Damages caps are the statutory limits established in law providing the highest compensation a plaintiff can obtain in litigation, regardless of the extent of their injury or financial loss. In California, damages caps primarily focus on non-economic damages (pain and suffering) and punitive damages, while there are usually no damage caps on economic damages (like medical bills or lost wages). 

For example, medical malpractice cases have a $350,000 damage cap on non-economic damages in California as set forth by the Medical Injury Compensation Reform Act (MICRA). This means if the plaintiff experiences extreme and lifelong pain even because of egregious malpractice, their compensation for the pain, suffering or emotional distress caused by the incident will be capped at $350,000 regardless of the injury. This often feels especially unfair in the case of permanent injuries, or when significant impact on the plaintiff’s quality of life is concerned. Punitive damages in California are not capped, but typically a “reasonable” standard is applied by courts, usually capping punitive damages at 1:1 multiple of compensatory damages.

With respect to cases involving governmental entities (e.g. premise liability on public property), California law has restrictions on damages, which may limit the amount of damages awarded in a case that would be awarded if the litigated entity was private. A plaintiff may receive less recovery even if the injury is serious because of the limits placed on recovery in cases involving public property.

The effect of caps on damages awarded may have the following adverse consequences for plaintiffs:

Limits on non-economic damages could lead to inadequate compensation for pain and emotional distress and/or loss of quality of life. For instance, a victim of malpractice or serious injury may experience lifelong suffering yet receive the same non-economic damage award of $350,000 for non-whatever the injury was.

Limits on punitive damages may not accomplish the goal of punishing egregious conduct. Punitive damages are designed to deter someone from similar conduct, caps on punitive damages may not deter the defendant from committing serious acts of misconduct, especially in cases of gross negligence or intentional wrongdoing.

The emotional toll of litigation on plaintiffs can be substantial. Many plaintiffs perceive their recovery to be inadequate compensation for their injuries which may leave them with feelings of frustration and disappointment with the judicial process. Plaintiffs may also suffer the stress of the legal bills they accrue.