Punitive damages are a form of compensation awarded to victims of personal injuries when the defendant has acted with malice or intent, that is, with the intention of causing serious or unjust harm. Punitive damages are intended to punish the defendant for his or her atrocious conduct and prevent him or her from acting in the same manner again.
However, punitive damages are not easy to obtain or quantify, as they require rigorous and convincing proof of the defendant's malicious behavior.
In this article, we will explain what punitive damages are, how they are awarded and how much they can be in the United States, as well as the requirements that must be met to request them. We will also see some examples of cases in which punitive damages have been granted or denied and the legal consequences they can have. Why can personal injuries in traffic accidents be compensable?
What are punitive damages?
Punitive damages are a legal figure found mainly in Anglo-Saxon law, especially in the common law system. It is a compensation in addition to the economic repair of the actual harm suffered by the victim, which has an exemplary and preventive character.
Punitive damages differ from moral damages in that the latter seek to compensate for the psychological or emotional suffering caused by personal injury, regardless of whether there was malice on the part of the defendant. Moral damages are based on the principle of proportionality between the harm caused and the benefit obtained by the plaintiff.
Punitive damages also differ from ordinary civil damages in that the latter are intended to restore the situation prior to the personal injury, that is, to recover what was lost or deteriorated by the accident. Ordinary civil damages are governed by the principle of equity between the parties.
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How are punitive damages awarded?
Punitive damages are not explicitly regulated by any federal or state law in the United States. Therefore, their award depends on the judicial discretion of each specific case. However, there are some general principles that guide the decision on the appropriateness and amount of punitive damages.
One of these principles is the so-called "threshold", which establishes a minimum level of malicious conduct to justify the application of punitive damages. According to this principle, punitive damages can only be awarded when there is clear and convincing evidence that the defendant acted with intent or willful malice in causing the personal injury.
Another principle is the so-called "functional", which establishes a functional relationship between the elements of the affected right and the defendant's conduct. According to this principle, punitive damages can only be awarded when there is sufficient evidence to demonstrate that:
- The affected right was seriously violated by the defendant's conduct.
- The defendant's conduct was deliberate and intentional.
- The defendant's conduct was disproportionate and unjustified.
- The defendant's conduct was directed against a specific person.
A third principle is the so-called "preventive", which establishes a preventive and deterrent function of punitive damages. According to this principle, punitive damages can only be awarded when there is sufficient evidence to demonstrate that:
- The defendant's conduct was typical and unusual.
- The defendant's conduct was serious and irreparable.
- The defendant's conduct was detrimental to other potential offenders.
- The defendant's conduct was contrary to public order or good customs.
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How much can punitive damages be?
The exact amount of punitive damages also depends on the judicial discretion of each specific case. There is no single formula or legal limit to determine them. However, there are some methods to estimate them based on objective or subjective criteria.
One of these methods is the so-called "proportional", which establishes a proportion between punitive damages and actual or compensatory damages. According to this method, punitive damages should be proportional to the harm caused by the defendant's conduct, without being excessive or nominal. For example, if the actual harm was $10,000, punitive damages could be $100,000, which represents a ratio of 10 to 1.
Another method is the so-called "reasonable", which establishes a reasonableness between punitive damages and the circumstances of the case. According to this method, punitive damages should be reasonable based on the severity of the defendant's conduct, the defendant's financial capacity, the social impact of the defendant's conduct, and the public interest in preventing the defendant's conduct. For example, if the defendant is a multimillion-dollar company that has caused irreversible environmental damage, punitive damages could be several million dollars, which is a reasonable amount to punish and deter the defendant.
What requirements must be met to request punitive damages?
The requirements for requesting punitive damages vary depending on the state in which the lawsuit is filed, since each state has its own legislation and jurisprudence on the matter. However, there are some common requirements that must be met in most cases, such as:
- File a personal injury lawsuit against the defendant, alleging that the defendant caused the personal injury with malice or intent.
- Prove the existence and amount of actual or compensatory harm suffered by the victim, through documentary, testimonial, expert or other evidence.
- Prove the existence and degree of the defendant's malice or intent, through clear and convincing evidence, which exceeds the standard of preponderance of the evidence.
- Expressly request punitive damages in the complaint or in a subsequent motion, specifying the amount or calculation method that is proposed.
- Comply with the deadlines and legal formalities for filing the lawsuit and the request for punitive damages, according to the procedural rules of each state.
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What legal consequences can punitive damages have?
Punitive damages can have several legal consequences, both for the plaintiff and for the defendant, such as:
- For the plaintiff, punitive damages may represent an additional source of income, which allows him or her to cover his or her medical, legal or other expenses arising from the personal injury. In addition, punitive damages may represent moral satisfaction, seeing that justice is done and the defendant is punished for his or her malicious conduct.
- For the defendant, punitive damages may represent a significant financial burden, which forces him or her to pay a high sum to the plaintiff, in addition to actual or compensatory damages. In addition, punitive damages may represent a social sanction, seeing that his or her reputation is damaged and his or her malicious conduct is exposed to the public.
- For society, punitive damages may represent a collective benefit, by contributing to the prevention and deterrence of malicious conduct that may cause personal injuries to other people. In addition, punitive damages may represent a reinforcement of public order and good customs, by fostering respect for the rights and dignity of people.
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What are some examples of cases in which punitive damages have been awarded or denied?
Below are some examples of real cases in which punitive damages have been awarded or denied in the United States, depending on the type of personal injury and the type of malicious conduct:
- Personal injury due to medical malpractice: In the case Bard v. Hill-Rom Co., the plaintiff suffered a serious infection from the use of a defective mattress in a hospital. The defendant, manufacturer of the mattress, knew that the product had a design defect that could cause infections, but did not remove it or warn the public. The jury awarded the plaintiff $1.5 million in compensatory damages and $25 million in punitive damages, finding that the defendant acted with malice or intent by concealing the defect and exposing the plaintiff to unnecessary risk.
- Personal injury due to traffic accident: In the case BMW of North America, Inc. v. Gore, the plaintiff purchased a new automobile that had been repainted by the defendant, the automobile manufacturer, without notifying the plaintiff. The plaintiff alleged that the repainting decreased the value of the automobile and that the defendant acted with malice or intent by deceiving the plaintiff. The jury awarded the plaintiff $4,000 in compensatory damages and $4 million in punitive damages, finding that the defendant acted with malice or intent by deceiving the plaintiff. However, the United States Supreme Court reduced the punitive damages to $2 million, finding that they were excessive and violated the defendant's due process.
- Personal injury due to employment discrimination: In the case Kolstad v. American Dental Association, the plaintiff was an employee who was rejected for a promotion by the defendant, her employer, on grounds of gender. The plaintiff alleged that the defendant acted with malice or intent by discriminating against her for being a woman. The jury awarded the plaintiff $52,718 in compensatory damages and $1 million in punitive damages, finding that the defendant acted with malice or intent by discriminating against her for being a woman. However, the United States Supreme Court denied the punitive damages, finding that the defendant did not act with malice or intent, but rather with ignorance or indifference.
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