Isaac "Ike" Perlmutter v. Federal Insurance Company

Supreme Court of Florida·Decided June 11, 2026·No. SC2024-0058·Published

Opinion

Supreme Court of Florida

No. SC2024-0058

ISAAC “IKE” PERLMUTTER, et al., Petitioners,

vs.

FEDERAL INSURANCE COMPANY, et al., Respondents.

June 11, 2026

MUÑIZ, C.J.

In Florida, a claimant must make a reasonable evidentiary showing and obtain the trial court’s permission before pleading a claim for punitive damages. Then, at trial, the standard of proof for punitive damages claims is clear and convincing evidence. The question is whether the clear and convincing evidence standard applies when the trial court evaluates the sufficiency of the claimant’s evidentiary showing at the pleading stage. We hold that it does not.

I

1

Harold Peerenboom initiated this lawsuit by suing Isaac and Laura Perlmutter for defamation, alleging that the couple were responsible for a hate mail campaign against him. The Perlmutters countersued for defamation, theft, and invasion of privacy. Eventually, they sought the trial court’s permission to add counterclaims for punitive damages. The narrow issue before our Court involves the legal standard for evaluating the evidentiary showing that a claimant must make before being allowed to plead such claims.

We begin by identifying some basic features of our state’s law of punitive damages. Traditionally, those damages have been available to address “egregious wrongdoing” that “constitutes a public wrong.” Chrysler Corp. v. Wolmer, 499 So. 2d 823, 825 (Fla. 1986). Punitive damages are imposed not to compensate the plaintiff, but for punishment and deterrence. Id. Given these underlying purposes, Florida courts have long allowed juries to consider the financial worth of the defendant in cases where the law and facts would allow an award of punitive damages. See, e.g.,

Jones v. Greeley, 6 So. 448, 449 (Fla. 1889). Importantly, even when the plaintiff has established the predicate for an award of punitive damages at trial, the decision whether to make such an award is left to the jury’s discretion. St. Regis Paper Co. v. Watson, 428 So. 2d 243, 247 (Fla. 1983). In that sense, punitive damages are fundamentally different from compensatory damages, which the plaintiff is entitled to once the defendant’s liability has been established. Id.

This case centers on section 768.72(1), Florida Statutes, one of many measures the Legislature has enacted over time to limit overreach in the pursuit of punitive damages. It reads:

In any civil action, no claim for punitive damages shall be permitted unless there is a reasonable showing by evidence in the record or proffered by the claimant which would provide a reasonable basis for recovery of such damages. The claimant may move to amend her or his complaint to assert a claim for punitive damages as allowed by the rules of civil procedure. The rules of civil procedure shall be liberally construed so as to allow the claimant discovery of evidence which appears reasonably calculated to lead to admissible evidence on the issue of punitive damages. No discovery of financial worth shall proceed until after the pleading concerning punitive damages is permitted.

Our Court has held that this provision “creates a substantive legal right not to be subjected to a punitive damages claim and ensuing

financial worth discovery until the trial court makes a determination that there is a reasonable evidentiary basis for recovery of punitive damages.” Simeon, Inc. v. Cox, 671 So. 2d 158, 160 (Fla. 1996) (citing Globe Newspaper Co. v. King, 658 So. 2d 518, 519 (Fla. 1995)). In this case, the parties’ dispute principally involves the first sentence of section 768.72(1) and the legal meaning of the phrase “a reasonable showing by evidence in the record or proffered by the claimant which would provide a reasonable basis for recovery of [punitive] damages.”

The Legislature adopted section 768.72(1) (originally numbered section 768.72) in 1986. See ch. 86-160, § 51, Laws of Fla. Until that time, a claimant “could first plead punitive damages and only then begin to look for sufficient evidence to support the claim.” Kraft Gen. Foods, Inc. v. Rosenblum, 635 So. 2d 106, 110 (Fla. 4th DCA 1994). Defendants had limited safeguards against unwarranted discovery of information about their financial worth, in part because district courts were divided over the availability of certiorari to review nonfinal orders denying motions to dismiss or to strike punitive damages claims. See Martin-Johnson, Inc. v. Savage, 509 So. 2d 1097, 1098 (Fla. 1987) (highlighting the conflict in

practice among the district courts).

In Tennant v. Charlton, 377 So. 2d 1169 (Fla. 1979), our Court recognized that unlimited financial worth discovery could be used unfairly to coerce settlements and to expose the “personal and private financial affairs” of defendants “in cases where there is no actual factual basis for an award of punitive damages.” Id. at 1170. So we advised that, in evaluating motions for protective orders limiting financial worth discovery under Florida Rule of Civil Procedure 1.280(c), trial courts could “consider, among other things, whether or not an actual factual basis exists for an award of punitive damages.” Id. Section 768.72(1) essentially builds on the approach our Court suggested in Tennant.

This case also involves section 768.72(2) and (3), which the Legislature added in 1999 (without changing the text of what is now section 768.72(1)). See ch. 99-225, § 22, Laws of Fla. Section 768.72(2) says in relevant part that: “A defendant may be held liable for punitive damages only if the trier of fact, based on clear and convincing evidence, finds that the defendant was personally guilty of intentional misconduct or gross negligence.” It then goes on to define the terms “intentional misconduct” and “gross negligence.”

Section 768.72(3) sets out the conditions under which punitive damages can be imposed against an employer for the conduct of its employee or agent.

By enacting section 768.72(2), the Legislature heightened the trial-level standard of proof for punitive damages from the common- law “greater weight of the evidence” test to “clear and convincing evidence.” Section 768.72(2) also altered the law by codifying and defining substantive legal standards (“intentional misconduct” and “gross negligence”) to govern the availability of punitive damages. Before then, the common law had provided that “[a] legal basis for punitive damages exists where torts are committed in an outrageous manner or with fraud, malice, wantonness or oppression.” Wackenhut Corp. v. Canty, 359 So. 2d 430, 435-36 (Fla. 1978).

2

The parties here disagree over whether, under section 768.72(1), Isaac and Laura Perlmutter should be permitted to plead punitive damages in their counterclaims against Harold Peerenboom and two other parties. As we have mentioned, the case started when Peerenboom sued the Perlmutters for defamation and

related claims. Fed. Ins. Co. v. Perlmutter, 376 So. 3d 24, 29 (Fla. 4th DCA 2023). Peerenboom and the Perlmutters had been involved in acrimonious disputes over the management of Sloan’s Curve, the Palm Beach community where they all lived. Peerenboom alleged that the Perlmutters had orchestrated a series of mailings falsely telling his friends, neighbors, and business associates that he had committed vile acts, including murder and child molestation.

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