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, seeking punitive damages. The trial court awarded them $5,000 compensatory damages and $186,000 punitive damages. The motel appealed the punitive damage award as excessive.

1. Do you believe the award is excessive? Why or why not?

2. Do you believe the punitive damages award should be reversed? Why or why not?

3. Why do you think the hotel wants to have a court decision on this suit?

4. As a business manager or owner, what do you believe is the most important lesson we can take away from this chapter?