The U.S. Supreme Court case Browning-Ferris Industries of Vermont, Inc., et al. v. Kelco Disposal, Inc., et al., 1988 revolved around the issue of whether punitive damages awarded in a civil suit violated the Eighth Amendment's prohibition against excessive fines. The dispute began when Browning-Ferris Industries (BFI), a national waste disposal company, was sued by Kelco Disposal, a local competitor in Burlington, Vermont for engaging in anti-competitive practices that drove them out of business. A jury awarded Kelco $6 million in compensatory damages and $51 thousand in punitive damages which BFI appealed as being "grossly excessive". However, the Supreme Court ruled 9-0 that the Excessive Fines Clause does not apply to punitive damage awards given by private parties but only to government-imposed penalties or forfeitures; thus upholding both compensatory and punitive damage awards.

In the dissenting opinion for Browning-Ferris Industries of Vermont, Inc., et al. v. Kelco Disposal, Inc., et al., Justice O'Connor disagreed with the majority's interpretation of the Eighth Amendment and its application to punitive damages in civil cases between private parties. She argued that history and precedent suggested that "excessive fines" could apply to civil penalties as well as criminal ones, including punitive damages awarded by juries in lawsuits between private parties. She also contended that there should be a constitutional limit on such awards because they can potentially infringe upon due process rights if they are disproportionately high compared to actual harm caused or potential gain from wrongdoing. Furthermore, she expressed concern about leaving decisions regarding these limits solely up to state legislatures without any federal constitutional oversight.