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It is hoped that making the perpetrator pay a sum stretching beyond compensatory damages will deter both the defendant and others from committing similar misdeeds in the future. A typical cap on punitive damages is four times the amount of compensatory damages.
Georgia's strict product liability laws hold the product manufacturer strictly liable for injuries a defective item causes, regardless of the question of negligence. Today in Georgia, almost anyone injured by a defective product can bring a personal injury or wrongful death lawsuit.
Thus under Georgia law, you can be assured that unless a merchant sells you a product ?as is?, and there is privity between you and the seller (you and the seller had the buy-sell relationship?i.e. the transaction was between each other,) there exists an implied warranty that protects you the consumer.
The first factor?the reprehensibility of defendant's conduct?is subjective in nature. The other two?defendant's financial condition and the relationship to actual damages?are objective measurements.
Insurance against punitive damages is authorized. - Punitive damages are a legal liability, and ingly insurance against such damages is expressly authorized by paragraph (1) of this section.
Since Tuttle v. Raymond, many of the remaining jurisdictions have recognized punitive damage awards in strict products liability cases.
Because Georgia law views punitive damages as strictly a means of punishing, penalizing or deterring defendants, the compensation does not go straight to the plaintiff. Most of the money goes to the government.
Georgia law caps most punitive awards at $250,000; however, there are three important exceptions to this limit. First, product liability claims are not limited by the statutory cap. However, it's important to note that in these cases, only 25% of the punitive damages, plus attorneys fees and costs, go to the plaintiff.