Court Reduces Damages Against Kmart

Kmart Corp., the No. 2 U.S. discount retailer, won’t have to pay the full $1.18 million awarded by a jury after an empty ice cooler fell onto a shopper, because part of the award was excessive, an appeals panel ruled. Delia Smith, 43, was with her husband, James Orth, in a Kmart store in Humacao, Puerto Rico, in 1995 when the 8 1/2-pound cooler fell more than 10 feet from a shelf, causing Smith to suffer head and back injuries. The couple sued Kmart, and the jury found the retailer negligent, awarding Smith and Orth $1.18 million, including $250,000 to Orth for emotional pain and suffering related to his wife’s injuries. Kmart appealed. “We find the jury’s award of $250,000 [to Orth] to be grossly excessive [and] shocking to the conscience of the court,” said the three-judge panel of the U.S. 1st Circuit Court of Appeals in Boston. The judges gave Orth the choice of accepting $100,000 or having a new trial on his portion of the damages. Shares of Troy, Mich.-based Kmart fell 63 cents to close at $15.06 on the NYSE.