Treble damages, also known as triple damages, is a form of penalty which multiplies any compensatory damages a person may have incurred by three. Treble damages are awarded to the victim to punish the wrongdoer for its misconduct and as an incentive for the victim to seek compensation. The amount of treble damages that may be awarded depends on the specific laws of the jurisdiction governing the case.
When Are Treble Damages Awarded?
In civil law, treble damages are commonly awarded when a violation of civil rights takes place, such as fraud, monopoly practices, or copyright infringement. It is also common to see treble damages ordered in cases of deceit, malice, or reckless disregard of another’s safety or rights. Treble damages may also be awarded as a punitive damages for a wrongful death.
Real-Life Examples of Treble Damages
In March 2021, in a case filed by Nexus Technologies against Unlimited Power, Ltd., the jury found that the defendant had taken Nexus’s plans for a new product and wrongfully used them to secure patents for itself and awarded Nexus $10.65 million in damages. The award was trebled to $31.95 under North Carolina’s Unfair and Deceptive Trade Practices Act.
In 2020, in United States ex rel. Drummond v. BestCare Lab. Servs., Inc., a case involving Medicare fraud, the 5th Circuit Court upheld a lower court’s decision to award treble damages in the amount of $30 million for violation of the False Claims Act. The actual damage awarded was $10 million, which was trebled under the Act.
Conclusion
Treble damages are typically awarded as a means of punishing wrongdoers and providing incentives for victims to pursue civil action. They are most commonly awarded in cases of fraud, monopoly practices, or copyright infringement, and can often lead to large sums of money being awarded to victims.