The master-servant rule is a legal guideline stating that employers are responsible for the actions of their employees. Split-Award Statutes and Settlement of Punitive Damages Cases."

In some states, the financial worth of the defendant can properly be considered.Ordinarily, an award of punitive damages by a jury will not be upset as excessive or inadequate.

Courts have the power to reduce or throw out punitive damages. Punitive damages are normally not awarded in the context of a breach of contract claim. Punitive damages, also known as “exemplary damages,” are a monetary amount awarded to a plaintiff in a civil lawsuit for the purpose of punishing the defendant, or to deter him from engaging in the same conduct in the future. First, the Court identified the "degree of reprehensibility of defendant's conduct" as the most important indication of reasonableness in measuring a punitive damage award under the Due Process Clause. Punitive damages are considered punishment and are typically awarded at the court's discretion when the defendant's behavior is found to be especially harmful.

Punitive damages help the plaintiff to be made whole again.Another function of punitive damages articulated by supporters is law enforcement. Investopedia uses cookies to provide you with a great user experience.

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It is hoped that making the perpetrator pay a sum stretching beyond compensatory damages will deter him or her and others from committing similar misdeeds in the future. They are awarded by a … Each state adopts different criteria and some are more likely to award punitive damages than others.

During the discovery phase of the litigation, it emerged that McDonald's had faced over 700 similar claims in the 10 years leading to Liebeck’s incident. Even though the state court reduced the punitive damages by half, the Court found the ratio of 500 to 1 to be outside the acceptable range.Finally, the Court examined the difference between the punitive damage award and the civil or criminal sanctions that Alabama could impose for comparable misconduct. Punitive damages, or exemplary damages, are damages assessed in order to punish the defendant for outrageous conduct and/or to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit.

In addition, when a government employee is found liable for misconduct and punitive damages are awarded, the taxpayers must pay for the award. Although the purpose of punitive damages is not to compensate the plaintiff, the plaintiff will receive all or some of the punitive damages award.

Also called "exemplary damages."

Stella Liebeck of New Mexico was badly injured with second and third-degree burns when a cup of coffee she purchased at a McDonald’s Corp. ( Large awards result in increased costs of products and services and even discourage companies from producing products or providing services out of fear of litigation.The controversy over punitive damages is likely to continue because it involves fundamental issues of justice, fairness, and the public good.In the absence of statutory authorization, punitive damages usually cannot be recovered in breach-of-contract actions.

In a court case, the money awarded to a plaintiff to compensate for damages or other incurred losses, like injuries, are called compensatory damages.

Punitive damages are a way of punishing the defendant in a civil lawsuit and are based on the theory that the interests of society and the individual harmed can be … In the wake of Though the decision reassured some in the insurance industry, the industry has continued to pursue "tort reform" legislation at the state and federal level. The nature of the wrongdoing that justifies punitive damages is variable and imprecise. (See: All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only.

The fact that the $2 million verdict was substantially greater than Alabama's $2,000 civil fine for deceptive trade practices was another ground for finding the punitive damages excessive, according to the Court.This decision had important consequences in civil litigation. Comparative negligence is a principle of tort law commonly used to assign blame and award monetary damages to injured parties in auto accidents.

Punitive damages are given with other damages, never alone, and increase a plaintiff’s award.

Punitive damages are a way of punishing the defendant in a civil lawsuit and are based on the theory that the interests of society and the individual harmed can be met by imposing additional damages on the defendant. To determine the amount, the jury or court must consider the nature of the wrongdoer's behavior, the extent of the plaintiff's loss or injury, and the degree to which the defendant's conduct is repugnant to a societal sense of justice and decency.

Punitive damages definition is - damages awarded in excess of compensation to the plaintiff to punish a defendant for a serious wrong. In other states, the plaintiff must be awarded Proponents of punitive damages believe that this type of award serves a number of important societal functions, including retribution, deterrence, compensation, and law enforcement.Supporters of punitive damages contend that one function for such an award is to provide retribution to the victim of the defendant's reckless or wanton conduct.

Although a plaintiff may receive actual damages for the injuries suffered, many of the plaintiff's actual losses, including those involving intangible harm, are not compensable under the rules of compensatory damage liability. Learn more. As in Advocates of punitive damage awards also contend that these awards serve a compensation function.

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