Isaac "Ike" Perlmutter v. Federal Insurance Company

CourtSupreme Court of Florida
DecidedJune 11, 2026
DocketSC2024-0058
StatusPublished

This text of Isaac "Ike" Perlmutter v. Federal Insurance Company (Isaac "Ike" Perlmutter v. Federal Insurance Company) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Isaac "Ike" Perlmutter v. Federal Insurance Company, (Fla. 2026).

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

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.,

-2- 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

-3- 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

-4- 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.”

-5- 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).

The parties here disagree over whether, under section

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
West Virginia University Hospitals, Inc. v. Casey
499 U.S. 83 (Supreme Court, 1991)
Estate of Despain v. Avante Group, Inc.
900 So. 2d 637 (District Court of Appeal of Florida, 2005)
Tennant v. Charlton
377 So. 2d 1169 (Supreme Court of Florida, 1979)
Globe Newspaper Co. v. King
658 So. 2d 518 (Supreme Court of Florida, 1995)
Liggett Group, Inc. v. Engle
853 So. 2d 434 (District Court of Appeal of Florida, 2003)
Simeon, Inc. v. Cox
671 So. 2d 158 (Supreme Court of Florida, 1996)
Kraft Gen. Foods, Inc. v. Rosenblum
635 So. 2d 106 (District Court of Appeal of Florida, 1994)
Martin-Johnson, Inc. v. Savage
509 So. 2d 1097 (Supreme Court of Florida, 1987)
St. Regis Paper Co. v. Watson
428 So. 2d 243 (Supreme Court of Florida, 1983)
Chrysler Corp. v. Wolmer
499 So. 2d 823 (Supreme Court of Florida, 1986)
Wackenhut Corp. v. Canty
359 So. 2d 430 (Supreme Court of Florida, 1978)
Lucille Ruth Soffer, etc. v. R.J. Reynolds Tobacco Company
187 So. 3d 1219 (Supreme Court of Florida, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
Isaac "Ike" Perlmutter v. Federal Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/isaac-ike-perlmutter-v-federal-insurance-company-fla-2026.