JPMorgan Chase was ordered by a Dallas jury to pay more than $4 billion in damages for mishandling the estate of a former American Airlines executive, but the verdict will probably be knocked down on appeal.
Bloomberg News reports that Jo Hopper and two stepchildren won the probate court verdict over claims that JPMorgan mismanaged the administration of the estate of Max Hopper, who was described as an airline technology innovator in a statement issued by the family’s law firm.
Large punitive damages verdicts like the one in the Hopper case are often scaled back because the U.S. Supreme Court has ruled they can’t be disproportionate to actual damages. In this case, the jury awarded less than $5 million in actual damages.
In the meantime, Reuters reports some better news for JPMorgan Chase. The bank scored a partial victory on Tuesday in a long-running dispute over the repayment of a $1.5 billion loan it made to General Motors’ bankrupt predecessor, known as ‘Old GM’.
U.S. Bankruptcy Judge Martin Glenn in Manhattan sided with the bank against Old GM’s unsecured creditors, who have been trying to claw back the money, finding that most assets securing the loan, like robots and conveyor belts, were “fixtures” covered by a JPMorgan lien.