Standard compensation in the United States is awarded to a plaintiff to help them pay off any costs incurred after an accident or during a court case. Exemplary damages are not automatically given. So, as we see, punitive and exemplary damages are both designed for the victim’s benefit. • Exemplary damages (synonymous with “punitive damages”) are an award made not for the purpose of compensating the plaintiff but for punishing the defendant. ‘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. 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. Punitive damages are also referred to as exemplary damages and are only one type of award given to the plaintiff. All rights reserved. Definition of Exemplary Damages. 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. Save my name, email, and website in this browser for the next time I comment. An award of exemplary damages serves it purpose well by not only punishing and deterring but also by protecting individual civil liberties. This is usually due to the defendant acting in such a malicious way, or with greater intent than typically seen. If you feel you deserve this extra damages payment, it’s certainly worth fighting for! Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Exemplary damages has been awarded in cases related to environment as well. On the other hand, exemplary damages are designed as an extra reward or support to a victim. 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. 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. These can cover medical bills, loss of earnings, and lawyer’s fees. The suggestion is then that ‘exemplary damages see private law doing the criminal law’s job and this is desirable because the criminal law alone cannot perform its task effectively’. They are added to the defendant’s balance in certain circumstances. Lord Devlin identified three types of cases in which exemplary damages, the purpose of which was not to compensate the claimant but to punish the defendant, to deter such behaviour in the future and to express the court’s disapproval of the behaviour, could be awarded. This means they were willfully negligent, and a judge may award you punitive or exemplary damages at this point. 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. Disclaimer: This work has been submitted by a law student. The object of damages in the usual sense of the term is to compensate. 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. How To Meet More New People When You Are Single, Australian Tax Insights – Do You Qualify For Personal Service. *You can also browse our support articles here >. Punitive damages go beyond compensating the aggrieved party and are specifically designed to … ‘Exemplary damages or punitive damages, the terms are synonymous, stand apart from awards of compensatory damages. ‘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’. Each respondent was accordingly ordered to pay a further £20,000 to Axa in exemplary damages. 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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. ‘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’. Accordingly, in M.C Mehta v. Exemplary damages . However, the company was aware they had an issue with their cups and lids but did nothing to address it. One final issue regarding exemplary damages is that upon the death of the claimant claims for an award of exemplary damages are extinguished but survive the death of the defendant, this provided the Law Reform (Miscellaneous Provisions) Act 1934 s1(2)(a). Exemplary damages are seen as an extra financial reward to a plaintiff based on the nature of their suffering and go above and beyond standard compensation. 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’. 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. Company Registration No: 4964706. Although often requested, exemplary damages are seldom awarded. 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. Exemplary damages are set according to the compensatory damages awarded to the plaintiff. 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. ‘Exemplary damages are essentially different from ordinary damages. Here lies the possibility of extra damages being awarded. Following Lord Devlin’s very prominent judgment a bar of action was imposed on exemplary damage cases, this bar implemented by the case of AB v South West Water Services (1993) which involved an action for public nuisance and negligence. This scenario is similar to a real-life example of extra damages being awarded: In 1994 Stella Liebeck, then 79 years old, spilled hot coffee on her lap in McDonald’s. Punitive damages awarded in a US case would be difficult to get recognition for in a European court, where punitive damages are most likely to be considered to violate ordre public. This somewhat contradicts the purpose of exemplary damages because death as a result of a tort seems to afford the strongest case for punishment and to allow a deceased victim’s estate pursue a claim for damages further promotes the principle of deterrence. ‘The principled case for retention [of exemplary damages] begins with the proposition that civil punishment is a different type of punishment from criminal punishment; the conclusion drawn from this is that it is coherent to pursue the aims of punishment (retribution, deterrence, disapproval) through the civil law, in addition to the criminal law and in a civil form which does not necessarily mimic the criminal form’. Exemplary damages in New Zealand arise in cases involving outrageous conduct. 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. … You should not treat any information in this essay as being authoritative. As explained above, the offending party must act with malice. In addition to this further offence is given to the notion that the prescribed punishment should fit the crime; criminal law often specifies penalties, whereas the amounts of punitive damages which can be awarded are usually at large and because of the lack of specification relating to how much need be awarded, this in turn leads to uncertainty as awards vary vastly. 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. Punitive damages are damages awarded in a civil trial as a way to punish a defendant for gross negligence or severe misconduct. You will often hear of people suing someone for compensation when they have been physically or mentally harmed during an accident. Moreover, ‘criminal justice properly requires that the defendant is on notice as to what constitutes wrongdoing. Typically, the plaintiff may receive up to about three times the compensatory award. Take a look at some weird laws from around the world! Some jurisdictions recognize a form of damages, called, aggravated damages, that are similar to punitive or exemplary damages. VAT Registration No: 842417633. 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). Instead, it looks to the conduct of the defendant. 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. However, punitive aim more at punishing the defendant, deterring them from acting in the same way in the future. Exemplary damages, also known as punitive damages, can be awarded to a plaintiff as a way to punish a defendant for extremely harmful conduct. Aggravated damages. Most states have a limit on how much a plaintiff can receive in exemplary damages. The three cases outlined above are exemplary and help illustrate the upper range of punitive damages available to plaintiffs. As a result of this bar exemplary damages were not available in those causes of action where such damages had not been awarded prior to the case of Rookes v Barnard (1964), this including public nuisance and negligence. can help. 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 … 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. Registered Data Controller No: Z1821391. Read on to find out more. There is a slight difference with 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. ‘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’. They are awarded by a court of law when compensatory damages are deemed to be insufficient. Allowing a plaintiff to pursue a civil action for exemplary damages is thought to deter reoccurrence of the tortfeasors behaviour as the punishment incurred goes beyond compensation and beyond putting right the damage caused. In the case of Rookes v Barnard (1964) in which the plaintiff, a skilled draughtsman, brought an action for damages after he had been subjected to unlawful means of inducement to terminate his contract of service, and/or a conspiracy to have him dismissed, Lord Devlin held that ‘there are certain categories of cases in which an award of exemplary damages can serve a useful purpose in vindicating the strength of the law and thus affording a practical justification for admitting into the civil law a principle which ought logically to belong to the criminal’. 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. Even if those requirements are met, the amount that can be awarded for exemplary damages is not unlimited. The award of exemplary damages is a very controversial remedy in civil law this providing many arguments for its retention and many for its abolition. 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, in some cases, punitive damages are awarded in insurance bad faith cases that arise under an insurance policy. 7 In . 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. 63.2. Exemplary damages. 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. Punitive damages are legal compensations added on top of standard compensation already awarded. Punishment is also an argument in favour of exemplary damages with some arguing that this is the primary objective for their existence. Call us today at 281-283-8500 for a free case evaluation and learn how we can put our experience and record … They are awarded both to deter the defendant and others from conduct similar to the conduct that gave rise to the lawsuit, and to punish the defendant. 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. They are also called exemplary damages.. 2230. 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. 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. However, there are slight differences between the two. Free resources to assist you with your legal studies! Nonetheless, even though a report by the Law Commission stated that exemplary damages should be available to all torts, upon consideration of an award for exemplary damages, it was held that it is not necessary to consider whether the cause of action was of one which had been awarded prior to 1964 but instead whether the situation in which an award is being claimed is covered by Lord Devlin’s formulation. 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. Looking for a flexible role? They are the legal system's method of discouraging future bad behavior by making it financially harmful to the defendant. Exemplary or corrective damages are imposed, by way of example or correction for the public good, in addition to the moral, temperate, liquidated or compensatory damages. On the contrary, where conduct is not punishable by criminal law or is but rarely prosecuted then this begs the question why, ‘if the conduct in question is thought insufficiently serious to demand criminal regulations, punishment is thought appropriate when applied indirectly through the law of torts’. 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. Company Law The nature of the defendant’s conduct calls for a further response from the courts’. Twitter Likes Or How To Get More Appreciation From Followers? There are many reasons why a judge may award exemplary damages. 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