Damages caps limit recovery by statute. They most often apply to non-economic damages, particularly in medical malpractice, and to punitive awards. Economic damages are rarely capped.
Caps may be per claimant, per defendant, or per occurrence, and some are indexed to inflation.
Alternative Names:
Statutory Damages Cap, Tort Reform Cap
Why it Matters?
A cap is often the single most important fact about a venue. The same injury can be worth several times more across a state line, which is why venue analysis and choice of law arguments carry so much value in serious injury litigation. Caps also shift plaintiff strategy toward theories that escape them, such as pleading conduct that triggers a statutory exception or framing losses as economic rather than non-economic.
Frequently Confused with
Related terms
Frequently asked questions
Do damages caps apply to economic losses?
Are caps stable law?
