Exemplary Damages

Definition

Exemplary Damages, also known as punitive damages, are damages awarded to a private litigant against a defendant to punish the wrongdoing of the defendant and deter future similar conduct.

Purpose

The purpose of Exemplary Damages is to punish the defendant for particularly egregious or malicious behavior and to serve as a deterrent to others from engaging in similar conduct. These damages go beyond compensating the plaintiff and aim to make an example of the defendant.

Examples of Use

• Fraud Cases: Awarding exemplary damages to a plaintiff in cases where the defendant has committed intentional fraud.
• Gross Negligence: Punishing a company for severe negligence that led to significant harm or loss.
• Intentional Torts: Imposing punitive damages on a defendant who committed intentional harmful acts, such as assault.

Related Terms

• Compensatory Damages: Damages intended to compensate the plaintiff for actual losses suffered.
• Nominal Damages: A small amount of money awarded to recognize that a legal wrong occurred, even if no substantial harm was caused.
• Punitive Damages: Another term for exemplary damages, focusing on punishment and deterrence.

Notes

• The amount of exemplary damages awarded must be proportional to the defendant’s misconduct and the harm caused.
• Courts consider factors such as the severity of the wrongdoing and the defendant’s financial status when determining exemplary damages.