Also known as: punitory damage · punitive damages
Written by attorneys · grounded in primary & secondary sources — see below
Damages other than compensatory or nominal damages awarded against a person to punish outrageous conduct and to deter the defendant and others from similar conduct in the future. The award requires proof of evil motive or reckless indifference to the rights of others and may be limited by due process when the amount is grossly excessive relative to the harm or comparable penalties.
Pacific Bank refused to honor a loan commitment to Pedro Pacheco after promising funds for his business expansion. Pacheco sued for breach of contract and sought punitory damages based on the bank's bad-faith refusal. The court denied the request because the bank's conduct constituted only a contractual breach and did not amount to an independent tort.
Pavel Petrov purchased a vehicle from Pioneer Energy whose service department knowingly installed a defective part despite internal warnings of fire risk. After the car ignited and caused severe burns, the jury awarded punitory damages because the company's decision reflected reckless indifference to customer safety and was made to cut costs.
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Phoenix Technologies was found liable for trade-secret misappropriation that caused Pamela Phillips $200,000 in lost profits. The jury then added $20 million in punitory damages. On appeal the court applied the three guideposts and reduced the award because the ratio was extreme and comparable statutory penalties were far lower.
Pearl Porter purchased a lot subject to a recorded servitude requiring daytime-only operations to protect neighboring residents. When she began nighttime construction that flooded adjacent properties, the court awarded punitory damages in addition to injunctive relief because her knowing violation harmed multiple owners and the public.
Phoebe Park and Priya Prasad ended their engagement after Priya publicly humiliated Phoebe by disclosing private health information to mutual colleagues. Phoebe sued for breach of promise to marry and recovered punitory damages because Priya acted with malice in weaponizing the information to damage Phoebe's reputation.
Progressive Healthcare's manager ordered staff to reuse single-use catheters on multiple patients to reduce expenses, resulting in infections for several residents. The jury awarded punitory damages to punish the manager's outrageous conduct and to deter similar cost-cutting practices that endangered patient safety.
Punitory damages are unavailable for a pure breach of contract. They become available only when the breaching conduct also constitutes an independent tort for which punitory damages are recoverable under tort law.
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The defendant must have acted with evil motive or reckless indifference to the rights of others. Courts consider the reprehensibility of the act, the harm caused or intended, and the defendant's wealth when setting the amount.
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Courts apply three guideposts: the reprehensibility of the defendant's conduct, the ratio of punitory damages to actual or potential harm, and the difference between the award and civil or criminal penalties authorized in comparable cases.
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Yes. A servitude may be enforced by any appropriate remedy, including punitory damages, when the factors listed in the Restatement support that choice of relief.
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Yes, if the plaintiff proves that the defendant acted maliciously. The tort aspect of the claim permits punitory damages upon a showing of malice.
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…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…