Court Again Adjusts Damages Against Ford

A California appeals court increased a punitive damage award against Ford Motor Co. to $175,000 from $53,435 in a case over claims the company hid the repair history of used cars.

The ruling by a state appeals court in Fresno is the second modification to what was initially a $10-million punitive damage verdict.

In 2003, the same appeals court slashed the punitive damage verdict to $53,435, saying the verdict was out of proportion to $17,811 in compensatory damages awarded to the family who bought a 1997 Ford Taurus.

The California Supreme Court required the state appeals court to recalculate the award, arguing it must reconsider the “reprehensibility” of Ford’s practice of hiding a used car’s repair history from customers.

The initial case claimed Ford violated the state’s “lemon” law, which protects used-car buyers.

Ford will determine after Jan. 1 whether it will appeal the decision, said Theodore J. Boutrous Jr., a lawyer for the Dearborn, Mich.-based company.

“We continue to believe that no punitive damages should be allowed in cases like this one, but this ruling is another step in the right direction in reining in arbitrary verdicts,” Boutrous said.

Ford shares declined 1 cent to $7.89.