... policy constituted "gross, oppressive or malicious" fraud. On appeal of the punitive damages being grossly excessive, the Alabama Supreme Court ruled that the punitive damages were not so excessive as to violate BMW's 14th Amendment right to due process. However, the state supreme court found that the jury, which arrived at the $4million punitive award by multiplying 1,000 documented cases of fraud by the $4,000 diminution in value per car, should not have considered fraudulent acts outside Alabama. The Alabama court considered the fraudulent cases in state and reduced the punitive award to $2 million. Thus, BMW appealed to the United States Supreme Court. Issue Assuming that Gore's punitive damage award was grossly excessive, does the 14th Amendment's due process clause protect BMW from paying the award? Rule of Law The Due Process Clause of the 14th Amendment prohibits a State from imposing a grossly excessive punishment on a tortfeasor. Punitive damages ...

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