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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.
Compensatory damages are monetary damages that are awarded with the intent of compensating the non-breaching party for any losses suffered as a result of a contract breach. They are not designed to punish the breaching party, but merely make the party that was breached against ?whole again,? as it is commonly phrased.
2 The Washington Supreme Court heard oral arguments on September 11, 2001, and on November 21, 2001, it affirmed the Court of Appeals on all issues. ' As a result, punitive damages are now considered to be insurable in Washington State.
Currently, punitive damages are generally uninsurable in five states (California, Colorado, New York, Rhode Island, and Utah) under the idea that allowing for the insurability of punitive damages undermines the punishing effect that such awards are meant to have.
What Is Required to Prove Compensatory Damages? Causation: The defendant's breach must be the reason for the plaintiff's economic losses. ... Foreseeability: The losses must be foreseeable at the time of contract formation. ... Calculable: The losses must be quantifiable and able to be calculated into specific monetary amounts.
Washington is one of the few states that generally does not allow punitive damages in personal injury cases. Unless the action is specifically allowed in a state statute, victims are not allowed to benefit from punitive damage awards.
In California, personal injury victims may be entitled to receive an award of monetary punitive damages if an injury is the result of: Car accidents caused by a driver under the influence of drugs or alcohol. Assault and battery. Sexual assault. Intentional infliction of emotional distress, and. Wrongful termination.
Compensatory damages awards are designed only to make the victim whole, not to punish or deter the defendant. This means that your settlement amount or court award will be lower than if it included punitive damages. If you are an injured victim, you should talk to a Washington State personal injury lawyer today.