Financial condition discovery becomes available where punitive damages are properly at issue, since the defendant's wealth is relevant to the amount necessary to punish and deter. Timing and prerequisites vary substantially.
Many states require a threshold showing before permitting it.
Alternative Names:
Financial Discovery, Wealth Discovery
Why it Matters?
Threshold requirements are the primary protection, since several states require a prima facie showing on punitive damages before financial discovery proceeds, and others defer it until after a liability finding. Where no threshold applies, bifurcating financial discovery is the alternative. The intrusion is substantial and the information has settlement value independent of any punitive award, which is why plaintiffs pursue it aggressively.
Frequently Confused with
Related terms
Frequently asked questions
What prerequisite applies?
What is the alternative protection?
