JPMorgan Chase & Co. has been ordered by a Dallas jury to pay for more than $4 billion in problems for mishandling the estate of the former American Air carriers executive, but the decision will probably be knocked down on appeal.
Jo Hopper and 2 stepchildren won the probate courtroom verdict over claims that JPMorgan mismanaged the administration of the property of Max Hopper, who was referred to as an airline technology innovator in the statement issued by the family’ s law practice.
Large punitive problems verdicts like the one in the Hopper case are often scaled back since the U. S. Supreme Court offers ruled they can’ t become disproportionate to actual damages. In this instance, the jury awarded less than $5 million in actual damages.
The bank stated it acted in a professional manner and in great faith on Hopper’ s property and is “ highly confident” the particular jury verdict won’ t remain under Texas law.
“ Clearly the award much exceeds any possible interpretation associated with Texas tort reform statutes, ” Andrew Gray, a spokesman for that bank, said in an emailed declaration. “ There has been no judgment joined by the court based on this decision. ”
Max Hopper, who pioneered a reservation program for the airline, died in 2010 along with assets of more than $19 million yet without a will and testament, based on the statement. JPMorgan was hired being an administrator to divvy up the property among family members.
“ Instead of independently plus impartially collecting and dividing the particular estate’ s assets, the bank required years to release basic interests within art, home furnishings, jewelry, and particularly, Mr. Hopper’ s collection of six, 700 golf putters and nine hundred bottles of wine, ” the family’ s i9000 lawyers said in the statement. “ Some of the interests in the assets are not released for more than five many years. ”
" The particular nation’ s largest bank unbelievably mistreated me and this verdict offers protection to others from becoming mistreated by banks that believe they’ re too powerful to become held accountable, " Jo Hopper said in the statement.
The court’ s i9000 verdict form shows jurors granted $8 billion in punitive problems against the bank. Alan Loewinsohn, lawyer for Jo Hopper, said within an interview there may be duplication of a few of the damage findings. As a result, he mentioned, the punitive damage award can end up being “ somewhere between $4 billion dollars and $8 billion. ”
Loewinsohn said he inquired the jury to take into account the bank’ s worth and asked all of them for $2 billion in punitive damages. “ I believe they utilized that figure for the other events in the case as well, ” he stated.
The jury found that this bank committed fraud, breached the fiduciary duty and broke the fee agreement, according to court documents.
At the lower end of the range, the jury’ s honor would erase almost two-thirds from the $6. 6 billion profit that will JPMorgan generated globally during the 2nd quarter.
And it would certainly rank high among the largest sanctions ever levied against the bank — somewhere between the $2. 6 billion dollars it agreed to pay in 2014 for allegedly failing to stop Bernard Madoff’ s Ponzi scheme, as well as a $13 billion settlement it achieved with government authorities in 2013 because of its handling of mortgage bonds that will fueled the financial crisis.
The verdict form shows jurors were advised to consider factors which includes “ the net worth of JPMorgan. ” Indeed, the bank has a stock exchange value of about $330 billion.