Supr Ct Rebuffs Damages Cap
Monday, August 13th, 2001 LitigationRejecting the arguments of business groups, the U.S. Supreme Court ruled yesterday that a statutory cap on compensatory damages for violations of the Civil Rights Act does not apply to what is called "front pay." In an 8-0 decision, the high court reversed a lower court ruling enforcing a $300,000 cap on "front pay," which the court defined as money awarded for lost compensation during the period between judgment and reinstatement or in lieu of reinstatement. In a decision written by Justice Clarence Thomas, the court said that the plain language of the Civil Rights Act makes clear that front pay is an additional remedy to the relief authorized under the act. It is thus excluded from the meaning of compensatory damages and not subject to the $300,000 cap.
