In the end, she received a massive $160,000 in compensation and $480,000 in punitive damages. Punitive damages are also referred to as exemplary damages and are only one type of award given to the plaintiff. 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. 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’. 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. • Punitive damages may only be awarded for breach of an independent actionable wrong. They are the legal system's method of discouraging future bad behavior by making it financially harmful to the defendant. 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. 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. Looking for a flexible role? 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 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. 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. Lord Devlin said, Restitutionary damages are a less extreme remedy than exemplary damages. 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. Aggravated damages. 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 is usually due to the defendant acting in such a malicious way, or with greater intent than typically seen. This is a subtle difference, but a big one. 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 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. However, the company was aware they had an issue with their cups and lids but did nothing to address it. Required fields are marked *. 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. ‘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’. In this case, the 1st plaintiff appellant claimed N100,000 exemplary damages for unlawful entry on the premises at No. Punitive damages are damages awarded in a civil trial as a way to punish a defendant for gross negligence or severe misconduct. Punitive damages go beyond compensating the aggrieved party and are specifically designed to … 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. 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. Reference this. 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. They are added to the defendant’s balance in certain circumstances. 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. Exemplary damages are not automatically given. Save my name, email, and website in this browser for the next time I comment. Exemplary damages are set according to the compensatory damages awarded to the plaintiff. ‘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’. There is a slight difference with Exemplary damages. 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. A jury found McDonald’s guilty of knowing their product was dangerous and therefore awarded both regular compensation and punitive damages. *You can also browse our support articles here >. Exemplary or punitive damages are awarded when the court finds the defendant’s conduct is particularly reprehensible. ‘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’. 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. 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 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. Do you have a 2:1 degree or higher? ‘Exemplary damages are essentially different from ordinary damages. 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. 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. Company Registration No: 4964706. So, as we see, punitive and exemplary damages are both designed for the victim’s benefit. Art. 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. ‘National and international companies can exercise enormous power. 2230. Each respondent was accordingly ordered to pay a further £20,000 to Axa in exemplary damages. Exemplary damages are damages awarded in a court case which go beyond compensation to the victim. 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. 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 object of exemplary damages is to punish and deter’. There are many reasons why a judge may award exemplary damages. Punitive damages are legal compensations added on top of standard compensation already awarded. 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. 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. Free resources to assist you with your legal studies! Although often requested, exemplary damages are seldom awarded. Exemplary damages are available in certain cases and have been severely limited by state law and court decisions. There is a slight difference with Exemplary damages. ‘Exemplary damages are essentially different from ordinary damages. Here lies the possibility of extra damages being awarded. 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. According to Ernest Weinrib, the remedy is ‘encased in controversy’. 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. Most states have a limit on how much a plaintiff can receive in exemplary damages. Instead, it looks to the conduct of the defendant. Typically, the plaintiff may receive up to about three times the compensatory award. They are awarded by a court of law when compensatory damages are deemed to be insufficient. The law of unjust enrichment has developed apace in recent years. Twitter Likes Or How To Get More Appreciation From Followers? • Exemplary damages (synonymous with “punitive damages”) are an award made not for the purpose of compensating the plaintiff but for punishing the defendant. 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. Does It Make Sense To Put A Google Home In Your Car? Mrs. Liebeck had long-lasting effects from this incident, which is why punitive damages were sought. 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. Definition of Exemplary Damages. Company Law ‘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’. 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. This means they were willfully negligent, and a judge may award you punitive or exemplary damages at this point. … Compensation is standardly awarded after accidents where the plaintiff was not at fault, such as work-related injury or car accidents. Even if those requirements are met, the amount that can be awarded for exemplary damages is not unlimited. Exemplary damages, also known as punitive damages, can be awarded to a plaintiff as a way to punish a defendant for extremely harmful conduct. An award of exemplary damages serves it purpose well by not only punishing and deterring but also by protecting individual civil liberties. 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. So do some individuals. For example, if you were a victim and were paid $25,000 in compensation to cover your expenses, the court could award you up to $100,000 in punitive or exemplary damages. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on LawTeacher.net then please: Our academic writing and marking services can help you! 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. VAT Registration No: 842417633. As explained above, the offending party must act with malice. 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. 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. 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. Moreover, ‘criminal justice properly requires that the defendant is on notice as to what constitutes wrongdoing. Punitive damages are award in addition to any compensatory or other damages, increasing the plaintiff’s total award. These damages are also known as punitive damages in some legal systems. These can cover medical bills, loss of earnings, and lawyer’s fees. They are also called exemplary damages.. The nature of the defendant’s conduct calls for a further response from the courts’. 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. However, in the case of Kuddus v Chief Constable of Leicester (2001) not only was this bar unanimously removed but Lord Nicholls also heavily criticised Lord Devlin’s formulation because whatever the position forty years ago, he respectfully inclined to doubt the soundness of the distinction between government officials and companies and individuals. As previously mentioned, punitive damages are awarded mainly as a deterrent. Exemplary damages in New Zealand arise in cases involving outrageous conduct. Copyright © 2003 - 2020 - LawTeacher is a trading name of All Answers Ltd, a company registered in England and Wales. 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. Call us today at 281-283-8500 for a free case evaluation and learn how we can put our experience and record … 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. The object of exemplary damages is to punish and deter’. 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. ‘From time to time cases do arise where awards of compensatory damages are perceived as inadequate to achieve a just result between the parties. However, over the last 30 years, Texas Courts and the Texas Legislature has made it increasingly difficult to obtain punitive damages. 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 has been awarded in cases related to environment as well. 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. Here we will discuss the subtle differences and explain why they exist, especially in the state of Michigan. The object of damages in the usual sense of the term is to compensate. Accordingly, in M.C Mehta v. How To Meet More New People When You Are Single, Australian Tax Insights – Do You Qualify For Personal Service. In Australia, punitive damages are not available for breach of contract, but are possible for tort cases. However, punitive aim more at punishing the defendant, deterring them from acting in the same way in the future. 6th Aug 2019 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. She sued McDonald’s when they refused to pay her medical bills for extensive burns to her legs. John Cooke, (2005), Law of Tort, 7th Edition, Pearson Education Limited, Essex, S. I. Punitive and Exemplary Damages are both types of compensation awarded to plaintiffs. However, there are slight differences between the two. 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. Punitive damages are also called exemplary damages. 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. This is not an example of the work produced by our Law Essay Writing Service. ‘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. 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. You would be able to sue for regular compensation to cover your medical bills and loss of earning after the accident. There is no obvious reason why, if exemplary damages are to be available, the profit motive should suffice but a malicious motive should not’. Punishment is also an argument in favour of exemplary damages with some arguing that this is the primary objective for their existence. Recommendations by the Law Commission suggest that there is a need for insurance against claims for exemplary damages and that there be the possibility of vicarious liability whereby an innocent employer will be held liable in circumstances where employees are unlikely to be able to satisfy an award or where identifying the blameworthy member of the employers staff is proven problematic. If the court finds that the company was aware of this issue, but did nothing to fix it, they, therefore, did not do everything in their power to keep you safe while on their premises. can help. Disclaimer: This work has been submitted by a law student. 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. 63.2. 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’. , ( 2005 ), law of tort, 7th Edition, Pearson Education limited Essex! 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