Does a state statute that expressly caps punitive damages at two times compensatory damages satisfy the notice requirement of the Due Process Clause such that a punitive damages award that complies with the statute is constitutionally sound under the Due Process Clause?

QUESTION PRESENTED In this case involving a proven theft of trade secrets and other state law torts, a properly-instructed jury awarded plaintiff Epic Systems Corporation (“Epic”) $140 million in compensatory damages. The jury also awarded punitive damages, which the district court reduced to $280 million through its application of a Wisconsin statute that caps punitive damages at two times the compensatory award. On appeal, defendant Tata Consulting Services (“TCS”) did not contest liability but challenged the compensatory and punitive damage awards. The Seventh Circuit upheld the compensatory award and upheld Epic’s entitlement to punitive damages. It found, however, that despite the Wisconsin statute, which placed TCS on notice of the risk a jury could award punitive damages up to the defined multiple, the Due Process Clause of the United States Constitution prohibited an award of punitive damages in an amount greater than the amount of the compensatory award. The question presented is as follows: Does a state statute that expressly caps punitive damages at two times compensatory damages satisfy the notice requirement of the Due Process Clause such that a punitive damages award that complies with the statute is constitutionally sound under the Due Process Clause?