Montana's Supreme Court upholds a district court's $9.9 million punitive damages award against a large law firm for malicious prosecution and abuse of process. The jury had originally awarded $20 million in punitive damages.

Justice James C. Nelson delivered the court's opinion in Seltzer v Morton (12 Mar 2007):

¶179 At oral argument, counsel for GDC attempted to minimize the reprehensibility of the firm's conduct by arguing that litigation is a common occurrence and the “essence of the system” is to reach a verdict on the merits. Among other things, counsel argued:

Clients bring demands letters to me every day . . . and sometimes they settle, sometimes they say: “Bring it on. In a court of law you're going to lose.” . . . I believe that, in court, ya know, “bring it on”—if they've got a good lawsuit, a jury will find one way, if they don't, a jury will find the other way. And that's the essence of the system.

We take exception to this notion. The “essence” of our judicial system is not simply the resolution of disputes; rather, it is the resolution of legitimate disputes. Baseless lawsuits prosecuted in furtherance of ulterior motives have no place in our courts. Moreover, the sort of saber-rattling, chest-thumping approach typified by the comment of GDC's counsel, trivializes the devastating effects on the health, reputations, and fortunes of the real people who are maliciously and abusively sued. For the ordinary citizens who are the victims of such a lawsuit, it may be the most horrific experience of their lives. Indeed, those effects are not merely the collateral damage of some run-of-the-mill litigation battle between attorneys. Rather, the defendants in such cases are the innocent casualties of the war. That is why the “essence of the system” with respect to such lawsuits is to provide recourse for the victim and levy punishment against the perpetrator by way of actions for abuse of process and malicious prosecution. Thus, the “essence of the system” was evident in the instant suit by Seltzer's recovery of compensatory damages and the jury's assessment of a severe punitive sanction against GDC.

¶180 In short, GDC's use of the judicial system amounts to legal thuggery. This behavior is truly repugnant to Montana's foundational notions of justice and is therefore highly reprehensible. Thus, in accordance with Montana's legitimate interest in punishment and deterrence, we conclude that a particularly severe sanction comports with due process.

(pp.92-3)

This lengthy opinion is well-worth reading.

(Via Paul Davies, WSJ.com)