Punitive DamagesCredit Repair Definition
Damages awarded in a lawsuit to punish the defendant for egregious misconduct and deter similar future behavior, beyond compensating the plaintiff.
Definition
Punitive damages (also known as exemplary damages) are monetary awards granted by a court in certain civil lawsuits, not to compensate the plaintiff for their losses, but rather to punish the defendant for particularly wrongful, malicious, fraudulent, or reckless conduct, and to deter the defendant and others from engaging in similar behavior in the future. Unlike compensatory damages (which cover actual losses), punitive damages are intended as a punishment and are typically awarded only in cases involving egregious misconduct that shows a conscious disregard for the rights or safety of others. The availability and amount of punitive damages are often subject to statutory limits and constitutional constraints (due process concerns about excessive awards).
Frequently Asked Questions
When are punitive damages typically awarded?
They are usually reserved for cases involving intentional torts (like assault, fraud, defamation with malice) or gross negligence where the defendant's conduct was particularly reprehensible, malicious, or showed a reckless disregard for harm.
How are punitive damages calculated?
There's no fixed formula. Juries consider factors like the reprehensibility of the defendant's conduct, the harm suffered by the plaintiff, the defendant's wealth, and the amount needed for punishment and deterrence. Awards must be reasonably related to the compensatory damages and comply with constitutional limits against excessive fines.
Can punitive damages be awarded in breach of contract cases?
Generally, no. Punitive damages are typically not available for simple breach of contract. However, if the breach also involves an independent tort (like fraud or bad faith insurance practices), punitive damages might be possible in some jurisdictions.
Related Terms
Category
Need Credit Help?
Discover tools and resources to help improve your credit score and financial health.