Also known as:smart-money · punitive damages · exemplary damages
Written by attorneys · grounded in primary & secondary sources — see below
Punitive damages awarded to punish a defendant for outrageous conduct and to deter similar future conduct. The award is available when the defendant's evil motive or reckless indifference to others' rights is shown. Courts consider the reprehensibility of the act, the harm caused or intended, and the defendant's wealth in setting the amount.
Sources & Authorities
How it applies
Common Examples
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Contract Breach With Tortious Conduct
Sierra Santos contracted with Skyline Construction to renovate her home. Skyline deliberately disabled the HVAC system during final negotiations to force a quick signature. After discovering the tactic, Santos terminated the deal and sued for breach plus punitive damages. The court allowed the punitive claim because the pre-contract interference constituted an independent tort.
Reckless Indifference In Tort
Serena Soto purchased a security system from Sentinel Security. The company installed faulty wiring despite knowing the risk of fire. A fire destroyed Soto's property. The jury awarded punitive damages after finding the company's reckless indifference to customer safety.
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Excessive Award Review
Samantha Stone recovered $100,000 in compensatory damages from Solstice Ventures for a defective product. The jury added $50 million in punitive damages. On appeal the court applied the three guideposts and reduced the punitive award because the ratio was grossly excessive and comparable penalties were far lower.
Servitude Enforcement Remedies
Samuel Soto granted Southland Foods an easement limited to equipment staging. Southland stored hazardous waste on the parcel for months. Soto sued to enforce the servitude and sought punitive damages along with injunctive relief. The court considered the parties' conduct and the servitude's purpose before authorizing a mix of remedies including punitive damages.
Breach Of Promise Claim
Sydney Santos and Sarah Sullivan became engaged after working together at a startup. Sullivan ended the engagement shortly after a major funding round. Santos sued for breach of promise to marry and sought punitive damages. The court permitted the punitive claim only after finding evidence that Sullivan acted with malice.
Outrageous Conduct Award
Sierra Santos hired Sentinel Security to install alarms. The company knowingly used substandard parts to cut costs. A burglary caused substantial loss. The jury awarded punitive damages to punish the outrageous conduct and deter similar practices.
Common questions
Frequently Asked
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When may punitive damages be recovered in a contract action?+
Punitive damages are not recoverable for breach of contract unless the breaching conduct also constitutes a tort for which punitive damages are available. The plaintiff must prove an independent tort such as fraud or intentional interference.
What factors guide the amount of a punitive award?+
Courts consider the reprehensibility of the defendant's conduct, the ratio of punitive to compensatory damages, and the difference between the award and civil or criminal penalties in comparable cases. The defendant's wealth and the harm caused or intended are also relevant.
Are punitive damages available to enforce a servitude?+
Yes. A servitude may be enforced by any appropriate remedy, including punitive damages when the defendant's conduct warrants punishment. Courts weigh the nature of the servitude, the parties' conduct, and the costs and benefits of enforcement.
When are punitive damages permitted in a breach-of-promise action?+
In jurisdictions that still recognize the action, punitive damages may be awarded if the defendant acted maliciously. The claim is treated as quasi-tort, allowing punitive relief upon proof of malice beyond ordinary breach.
376 U.S. 254 (1964)Remedies
…news stories relating to some of the described events or by any other means. Alabama law denies a public officer recovery of punitive damages in a libel action brought on account of a publication concerning his official conduct unless he first makes a written demand for a public retraction and the defendant fails or refuses to…