Punitive damages caps limit what a jury's punitive award may ultimately yield. Common structures include a fixed dollar ceiling, a multiplier of compensatory damages, or the greater or lesser of the two.
Caps are applied by the court after verdict, so the jury usually is not told the limit exists.
Alternative Names:
Punitive Cap, Exemplary Damages Cap
Why it Matters?
Caps make punitive exposure quantifiable, which changes settlement analysis materially in states that have them. They also interact with the constitutional ratio analysis, since a statutory cap may bind well before due process limits would. Some states exempt specific conduct such as intoxication or intentional harm from their caps, which is why the applicable exception list matters as much as the cap itself.
Frequently Confused with
Related terms
Frequently asked questions
Does the jury know about a punitive damages cap?
Do caps have exceptions?
