Punitive damages vary by country, with some not awarding them. In the US, state laws and Supreme Court rulings govern their award, with no universal limit. They are meant to punish and deter intentional harm, and may be determined by a jury or judge. Many countries limit damages, and punitive damages are not usually available in contractual cases. Tort reform and case law have also placed limits on punitive awards.
The determination of punitive damages varies greatly from one country to another. In some countries, such as many European nations and Japan, a court does not typically award this type of monetary compensation to the plaintiff. In the United States, various state laws govern the award of punitive damages, and some state statutes place caps or limits on the amount of this type of monetary compensation available to a plaintiff in a tort case. Additionally, the US Supreme Court has limited the excessive awards of punitive damages, saying they violate the due process clause of the US Constitution. There is no universal limit on punitive damages in any given situation, and the amount of punitive damages depends largely on the laws of the jurisdiction and the facts surrounding the wrongful conduct that gave rise to the plaintiff’s injuries.
Unlike compensatory damages, where the intent is to compensate the plaintiff for his or her losses, courts award punitive damages in order to punish the infringer and punish him or her for the behavior in question. Another purpose of these fines is to dissuade the offender from doing so in the future, as well as to dissuade members of the public from such conduct. Consequently, to be eligible for this type of monetary compensation, a tort must involve an intentional desire to harm the plaintiff, rather than simple negligence, as would occur in the context of an accident.
In some cases in the United States, a jury is responsible for determining whether to award these damages to a plaintiff, using a framework established by statute or case law. In other cases, a judge must apply the relevant law to decide the enforceability of damages in a given case. Those charged with making damages decisions may vary depending on the jurisdiction and framework of a nation’s justice system.
Many countries and local jurisdictions limit the award of damages, except in cases of particularly serious tort. Punitive damages are usually not available in contractual cases, except in select cases where an insurance company has violated a contact in such outrageous bad faith that a monetary damages award would be appropriate. Tort reform in many regions has also placed limits on the amount of award money a plaintiff can recover based on a tort action. Similarly, case law in some states has limited punitive awards to tort cases.
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