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In many jurisdictions, punitive damages are inappropriate if there was no award of compensatory damages. Many appellate courts have ruled that a simple liability finding without an award of compensatory damages is not enough to support a punitive damages award.
Home Blog Personal Injury Law When Are Punitive Damages Recoverable?Punitive damages can be awarded in addition to compensatory damages, but the purpose of punitive damages is not to compensate the plaintiff, but to punish the defendant.
Although there is no maximum sum, punitive damages typically do not exceed four times the amount of compensatory damages. For example, if a plaintiff recovers $100,000 in compensatory damages and is awarded punitive damages, they most likely will receive up to $400,000 in punitive damages.
Punitive damages may only be awarded if the plaintiff proves by clear and convincing evidence that his or her harm was the result of actual malice. This burden of proof may not be satisfied by proof of any degree of negligence including gross negligence.
A defendant who acted in negligence isn't enough to justify the awarding of punitive damages. For punitive damages to be awarded, the defendant needs to have acted in a way that is either malicious, purposeful, or a combination of the two.
Even though punitive damage awards are meant to punish the defendant and benefit society, not the plaintiff, punitive damage awards are paid to the plaintiff in a case.
When can I get "punitive damages"? California Civil Code 3294 allows plaintiffs to recover punitive damages when they can show that their injuries were caused by the defendant's malice, oppression or fraud, typically in cases of intentional harm or extreme recklessness.
Punitive damages are rarely awarded for breach of contract. They arise more often in tort cases, to punish deliberate or reckless misconduct that results in personal harm.
While mandated percentage "limits" on a punitive damage award have drawn criticism, awards in excess of these limits have also drawn objection. Again, using California as an example, courts have generally found punitive damages greater than 15 percent of a defendant's net worth to be excessive.