By James P. Krupka, Esq.
While compensatory damages are intended to compensate a litigant for injuries suffered due to a defendant’s misconduct, punitive damages serve a wholly different purpose; that is, to punish a wrongdoer and deter the wrongdoer from engaging in similar wrongful conduct in the future. Punitive damages are not awarded in routine matters; rather, they are awarded in exceptional cases where a party has acted in a particularly egregious or outrageous manner. In addition, punitive damages are only available if compensatory damages have been awarded. An award of nominal damages will not support an award of punitive damages. Furthermore, with the exception of certain environmental claims and discrimination claims, there is a statutory cap on punitive damages that is either five times the amount of the compensatory damages awarded or $350,000, whichever is greater. [Read more…]