What Are Punitive Damages?

Understanding Punitive, or Exemplary, Damages 

When someone is seriously hurt or killed because of another party’s careless, negligent, or reckless actions, the law provides a way to hold the responsible party accountable. A personal injury lawsuit also helps the injured person (or, in wrongful death cases, their family) find justice. Most people are familiar with compensatory damages, which are meant to cover the costs of medical treatment, lost income, pain and suffering, and other types of economic and non-economic damages. But in certain cases, the law allows for a different type of recovery known as punitive damages.

Punitive damages aren’t just about compensation. They’re about punishment. They are awarded in rare but powerful circumstances to send a message that the behavior in question was not just negligent but grossly irresponsible, malicious, or knowingly dangerous.

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What Makes Punitive Damages Different

Unlike compensatory damages, which are meant to make the injured party "whole" again, punitive damages are awarded as a way of deterring others from engaging in the same or similar type of negligent or wrongful conduct. 

When a company or individual acts in a way that shows complete disregard for the safety of others, punitive damages are used to:

  • Punish the wrongdoer
  • Set an example
  • Deter others from behaving similarly

In short, punitive damages are the legal system’s way of saying, “This is not acceptable, and it won’t be tolerated.” It sends a message to the defendant and others would would act in similar ways that they'll be held accountable.

When Are Punitive Damages Awarded?

Punitive damages are not available in every personal injury case, nor are they available in most personal injury cases. They are typically only awarded when the defendant’s conduct rises above ordinary negligence. 

The bar is high, and the law reflects that.

To be eligible for punitive damages, a plaintiff typically must prove that the defendant acted with:

  • Gross negligence
  • Recklessness
  • Malice
  • Fraud
  • Willful or wanton misconduct

Examples of Cases That Might Result in Punitive Damages

Every case is different, but certain types of situations might be more likely to result in the court awarding punitive, or exemplary, damages than others. 

Some hypothetical examples of behavior that could warrant punitive damages include:

In these kinds of cases, juries may find that compensation alone isn’t enough—that the responsible party should be held to a higher level of accountability.

How Much Are Punitive Damages?

There is no fixed amount for punitive damages. Instead, juries decide based on several factors, including:

  • The severity of the defendant’s misconduct
  • The harm caused to the plaintiff
  • The wealth of the defendant (so the punishment has a meaningful impact)
  • The ratio of punitive to compensatory damages

Some states have caps or limits on how much can be awarded in punitive damages. In Texas, for example, punitive damages (legally called exemplary damages) are generally capped at the greater of $200,000 or twice the amount of economic damages, plus an amount equal to the amount of non-economic damages, up to $750,000.

However, these caps can vary depending on the specifics of the case. In some situations, they may not apply at all, such as in cases involving defendants that knowingly and/or intentionally commit felonies. 

Are Punitive Damages Common?

Punitive damages are relatively rare, but when they are awarded, it’s often in cases where lives were forever changed due to corporate misconduct or egregious negligence. At Arnold & Itkin, we’ve seen firsthand how a punitive damages award can help grieving families and survivors find some measure of justice—not just for themselves, but for anyone who might otherwise suffer the same fate.

We’ve represented clients in cases involving:

  • Oil rig explosions caused by ignored safety warnings
  • Industrial accidents stemming from cost-cutting measures
  • Catastrophic truck crashes where safety was knowingly compromised

While not every case results in the awarding of punitive damages, when they are awarded, they send a powerful message to other entities that gross misconduct and flagrant safety violations will not be tolerated. 

Our personal injury attorneys strive to not only make sure you receive everything you need and deserve but also to pressure manufacturers and other corporate entities to make changes that keep our communities safe. 

Why Do Punitive Damages Matter?

Punitive damages aren’t about taking more; they’re about accountability. When someone’s life is shattered by another’s reckless choices, justice requires more than just paying hospital bills or covering funeral costs. It requires change, and that change must be demanded by those who have suffered. 

Punitive damages create financial consequences that force companies to reevaluate their priorities. They make it clear that profits can’t come at the expense of human life. And they often lead to safer practices, stronger policies, and, ultimately, fewer families suffering the same pain.

Talk to a Personal Injury Lawyer About Your Rights

If you or someone you love has been seriously injured because of another’s negligence or recklessness, you may have questions about whether punitive damages could apply in your case. Recovering these types of damages requires a thorough investigation, strong evidence, and experienced legal representation.

At Arnold & Itkin, we’ve fought for families across the country who’ve endured the worst. We know what it takes to hold wrongdoers accountable and to make sure our clients get the justice they deserve—not just what an insurance company is willing to offer the first time. 

We’ve recovered billions of dollars for people who never thought they’d need a lawyer. If you’re in a situation where your life has been turned upside down, we’re here to help. We’ll answer your questions, walk you through your options, and fight for you every step of the way. Because we believe you deserve justice. No matter what. 

For more information on punitive damages and your rights, call (888) 493-1629 or contact us online for a free consultation.

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