In any successful personal injury case, the claimant may be awarded various types of damages. These include compensatory damages, which include economic and non-economic damages, and punitive damages.
Among these, punitive damages often spark curiosity and intrigue because they are less known. This guide will demystify punitive damages and explore their relationship with compensatory damages, highlighting their significance in personal injury cases. We’ll also cover some examples of cases where they can be awarded.
Definition of Punitive Damages
Punitive damages are a specific type of civil damages awarded by courts, often in personal injury cases, to punish a defendant’s behavior for being particularly outrageous beyond a reasonable degree.
Punitive damages are not a common instance. For an award of punitive damages, the defendant must have acted in an especially malicious or unacceptable way. “Generally, this means the defendant must have intentionally caused harm or acted with extreme negligence, such as completely ignoring safety regulations,” says Attorney Walter T. Clark of Walter Clark Legal Group.
The Basis for Punitive Damages: Punishment and Deterrence
Unlike compensatory damages, which are in place to cover losses or make the injured party “whole” again, punitive damages are designed to punish and send a message about society’s standards and expectations of people’s behavior. By awarding these additional damages, the courts send a clear zero-tolerance message to society on the behavior in question.
Examples of Punitive Damages
Medical Malpractice Cases – When a healthcare provider’s negligence leads to severe injuries or death, a court may award punitive damages.
In 2018, a jury, in a medical malpractice case involving the misdiagnosis of a six-year-old girl’s diabetes, found Dr. Arlene Basa Mercado responsible for her death and awarded compensatory damages. The jury further assessed a substantial punitive award of $7,500,000 after determining that Dr. Mercado had maliciously destroyed handwritten notes of her evaluations.
Fraud and Deceptive Practices – Courts may award punitive damages for engaging in fraudulent or deceptive business practices. This can include false advertising, price-fixing, or other forms of corporate misconduct.
In September 2022, a Massachusetts jury awarded $1 billion in punitive damages against Philip Morris. The verdict held the tobacco giant responsible for Barbara Fontaine’s fatal lung cancer, attributing it to dangerous, addictive cigarettes and decades-long concealment of their risks.
Is there a Cap on Punitive Damages?
Of course, some argue that punitive damages can go too far and become excessive. Thus, many states have laws capping punitive damages that can be awarded in some instances.
The U.S. Supreme Court has established specific factors to consider in determining the appropriate size of a punitive damages award, such as the seriousness of the defendant’s wrongdoing and the relationship between the award and the actual harm inflicted.
The more egregious the defendant’s conduct, the higher the punitive damages the court may award. Additionally, if the defendant had a pattern of similar conduct, the punitive damages may be higher to deter them from continued infringement.
Moreover, the Court has recommended that, aside from cases where only nominal compensatory damages were awarded, the punitive-to-compensatory damages ratio should not exceed 9:1.
Ultimately, it’s up to judges and juries to determine what is fair and just in each case.
Conclusion
Punitive damages are a legal tool that can punish bad behavior and deter others from engaging in similar conduct. They are not awarded lightly, as they require a high burden of proof and a finding of intentional or reckless conduct. However, they can result in significant financial consequences for the defendant when awarded.
Media Information:
Walter Clark
(760) 777-7777
2781 W Ramsey St STE 6
