Punitive Damages Discovery

Federal District Judge James M. Munley in the case of Grosek v. Panther transportation, Inc. has ruled that discovery regarding the financial condition of a defendnat for a claim of punitive damages is permissible. 

In so holding the Judge noted, "it is inefficient to somehow delay discovery on the amount of punitive damages available until after a factual determination on the availabilty of such damages can be made." 

Judge Munley held that once plaintiffs had properly stated a claim for punitive damages "discovery on the amount of the damages is relevant."  Punitive damages are based on the concept that a defendant should be punished financially because of reckless or outrageous conduct.  This is a significant decision in that often times defendants will argue that discovery regarding their financial condition and ability to pay punitive damages is not allowed until there has been a finding that punitive damages should be awarded.