Lisa Learmonth filed suit against Sears in a case that was litigated in the federal court in the Southern District of Mississippi. Learmonth was injured in 2005 in a car accident with a Sears employee. She was seriously injured and filed suit against Sears for her damages. A jury in the district court found Sears liable and entered a verdict in the amount of $4 million in compensatory damages, including $2.2 million in non-economic damages for pain and suffering.
The verdict was appealed to the U.S. Circuit Court of Appeals for the Fifth Circuit, which held that Mississippi’s caps law on non-economic damages held firm and thus, the verdict of the jury was reduced to conform to that Mississippi law. The Mississippi law caps non-economic damages in medical malpractice cases at $500,000, and in all other civil actions the cap is set at $1 million. The Mississippi law was found by the federal court of appeals to be constitutional.
The lawyers for Sears applauded the Fifth Circuit U.S. Court of Appeals decision, saying that caps are good for business in states like Mississippi, which are trying to attract manufacturers and other large corporations.