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February 28, 2006

Updated: Judge rules against punitive damages in lead case

PROVIDENCE -- A Superior Court judge today dismissed any punitive damages against three companies found to have created a public nuisance by selling lead paints in Rhode Island.

The decision by Superior Court Judge Michael A. Silverstein could save the companies billions of dollars since punitive damages are often a mutiple of actual damages. The decision sent financial analysts in the courtroom scurrying to make telephone calls.

As a result of a jury's landmark verdict last week holding the companies liable, the companies will have to clean up, or abate, lead paint on an estimated 240,000 homes in the state. That could cost billions of dollars, according to some estimates.

Lawyers for the three companies -- Sherwin Williams, NL Industries and Millennium Holdings -- argued against the punitive damages.

Paul Michael Pohl, for Sherwin Williams, yesterday said the law is clear -- for punitive damages to be awarded, it has to be shown that a party acted with clear intent to cause harm.

Silverstein is expected to rule later on details of an abatement program.

-- Journal environment writer Peter B. Lord

Posted by Jack Perry  at 2:48 PM | Permalink

Comments

Posted by: don at February 28, 2006 03:22 PM