What are punitive damages?
Punitive damages (sometimes called exemplary damages) are not really damages at all, because they have nothing whatsoever to do with the harm actually suffered by the plaintiff. Punitive damages are sometimes awarded in cases where the defendant has intentionally engaged in wrongful conduct, and has done so with the intent to injure the plaintiff. The purpose and function of a punitive damage award is to punish the wrongdoer for the misconduct and to deter the wrongdoer and others similarly situated from engaging in the same or similar behavior in the future.
Punitive damages are a monetary award intended to deter future conduct and punish a defendant for wrongs, rather than compensate a plaintiff for economic loss or pain and suffering. Punitive damages cannot be paid by insurance (i.e., they must be paid from a defendant’s assets). Contact us to learn more about punitive damage awards.
Punitive damages are damages intended to punish and deter similar wrongful conduct rather than merely compensate for losses suffered by the plaintiff (called compensatory damages). Punitive damages are authorized when the defendant acted with recklessness, malice, or deceit. As for the amount of punitive damages awardable, the Supreme Court has held that three guidelines help determine whether a punitive-damages award violates constitutional due process: (1) the reprehensibility of the conduct being punished; (2) the reasonableness of the relationship between the harm and the award; and (3) the difference between the award and the civil penalties authorized in comparable cases.” BMW of North America, Inc. v. Gore, 517 U.S. 559, 116 S.Ct. 1589 (1996).
