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This means that the jury will assign an appropriate amount of punitive damages, based on the defendant's financial situation, to deter the defendant and others from engaging in the same practices again. Judges may reduce punitive damage awards when it looks like juries have not followed instructions.
More importantly, when juries do order large punitive awards, judges frequently reduce them or remove them altogether. Because the imposition of excessive punitive damages may be unfair to a defendant, the U.S. Supreme Court imposed limits on the amount of punitive damages that a jury may award in civil cases.
In considering the amount of any punitive damages, consider the degree of reprehensibility of the defendant's conduct [, including whether the conduct that harmed the plaintiff was particularly reprehensible because it also caused actual harm or posed a substantial risk of harm to people who are not parties to this ...
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.
418, the California Supreme Court articulated 'three guideposts' for courts reviewing punitive damages: ?(1) the degree of reprehensibility of the defendant's misconduct; (2) the disparity between the actual or potential harm suffered by the plaintiff and the punitive damages award; and (3) the difference between the ...
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.
In general, punitive damages are capped at the greater of two times the amount of compensatory damages or $500,000, and the cap is lifted if there is specific intent to inflict serious physical injury; the defendant intentionally falsified, destroyed, or concealed records of evidence to avoid liability; the defendant ...
Large punitive damages awards may implicate federal constitutional standards. Defendants frequently challenge these damage awards in appellate courts as excessive under the Fourteenth Amendment's Due Process Clause, both substantively and procedurally (more on this below).