For example, if a plaintiff recovers $100,000 in damages and is awarded punitive damages, they will likely receive up to $400,000 in punitive damages. For more information on punitive damages, see this note from the Yale Law Journal and this Law Rview from the University of Minnesota. Punitive damages, also known as exemplary damages, are damages awarded in personal injury actions in addition to damages. They can be awarded by courts and juries. Individuals may also be ordered to pay punitive damages that injure another person due to negligent conduct. Examples include drunk driving or distracted driving. In both cases, the defendant would have deliberately chosen conduct that could easily harm another person. It may even involve violations of anti-discrimination laws in New York. It should be noted that the application of punitive damages varies from State to State.
Each State applies different criteria, and some are more willing to award punitive damages than others. Punitive damages are sometimes referred to as “exemplary” damages because they also serve as an example to discourage the accused from behaving in this way in the future, but more importantly to deter others from engaging in similar behaviour. In certain circumstances, punitive damages may be awarded in addition to actual damages. Punitive damages are considered punishment and are generally awarded at the discretion of the court if the defendant`s conduct is deemed particularly prejudicial. Punitive damages are not normally awarded in an infringement action. See, for example, O`Gilvie Minors v. United States 519 US 79 (1996). See also Honda Motor Co. v. Oberg 512 US 415 (1994).
If you`re a juror in a case involving punitive damages, here`s your guide to determining the right amount to award damages. Of course, these are based on the Book of Instructions approved to the jury – BAJI for short. During the trial, the jury found that LeSanche suffered significant damages, awarding him $2.3 million for past and future medical expenses, $4 million for loss of normal life, $3 million for pain and suffering, $1 million for emotional distress and $2 million for past and future loss of income. In New Zealand, it was found in Donselaar v. Donselaar [13] and confirmed in Auckland City Council v. Blundell [14] that the existence of the Accident Compensation Corporation does not preclude the availability of exemplary damages. In Paper Reclaim Ltd v. Aotearoa International [15], it was held that exemplary damages cannot be awarded in infringement actions, but the Court left open the possibility that exemplary damages may be awarded where the breach is in tort or quasi-delict. Although the purpose of punitive damages is to punish the defendant — and to lead by example — rather than compensate the plaintiff, the plaintiff receives some or all of the damages awarded. For this reason, some have speculated that some law firms unnecessarily insist that their clients seek punitive damages so that they can maximize their profits.
Punitive damages are an established principle of common law in the United States. [19] They are generally subject to state law (although they may also be granted under federal maritime law) and therefore differ in their application from state to state. In many states, including California and Texas, punitive damages are determined on the basis of law; Elsewhere, they can only be determined on the basis of case law. Many state laws are the result of lobbying the insurance industry to impose “caps” on punitive damages; However, several state courts have struck down these legal caps as unconstitutional. [20] They are rare and occur in only 6% of civil cases leading to a monetary settlement. [21] Punitive damages are not available in certain jurisdictions, including Louisiana, Nebraska, Puerto Rico and Washington. For example, if you had an accident while driving 10 miles over the limit on the highway, you could be found negligent for driving too fast. But if you hit a child while driving 10 miles over the limit in a school zone when students were dropped out of school, you may have acted with reckless disregard for the consequences of your actions, paving the way for an eventual award of punitive damages. Punitive damages are awarded to punish the defendant`s misconduct, while damages are awarded to compensate the plaintiff for the damages he suffered as a result of the defendant`s actions.
Despite public perception, punitive damages are not a common outcome of civil lawsuits in the United States. If you are considering bringing a personal injury action, talk to an experienced personal injury lawyer to see if you should seek punitive damages. One of the most famous cases of punitive damages in the United States occurred in 1992. Stella Liebeck of New Mexico was seriously injured by second- and third-degree burns when a cup of coffee she had purchased at a McDonald`s Corp. (MCD) drive-thru was spilled on her lap after her grandson stopped the car she was sitting in so she could add sugar and cream. In very few industries, punitive damages could be awarded in contract or tort cases, except in tort related to fraud or product defects. Article 49 of the Treaty Adopted by the Commission on 31. In October 1993, the Law on the Protection of Consumer Rights and Interests of the PRC stipulates that any consumer has the right to recover double the purchase price of the products or services from the seller or service provider against fraud. Success stories have been widely reported in this regard. Punitive damages are intended to punish the accused for inappropriate behaviour. Therefore, it is important that the amount awarded is proportional to their assets – therefore, wealthier defendants should have to pay more to learn their lesson and refrain from similar behavior in the future. As in Neal v.
Landwirte, “the deterrent function is not fulfilled if the defendant`s assets allow it to absorb the price with little or no discomfort.” In general, punitive damages are awarded very rarely in small claims cases. This is not because it is prohibited by regulation, but because most small claims simply do not meet the necessary criteria. Of course, what is the law if not a wild jungle full of exceptions. Punitive damages cannot be awarded in tort solely on the basis of the negligence of the defendant. The conduct must have been intentional, unjustified or reckless to constitute an intentional crime. Intent involves a plan, goal or intent to commit wrongdoing and cause harm. For example, if a car manufacturer knows that their car`s gas tank is likely to explode on impact, but does not change the design because they do not want to incur additional costs, the behavior could be considered intentional. Conduct is considered unjustified if the person committing the act is aware that it is likely to cause injury, even if the specific intent to hurt someone does not exist, such as when a person fires a firearm into a crowd. Although the person does not intend to hurt anyone, the injury is a natural and likely consequence of the action. Cruelty is an act committed with total disregard for its foreseeable harmful consequences. Punitive damages may be awarded on the basis of malicious, illegal or illegal activity or without legal justification, but an unlawful act committed in good faith is not a sufficient basis for such a donation. For example, if a grocery store sells canned foods that were later found to be spoiled and the store was not aware of the problem before selling the canned food, it would be liable for damages for the victims who ate the food, but not for punitive damages.
Higher punitive damages may also be awarded if moral prejudice is difficult to calculate, if the injuries are difficult to detect and may require ongoing care, or if the defendant`s conduct is extremely offensive. Regardless of the award, the respondent must always be fairly informed of the amount of punitive damages and the conduct justifying the agreement. Another function of punitive damages articulated by supporters is law enforcement. Without the prospect of major punitive damages, many people would not be willing to make their claims.