Eric Turkewitz

Target Hit for $3M in Defamation Punitives (And Tort “Reformer” Sees Opportunity)

Cross posted from NY Personal Injury Law Blog:

This is two stories in one. First, a Target store down in South Carolina falsely accused a woman of using a counterfeit $100 bill. She sued Target and won $100K in compensatory damages and Target was hit by the jury with $3M in punitive damages. Then Ted Frank at Overlawyered decided this would be a good fit for that site, but the facts he used didn’t seem to fit the story. If you want to see how some lawsuits get turned into urban legends, this might be a good example to follow.

First the suit, which comes via Turley, citing a local news story:

Rita Cantrell of Greer went to two Target stores in the Greenville area in Feb. 2006, and both times employees accused her of using a counterfeit bill. Cantrell tried to buy items at the store and pay with an older series $100 bill.

[A Target] store employee sent out an e-mail to dozens of other retailers and law enforcement agencies warning them that Cantrell was a shoplifter who tried to spend bogus cash. The e-mail also included Cantrell’s picture.

According to Target’s own brief in their failed motion for summary judgment, Ms. Cantrell visited a Target store (just one store, not two as in the news story above) where a counterfeit was suspected. They declined to take the money when offered and asked her if she had another form of payment. She shook her head no, took the goods out of her basket, and walked out of the store. Then came the accusatory email.

The problems were that the bill was legit, and the email also went to her place of employment. And Target didn’t identify the money as a “possible” counterfeit. No sirree. The email said “The lady pictured attempted to use a counterfeit 100 dollar bill today.” So the accusation was unambiguous. (See Order denying judgment.)

The Secret Service was called in, verified the money as real, and Target was sued for the embarrassment and humiliation that Ms. Cantrell suffered, with the jury ordering 100K in compensatory damages and $3M in punitives.

From the original article came this response: Target spokeswoman Bethany Zucco said Friday the company will challenge the ruling.

“We are extremely disappointed by the magnitude of the compensatory and punitive damages awarded by the jury in this case,” Zucco said in a statement. “We sincerely regret any inconvenience incurred by the plaintiff.

Scott Greenfield wrote about this case the other day ($3M to the Target of Target) and remarked about this pathetic response:

Any inconvenience? You sent out a mass email, with her picture, telling the world that she’s a thief and forger, and you’re sorry for the inconvenience? There’s an “apology” that demands some serious puni’s alone.

And now comes the urban legend part. Ted Frank, a well known tort “reformer” at Overlawyered jumps into the action (Cantrell v. Target: $200 medical bill = $3.1M verdict). Except some of the facts in his post look a little different from the Target brief and the judge’s opinion…

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Posted at 1:05 PM, Nov 04, 2008 in Debunking Tort "Reform" | Tort "Reform" Myth-Busting | Permalink | Comments (0) | TrackBack (0)