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What Are Punitive Damages?

Many elements potentially factor into a personal injury case, from the actual losses suffered by the injured party to the extent of the liable party’s damaging actions. Understanding the damages that can potentially be assigned to an injured person’s case, including punitive damages, can make it much easier for them to determine what compensation they can expect as part of their injury claim. However, punitive damages, which are assigned against a party that has caused serious damage to another, can prove more difficult to calculate.

Punitive Damages Defined

Punitive damages are assigned to punish defendants rather than as direct compensation for the losses faced by the injured party. They are intended to punish the defendant for grossly negligent actions, including ones that knowingly put other parties in danger. Punitive damages are often assigned to discourage the defendant and others from engaging in similarly dangerous or hazardous activities in the future. The plaintiff, in combination with a lawyer, will work to show the defendant’s negligence and that punitive damages should be assigned in a case.

The Difference Between Punitive and Compensatory Damages

Compensatory damages, or those sought as part of a personal injury claim, are intended to compensate the injured party for the losses sustained as a result of the negligent party’s actions. Damages can include both the financial and non-financial losses the injured party suffered: medical costs, lost job income, property damages, and the pain and suffering faced by the victim because of the injuries and losses related to the accident. Lawyers will work closely with their clients to accurately calculate the losses caused by the accident, including working with expert witnesses to determine the value of those losses. 

Punitive damages, on the other hand, have more to do with the liable party’s negligent actions than the actual losses faced by the injured party. In many states, the cap on compensatory damages is much lower than the one on punitive damages: In some cases, the court can award punitive damages at up to four times the amount of the compensatory damages claimed by the injured party. 

When the Courts Assign Punitive Damages

The courts generally assign punitive damages when the defendant’s conduct has demonstrated gross negligence. Some states, including Louisiana, lay out specific cases in which punitive damages can be assigned. While examples may vary from one state to another, there are some common cases in which punitive damages may be assessed in addition to the compensatory damages associated with a claim.

Drunk Driving

Driving while intoxicated poses a serious danger to anyone who shares the road with the defendant. When a drunk driver causes injury to another person, the courts may assign punitive damages in addition to the compensation the injured party asks for as part of a car accident claim. The driver who caused the accident may have to pay those damages directly rather than routing the claim through their insurance company. 

Domestic Abuse

Louisiana law notes that when domestic abuse causes injury to the victim, the courts can assign punitive damages. This includes both cases of severe physical injury caused by domestic abuse and cases of severe emotional trauma. Punitive damages can be assigned in domestic abuse cases even when the liable party was not prosecuted for those actions. 

Other Cases

Because Louisiana law is highly specific about the cases in which punitive damages can be assigned, it can prove difficult for injured victims to recover those damages in other scenarios, even after a serious incident. However, Louisiana law does allow punitive damages to be assigned in cases where the incident occurred in a state that allows punitive damages for that specific situation or cases in which the liable party lives in the state that has punitive damages for that specific incident. Working closely with a lawyer can make it easier for victims to determine whether they may have the right to punitive damages. 

Factors That Influence Punitive Damages

Several factors can influence the punitive damages assigned by the court. While a lawyer can help injured victims calculate potential damages, they cannot guarantee what the court will decide in any case. Most of the time, punitive damages are not based on the compensatory damages related to the case. Furthermore, the court does not award those damages based on sympathy for the victim, nor can it take damages to other individuals under consideration when issuing an award in a specific claim. 

Egregious Behavior on the Part of the Liable Party

The more danger the liable party put the injured party in as a result of their dangerous actions, the greater the odds that the court will assign punitive damages and the higher those damages may prove. For example, a drunk driver who caused a rear-end collision may receive lower punitive damages than a driver swerving all over the road, traveling at very high rates of speed, and aggressively trying to push other drivers off the road as a result of his inebriation. 

The Size of the Award Needed to Deter Future Damaging Actions

In addition to serving as a punishment for the liable party, punitive damages are intended to act as a deterrent discouraging future negative behavior from the defendant and others. As a result, the court may choose to issue punitive damages based on the size of the award most likely to have the desired impact. The court may take the defendant’s financial situation into account when considering how to issue punitive damages, as a defendant with considerable financial resources may not be impacted by a lower financial amount. 

Assessing Potential Damages After an Accident

For those who have questions about the compensation they can expect after a serious injury, a personal injury lawyer can provide insight. An attorney can discuss how to move forward with a personal injury claim and what will happen in the legal process, including whether the plaintiff can anticipate punitive damages related to their case.

Morris & Dewett provides this information to the public for general education and interest. The firm does not represent clients in every topic discussed in answers to frequent questions. The information is curated and produced based on questions commonly asked or search terms commonly used. Every effort is made to provide accurate information. Do not make any decision solely based on the information provided, please seek relevant counsel for each topic area. Consult an attorney before making any legal decision, consult a doctor before making any medical decision, and consult a financial advisor before making any fiscal decision. Information provided is not legal advice. If you have any legal needs, please do not hesitate to contact us. We are pleased to assist you if we can or provide a referral to another attorney if we cannot.