Damages and Valuation
Damages Framework
Punitive damages require conduct beyond ordinary negligence, generally described as willful, wanton, reckless, malicious, or showing conscious disregard for the rights and safety of others. Most states require clear and convincing evidence.
Constitutional due process limits the ratio between punitive and compensatory awards, with the Supreme Court indicating that single-digit ratios will ordinarily satisfy due process.
Alternative Names:
Exemplary Damages, Punitive Award
Why it Matters?
Punitive exposure changes a case categorically. It opens discovery into corporate conduct, financial condition, and prior similar incidents, and it frequently is not insurable, leaving the defendant personally exposed and creating a conflict within the tripartite relationship. Defeating the punitive claim at summary judgment or through bifurcation is often the most valuable single objective in a high-exposure defense.
Frequently Confused with
Related terms
Frequently asked questions
What conduct supports punitive damages?
Are punitive damages insurable?
