{"id":384547,"date":"2025-10-27T16:38:41","date_gmt":"2025-10-27T21:38:41","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/?page_id=384547"},"modified":"2025-10-27T16:36:32","modified_gmt":"2025-10-27T21:36:32","slug":"what-are-punitive-damages","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/injury\/accident-injury-law\/what-are-punitive-damages.html","title":{"rendered":"What Are Punitive Damages?"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">What Are Punitive Damages?<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/susan-buckner-j-d\/\">Susan Buckner, J.D.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/laura-temme-esq\/\">Laura Temme, Esq.<\/a>\n                | Last reviewed\n        <time>\n                            October 27, 2025\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n    <div class=\"fl-callout-text article-blockquote\">\n        <p><span data-term-id=\"54637125\">Punitive damages<\/span> are a special monetary award a court may order a defendant to pay in addition to a victim&#8217;s actual compensation. Unlike damages meant to cover losses, the <span data-term-id=\"54637133\">purpose of <\/span><span data-term-id=\"54637125\">punitive damages<\/span> is to punish a defendant for particularly reckless or malicious behavior.<\/p>\n\n    <\/div>\n\n\n\n<p>The question plaintiffs almost always ask their personal injury attorney after \u201cDo I have a case?\u201d is \u201cHow much can I get?\u201d In a <span data-term-id=\"54637157\">personal injury case<\/span>, the amount of damages available depends on the victim\u2019s injuries and degree of suffering. In other civil cases, the damages depend on the nature of the case.<\/p>\n<p><a href=\"https:\/\/www.findlaw.com\/injury\/car-accidents\/what-kinds-of-damages-may-i-claim-for-car-accident-injuries.html\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span data-term-id=\"54637126\">Compensatory damages<\/span><\/a> \u201cmake the victim whole.\u201d After a car accident, for example, victims can request economic damages, such as <span data-term-id=\"54637151\">medical bills<\/span> and <span data-term-id=\"54637159\">lost wages<\/span>, and non-economic damages, such as <span data-term-id=\"54637162\">pain and suffering<\/span> and emotional trauma. States usually do not limit, or \u201ccap,\u201d the <span data-term-id=\"54637140\">amount of <\/span><span data-term-id=\"54637126\">compensatory damages<\/span>. Victims can receive the full amount of economic damages, although some states limit the non-economic damage awards.<\/p>\n<p>Courts award <span data-term-id=\"54637125\">punitive damages<\/span>, also called \u201c<span data-term-id=\"54637131\">exemplary damages<\/span>,\u201d in cases where the <span data-term-id=\"54637128\">defendant\u2019s conduct<\/span> was unusually negligent, reckless, or intentionally harmful. <span data-term-id=\"54637125\">Punitive damages<\/span> do not compensate the victim for their injuries.<\/p>\n<p>The <span data-term-id=\"54637133\">purpose of <\/span><span data-term-id=\"54637125\">punitive damages<\/span> is to punish the defendant and discourage similar behavior in the future. However, there are limits on how much a court may award in <span data-term-id=\"54637125\">punitive damages<\/span>.<\/p>\n<h2>When Are <span data-term-id=\"54637125\">Punitive Damages<\/span> Considered?<\/h2>\n<p>Courts award\u00a0<span data-term-id=\"54637125\">punitive damages<\/span>\u00a0very rarely. Some kinds of civil cases cannot receive\u00a0<span data-term-id=\"54637125\">punitive damages<\/span>,\u00a0and plaintiffs must request\u00a0them in court. <span data-term-id=\"54637125\">Punitive damages<\/span> are not part of insurance claims or other settlements. However, the threat of a large punitive award at trial is a powerful negotiating tool that can significantly increase the overall settlement amount.<\/p>\n<h3>Contract Law<\/h3>\n<p>Courts usually will not award <span data-term-id=\"54637125\">punitive damages<\/span> in a <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-contracts-forms\/breach-of-contract-and-lawsuits.html\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span data-term-id=\"54637161\">breach of contract<\/span><\/a> case. In these cases, the contract itself may provide for additional damages if one party intentionally breaches.<\/p>\n<p>In these cases, the courts usually intervene only if the <span data-term-id=\"54637147\">defendant acted<\/span> in a way that went beyond the scope of the contract, such as fraud or bad faith.<\/p>\n<h3><span data-term-id=\"54637149\">Product Liability<\/span><\/h3>\n<p><a href=\"https:\/\/www.findlaw.com\/injury\/product-liability\/what-is-product-liability.html\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span data-term-id=\"54637149\">Product liability<\/span><\/a> involves any item placed into the \u201cstream of commerce.\u201d Any entity involved in the manufacture, production, shipment, or sale of a product can be liable if that product harms a consumer. <span data-term-id=\"54637149\">Product liability<\/span> falls into three main categories:<\/p>\n<ul>\n<li>\n<p><strong>Design flaws: <\/strong>The product&#8217;s design means it is unsafe, no matter what the manufacturer does. Gas tanks designed without leak-proof bladders are a type of design flaw.<\/p>\n<\/li>\n<li>\n<p><strong>Manufacturing defects:<\/strong> The product itself is safe, but a batch came out of the plant with a fatal error. Produce recalls for E. coli are a type of manufacturing defect.<\/p>\n<\/li>\n<li>\n<p><strong>Marketing defects:<\/strong> Also called \u201cfailure to warn\u201d defects, cover everything from improper warning labels to fraudulent advertising. Dangerous drugs that lack adequate warning of side effects fall into this category.<\/p>\n<\/li>\n<\/ul>\n<p>In any of these categories, <span data-term-id=\"54637125\">punitive damages<\/span> may be awarded if the plaintiff proves the company knew about the product&#8217;s danger but consciously disregarded the risk to public safety.<\/p>\n<h3>Tort Law<\/h3>\n<p>Torts are other <a href=\"https:\/\/www.findlaw.com\/injury\/torts-and-personal-injuries.html\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">civil cases<\/a>, such as personal injury, defamation, and property law. <span data-term-id=\"54637127\">Punitive damages<\/span><span data-term-id=\"54637127\"> awards<\/span> in these cases require <a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/evidence-law.html\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span data-term-id=\"54637130\">clear and convincing evidence<\/span><\/a> that the <span data-term-id=\"54637147\">defendant acted<\/span> in a manner that warrants such an award.<\/p>\n<p>Depending on <span data-term-id=\"54637135\">state law<\/span>, courts award <span data-term-id=\"54637125\">punitive damages<\/span> during the damages phase of the trial. The <span data-term-id=\"54637160\">trier of fact<\/span> (the judge or jury) must first determine if the defendant is liable for the plaintiff\u2019s injuries and the value of the <span data-term-id=\"54637138\">actual damages<\/span> in the case.<\/p>\n<p>In most states, the plaintiff must specifically request <span data-term-id=\"54637125\">punitive damages<\/span> and include justification in the complaint.<\/p>\n<p>For instance, in <span data-term-id=\"54637144\">California<\/span>, a plaintiff\u2019s complaint must contain:<\/p>\n<ul>\n<li>\n<p>A statement saying they are asking for <span data-term-id=\"54637125\">punitive damages<\/span> under <a href=\"https:\/\/codes.findlaw.com\/ca\/civil-code\/civ-sect-3294\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span data-term-id=\"54637144\">California<\/span> Civil Code Section 3294<\/a><\/p>\n<\/li>\n<li>\n<p>Specific facts showing the <span data-term-id=\"54637147\">defendant acted<\/span> with \u201cmalice, oppression, or fraud\u201d<\/p>\n<\/li>\n<\/ul>\n<p>However, the complaint cannot contain an <span data-term-id=\"54637129\">amount of <\/span><span data-term-id=\"54637125\">punitive damages<\/span>. The plaintiff must serve the defendant with a separate Statement of Damages and a Reservation of Right to <span data-term-id=\"54637125\">Punitive Damages<\/span> after filing the complaint. The defendant has the right to bifurcate or separate the damages portion of the trial from the fact-finding portion.<\/p>\n<h2>When Do Plaintiffs Win <span data-term-id=\"54637125\">Punitive Damages<\/span>?<\/h2>\n<p>Plaintiffs receive <span data-term-id=\"54637125\">punitive damages<\/span> in about 5% of all cases. The standard of proof is very high, and the defendant must have acted with more than ordinary negligence or carelessness.<\/p>\n<p>In some states, <span data-term-id=\"54637141\">gross negligence<\/span> or <span data-term-id=\"54637142\">reckless disregard<\/span> for human life is not sufficient. The defendant must act with malice, fraud, or an intentional disregard for the <span data-term-id=\"54637145\">safety of others<\/span> beyond simple negligence.<\/p>\n<h3>The McDonald\u2019s Coffee Case<\/h3>\n<p>One of the best examples of why and how <span data-term-id=\"54637125\">punitive damages<\/span> get awarded is the famous but often misunderstood case of <a href=\"https:\/\/www.findlaw.com\/injury\/product-liability\/the-mcdonald-s-coffee-cup-case-separating-mcfacts-from-mcfiction.html\"><em>Liebeck v. McDonald\u2019s Restaurants<\/em><\/a>.<\/p>\n<p>In 1992, Stella Liebeck suffered second- and third-degree burns on her thighs and genitals when hot coffee from a local McDonald\u2019s drive-through spilled on her legs. After eight days and some painful surgery to repair the damage, Liebeck asked McDonald\u2019s for $20,000 to help pay for expenses. The corporation refused, and Liebeck sued.<\/p>\n<p>During discovery, Liebeck\u2019s attorneys found that during the previous ten years, McDonald\u2019s had received more than 700 complaints and <span data-term-id=\"54637169\">similar cases<\/span> regarding the temperature of their coffee. The company kept its coffee at 180 degrees, well over what experts and McDonald\u2019s own attorneys agreed was safe. McDonald\u2019s admitted it did not warn consumers that the coffee was unsafe. The company said that despite the lawsuits, they had no plans to lower the temperature of the beverage.<\/p>\n<p>Because of these facts, the <span data-term-id=\"54637148\">trial court<\/span> found that McDonald\u2019s behavior met the threshold for \u201cintentional disregard for the <span data-term-id=\"54637145\">safety of others<\/span>.\u201d The corporation was well aware of the risks and that others were being harmed, yet chose to do nothing. The trial jury awarded Liebeck $2.7 million in <span data-term-id=\"54637125\">punitive damages<\/span>, about twice what the corporation nets in coffee sales per day.<\/p>\n<p>The trial judge reduced the punitive award to $480,000, and the parties ultimately settled for a confidential amount before the case was decided on appeal.<\/p>\n<h3>Factors in Awarding <span data-term-id=\"54637125\">Punitive Damages<\/span><\/h3>\n<p>The McDonald&#8217;s coffee case is a powerful example of the kind of situation that can lead to <span data-term-id=\"54637125\">punitive damages<\/span>. To determine if such an award is justified, courts and juries look for specific types of wrongdoing. The facts from the <em>Liebeck<\/em> case help illustrate what they look for:<\/p>\n<ul>\n<li>\n<p><strong>Was the conduct more than a simple mistake?<\/strong> <span data-term-id=\"54637125\">Punitive damages<\/span> are reserved for conduct that is reckless, malicious, or shows a deliberate indifference to the <span data-term-id=\"54637145\">safety of others<\/span>. For example, McDonald\u2019s had had ten years\u2019 worth of evidence that their coffee was too hot and was causing injuries. They acknowledged that they could have provided warnings and did not. Liebeck requested a nominal sum to partially offset her damages, and they refused.<\/p>\n<\/li>\n<\/ul>\n<ul>\n<li>\n<p><strong>Would a financial penalty deter future misconduct?<\/strong> The <span data-term-id=\"54637133\">purpose of <\/span><span data-term-id=\"54637125\">punitive damages<\/span> is to punish the defendant and prevent them\u2014and others\u2014from acting the same way again. The defendant\u2019s financial situation is a key factor here. In the <em>Liebeck <\/em>case, the jury&#8217;s initial award of $2.7 million was intentionally tied to the company&#8217;s profits, representing about two days of McDonald&#8217;s coffee sales. The jury&#8217;s goal was to set a figure high enough to get the corporation&#8217;s attention and force a change, rather than a small amount it could write off as a minor business expense.<\/p>\n<\/li>\n<\/ul>\n<ul>\n<li>\n<p><strong>Is the award proportional to the harm caused?<\/strong> After a jury decides on an amount, judges review it to ensure it is not &#8220;grossly excessive&#8221; compared to the victim&#8217;s actual harm and the <span data-term-id=\"54637128\">defendant&#8217;s conduct<\/span>. The judge in the McDonald\u2019s case ultimately reviewed the jury&#8217;s large award. He decided to reduce the amount, finding that a lower figure was still enough to punish McDonald&#8217;s while being more reasonably related to Ms. Liebeck&#8217;s actual injuries. This <span data-term-id=\"54637167\">judicial review<\/span> is a common check and balance in the legal process.<\/p>\n<\/li>\n<\/ul>\n<p>Large <span data-term-id=\"54637127\">punitive damages<\/span><span data-term-id=\"54637127\"> awards<\/span> are often challenged on appeal, where judges review them to ensure they are not excessive and comply with constitutional <span data-term-id=\"54637143\">due process<\/span> limits. This review can sometimes result in the award being reduced.<\/p>\n<h2>Ask a Professional About <span data-term-id=\"54637125\">Punitive Damages<\/span><\/h2>\n<p>Although\u00a0<span data-term-id=\"54637125\">punitive damages<\/span>\u00a0are rarely awarded in civil cases, potential plaintiffs should ask their attorneys if they can get such damages. A <a href=\"https:\/\/lawyers.findlaw.com\/personal-injury-plaintiff\/?fli=dcta\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">personal injury lawyer<\/a> in your state can let you know if your claim warrants requesting <span data-term-id=\"54637125\">punitive damages<\/span>.<\/p>\n<p>If you\u2019ve sustained injuries or financial damage due to someone else\u2019s conduct, talk to a personal injury attorney about your options. Going to court may not be the answer in every case, but it\u2019s important to know your rights and the different avenues you can take to get compensation.<\/p>\n<p><a href=\"https:\/\/lawyers.findlaw.com\/personal-injury-plaintiff\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">FindLaw\u2019s directory of personal injury attorneys<\/a> can help you get started. 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