvin and Hobbes 141, IMALVINU, EINEN4T ThJ E iI$0t4PE,;~xL , "MOKtd VCI4OCOLNt FROSTED SUG~A~R Bc*A85' I LOVE 'EM! AND THEY M N0AP HE A SINGL %4TMAM &To GET IN SHE VO MOF T4A~T lkQA, NMI (TASTE! MM-MMi$ ESKID, ft tOU'LL:E 'DA50 SIT 'STL ! RMEBE! TS TJ4E CERERL T GET PAID )TO FAMOJS ! PHILIPPINES Continued from Page 1 coup attempt since she took office in February 19 "I think this is small thing and we can controlsthis," he said. "We wish to inform the public that the armed forces is united. Except-for this breakaway group, we are in con- trol of all units in Manila and the entire country." He appealed to mutineers to surrender. "I just want to tell them that this GULF Continued from page 1 dam. The London-based international human rights group said the report was based on information gathered by two representatives who inter- viewed witnesses and victims in Bahrain. The European Community an- nounced Tuesday that it will provide $1.5 billion in aid to Egypt, Jordan, and Turkey as compensation for eco- nomic hardships they are suffering because of the crisis. 7".m Ce44q4 'The armed forces is united. Except for this breakaway group, we are in control of all units in Manila and the entire country'. -Gen. Rennato de Villa, Chief of Staff, Philippino Armed Forces civilians and the majority of the armed forces of the Philippines." "Don't allow our armed forces to i . i uprising is a big mistake and may endanger our civilians," De Villa said. "What they did is something that cannot be supported by our Army headquarters in Manila early today, the 35th blast in the capitl since last August. 1 MR r M V r Mme! u E)6mmd E- lu JM4, i~I - THE WAIT IS OVER! NOW OPEN!! Featuring the best of the domestic tap beers Open: 9 p.m.-2 a.m. Wednesday-Saturday Brute force A female demonstrator cries in pain yesterday when being arrested by Berlin riot police after leftist protestors of German unity threw stones, smashed windows and hurled molotov cocktails. k THETA XI IS RETURNING TO MICHIGAN! To find out how you can get involved in starting a new Fraternity at Michigan, contact: Richard Rizzardi Theta Xi Fraternity Headquarters 9974 Old Olive Street Road St. Louis, Missouri 63141 (314)/993-6294 CORRECTION In yesterday's paper we our definition of AZT was incorrect. AZT stands for Azidothymidime or Zidovudine. 338 S. State ATTENTION The Michigan Daily (ISSN 0745-967) is published Monday through Friday during the fall and winter terms by students at the University olMichigan. Subscription rates: for fall and winter (2 semesters) $28.00 U.S. mail and $28 on campus, for fall only $22.00 U.S. mail. 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