July 13, 2019

Ventura County jury awards $10 million in punitive damages against Sriracha maker

The LA Times reports that a jury awarded $13.3 million in compensatory damages and $10 million in punitive damages against Huy Fong Foods, Inc., the maker of Sriracha sauce. 

The plaintiff is Underwood Ranches, who had supplied Huy Fong with jalapeno peppers.  Underwood claimed they suffered dramatic losses when Huy Fong abruptly terminated their contract.  The story doesn't explain the basis for punitive damages, which ordinarily aren't available in contract disputes.