Unlike compensatory damages, punitive damages is a large amount of money that is intended to prevent the defendant from committing similar crimes and deter wrongdoing in the future. In car accident cases, punitive damages could be invoked in case the defendant’s actions are clearly beyond ordinary negligence, such as hit and run accidents, drunk driving, etc.
Depending on the state, here are the factors considered by the jury in determining punitive damages:
- Severity of Misconduct: In simple terms, if the defendant’s actions involve willful negligence, driven by malicious intent or mere carelessness.
- Defendant’s Financial Status: The court needs to evaluate whether the defendant has the financial means to adequately compensate the plaintiff for the damage caused. In other words, the wealthier the defendant, the larger the amount.
- Harm Caused: The extent of physical injuries, financial loss, and emotional distress caused by the defendant’s actions.
- Deterrence Value: This is more about the defendant’s egregious misconduct and the main goal is to prevent it from happening again in the future.
State-Specific Caps: In states like Alabama, punitive damages is limited to 3 times the compensatory damages, with a cap of $1,5 million. However, in Texas, punitive damages are capped at two times the amount of economic damages plus the amount of non-economic damages up to $750,000 or $200,000.
