A jury found that a plaintiff was not damaged by false promises a former Texaco salesman made (against corporate policy) in selling franchises, but decided that the fact of the promise entitled the plaintiff to $33.8 million in punitive damages. (Why $33.8 million? Because it was a percentage of the size of the defendant’s net value. Strikes me as a punishment for being a successful business, rather than for wrongdoing. If Texaco had taken half of its net value and invested it in a failed fiber optics business, should punitive damages be half as much?) The coverage doesn’t indicate if the promise was written or part of an oral sales pitch, but it does note that the plaintiff did not sue the salesman, who was fired after it was discovered he made such promises. (Matthew Haggman, “ChevronTexaco Subsidiary Hit With $33.8M Punitive Damages Verdict,” Miami Daily Business Review, July 3). Update Dec. 2: award thrown out.

Filed under: Chevron, procedure