What Are Punitive Damages?

Punitive damages are additional damages awarded by courts to punish severely negligent or malicious persons or entities for the damages they have caused. Put simply, punitive damages are damages awarded by a court to punish the negligent party and to deter similar behavior in the future. They may be awarded whether or not the negligent party was found liable for compensatory damages.

Punitive damages are also referred to as exemplary damages and are awarded when the defendants are found to have been malicious, willful, or grossly negligent in causing injury or death. Punitive damages are almost exclusively awarded in civil, not criminal, cases. Criminal cases rely on different reformative principles which are fulfilled through criminal penalties, such as fines and imprisonment.

State Laws That Determine Punitive Damages

Punitive damages are determined by state law and differ from compensatory damages in the sense that there are no statutory limits on the amount that can be awarded. Compensatory damages, on the other hand, are determined by the amount of harm suffered by the wronged party and limited by state laws.

It is important to bear in mind that punitive damages are not automatic and a judge or jury must deliberate and decide if punitive damages are appropriate in a given case. Generally a court will not award punitive damages unless the plaintiff has proven that the defendant acted severely to the point of deserving punishment. This is usually done by proving that the defendant:

-Had a conscious and deliberate disregard for the safety of others
-Intentionally inflicting injury or death
-Acted in bad faith
-Engaged in fraud.

Punitive Damages USed In Specific Cases

Punitive damages may be awarded in cases involving medical malpractice, product liability, vehicular accidents, breach of contract, fraud (including consumer fraud and deceptive practices) or civil rights violations.

The most common example of when punitive damages may be awarded is when a person or entity recklessly or willfully inflicts injury or death on another. For example, if a driver was found to be drunk and caused a fatal car accident, a court can award punitive damages against the driver. By the same token, a company that marketed a defective product could be held liable for punitive damages for disregard for the well-being of their customers.

Conclusion

Punitive damages are damages awarded by a court in order to punish the defendants for their negligence. They can still be awarded even if the defendant is not found liable for compensatory damages. Punitive damages are determined by state law and there is no statutory limit on the amount that can be awarded. Typically, punitive damages are awarded in cases that involve intentional, reckless or malicious behavior.