In most civil cases, the purpose of damages is to compensate an injured party for actual loss. Punitive damages operate differently. Rather than focusing on compensation, they are intended to address particularly serious misconduct.
Understanding when punitive damages apply requires examining both the nature of the defendant’s conduct and the legal standards governing such awards.
The Purpose of Punitive Damages
Punitive damages are not designed to restore a financial loss. Their purpose is to punish wrongful conduct and deter similar behavior in the future.
Because of this function, they are considered extraordinary and are not awarded in every case.
They Require More Than Ordinary Negligence
Punitive damages generally require a heightened level of misconduct. Ordinary mistakes or carelessness are not sufficient.
Courts typically look for conduct involving malice, oppression, fraud, or a conscious disregard for the rights or safety of others.
The Burden of Proof Is Higher
In many jurisdictions, punitive damages must be proven by clear and convincing evidence rather than the standard preponderance of the evidence.
This higher burden reflects the seriousness of imposing a punitive financial penalty.
Financial Condition May Be Considered
When determining the amount of punitive damages, courts may consider the defendant’s financial condition.
The goal is to impose a penalty that is meaningful enough to deter misconduct without being arbitrary or excessive.
Constitutional Limits Apply
Punitive damages are subject to constitutional limitations. Courts review whether the award is proportionate to the harm and the degree of misconduct.
Excessive punitive awards may be reduced on appeal if they exceed permissible legal boundaries.
Not Available in Every Type of Case
Punitive damages are not permitted for every claim. Contract disputes, for example, often do not support punitive awards unless additional tort based misconduct is established.
Whether punitive damages apply depends on both the legal theory asserted and the nature of the conduct involved.
