What Are Punitive Damages in California?
- Courts award punitive damages to punish a defendant for malicious, oppressive, or fraudulent conduct and deter future misconduct.
- Punitive damages are known as non-compensatory damages because they do not compensate plaintiffs for their losses.
- You can only receive punitive damages if you were awarded compensatory damages in the same action.
- You must request punitive damages when you file your lawsuit, but you may not specify an amount.
- The court calculates punitive damages based on the defendant’s conduct and financial condition.
- California has no cap on punitive damages, but federal law prohibits excessive punitive damages.
- You can pursue punitive damages on behalf of a deceased loved one if your loved one would have been entitled to them.
- Our skilled personal injury lawyers at Cutter Law can determine whether you are eligible for punitive damages and help you pursue them.
When someone else’s outrageous misconduct harms you, compensation for your injuries may not go far enough to hold the culprit accountable. A court may award punitive damages in the interest of justice and to deter similar misconduct by the defendant and others.
Punitive damages in California are also known as exemplary damages. They are classified as non-compensatory damages because their purpose isn’t to provide compensation for losses. Non-economic and economic damages serve that purpose and are known as compensatory damages. Punitive damages are awarded above and beyond your compensatory damages.
Punitive damages are not available in all cases. Our award-winning personal injury lawyers in California can review your accident and determine whether your case qualifies.
Quicklinks
- What Are the Requirements for Punitive Damages in California?
- I Want to Pursue Punitive Damages. How Should I Proceed?
- How Are Punitive Damages Calculated?
- The Difference Between Punitive Damages and Compensatory Damages in California
- Frequently Asked Questions
- Let Cutter Law Handle Your California Punitive Damages Claim
When Are Punitive Damages Awarded in an Injury Claim?
Courts award punitive damages when a defendant’s conduct goes beyond mere negligence and stems from nefarious intentions or a reckless disregard for your rights and safety. These types of damages are commonly awarded in cases that involve the following types of misconduct:
- Drunk driving
- Reckless or aggressive driving
- Felony acts of violence, including assault, sexual assault, homicide, and attempted homicide
- Bad faith insurance claims when the insurer knowingly violated the law to deny your claim
- Product liability claims when a manufacturer took active steps to conceal its product’s harmful effects
- Medical malpractice claims when a doctor engages in a fraudulent coverup of a medical error, resulting in harm
What Are the Requirements for Punitive Damages in California?
Punitive damages are only available in limited cases when you have clear and convincing evidence that the defendant’s conduct leading to your injury was characterized by malice, oppression, or fraud, which are defined as follows:
- Malice – intentional conduct meant to cause injury or conduct that displays a blatant and willful disregard for the rights or safety of others, such as drunk driving and assault
- Oppression – outrageous misconduct that displays an intentional disregard for someone else’s rights and causes cruel and unjust hardship, such as when a bad faith insurer unjustly denies your claim
- Fraud – intentional misrepresentation, deceit, and concealment of facts the victim has the legal right to know, such as when a doctor intentionally withholds test results to conceal an error
The burden of proof required to win punitive damages is higher than the burden for proving compensatory damages. When making a case for compensatory damages, you only need to prove that your claim is more than 50 percent likely to be true. This standard is known as a preponderance of the evidence.
You must present “clear and convincing” evidence to win punitive damages. To meet this burden, you must prove that your claim is substantially more likely to be true than untrue.
In medical malpractice cases, you can only request punitive damages if the court permits you to file an amended claim requesting them. The court will only allow this if it finds that your punitive damages claim has a high probability of prevailing. You must make this request within two years of filing the initial lawsuit or nine months before the scheduled trial begins, whichever is earlier.
I Want to Pursue Punitive Damages. How Should I Proceed?
The first step in pursuing punitive damages is to hire an experienced personal injury lawyer with a record of successful results in punitive damage claims. Personal injury claims in California are complex, even if you’re not pursuing punitive damages. Punitive damages are even harder to win. Our skilled attorneys know what it takes to win punitive damages, and we have the record to prove it.
If we determine your claim qualifies for punitive damages, we will file a civil lawsuit and pursue economic and non-economic damages for your injuries. We will also timely request punitive damages. Punitive damages are only awardable if the court finds the defendant liable for your injuries and awards compensatory damages of at least a nominal amount.
If the court determines the defendant is liable for compensatory damages, it will consider whether the defendant is also liable for punitive damages. This may occur in the same trial or, at the request of either party, in a bifurcated trial. This is a separate trial in the same case.
When requesting punitive damages, you cannot specify an amount. The court determines the amount based mostly on factors related to the defendant.
How Are Punitive Damages Calculated?
There is no formula to calculate punitive damages. A judge or jury will award an amount that it determines is sufficient to punish the defendant and deter the defendant and others from similar conduct. This will be based on the following factors:
- How much the defendant profited from the misconduct
- The defendant’s financial condition
- The severity and egreiousness of the misconduct
Your compensatory damages can also play a role in how much compensation you recover. Although there is no hard and fast rule, punitive damages in California are commonly two to three times the amount of the compensatory damages awarded, but they can be higher in some cases.
The Difference Between Punitive Damages and Compensatory Damages in California
The differences between punitive damages in California and compensatory damages are summarized in the table below.
Category | Punitive damages | Compensatory damages |
|---|---|---|
Burden of proof | Clear and convincing evidence | Preponderance of the evidence |
Purpose | Punish the defendant and deter future misconduct | Compensate the plaintiff |
Can the plaintiff specify the amount? | The plaintiff cannot specify | The plaintiff must specify |
Factors that determine the award amount | Defendant’s finances and reprehensibility of the acts | Plaintiff’s losses |
Taxability | Taxable | Generally not taxable |
What has to be proven | Malice, fraud, or oppression | Negligence |
Awardable in a settlement? | No | Yes |
Who pays? | The defendant | An insurance company and/or the defendant |
Frequently Asked Questions
Below are answers to questions we frequently receive about punitive damages.
Are Punitive Damages Taxable in California?
Punitive damages are taxable under state and federal laws. According to the Internal Revenue Service, they should be listed as “Other Income” on Form 1040 when filing your federal taxes. Unlike compensatory damages, which are not taxable, punitive damages are income because they are not awarded as compensation for losses.
Does California Have A Cap On Punitive Damages?
California does not impose a dollar limit on the punitive damages you can recover. However, the United States Supreme Court prohibited excessive punitive damage awards in 2003 in the case State Farm v. Campbell. The court held that excessive punitive damages awards, such as those that would cause financial ruin, would violate the 14th Amendment’s due process clause.
In the ruling, the justices defined excessive punitive damages as those that are ten times the compensatory damages or more, generally speaking. However, they specified that a punitive damages award of four times the compensatory damages is constitutional but close to being excessive.
Can Employers Be Liable for Punitive Damages?
Employers are vicariously liable for an employee’s negligence. However, an employer is only liable for punitive damages stemming from an employee’s misconduct when it plays a direct role in the misconduct, such as the following:
- Knowingly hires an unfit employee while consciously disregarding the rights or safety of others
- Authorizes or approves the employee’s misconduct
- Perpetrates or participates in the misconduct
In cases involving corporate employers, the actions of an officer, director, or managing agent constitutes an action of the employer for the purpose of establishing liability for punitive damages.
Can I Receive Punitive Damages in a Settlement?
Punitive damages can only be awarded by a court. You cannot negotiate for punitive damages in settlement discussions. However, if a defendant is facing a strong possibility of having to pay punitive damages in the event the case goes to trial, this could serve as leverage to negotiate the settlement in the amount you deserve.
Does Insurance Cover Punitive Damages?
Insurance does not pay punitive damages in California for the conduct of an insured. The California Insurance Code prohibits insurers from covering damages for intentional acts, and the courts have determined that this applies to all punitive damages awarded in the state.
Since punitive damages are meant to serve as a penalty and deterrent, allowing defendants to avoid the penalty by simply passing it off to an insurer would defeat the purpose of punitive damages. They must come out of the defendant’s pocket.
However, insurers may be liable for punitive damages for their own conduct if they acted in bad faith.
Can I Seek Punitive Damages for the Death of a Loved One?
If your loved one would have been entitled to file a claim for punitive damages had they survived, then you may be able to pursue punitive damages in a wrongful death lawsuit. You will need clear and convincing evidence that your loved one’s death was caused by someone else’s malicious, oppressive, or fraudulent misconduct.
Our experienced California wrongful death lawyers are caring, dedicated attorneys who will fight tirelessly for justice for your loved one.
Let Cutter Law Handle Your California Punitive Damages Claim
If you or your loved one has been harmed by someone else’s outrageous conduct, you may have grounds to sue for punitive damages. We have won hundreds of millions in economic, non-economic, and punitive damages for our clients.
With more than 130 years of combined experience, our nationally recognized personal injury attorneys can get the results you deserve and hold bad actors accountable. We are ready to fight for the maximum punitive damages award available to you.
Contact us today to schedule a free consultation.
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