Definition of liquidating damages
There are rules governing the award of punitive damages.
They are most commonly awarded in cases in which the compensatory damages seem to be an inadequate remedy, and because of the defendant’s egregious conduct.
The judge then awards Amanda punitive damages in the amount of 0,000, with the hope that a large hit to its bank account will convince the supplement company to change its ways, to be more serious about the safety of the supplements it manufactures.
While it is common for a plaintiff to be awarded money to pay for a wrong committed by the defendant, such as money to pay medical bills, or for property damage, punitive damages are awarded only for the purpose of punishing the defendant for his conduct.
Her doctors determined that at least one of the substances contained in the supplement reacts with a number of prescription medications, one of which Amanda was taking, and thus caused her serious illness.
Amanda’s medical bills amounted to nearly ,000, prompting her to file a civil lawsuit against the company to recoup her medical expenses, as well as lost wages for the two weeks she was off work.
Punitive damages are awarded as punishment for the misconduct of the defendant.
Punitive damages are awarded to the plaintiff, but the main goal is deterrence of the behavior that brought about the lawsuit.
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For instance, if a plaintiff is awarded $50,000 in compensatory damages, the court would not typically award him more than $200,000 in punitive damages, unless special circumstances existed.