(Answered) Jennings text p 302 considerthe mathiases checked into a

Management Studies

Jennings text, p. 302, Consider

The Mathiases checked into a Motel 6 and were bitten extensively by bedbugs. Upon investigation, they learned that the managers and owners of the motel had been warned by guests, employees, and exterminators alike that there were bedbugs in the rooms. The exterminator offered to spray the motel each year for $600, but the motel refused. As a result, the bugs remained and propagated. The Mathiases filed suit and were awarded $5,000 compensatory damages and $186,000 punitive damages. The motel appealed the punitive damages as excessive.

Is the award excessive? Should the punitive damages award be reversed?

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