Net worth evidence establishes a defendant's total assets less liabilities, offered to show what award would be necessary to punish. Some jurisdictions prefer other measures such as income or profits from the conduct at issue.
Requirements to introduce net worth evidence vary.
Alternative Names:
Net Worth Disclosure, Wealth Evidence
Why it Matters?
Some states require the plaintiff to introduce net worth evidence as a prerequisite to any punitive award, which converts the discovery into an element rather than an option. Others permit punitive awards without it. Defendants should understand which rule applies, since in the former category resisting the discovery entirely can defeat the punitive claim while in the latter it merely delays the inevitable.
Frequently Confused with
Related terms
Frequently asked questions
Is net worth evidence required for punitive damages?
Why does the distinction matter?
