Limits to punitive damages

Posted by on Jan 25, 2016 in Punitive damages | Comments Off on Limits to punitive damages

Punitive damages are often used to award the person to whom some wrongful conduct has been done and when the compensatory damages aren’t enough to punish that conduct. Punitive damages are there to set up a public example, so that conduct would never occur again, but chances for that are very small, because we live in a highly unjust world. But is there limitation regarding a punitive damage and what are they and how they can be executed?

gavel-on-a-stack-of-moneyThis is an often asked question and some controversies may occur. When considering compensatory damage, defendant’s financial situation must be reviewed. Feel free to contact Wrongful death attorney west palm beach for more advice. The jury has to analyze the financial state of the defendant and has to set up a suitable amount so that award should be compensated. For those, who have been prove to have larger amounts of money, such as corporate or wealthy defendants, face to have larger punitive damages awards. On the opposite side, those who aren’t so wealthy have smaller punitive damages awards, because it will be harder to stop them in the future to make the similar act.

Many states of U.S. have limited the amount of the punitive damages award. Such as California, in this state the punitive damage award cannot pass the 10% of defendant’s overall finances. The other states have the rule to follow the reasonable bond between punitive damages and compensatory damages. They cannot be larger than two or three times of actual compensatory damage. Maybe you need help from Orange county Medical malpractice lawyer , visit our page and found out more.

The Supreme Court in United Sates has recognized that some punitive damages are four times bigger than the compensatory damages and they are close to be exaggerated, but they are still under constitution. The court has decided that ratio between punitive damages and compensatory damages to be 145:1 and if anything other occurred it would be the violation of Fourteenth Amendment.