Punitive damages are a type of civil lawsuit remedy where the plaintiff seeks compensation that is in excess of the losses or injuries incurred. This type of damages is intended to be an incentive for the defendant to improve his or her behavior, as well as to punish them for their breach of duty. Punitive damages can be awarded to a plaintiff in cases where the defendant has acted in reckless disregard for the safety or wellbeing of the plaintiff.
Punitive damages must not be confused with compensatory damages. Compensatory damages are awarded to make good monetary losses the plaintiff has incurred as a result of the defendant’s wrongful act, whereas punitive damages are attached to punish the defendant for their grossly negligent actions. The amount of punitive damages awarded tends to be quite substantial, as it is intended to deter similar behavior in the future.
Examples of Punitive Damages
For instance, if a driver is found to be drunk and driving, and injures a pedestrian in the process, the pedestrian may be able to seek punitive damages. In this case, the jury will consider the defendant’s egregious negligence in making the choice to operate a vehicle while intoxicated, as well as the potential damages that the plaintiff may have suffered from the defendant’s actions. If the jury believes that the defendant was grossly negligent, punitive damages may be awarded.
Similarly, if a company is found to have recklessly disregarded the safety of its employees, customers, or investors, the company may be liable for punitive damages. This is most often seen in cases where the company did not take appropriate corrective action after previously receiving warning that their practices could potentially harm another person.
Conclusion
Punitive damages are an important tool for deterring reckless behavior and safeguarding the wellbeing of potential plaintiffs. It is important for business professionals to be aware of the potential consequences associated with this type of lawsuit and to take all necessary precautions to ensure that their practice is safe and compliant.