What is the limit to punitive damages?
This depends on the type of case and the jurisdiction.
Are we talking about a civil case? State court or federal court?
I’ve never seen punitive damages awarded in a criminal case. So I don’t think that is possible.
Punitive damages are awarded in civil lawsuits in addition to compensatory damages, with the aim of punishing and deterring the defendant's wrongful conduct. The limit to punitive damages varies depending on the jurisdiction and the type of case involved. Think of the Ford Pinto case where the internal memo showed that it would have cost Ford only $12.50 more to properly line the gas tank so it wouldn’t explode. They were just cheap and didn’t want to spend the money. That hurt them. They were hit with punitive damages.
In the United States, the Supreme Court has held that excessive punitive damages awards violate the Due Process Clause of the 14th Amendment. In State Farm Mutual Automobile Insurance Co. v. Campbell, 538 U.S. 408, 123 S. Ct. 1513 (2003), the US Supreme Court Court established a three-part guidepost for evaluating whether a punitive damages award is excessive. The guidepost considers:
(1) The reprehensibility of the defendant's conduct;
(2) The ratio between the amount of punitive damages and the harm or potential harm caused by the defendant's conduct; and
(3) The difference between the punitive damages award and any civil or criminal penalties imposed in similar cases.
This standard is not a bright-line rule, and courts may still find a punitive damages award to be excessive even if it meets the guidepost criteria. Ultimately, the limit to punitive damages depends on the specific circumstances of each case and the discretion of the court or jury.
I hope this has been helpful information and properly answered your question. If you need a contract lawyer (and if he is available), try this lawyer:
Jeremy Eveland
17 North State Street
Lindon UT 84042
(801) 613-1472
Comments
Post a Comment