Understanding Punitive Damages in Personal Injury Claims

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If a person is injured through another’s negligence, he or she can recover damages through a personal injury case. Most cases are for compensatory damages, such as medical expenses, loss of income, and other similar losses.

For maximum recovery, victims have to seek advice from the best personal injury lawyers, who will assess whether punitive damages are justified and build a strong case.

What Are Punitive Damages?

Punitive damages, or exemplary damages, are awarded in addition to compensatory damages when the defendant’s conduct is particularly malicious. Unlike compensatory damages, which aim to restore the victim to their former self by reimbursing them for what they have lost, punitive damages aim to make a point that reckless or intentional wrongdoing will not be tolerated.

For example, if a company sells a seriously flawed product knowing it to be defective or a drunk driver causes a serious accident, a court would award punitive damages to punish them for their behavior above and beyond regular damages.

When Are Punitive Damages Awarded?

Not all personal injury claims have punitive damages. Judges reserve them for instances in which defendant behavior is particularly egregious. These are some common scenarios under which punitive damages may be in play:

• Intentional Misconduct – If the defendant deliberately harms someone, such as in cases of assault or fraud, punitive damages may be imposed.
• Gross Negligence – Where the defendant’s action shows an absolute disregard for other people’s safety, such as speeding while drunk, punitive damages can be awarded by the court.
• Corporate Wrongdoing – If a company intentionally endangers the public, e.g., by concealing safety flaws in a product, it can be liable for punitive damages as well as product liability claims.

Every state also has its own legal standards for awarding punitive damages. In the majority of jurisdictions, the plaintiff must establish by clear and convincing evidence that the defendant acted in a malicious, reckless, or fraudulent manner.

How Are Punitive Damages Calculated?

The amount of punitive damages awarded depends on different factors, such as:

• The extent of the defendant’s wrongdoing – More egregious recklessness or willful conduct is likely to be awarded more punitive damages.
• Ratio to compensatory damages – A number of courts have adopted rules that punitive damages must not exceed ten times compensatory damages. However, there are circumstances that might necessitate higher awards in extraordinary situations.
• The wealth of the defendant – Punitive damages need to be substantial enough to serve as a penalty, and so wealthier defendants, such as corporations, are more heavily charged.

Others impose limitations on punitive damages, so there is a maximum amount that is permissible. Others allow it to be decided by the judge or jury depending upon the facts of the case.

Challenges in Pursuing Punitive Damages

Because punitive damages are meant to punish, not compensate, they are harder to recover than ordinary compensatory damages. Plaintiffs must present strong evidence that the defendant was grossly reckless or willfully harmed.

Compared to compensatory damages, in which the plaintiff merely needs to establish by a preponderance of the evidence (i.e., more likely than not, the defendant was responsible), punitive damages often require clear and convincing evidence, a greater legal burden.

Defendants frequently appeal large punitive damage awards, arguing that they are excessive. Courts may reduce the amount if they find it disproportionate to the actual harm suffered by the plaintiff.