Important Info - What Are Punitive Damages?

Punitive damages are meant to keep the defendant from participating in a repeat act which caused the personal injury lawsuit from the plaintiff.  The damages are not meant for compensation to the plaintiff.  However, they are expected to receive some are all of the monetary award. 

Punitive damages are like a supplement to compensatory damages.  If the compensatory damages are not enough for the plaintiff, then these damages will kick in.  The judge or jury may automatically award these damages so that the plaintiff won’t be shortchanged. 

Even though they may be awarded punitive damages, it is not a guarantee that they will get them.  There are some areas that may not honor them, particular from one country to another. 

Punitive damages are few and far between.  They are only awarded in such cases where the conduct of the defendant was outrageous and over the top.  They have to have deliberately caused harm to someone else.  If there is a dispute with a contract, punitive damages will not be awarded. 

The amount of punitive damages that a defendant can receive is not limited in the United States.  There is no maximum or minimum amount set forth.  It is up to the appellate courts to look at these damages in ratio to compensatory damages. 

It is different in every state to award these kind of damages.  Some states award them according to statute.  Other states they may award the according to case law.  Also, in insurance industry there were lobbyists trying to impose limits on these kind of damages.  On the flip side, they were struck down in several state courts.

Regarding the tort reform, punitive damages are a main point of several debates.  In some cases, there have been verdicts in which the awarded amount was several million dollars.  Some people felt that was too much money to be awarded to a plaintiff.  However, since these damages are not awarded frequently, it wasn’t much of a big deal.  In reality, the most anyone gets from these is between $40,000 and $50,000.

So for anyone that’s looking for a large payday as a result of these kind of damages, it’s highly unlikely since about two percent of the money that is awarded is a large payout. Speak to an experienced personal injury attorney to learn more.