BMW of North America, Inc. v. Gore

BMW of North America, Inc. v. Gore was a landmark legal case decided by the U.S. Supreme Court in 1996. It involved a dispute over punitive damages awarded to a car buyer after discovering his new BMW had been repainted due to previous damage, which he felt misrepresented its value. The Court ruled that the $4 million punishment against BMW was excessive and violated the due process clause, setting a precedent that limits punitive damages in relation to the harm caused and ensures they are not disproportionately high compared to the actual damages suffered.