What is the difference between punitive and exemplary damages?

Asked by: Karianne Johnson  |  Last update: October 16, 2022
Score: 5/5 (30 votes)

Punitive damages are also called “exemplary damages,” which are damages assessed in the legal process to punish a defendant for negligence. The defendant is usually a company or other large entity. Examples would medical malpractice cases or product liability cases.

What is an example of punitive damages?

Although there is no maximum sum, punitive damages typically do not exceed four times the amount of compensatory damages. For example, if a plaintiff recovers $100,000 in compensatory damages and is awarded punitive damages, they most likely will receive up to $400,000 in punitive damages.

What are the 3 types of damages?

Types of Damages
  • COMPENSATORY. Compensatory damages are generally the most identifiable and concrete type of damages. ...
  • GENERAL. General damages are sought in conjunction with compensatory damages. ...
  • PUNITIVE. Punitive damages are meant to punish a Defendant for particularly egregious conduct.

What do punitive damages mean?

Punitive damages are awarded in addition to actual damages in certain circumstances. Punitive damages are considered punishment and are typically awarded at the court's discretion when the defendant's behavior is found to be especially harmful.

What is the purpose of exemplary damages?

The purpose of exemplary damages

Indeed, the purpose of exemplary and punitive damages is to punish and deter wrongful conduct. As stated by one court, “[p]unitive damages are designed not to compensate the plaintiff for harm suffered but, instead, to punish and deter the defendant's culpable conduct.” Bongiovi v.

What's the difference between General vs. Special vs. Punitive Damages?

28 related questions found

What do you mean by punitive?

Definition of punitive

: inflicting, involving, or aiming at punishment severe punitive measures.

What are exemplary damages and in what circumstances are exemplary damages granted?

“[33] The exemplary damages or punitive damages—the two terms now regarded as interchangeable—are additional damages awarded with reference to the conduct of the defendant, to signify disapproval, condemnation or denunciation of the defendant's tortious act, and to punish the defendant.

Who receives the punitive damages?

Even though punitive damage awards are meant to punish the defendant and benefit society, not the plaintiff, punitive damage awards are paid to the plaintiff in a case.

How do you quantify punitive damages?

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.

What's the difference between compensatory and punitive damages?

Compensatory damages are given to the injured victim to help pay for medical expenses and other damages created, while punitive damages are meant to penalize the at-fault party.

What is the difference between general damages and punitive damages?

General and special damages are compensatory damages, which serve to compensate the plaintiff for economic loss and pain and suffering, attempting to make them whole. Punitive damages are meant to punish the defendant for his or her negligence or recklessness.

What is non punitive damage?

Related Definitions

Non-Compensatory Damages means any and all damages awarded by a court of competent jurisdiction that are penal in nature, including, without limitation, punitive, punitory, exemplary, vindictive, imaginary or presumptive damages. Sample 2.

What are the 2 types of compensatory damages?

There are two types of compensatory damages—general and actual. Actual damages are intended to provide funds to only replace what was lost. General compensatory damages awarded are more complex, as these compensatory damages do not represent a monetary expenditure.

How often are punitive damages awarded?

However, statistical studies by law professors and the Department of Justice have found that punitive damages are only awarded in two percent of civil cases which go to trial, and that the median punitive damage award is between $38,000 and $50,000.

Why punitive damages are unconstitutional?

The Court's current framework for determining whether a challenged punitive damages award is constitutional finds its source in the fundamental notion that a "grossly excessive" damage award violates the Due Process Clause. The definition of what constitutes a grossly excessive award, however, has evolved over time.

Which of the following is a purpose of awarding punitive damages in a case?

Punitive damages are also called exemplary damages. They are awarded both to deter the defendant and others from conduct similar to the conduct that gave rise to the lawsuit, and to punish the defendant.

What is the general ratio for a punitive damage to be awarded?

California Court of Appeal Finds That a 10:1 Ratio Between Punitive Damages and Compensatory Damages Awards Satisfies Due Process. A 10-to-1 ratio of punitive damages to compensatory damages awards in an insurance bad faith case passes Constitutional muster.

What is the burden of proof to recover punitive damages?

Clear and convincing evidence is the burden of proof the California courts place on recovering punitive damages during a civil claim. This standard requires proof that the evidence presented is substantially more likely to be true than not true. The burden of proof rests on the plaintiff.

Are punitive damages taxable?

Punitive Damages: Punitive damages are taxable and should be reported as “Other Income” on line 8z of Form 1040, Schedule 1, even if the punitive damages were received in a settlement for personal physical injuries or physical sickness.

Do punitive damages have to be specifically pled?

(A) An award of punitive damages must be specifically prayed for in the complaint. (B) The plaintiff shall not specifically plead an amount of punitive damages, only that such damages are sought in the action.

When an award of punitive damages is grossly excessive?

When an award of punitive damages is grossly excessive, it furthers no legitimate purpose and violates due process requirements. A person who wrongfully hurts another's good name or reputation orally may be liable for libel.

In which type of case is the plaintiff usually entitled to punitive damages in addition to compensatory damages?

If they acted with oppression, fraud, or malice, you may be entitled to recover an award of punitive damages. These punitive damages would be awarded in addition to any other compensation you receive.

Should exemplary damages be awarded?

Arguments In Favour Of Exemplary Damages

An award of exemplary damages can therefore place a plaintiff in a better position than what he or she was in prior to the wrongdoing, this deterring the defendant by punishing him or her further.

What is the opposite of punitive?

Antonyms. rehabilitative inculpatory unjust impenitent unrepentant legal reconstructive.

What are punitive actions?

Punitive describes inflicting a punishment. If someone takes punitive action against you, you'll probably whine and complain — you're in trouble and you're about to get punished.