What are Punitive Damages?

Punitive damages are designed to punish a Defendant for his/her intentional wrongful conduct or gross negligence.

Punitive damages are recoverable for intentional wrongs as a punishment to the wrongdoer. Punitive damages are not recoverable for breach of contract, but may be recoverable for fraud. In any civil case in state court (but not federal court), a claim for punitive damages shall not be permitted unless there is a reasonable evidentiary showing or proffer which would provide a reasonable basis for recovery of such damages. 

Evidentiary Showing Required

There must be an adequate evidentiary showing to permit amendment of the pleadings to include a claim for punitive damages. There must be a determination of a factual basis by evidentiary hearing before punitive damages will be allowed to be pleaded In evaluating the sufficiency of the evidence proffered in support of a punitive damages claim, the evidence is viewed in a light favorable to the moving party.

Financial Worth of Party is Discoverable 

No discovery of financial worth may proceed until after the court has permitted the pleading seeking punitive damages. Punitive damages are required to bear a reasonable relationship to the worth of the wrongdoer, therefore, once a claim for punitive damages is made, the worth of a party becomes subject to discovery. Moreover, if it is found that there was specific intent to harm the plaintiff and the plaintiff was harmed, then there is no cap on punitive damages.

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