Punitive Damages Legal Meaning

The court may also award punitive damages if the plaintiff does not have actual damages. In general, you will see that these damages are awarded in tort cases, i.e. bodily injury, bodily injury, product liability, etc. “Most courts base the general damages they award in accident cases on the severity of the accident or injury. The more serious a long-term or permanent accident or injury, the higher the amount awarded to the claimant. Punitive damages are also referred to as “exemplary damages,” which are damages assessed in legal proceedings to punish a defendant for negligence. The defendant is usually a corporation or other large corporation. These may include, for example, medical errors or product liability cases. Assuming that a company sells a product that it knows is defective or likely to cause harm so that it can still benefit from it, it could be ordered to pay punitive damages if it is proven to have been negligent in its decision to sell those products. In the end, Liebeck received $200,000 in damages — later reduced to $160,000 after the jury determined she was liable for 20 percent of the oil spill — and $2.7 million in punitive damages — later reduced to $480,000 to limit Liebeck`s price to three times what she had earned for damages. McDonald`s was forced to pay and responded by lowering the temperature of its coffee shops. Another function of punitive damages articulated by supporters is law enforcement. Without the prospect of major punitive damages, many people would not be willing to make their claims.

Punitive damages act as an enforcement tool that motivates and motivates potential claimants to enforce the law and promote the functions of retaliation, deterrence and compensation. Although the purpose of punitive damages is to punish the defendant — and to lead by example — rather than compensate the plaintiff, the plaintiff receives some or all of the damages awarded. For this reason, some have speculated that some law firms unnecessarily insist that their clients seek punitive damages so that they can maximize their profits. Punitive damages are usually imposed to make an example of the negligent party to deter others from behaving in the same way or committing similar illegal behavior. Although the intent and purpose of punitive damages imposed on a company is not intended to compensate the plaintiff, they receive the amount of money. When a court orders punitive damages, it essentially punishes the defendant, who must pay the amount provided and remit it to the plaintiff. Once a jury has determined that a defendant is liable for punitive damages, it must determine the amount of punitive damages. In doing so, it takes into account several factors, including: Individuals may also be ordered to pay punitive damages that injure another person as a result of negligent conduct. Examples include drunk driving or distracted driving. In both cases, the defendant would have deliberately chosen conduct that could easily harm another person.

It may even involve violations of anti-discrimination laws in New York. Punitive damages are a particular type of compensation that is only available in a few specific circumstances. Punitive damages serve two important functions: damages are intended to compensate plaintiffs for the actual losses they have suffered. This type of premium may be to reimburse medical treatments, medical bills, or future expenses they have due to an injury they have sustained due to the negligence of another person or entity. This is usually actual damage. On appeal, the U.S. Supreme Court overturned the punitive damages. First, the court identified the “degree of reprehensibility of the defendant`s conduct” as the most important indication of reasonableness in determining punitive damages under the due process clause. In the Court`s view, the damages awarded should reflect the enormity of the crime committed by the defendant and should not be manifestly disproportionate to the gravity of the offence. In Gore`s case, the sentence was exaggerated because BMW`s behaviour showed no indifference or reckless disregard for the health and safety of others. Minor repairs to the cars had no impact on their performance, safety features or appearance. As mentioned above, punitive damages should only be awarded if a defendant acted blatantly.

Here are some of the factors that may affect whether or not to award punitive damages: Article 96 of the Food Security Law of the PRC, adopted on 28 February 2009, increases punitive damages to ten times the purchase price, in addition to the damages already claimed by the victim from the manufacturer or seller of poor quality food, that do not comply with food safety standards. Such important legislation under consideration by the legislator is based on several extremely serious incidents related to food quality over the past two years, such as the infamous case of powdered milk spoiled by Sanlu. Punitive damages are an established principle of common law in the United States. [19] They are generally subject to state law (although they may also be granted under federal maritime law) and therefore differ in their application from state to state.