What are exemplary damages in law?

What are exemplary damages in law?

DEFINITION. In Black’s Law dictionary ‘punitive/ exemplary damages’ is defined as ‘Damages awarded in addition to actual damages when the defendant acted with recklessness, malice, or deceit; specif., damages assessed by way of penalizing the wrongdoer or making an example to others.

How are punitive damages different from compensatory damages?

Compensatory damages are given to the injured victim to help pay for medical expenses and other damages created, while punitive damages are meant to penalize the at-fault party.

What punitive damages mean?

Overview. Punitive damages are awarded in addition to actual damages in certain circumstances. Punitive damages are considered punishment and are typically awarded at the court’s discretion when the defendant’s behavior is found to be especially harmful.

Can a court award punitive damages to a defendant?

If the harm inflicted by the defendant is difficult to estimate financially, or the defendant’s actions were particularly reckless, the court can also award punitive damages as a way to punish the defendant and discourage similar behavior.

Why are punitive and exemplary damages awarded in England?

The issue of awarding ‘punitive/ exemplary damages’ has been a controversial topic for many years. Such damages are not compensatory, but are awarded to punish the defaulting party and to deter him and others from committing similar acts in the future. The law in England, as restated in Rookes v. Barnard10 (affirmed in Cassell v.

What’s the ratio of punitive damages to actual damages?

In addition, they also take into account the ratio of punitive damages to actual damages. If the ratio is more than 4-1, courts are likely to question the amount of punitive damages awarded. According to the U.S. Supreme Court, cases in which punitive damages are 10 times or more than actual damages are almost certainly unconstitutional.

Can a court award exemplary damages in exceptional circumstances?

11.25 The ALRC proposes that a court be given the discretion to award exemplary damages in exceptional circumstances. [25] This head of damages focuses on the defendant’s conduct rather than the plaintiff’s loss. It may be appropriate where the defendant’s conduct was in outrageous and contumelious disregard of the plaintiff’s rights.