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In the past, instances of courts awarding punitive damages were few and far between. However, their frequency has increased noticeably in recent years, which is also the case with the amounts awarded. Now, it’s common for plaintiffs to seek punitive damages in personal injury lawsuits, especially when a defendant’s actions are extremely harmful or intentional. So, how do you determine punitive damages, how do you file a claim, and how are they different from compensatory damages?
Compensatory vs. Punitive Damages
If you file a personal injury lawsuit in court, you may seek compensatory and punitive damages based on the specifics of your case. While compensatory damages make up for the actual loss, a court awards punitive damages to penalize a defendant. Keep in mind that while a court may order compensatory damages in a personal injury case, it might deny a plaintiff’s plea to get punitive damages.
Compensatory Damages
A court awards compensatory damages to a plaintiff to cover the costs a plaintiff incurs because of a defendant’s actions. Compensation for costs related to medical expenses, property damage, lost wages, and litigation-related expenses is fairly easy to calculate, given that these come with fixed dollar values. However, damages can be hard to calculate when it comes to the long-term effects one might suffer. These may include pain and suffering, emotional distress, loss of consortium, and post-traumatic stress disorder (PTSD).
Punitive Damages
Punitive damages or exemplary damages have little to do with the injuries/loss a plaintiff might suffer and more to do with a defendant’s recklessness or negligence. When a court awards punitive damages, it is to punish a defendant and set an example that deters others from following the same path. The amount that a court awards varies based on different factors such as the severity of the case and a defendant’s financial standing.
Why Courts Award Punitive Damages
Courts award punitive damages with the hope that imposing hefty penalties on defendants will discourage them and others from carrying out the same or similar acts. When it comes to personal injury cases, courts award punitive damages with compensatory damages, and never alone. This, in a way, is to increase the punishment dished out to guilty parties for their actions.
Are Punitive Damages Paid to the Victim?
Several states in the U.S. like Alaska, Illinois, Indiana, Oregon, and Utah follow split-recovery statutes. In these states, when a court awards punitive damages, a significant percentage of it goes to the state. While New York relied on a split-recovery statute in the past, this is no longer the case. As a result, when a New York court awards punitive damages, the entire amount goes to the plaintiff.
What Qualifies for Punitive Damages?
If you plan to file a personal injury lawsuit and seek compensation for your damages, you need to start by proving that your accident and injuries were the result of the defendant’s negligence. This requires showing that the defendant owed you a duty of care, breached the duty of care, the breach led to the accident, which then resulted in your injury.
What Evidence Is Needed for Punitive Damages?
To seek punitive damages, you need to prove that the act that led to your injuries was egregious or intentional. For instance, if a court finds a defendant guilty of assault, it’s possible for a plaintiff to seek punitive damages. If you look at common punitive damages examples, you’ll notice that they involve:
- An intentional physical attack or assault
- Malicious behavior
- Driving under the influence of alcohol or narcotics
- Some type of fraud
- Not disclosing or hiding possible dangers
- Medical malpractice
Many product liability cases involve seeking punitive damages. For example, if a business sells a product with the knowledge that it might cause injury/harm and hides the same from consumers, a court could order it to pay punitive damages if there’s adequate proof to substantiate the claim.
Claiming Punitive Damages
Many jurisdictions have limitations in place when it comes to filing civil lawsuits through which one might seek punitive damages. In addition, the regulations surrounding how you may seek punitive damages are not the same across the country. For example, some jurisdictions allow you to seek punitive damages only if there’s a clear intent to harm on the part of the defendant. In addition, some jurisdictions allow plaintiffs to seek punitive damages in different types of tort cases like medical malpractice and personal injury.
To seek punitive damages in New York, you have to provide adequate proof to show that a defendant’s unwarranted disregard, malevolence, or recklessness caused the accident that resulted in your injuries. You also need to prove that your injuries are a direct result of the defendant’s actions/ behavior. In addition, a court must deem that a defendant’s actions were willful, reckless, shocking, appalling, or calling for deterrence and punishment that extends beyond compensating you for your losses.
The Collateral Source Rule
Courts in New York follow the collateral source rule, which essentially prevents plaintiffs from getting compensation for the same damages from multiple sources. For example, if your health insurance provider reimburses you for your medical bills in full, you cannot seek the same from a defendant.
Is There a Cap on Punitive Damages?
A few states impose caps on how much money plaintiffs may receive as punitive damages. However, New York does not have a punitive damages cap. The amount a New York court awards depends on the merits of a case as well as a defendant’s finances. Since the purpose of punitive damages is to serve as a strong deterrent, it is typically substantial enough to make a big dent in a defendant’s pocket. Not surprisingly, courts award higher punitive damages when defendants are large corporations or wealthy individuals.
Is There a Statute Of Limitations?
If your claim for punitive damages stems from a personal injury case, New York’s statute of limitations gives you three years from the date of the incident to file a lawsuit. If you’re filing a medical malpractice case, you get two years and six months from the date of the incident or the end of the ongoing treatment provided by the defendant. For cases that involve fraud, it changes to six years. If your case involves a Class A felony, there is no time limit to file a case.
The Need for an Attorney
If you look at some of the famous cases where punitive damages were awarded, you will notice that the litigation process can be rather complicated. Attorneys who handle cases that involve punitive damages know how to gather evidence to prove a defendant’s negligence/recklessness, highlight the extent of your injuries/damages, and determine how much compensation you should seek. Without legal advice, arriving at this number can be challenging, and you might end up asking for much less than you deserve.
The Role of Evidence
Presenting evidence in the right manner plays a crucial role in the outcome of cases that involve punitive damages. After all, it’s the evidence that shows a court the cause of an accident as well as other contributing factors, and this high burden of proof rests on the plaintiff. The evidence that attorneys typically rely on in such cases includes:
- CCTV footage, if available
- Photos and/or videos from the scene of the incident
- Witness statements
- Expert testimony
- A defendant’s past misconduct
- A defendant’s blood alcohol content (BAC) report
- Your medical records and bills
Conclusion
If you or a family member has been involved in an accident owing to someone’s willful or egregious actions, you might be able to seek punitive damages in addition to compensatory damages. Given that the process typically requires in-depth knowledge of the law, it’s in your best interest to partner with an experienced personal injury attorney. Your attorney can then file the required court documents and guide you through the pretrial, trial, and post-trial stages.