3.13 Punitive Damages are a form of damages awarded to a plaintiff in a civil case as a form of punishment for an especially egregious act or actions committed by the defendant. Punitive damages aim to punish the defendant for their wrongful behavior and to deter similar behavior in the future. There are two types of punitive damages: compensatory damages and exemplary damages. Compensatory damages are designed to compensate the plaintiff for any economic losses or other damages incurred as a result of the defendant’s wrongful act or negligence. Exemplary damages are designed to punish the defendant for their wrongful behavior. The amount of punitive damages awarded is determined by the court, and can range from a few thousand dollars to millions of dollars depending on the severity of the offense.
3.13 Punitive Damages
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To determine the amount of punitive damages to award, the Book of Approved Jury Instructions (BAJI) states that the jury should consider: (1) The reprehensibility of the conduct of the defendant. (2) The defendant's financial condition and (3) the relationship to actual damages.
A typical cap on punitive damages is four times the amount of compensatory damages. Criteria for punitive damages differs from state to state, with some more likely to award punitive damages than others.
The median amount of punitive damages that are awarded is around $64,000.
These are (1) how reprehensible the defendant's conduct was, (2) the disparity between the harm experienced by the plaintiff and the punitive damages award, and (3) the difference between the punitive damages award and the civil penalties and remedies imposed in similar cases.
Individuals can also be ordered to pay punitive damages that injure someone else due to negligent behavior. Examples of this would be drunk driving or distracted driving. In both cases, the defendant would have made a conscious decision to engage in behavior that could easily harm another person.