Punitive Damages in the United States
Punitive Damages Definition
Punitive damages are those damages awarded in case of willful, wanton, or malicious conduct. They may even be available in cases of reckless negligence if the damages are particularly severe or in cases of fraudulent acts. Punitive damages serve to punish the defendant and deter others. The plaintiff must prove both the necessity and extent of punitive damages according to the ordinary standard of a preponderance of the evidence. Conduct is malicious if it is accompanied by ill will, or spite, or if it is for the purpose of injuring another. Conduct is reckless if it reflects a complete indifference to the safety and rights of others. See also: exemplary damages (syn.)
See: Wetherbee v. United lns’ Co. of America, 18 C.A.3d 266, 95 Cal.Rptr. 678, 680.
Punitive Damages in Contracts
Note: For more information on Compensatory Damages, click here. See Consequential Damages here and Nominal Damages here. For more information on Restitituion, click here. For information on Remedies, read here.
Punitive damages are those awarded for the purpose of punishing a defendant in a civil action, in which criminal sanctions may be unavailable. They are not part of the compensation for the loss suffered; they are proper in cases in which the defendant has acted willfully and maliciously and are thought to deter others from acting similarly. Since the purpose of contract law is compensation, not punishment, punitive damages have not traditionally been awarded, with one exception: when the breach of contract is also a tort for which punitive damages may be recovered. Punitive damages are permitted in the law of torts (in most states) when the behavior is malicious or willful (reckless conduct causing physical harm, deliberate defamation of one’s character, a knowingly unlawful taking of someone’s property), and some kinds of contract breach are also tortuous—for example, when a creditor holding collateral as security under a contract for a loan sells the collateral to a good-faith purchaser for value even though the debtor was not in default, he has breached the contract and committed the tort of conversion (i.e. the wrongful taking of someone’s property by another; the civil equivalent of theft). Punitive damages may be awarded, assuming the behavior was willful and not merely mistaken.
Punitive damages are not fixed by law. The judge or jury may award at its discretion whatever sum is believed necessary to redress the wrong or deter like conduct in the future. This means that a richer person may be slapped with much heavier punitive damages than a poorer one in the appropriate case. But the judge in all cases may remit (lower) some or all of a punitive damage award if he or she considers it excessive.
Punitive damage claims have been made in cases dealing with the refusal by insurance companies to honor their contracts. Many of these cases involve disability payments, and among the elements are charges of tortious conduct by the company’s agents or employees. California has been the leader among the state courts in their growing willingness to uphold punitive damage awards despite insurer complaints that the concept of punitive damages is but a device to permit plaintiffs to extort settlements from hapless companies. Courts have also awarded punitive damages against other types of companies for breach of contract. (1)
Punitive Damages in the United States Constitution
According to the Encyclopedia of the American Constitution, after flirting with the possibility for several years, the Supreme Court has finally identified particular punitive damage awards that violate the due process clause of the fourteenth amendment. For example, in the case Honda Motor Company v. Oberg (1994).
The Encyclopedia affirms asw ell that “the plaintiff who prevails in a tort case is entitled to compensatory damages, including damages for pain and suffering. In a limited number of cases involving aggravated wrongdoing, the plaintiff can recover punitive damages as well.”
Punitive Damages meaning
Damages awarded to a plaintiff where the defendant’s tortious action is determined to have been willful, wanton and malicious. Ordinarily the award is thrice the value of the injury, in addition to the injury itself. The value of punitive damages may vary by statute and can also include the costs and fees of counsel and interest.
Synonym for exemplary damages.
See: James v. Public Finance Corp., 47 C.A.3d 995, 121 Cal.Rptr. 670, 675. And Joseph v. Hustad Corp., 454 P.2d 916, 918.
Non-Commercial Torts in the Foreign Sovereign Immunities Act of 1976
No punitive damages
According to research about Punitive Damages from the Federal Judicial Center:Under 28 U.S.C. § 1606, punitive damages are not recoverable against a foreign state but are recoverable against an agency or instrumentality. As noted in Part V.F. infra, special rules apply to damages in actions under § 1605A against state sponsors of terrorism.
Punitive Damages in the context of Real Estate
Punitive Damages in Products Liability Litigation
This section examines the Punitive Damages in Products Liability Litigation subject in its related phase of trial. In some cases, other key elements related to trials, such as personal injury, business, and criminal litigation, are also addressed.
Meaning of Punitive Damages
In plain or simple terms, Punitive Damages means: Money awarded to an injured person, over and above the measurable value of the injury, in order to punish the person who hurt him.
Punitive Damages
Leading Case Law
Among the main judicial decisions on this topic:
State Farm Mut. Automobile Ins. Co. v. Campbell
Information about this important court opinion is available in this American legal Encyclopedia.
References
See Also
- Jury System
- Damage Awards
Punitive Damages
Leading Case Law
Among the main judicial decisions on this topic:
Ford Motor Co. v. Stubblefield
Information about this important court opinion is available in this American legal Encyclopedia.
References
See Also
- Tort
- Product Liability
Proof of Facts Establishing a Party’s Entitlement to Punitive Damages in a Defamation Cause of Action
This section discusses generally the subject of Proof of Facts Establishing a Party’s Entitlement to Punitive Damages in a Defamation Cause of Action, how to determine the facts essential to Proof of Facts Establishing a Party’s Entitlement to Punitive Damages in a Defamation Cause of Action, and, to some extent, how to prove it in litigation and defense. Related topics are also addressed.
Punitive Damages (Causes of Action)
This section introduces, discusses and describes the basics of punitive damages. Then, cross references and a brief overview about Causes of Action is provided. Finally, the subject of Agency Relationships in relation with punitive damages is examined. Note that a list of cross references, bibliography and other resources appears at the end of this entry.
Punitive Damages (Damages)
This section introduces, discusses and describes the basics of punitive damages. Then, cross references and a brief overview about Damages is provided. Finally, the subject of Remedies in relation with punitive damages is examined. Note that a list of cross references, bibliography and other resources appears at the end of this entry.
Punitive Damages (Remedies)
This section introduces, discusses and describes the basics of punitive damages. Then, cross references and a brief overview about Remedies is provided. Finally, the subject of Agency Relationships in relation with punitive damages is examined. Note that a list of cross references, bibliography and other resources appears at the end of this entry.
Punitive Damages (Remedies)
This section introduces, discusses and describes the basics of punitive damages. Then, cross references and a brief overview about Remedies is provided. Finally, the subject of Franchises in relation with punitive damages is examined. Note that a list of cross references, bibliography and other resources appears at the end of this entry.
Punitive Damages (Remedies)
This section introduces, discusses and describes the basics of punitive damages. Then, cross references and a brief overview about Remedies is provided. Finally, the subject of Distributorships in relation with punitive damages is examined. Note that a list of cross references, bibliography and other resources appears at the end of this entry.
Resources
Notes
- “Business and the Legal Environment”, by Don Mayer, Daniel M. Warner and George J. Siedel.
See Also
- Exemplary Damages
- See: Exemplary Damages in this Legal Encyclopedia
- See: Exemplary Damages definition in the Law Dictionary
Popular Topics related with Punitive Damages
- Arbitration Immunity
- Foreign Sovereign Immunities Act Instrumentality
- Foreign Sovereign Immunity
- Immunities Clause
- Immunities of International Organizations
- Immunity Means
- Immunity Specialized Agencies
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