Punitive damages
Punitive damages are a form of financial compensation awarded in civil lawsuits, distinct from compensatory damages, which aim to reimburse victims for their losses. Unlike compensatory damages that cover specific harms such as medical expenses or lost wages, punitive damages serve to punish defendants whose conduct is found to be particularly egregious or intentional. This type of damages is meant to deter future wrongful behavior, not just by the offending party but also by others who may engage in similar misconduct. Punitive damages are typically awarded in severe cases of torts, which are civil wrongs that cause injury to individuals or their property. Jurors often determine the amount of these damages, and such awards are subject to judicial review. Importantly, punitive damages are not commonly applied in breach of contract cases unless there is evidence of fraud or bad faith. They are notably present in cases of product liability, especially when manufacturers fail to rectify known defects that could lead to serious harm. Overall, punitive damages highlight the legal system's commitment to addressing and deterring particularly harmful actions.
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Punitive damages
SIGNIFICANCE: Although awarded only in civil lawsuits, punitive damages share with criminal sanctions the purposes of punishing and deterring wrongful conduct.
Torts are civil wrongs committed by defendants against others, causing injury to the persons or property of the victims. Many crimes have civil counterparts in tort law. Plaintiff who win tort cases usually recover compensatory damages—money damages awarded by the courts as compensation for the harm the plaintiffs suffer due to the defendants’ wrongful conduct. These damages cover losses suffered, such as medical expenses incurred due to injuries, lost wages and benefits, loss of privacy, harm to reputation, or emotional distress.
When the defendants’ conduct is intentional and particularly egregious or reprehensible, injured victims can also recover additional awards known as punitive damages. Punitive damages do not compensate tort victims for their losses; rather, they are intended to punish deliberate wrongdoers and to deter them and others from committing such conduct in the future. However, punitive damages are awarded only for the worst kinds of wrongdoing and are not routinely assessed against losing defendants in tort actions.
The size of punitive damages awards is typically decided by juries and is subject to judicial review. Although punitive damages are most often awarded in cases in which injuries are due to deliberate misconduct, they are also awarded in product liability cases involving manufacturers who are aware of dangerous defects in their product and the potential for serious injury but fail to correct the defects.
Punitive damages are generally not recoverable in breach of contract cases, unless defendants have committed fraud or another tort at the same time. For instance, courts have awarded punitive damages when defendants have breached contracts in bad faith or have intentionally interfered with contracts between the plaintiffs and other parties.
Bibliography
Blatt, Richard L., et al. Punitive Damages: A State by State Guide to Law and Practice. St. Paul, Minn.: West Publishing, 2002.
Goudkamp, James and Eleni Katsampouka. "Punitive Damages and the Place of Punishment in Private Law." Modern Law Review, vol. 84, no. 6, 6 Aug. 2021, pp. 1257-1293, doi.org/10.1111/1468-2230.12654. Accessed 9 July 2024.
Schlueter, Linda L., and Kenneth R. Redden. Punitive Damages. Charlottesville, Va.: LEXIS Publishing, 2000.
Sunstein, Cass R., et al. Punitive Damages: How Juries Decide. Chicago: University of Chicago Press, 2002.
Wong, Belle and Adam Ramirez. "What Are Punitive Damages? Definition and Examples." Forbes, 31 May 2024, www.forbes.com/advisor/legal/personal-injury/punitive-damages/. Accessed 9 July 2024.