Punitive Damages

Money damages awarded to punish the defendant and deter similar conduct, beyond the plaintiff's actual losses.

Plain-English definition

Punitive damages (sometimes called exemplary damages) are awarded on top of compensatory damages when the defendant's conduct was particularly egregious — fraud, malice, or reckless indifference. The U.S. Supreme Court has held that grossly excessive punitive awards violate due process; ratios above 9:1 (punitive to compensatory) are presumed unconstitutional.

Notable cases

BMW of North America v. Gore (U.S. Sup. Ct., 1996)
Established the three-part substantive due process test for punitive damages.
State Farm v. Campbell (U.S. Sup. Ct., 2003)
Suggested 9:1 as a presumptive ceiling for the ratio.

More in Torts

Comparative Negligence

A fault-allocation rule reducing or sometimes barring recovery based on the plaintiff’s share of responsibility.

Damages

Money awarded to compensate for loss, punish misconduct, or otherwise remedy a legal wrong.

Negligence

A civil wrong based on failing to use reasonable care, causing legally recognized harm to another person.

Proximate Cause

The legal limit on causation, asking whether the harm is closely enough connected to the defendant’s conduct to justify liability.

Not legal advice. Definitions are for general reference. Consult an attorney before relying on any term in a real case.