A recent ruling by the U.S. first ...

A recent ruling by the U.S. first Court could lead to significantly smaller punitive-damage adjustments across the country, exactly what liability tort reform has been attempting to achieve for years.

The April 7 decision on the Supreme Court held that an award of punitive damages in a case against State Farm of 145 times the amount of compensatory damages was unreasonable and violated the owed process clause of the 14th Amendment, according to the decision of the court.

According to the first Court's decision, the due proces clause prohibits "the imposition of grossly excessive or arbitrary punishments."