What Are Punitive Damages?
Punitive damages are also known as exemplary damages or vindictive damages. They are a type of damages awarded in civil litigation that are intended to punish the defendant for egregious conduct, with the purpose of deterring similar future conduct.
“Egregious conduct” is conduct that is especially reckless, malicious, or intentional. As a serious injury lawyer can share, a lot of times the conduct is deemed to be fraudulent, oppressive, or in wanton disregard for the rights and safety of others.
Punitive damages are different than compensatory damages because they are intended to punish and deter the defendant as opposed to compensating the plaintiff for their losses. In most jurisdictions, the standard of proof for punitive damages is higher than the standard of proof for compensatory damages; the plaintiff must prove by clear and convincing evidence that the defendant’s conduct warrants the imposition of punitive damages.
Should it be determined that punitive damages are warranted, the amount of punitive damages awarded is usually determined by the jury or the judge. The amount can vary widely but is often for a substantial amount. The amount awarded depends on various factors, such as how bad was the defendant’s conduct, the degree of harm caused to the plaintiff, the amount of the defendant’s financial resources, and the need to deter future similar conduct. However, some jurisdictions impose a legal limit or cap on the amount of punitive damages that can be awarded to a plaintiff, and is sometimes based on the amount of compensatory damages the plaintiff received or the defendant’s financial resources. Punitive damages may be taxable.
What Are Treble Damages?
As our friends at Kiefer & Kiefer can explain, treble damages are similar to punitive damages in that they are usually awarded in civil cases where the defendant’s conduct is determined to be especially egregious and to deter and punish such conduct. Where punitive damages are usually a single amount, treble damages are where the plaintiff’s damages are tripled (multiplied by three).
Treble damages are usually authorized by statute and only for certain types of cases. The statutes outline the circumstances under which treble damages may be awarded and the specific procedures for pursuing such damages. Treble damages may be available for a wide range of cases such as antitrust violations, intellectual property infringement, consumer protection violations, and other causes of action that are expressly authorized by law.
Treble damages are usually calculated by taking the amount of actual damages awarded to the plaintiff and multiplying that number by three, or a factor of three. For example, if the plaintiff is awarded $100,000.00 in actual damages, you multiply that number by three, so the treble damage award would be $300,000.00. The total award would then be $400,000.00.
Sometimes the decision to award treble damages is at the discretion of the court. The factors that the judge would take into consideration in determining whether to impose treble damages upon a defendant are similar to those used for punitive damages. These include the nature and severity of the defendant’s actions, the degree of harm suffered by the plaintiff, and the need to deter similar future conduct.
If you need help in a damages case, contact a lawyer near you.