If the Rye lawsuit fails at trial, the claimant will pay the club's legal fees. I'm sure this claimant isn't judgment proof.
In the US, punitive damages are actually awarded in a very small percentage of tort cases(less than 2% nationwide) and the median award is approximately $50000 according to one source. Moreover, in BMW of North America, Inc. v. Gore (1996), the Supreme Court ruled that punitive damages must be reasonable, as determined based on the degree of reprehensibility of the conduct, the ratio of punitive damages to compensatory damages, and any criminal or civil penalties applicable to the conduct. In State Farm Auto. Ins. v. Campbell (2003), the Court held that punitive damages may only be based on the acts of the defendants which harmed the plaintiffs. Any ratio higher than 10:1 is suspect and most high awards are reduced to about 3:1. Punitive damages are taxable as opposed to compensatory damages for pain and suffering which are not.
What's all the fuss about?