Facts

Carrier Corp. hired Tim Horner away from his former job at a competing company, where he worked more than 18 years, with promises that he would make a greater income while working for Carrier.

Carrier stated in writing that it "guaranteed" to pay Horner minimum quarterly sales incentive payments of $200,000 a year for the first five years of his employment. Horner was terminated from his position without notice 13 months later. Carrier told Horner the termination had nothing to do with his performance, but rather the company's decision to cut back and reassign its clients. Carrier refused to pay Horner any of the remaining "guaranteed" five years of income. Carrier countered that it never "guaranteed" not to fire him.

Horner sued Carrier for breach of contract, breach of the implied covenant, and on fraud theories.

Damages

Horner sought punitive damages in addition to economic and non-economic damages.

Result

The jury found in favor of Horner on his implied covenant and fraud claims and awarded him $1,584,000 in compensatory damages. The jury also unanimously awarded punitive damages of $8 million. He was awarded $9.5 million in total damages.

Deliberation

one day

Poll

12-0 (fraud and punitives)

Length

11 days