Because a claimant has more control over the litigation and because the claimant retains any damages awarded it is believed that by witnessing the court demand that the defendant pay damages, the claimant gains a psychological benefit which in turn aids recovery. Punitive damages are damages awarded in a civil trial as a way to punish a defendant for gross negligence or severe misconduct. A further factor adding to the problem of uncertainty with regards to the amount awarded is the use of a jury in assessing and determining cases involving defamation. Exemplary damages in New Zealand arise in cases involving outrageous conduct. In so far as there may be a need to go further, the key here would seem to be’ ‘outrageous conduct on the part of the defendant. Although the purpose behind punitive damages is not to compensate the plaintiff, they are paid to the plaintiff in court, making their financial recovery significantly smoother. These damages are also known as punitive damages in some legal systems. Company Law Two further arguments in favour of exemplary damages are that not only do they protect civil liberties, a right which should be vindicated by retributive justice, but they are also considered to be therapeutic. Even if those requirements are met, the amount that can be awarded for exemplary damages is not unlimited. Disclaimer: This work has been submitted by a law student. Because the criminal law and its process are not entirely perfect; ‘civil punishment can go some way towards making up for’ its defects and therefore the administering of punishment in private law supplements the criminal law. ‘To allow the defendant to plead that there should be a reduction in the amount of punitive damages on the grounds that the plaintiff was also at fault dilutes the punishment thereby imposed on him notwithstanding that disapproval of the defendant’s conduct remains the same’. There have been major awards in egregious (remarkable or outstanding) cases, such as fraud schemes, sexual harassment, or other intentional and vicious actions even when the provable actual damages were not extensive. Exemplary damages are awarded to compensate for mental anguish, humiliation, outrage, or increased injury to the plaintiff’s feelings that he or she suffers due to the defendant’s willful, malicious, or wanton conduct or reckless disregard for the plaintiff’s rights. ‘The first category is oppressive, arbitrary or unconstitutional action by the servants of the government’, and ‘cases in the second category are those in which the defendant’s conduct has been calculated by him to make a profit for himself which may well exceed the compensation payable to the plaintiff’ ‘ and to these two categories which are established as part of the common law there must of course be added any category in which exemplary damages are expressly authorised by statute’. Exemplary or punitive damages are awarded when the court finds the defendant’s conduct is particularly reprehensible. Compensation is standardly awarded after accidents where the plaintiff was not at fault, such as work-related injury or car accidents. The powers of the Supreme Court under Article 32 are not restricted and it can award damages in a PIL or a writ petition as has been held in a series of decisions. Reference this. Punitive damages are also referred to as exemplary damages and are only one type of award given to the plaintiff. can help. Punitive damages are legal compensations added on top of standard compensation already awarded. In the end, she received a massive $160,000 in compensation and $480,000 in punitive damages. The object of damages in the usual sense of the term is to compensate. We recommend that they should be available (at least) where exemplary damages could be awarded.23 (3) Exemplary damages 1.13 It is in relation to the remedy of exemplary damages that reform of the law is most needed. In Australia, punitive damages are not available for breach of contract, but are possible for tort cases. So, as we see, punitive and exemplary damages are both designed for the victim’s benefit. Although often requested, exemplary damages are seldom awarded. In Texas, the purpose of punitive damages, also known as exemplary damages, are to punish bad actors and deter or prevent other bad actors in the future. Exemplary damages may also be awarded in cases of bad faith, fraud, malevolence or wantonness in the violation of this Code or the rules and regulations promulgated thereunder. Punitive damages, also known as “exemplary damages,” are a monetary amount awarded to a plaintiff in a civil lawsuit for the purpose of punishing the defendant, or to deter him from engaging in the same conduct in the future. Exemplary damages are available in certain cases and have been severely limited by state law and court decisions. You can view samples of our professional work here. Art. There is no obvious reason why, if exemplary damages are to be available, the profit motive should suffice but a malicious motive should not’. This means they were willfully negligent, and a judge may award you punitive or exemplary damages at this point. This is usually due to the defendant acting in such a malicious way, or with greater intent than typically seen. In accordance with the work A Dictionary of Law, this is a description of Exemplary Damages : (punitive damages, vindictive damages) Damages given to punish the defendant rather than (or as well as) to compensate the claimant for harm done.Such damages are exceptional in tort, since the general rule is that damages are given only to compensate for loss caused. As explained above, the offending party must act with malice. This essay will define exemplary damages and situations in which they are awarded, followed by arguments for their retention and arguments in favour of abolition; it will suggest reformations and then conclude with a standpoint. Free resources to assist you with your legal studies! Does It Make Sense To Put A Google Home In Your Car? However, these suggestions are totally unfounded because the aim of exemplary damages is to punish and these proposals completely lose sight of this aim altogether. The nature of the defendant’s conduct calls for a further response from the courts’. Looking for a flexible role? While the intent behind the court issuing Punitive damages in Michigan is to deter the defendant from further bad behavior, Exemplary Damages are actually instated to reward plaintiffs. ‘On occasion conscious wrongdoing by a defendant is so outrageous, his disregard of the plaintiff’s rights so contumelious, that something more is needed to show that the law will not tolerate such behaviour’ and thus the law allows for a plaintiff to bring a civil action completely separate to any criminal proceedings to administer further punishment. ‘Exemplary damages are essentially different from ordinary damages. Instead, it looks to the conduct of the defendant. … However, in some cases, punitive damages are awarded in insurance bad faith cases that arise under an insurance policy. Exemplary damages are set according to the compensatory damages awarded to the plaintiff. There is a slight difference with Exemplary damages. The Court of Appeal held that this was to look at things ‘through the wrong end of the telescope’ and that this case, involving ‘outrageous conduct and abusive behaviour’, was in fact a paradigm case for the award of exemplary damage. There is a slight difference with Exemplary damages. I am not sure it would be right to draw a hard-and-fast line which would always exclude such companies and persons from the reach of exemplary damages. Punishment is also an argument in favour of exemplary damages with some arguing that this is the primary objective for their existence. In some cases, courts award exemplary damages in addition to actual damages, which are also referred to as "compensatory damages." Moreover, ‘criminal justice properly requires that the defendant is on notice as to what constitutes wrongdoing. All of the above arguments are substantive and although there appears to be more arguments opposing such an award the view here is that the arguments in favour outweigh those to the contrary and therefore the opinion here is definitely favourable. ‘Rather than approach the problem by asking how punitive damages can be a useful and convenient way of redressing these problems it should first be explained why the criminal law does not or cannot be made to fulfil adequately society’s desire to punish and to punish properly’. Exemplary damages . They are awarded by a court of law when compensatory damages are deemed to be insufficient. However, there are slight differences between the two. A Brief Assessment Of Managing Car Accident Cases, 5 Developments In Forex In 2020 [Detailed], Children & Divorce – Understanding Separation With Kids, Attorney Samir Hadeed Explains How Parole Law Works, 4 Ways To Generate More Backlinks For Your Website, Commercial Metal Work Table – Selection Tips, Key Factors For A Better Gaming Experience In Your Laptop, Managing Secure Document Sharing During COVID, Tips For Understanding The Bill Of Materials (BOM) Rules, 4 Things To Consider Before Doing Your Own Seo. The law of unjust enrichment has developed apace in recent years. This is because the court will usually award up to four times the amount of regular compensation awarded. Usually, they are added when regular settlement seems insufficient due to the defendant’s especially malicious or egregious behavior as an extra punishment to deter the defendant from future similar acts. In this case, a judge will hope that by financially punishing the defendant to a greater degree, it will deter future ill behavior. Punitive damages are extra-compensatory damages the aim of which is to punish the defendant for his wrongful conduct and to deter him and others from acting similarly in the future. According to Ernest Weinrib, the remedy is ‘encased in controversy’. Nor, I may add, am I wholly persuaded by Lord Devlin’s formulation of his second category (wrongful conduct expected to yield a benefit in excess of any compensatory award likely to be made). ‘Exemplary damages or punitive damages, the terms are synonymous, stand apart from awards of compensatory damages. ‘National and international companies can exercise enormous power. Save my name, email, and website in this browser for the next time I comment. In addition to this, contributory negligence is also an issue surrounding an award of exemplary damages, which since 1945, has been used to reduce the amount of damages recoverable where the plaintiff has contributed to his own injuries. An award for exemplary damages is considered separately to other heads of damages. Well aware that if these proposals were accepted, this would ‘impose limits not hitherto expressed on such awards and that there is powerful, though not compelling, authority for allowing them a wider range’, Lord Devlin proposed two categories in which exemplary damages should be awarded. An award of exemplary damages serves it purpose well by not only punishing and deterring but also by protecting individual civil liberties. Punitive damages are also called exemplary damages. Typically, the plaintiff may receive up to about three times the compensatory award. In this case, the 1st plaintiff appellant claimed N100,000 exemplary damages for unlawful entry on the premises at No. Not all nations allow courts to award exemplary damages and nations which do … Exemplary damages are not automatically given. Punitive damages in contract law are monetary damages awarded to a plaintiff to punish the defendant and prevent him from engaging in the same conduct at any point in the future. Aggravated damages are claimable in civil defamation proceedings, amongst other areas, however questions exist as to whether they may be claimed in negligence or personal injury cases. In criminal offenses, exemplary damages as a part of the civil liability may be imposed when the crime was committed with one or more aggravating circumstances. The object of damages in the usual sense of the term is to compensate. However, punitive aim more at punishing the defendant, deterring them from acting in the same way in the future. If you are interested in even more lifestyle-related articles and information from us here at Bit Rebels, then we have a lot to choose from. *You can also browse our support articles here >. John Cooke, (2005), Law of Tort, 7th Edition, Pearson Education Limited, Essex, S. I. They are the legal system's method of discouraging future bad behavior by making it financially harmful to the defendant. The object of exemplary damages is to punish and deter’. There are many reasons why a judge may award exemplary damages. There are a number of rules which apply to individuals attempting to reduce or defer their income tax by diverting their personal services through com ... © 2020 Bit Rebels. Reproduction without explicit permission is prohibited. An award of exemplary damages can therefore place a plaintiff in a better position than what he or she was in prior to the wrongdoing, this deterring the defendant by punishing him or her further. As opposed to aggravated damages, exemplary damages are not based on the injury to the plaintiff. This is a subtle difference, but a big one. The Court is also authorized to award attorney’s fees not exceeding thirty percentum (30%) of the award. 6th Aug 2019 Exemplary damages, also known as punitive damages, can be awarded to a plaintiff as a way to punish a defendant for extremely harmful conduct. Exemplary and Punitive Damages At paragraph 33 of the decision, the Court of Appeal firstly clarified that exemplary and punitive damages are two terms which are used interchangeably. However, this could be resolved by allowing the ‘judge to rule on quantum after a jury finding on liability and, possibly, whether a punitive award should be made’. 2230. Although often requested, exemplary damages are seldom awarded. • Punitive damages may only be awarded for breach of an independent actionable wrong. Any opinions, findings, conclusions, or recommendations expressed in this material are those of the authors and do not reflect the views of LawTeacher.net. Indeed, the validity of the dividing line drawn by Lord Devlin when formulating his first category is somewhat undermined by his second category, where the defendants are not confined to, and normally would not be, government officials or the like. Moreover the possibility of double jeopardy is also a concern although this can however be resolved by denying the right to recover exemplary damages where there is a real possibility of criminal proceedings. This is reflected by increasing statutory intervention and a consequent emasculation of common law crimes’, yet, this basic principle is offended because of the ambiguity as to what conduct justifies an award of punitive damages. All rights reserved. Strong & Liz Williams, (2008), Complete Tort Law, Text, Cases and Materials, Oxford University Press, New York, Alan Reed, (1996), Exemplary damages: a persuasive argument for their retention as a mechanism of retributive justice, Civil Justice Quarterly, Westlaw, Allan Beever, (2003), The structure of aggravated and exemplary damages, Oxford Journal of Legal Studies, Westlaw, Lesley J. Anderson, (1992), An exemplary case for reform, Civil Justice Quarterly, Westlaw, Michael Jefferson, (2009), Aggravated and exemplary damages and post-1964 torts, Professional Negligence, Westlaw, Kuddus v Chief Constable of Leicester (2001) UKHL 29. Imagine you purchased a hot drink at your favorite coffee chain. While the intent behind the court issuing Punitive damages in Michigan is to deter the defendant from further bad behavior, Exemplary Damages are actually instated to reward plaintiffs. However, over the last 30 years, Texas Courts and the Texas Legislature has made it increasingly difficult to obtain punitive damages. One solution offered to curtail this problem is that the law should impose a cap on amounts awarded, this however, does defeat the principle of deterrence because ‘if deterrence is the main objective, there must be an attempt to tailor the amount of punitive damages to the level of deterrence required, an aim which is lost if the levels of damages are fixed’. One of the most controversial remedies in private law is that of punitive (or exemplary) damages. Rookes v Barnard [1964] AC1129. You will often hear of people suing someone for compensation when they have been physically or mentally harmed during an accident. ‘General ‘defects’ include the following: that the state does not have sufficient resources to apprehend all criminals; that the state may not wish to prosecute, or to continue prosecutions which it has begun; that the substantive scope of the criminal law may not extend to all wrongs which merit punishment’ and therefore an action for exemplary damages is a more appropriate form of punishment and ‘an efficient way of achieving the full legal response’. While the facts underlying most cases will not give rise to such extraordinary awards, judges are clearly willing to test the boundaries of reasonableness in respect of punitive damages. 63.2. They are additional to an award which is intended to compensate a plaintiff fully for the loss he has suffered, both pecuniary and non-pecuniary’ and awarded for conduct which outrages the courts. Exemplary damages are damages awarded in a court case which go beyond compensation to the victim. Twitter Likes Or How To Get More Appreciation From Followers? On the other hand, exemplary damages are designed as an extra reward or support to a victim. Aggravated damages. 7 In . Accordingly, in M.C Mehta v. Copyright © 2003 - 2020 - LawTeacher is a trading name of All Answers Ltd, a company registered in England and Wales. If you have been injured in an accident and are wondering what damages may be available in your case, the qualified Houston personal injury lawyers at The Krist Law Firm, P.C. Company Registration No: 4964706. Some of the examples are: While there is no set limit on how much may be awarded in the way of punitive or exemplary damages, there is a common precedent set. Some jurisdictions recognize a form of damages, called, aggravated damages, that are similar to punitive or exemplary damages. Most states have a limit on how much a plaintiff can receive in exemplary damages. You should not treat any information in this essay as being authoritative. Registered Data Controller No: Z1821391. ‘From time to time cases do arise where awards of compensatory damages are perceived as inadequate to achieve a just result between the parties. In both cases, ‘Exemplary damages are essentially different from ordinary damages. Claimants prefer to issue proceedings in the civil arena rather than appearing in the criminal court as the civil process enables the person harmed to retain control of proceedings and … 12.11 There are four types of damages that may be awarded in a tort action: nominal damages, compensatory damages, aggravated damages and exemplary or punitive damages. With respect to exemplary damages: 5 Conclusion 6 MORAL DAMAGES AND EXEMPLARY DAMAGES: THE SUPREME COURT SETS CERTAIN PRINCIPLES On October 3, 1996, the Supreme Court rendered two important judgments regarding the criteria for granting and evaluating moral damages and for granting exemplary damages. She sued McDonald’s when they refused to pay her medical bills for extensive burns to her legs. The lid did not fit right, causing you to spill coffee and severely burn yourself. The three cases outlined above are exemplary and help illustrate the upper range of punitive damages available to plaintiffs. Your email address will not be published. One of the main arguments supporting exemplary damages, this argument also supported by the Law Commission, is that such an award can serve as a deterrent. So do some individuals. Punitive damages, or exemplary damages, are awarded to a plaintiff in addition to compensatory damages as a way to punish the defendant for a purposeful or especially negligent action. Call us today at 281-283-8500 for a free case evaluation and learn how we can put our experience and record … Lord Devlin said, If you feel you deserve this extra damages payment, it’s certainly worth fighting for! As previously mentioned, punitive damages are awarded mainly as a deterrent. Your email address will not be published. Contrary to the above are many arguments in favour for the abolition of exemplary damages, the most basic of these being that the function of private law is to compensate and the role of criminal law to punish, consequently, it is argued by many that exemplary damages belong to criminal law as a form of punishment whereby punishment originates from the state, however, those opposing this believe that these two laws ought not to have exclusive functions. 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