TXO Production Corp. v. Alliance Resources Corp

In TXO Production Corp. v. Alliance Resources Corp., 509 U.S. 443, 113 S. Ct. 2711, 125 L. Ed. 2d 366 (1993), punitive damages were awarded against an oil producer that attempted to profit unfairly from another by a series of deceptive acts calculated to trigger a contract clause that, if implicated, would grant it a great advantage. The West Virginia Supreme Court of Appeals affirmed a $ 10 million punitive damages award against the producer, and the United States Supreme Court upheld the award. Id. at 447-51. Applying New Jersey law, the court in Inter Medical Supplies, Ltd. v. EBI Medical Systems, Inc., 181 F.3d 446, 452-53, 468-69 (3d Cir. 1999), found punitive damages were supported in a case in which a manufacturer engaged in unfair competition, including passing off its own products as those of a competitor and deceptively advertising its products as upgrades of the competitor's.