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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.
Pursuant to Article 1538 of the New Code, punitive damages cannot exceed the amount of compensatory damages awarded and may only be imposed by the court when the act or omission causing the damage was deceitful (doloso) or with wanton disregard for the life, safety and property of another person.
To obtain punitive damages against the corporate employer, there must be evidence that a corporate officer, director or managing agent engaged in, authorized or ratified the fraudulent, oppressive or malicious conduct. (Civ. Code, § 3295, subd. (b).)
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.
For example, punitive damages may be awarded in a products liability case when the defendant is a corporate drug manufacturer that knowingly sells drugs that have permanent harmful side effects without issuing a warning.
Proving negligence by itself might result in compensatory damages, but remember, it won't be enough to secure punitive ones. This means you'll need to present evidence that the defendant either acted intentionally or with such a high degree of recklessness or gross negligence that punitive damages should be awarded.
Generally the courts have held that the acts of a defendant for which the plaintiff is awarded punitive or exemplary damages must be characterized by being wanton, wilful, reckless, or malicious.
How Often Are Punitive Damages Awarded? Overall, roughly 5% of verdicts are awarded punitive damages. 1 Typically they do not exceed four times the amount of compensatory damages, although punitive damage caps vary by state.