Judge reduces punitive damages awarded in case against Wabash
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A St. Louis Circuit Court judge has reduced the amount of punitive damages that must be paid by Lafayette-based trailer manufacturer Wabash as a result of a verdict issued against the company in September.
Judge Christopher E. McGraugh said the original $450 million amount awarded by the jury was “grossly excessive” and not in line with the company’s constitutional rights.
Wabash was sued by the families of two men who were killed in a 2019 crash involving a trailer manufactured by the company.
A Volkswagen driven by Taron Tailor collided with the back of the trailer and went under it, killing Tailor and his passenger, Nicholas Perkins. Court documents showed the trailer’s rear-impact guard failed.
In filing the lawsuit, the victims’ families claimed Wabash was negligent and manufactured a defective product which was then involved in the crash.
The company said after the verdict was handed down—and again on Monday after the judge’s order—that the crash occurred nearly two decades after the trailer involved was manufactured by the company in compliance with all applicable regulations.
Wabash also maintains that the jury was not presented with crucial evidence, including that Tailor’s blood alcohol level was above the legal limit and neither the driver or passenger were wearing seatbelts at the time of the crash.
In his ruling dated March 20, Judge McGraugh denied Wabash’s motion for a new trial and motion for judgment notwithstanding the verdict.
However, the judge said the punitive damages awarded by the jury “exceeds the fair and reasonable compensation for the plaintiff’s damages, the aggravating or mitigating circumstances, and the degree of malice behind Wabash’s conduct.”
As a result, the judge has lowered the punitive damages to $108 million. The $11.5 million in compensatory damages awarded to the plaintiffs remains unchanged.
“Wabash continues to believe both that the damages remain abnormally high and the verdict is not supported by the facts or the law,” the company said in a statement Monday. “The company continues to evaluate all available legal options.”
Wabash declined to provide any additional comments to Inside INdiana Business.
Our partners at The Indiana Lawyer contributed to this report.