Products Liability & Mass Torts

A recent ruling by the Supreme Court of Virginia should be good news for many employers in the Commonwealth who may be subject to claims seeking punitive damages arising from the actions of their employees. Significantly, the Supreme Court’s decision includes a fact based analysis that provides clarity for employers on the circumstances in which they may be held liable for punitive damages for the acts of an employee. In Eagan v. Butler, 772 S.E.2d 765 (Va. 2015), the Supreme Court of Virginia held that employers cannot be held liable for punitive damages based on the actions of their employees unless the plaintiff can show that the employee was sufficiently high enough in the corporate hierarchy as to bind their employer for the purpose of punitive damages. Id. at 773-74.

Republished with permission.