Normally, a jury`s award of punitive damages is not overridden as excessive or inadequate. If the trial court finds that the jury`s verdict is exaggerated or unjustified by the facts, it can withdraw the punitive damages from the final verdict or reduce the amount of the punitive damages through a procedural process called a reference. Many have argued that the amount of punitive damages awarded is mostly random. The data prove otherwise, as they establish a very important correlation between the amount of damages initially awarded and the amount of punitive damages awarded. Most punitive damages claims are closely tailored to the amount of damages previously awarded, such as medical expenses and lost wages, and take into account the defendant`s assets and ability to pay. Unlike damages, which can be paid by an insurance company, punitive damages must generally be paid by the party against whom they are assessed. In many countries, punitive damages can only be awarded if the act in question is based on a tort (a crime against a person) and not on a breach of contract. Critics argue that punitive damages, because they are not compensatory, provide the plaintiff with an undeserved financial windfall. There is no benefit to the public if a person receives a judgment of multi-million dollar punitive damages. Some states have responded to this criticism by requiring that a portion of punitive damages be paid to the state for some sort of public good. The application of the punitive damages rule will cease with the entry into force of the PRC Tort Liability Act on 1.
July 2010. This new law states that a victim has the right to claim punitive damages from any manufacturer or seller who is expressly aware of the defects of the products but still produces or sells them if it results in death or serious injury. As this is a somewhat new law so far, no further explanatory provisions will be published regarding a detailed amount and the applicable scope guiding the application of this rule, so under this new law, a judicial judge may have the discretion to decide punitive damages on a case-by-case basis. Punitive damages are sometimes referred to as “exemplary” damages because they also serve as an example to discourage the accused from behaving in this way in the future, but more importantly to deter others from engaging in similar behaviour. 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: The Supreme Court and states provide guidelines for calculating punitive damages. Although there is no maximum amount, punitive damages generally do not exceed four times the damages. In addition, the Court concluded that, unless only token damages are awarded, punitive damages should not exceed nine times the damages, so there is a ratio of punitive damages to damages of 9:1 or less. 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. If someone`s conduct or actions were negligent, you have the right to take legal action for damages for your injury or loss. You may be wondering how much your case could be worth. This is not always easy to determine at first, as all the facts need to be gathered, the current and future effects of injuries need to be assessed, and how neglect will affect quality of life in the future. and a court case is being prepared. For example, averages in settling bodily injury in a car accident vary due to a variety of factors discussed in our article on average car accident bills. 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. Some states, called divided recovery states, also have laws that require a plaintiff to share punitive damages with the state.
In these states, 50% to 75% of punitive damages awarded are typically paid to the state. Punitive damages, also known as exemplary damages, legal damages that a judge or jury can award to a plaintiff in order to punish and make an example of the defendant. Punitive damages are generally awarded only in the most extreme circumstances, usually in the case of breaches of duty with substantial evidence of deletion, fraud, gross negligence or intent. In such cases, the plaintiff may therefore claim punitive damages in addition to actual damages, for example and to further punish the defendant. Critics of punitive damages believe that high cash rewards are unfair, inappropriate and unproductive to society. One of their main criticisms is the idea of punitive damages as a “quasi-criminal” punishment. These critics note that advocates speak of retaliation and deterrence, arguing that it is unfair to impose these “criminal” fines on defendants who lack the usual guarantees of criminal prosecution. They note that a claimant should have a higher burden of proof than a mere “preponderance of evidence,” the usual standard in civil proceedings.
Some states have accepted and ordered that “clear and convincing evidence,” a heavier burden of proof, be used by the jury to decide whether or not to award punitive damages. Punitive damages are often awarded when damages are considered an inadequate remedy. The court may impose them in order to avoid under-compensation to complainants and to allow for the redress of untraceable offences and to relieve the criminal justice system. [2] Punitive damages are particularly important in the case of hard-to-find violations of the law. [3] Article 96 of the PRC Food Safety Law, adopted on 28 February 2009, increases punitive damages to ten times the purchase price added to the damages already claimed by the victim from the manufacturer or seller for poor quality food that does not meet 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. Over the past four decades, there has been no significant increase in the frequency of claims or the amount of punitive damages awarded. If there was indeed growth, it was too low to appear in studies or statistics. This is reassuring in a way, because it tells us two things: 1.
the system is in a state of equilibrium and 2. Some constants still persist in an otherwise chaotic world. Since the 1980s, appellate courts have been called upon to review punitive damages and assess the procedural fairness associated with awarding such damages. State legislators and courts have tried to find ways to ensure appropriate punitive damages, but there is no one-size-fits-all approach. Despite public perception, punitive damages are not a common outcome of civil lawsuits in the United States. If you are considering bringing a personal injury action, talk to an experienced personal injury lawyer to see if you should seek punitive damages. Okay, that may be a pretty creative way to express it, but it captures the essence of our point of view. If the defendant knows – or has reason to know – that the actions he is going to perform may result in injury but still escape, then this could be a qualifying feature for punitive damages.
However, there are exceptions. If a defendant`s actions are particularly reprehensible, if the plaintiff`s damages are higher than the punitive damages claimed, or if the amounts awarded in similar cases are higher, higher punitive damages may be awarded. Do you need help in a punitive damages case? Still not sure what punitive damages are? Call us today at (708) 400-0000 to speak with one of our world-class lawyers. We offer a free phone consultation with no strings attached, so don`t hesitate to call us if you have any questions about government caps or qualification criteria. You can also use our contact page to make a request. If the court or jury rules in favor of the plaintiff or victim in a personal injury claim, damages will be awarded. Damages are paid to compensate the plaintiff for the damage suffered. There are two types of damages: Punitive damages are a controversial issue in tort and product liability. Aggrieved plaintiffs and their lawyers often seek punitive damages from companies that allegedly manufactured defective or dangerous products and were aware of the defects or safety issues. The plaintiffs see punitive damages as a way to signal to the manufacturer and the economy at large that it is financially unwise to cut corners or ignore safety concerns.
On the other hand, defendants in these lawsuits argue that punitive damages are unfair, unpredictable, and often excessive. In their view, the plaintiff receives a financial windfall that bears no relation to the actual harm of the claim. If you`re a juror in a case involving punitive damages, here`s your guide to determining the right amount to award damages.