Punitive Damages and Auto Accidents - What You Need To Know

Many people ask what types of damages an injured person is entitled to receive from a car, truck, or motorcycle accident.  In most cases where Personal Injury Protection (PIP) coverage applies, the only damages are past and future medical care, past and future lost wages, and pain/suffering only if the injuries are permanent. But what about Punitive Damages?

Three Types of Damages Awarded

When it comes to damages awarded in a legal case, there are three types that are typically identified: punitive damages, compensatory damages, and exemplary damages.

Punitive damages are designed to punish a wrongdoer for particularly egregious behavior, while compensatory damages are intended to compensate a victim for a specific harm he or she experienced. Exemplary damages, on the other hand, are awarded as a way to set a legal precedent and deter others from making similar mistakes in the future.

Each of these types of damages serves an important purpose in the legal system, and knowing the differences between punitive damages, compensatory damages, and exemplary damages is crucial to navigating the legal process effectively and better understanding your case.

What Are Auto Accident Punitive Damages?

Punitive Damages, unlike the damages listed above, are designed to punish the negligent party instead of compensating the injured person. However, punitive damages are only available in certain types of auto accident cases when the person acted with willful, wanton, or reckless conduct.

When Are Punitive Damages Awarded, Typically?

The most common scenario is when someone is driving under the influence of alcohol and causes injury. This means the jury can not only award money for past and future medical care and lost wages but also to punish the person that caused your injuries.

What a Punitive Damages Claim Means For Your Case

This claim for punitive damages can also add significant value to your case in the insurance company’s view. Also, most courts have held even if the injured party was comparatively negligent, the punitive damage award will not be reduced by the percentage of negligence.  

Punitive Damages FAQs

What are punitive damages?

Punitive damages are monetary awards that are meant to punish the defendant for their wrongdoing and deter them from committing similar actions in the future.

How do courts determine the amount of punitive and compensatory damages?

The amount of punitive damages is typically left to the discretion of the court, and there is no set formula for calculating it. Factors influence punitive damages, including the severity and egregiousness of the defendant's conduct, their financial status, and any previous punitive damages awards in similar cases.

Do judges award punitive damages in every case?

No, punitive damages are not awarded in every case. They are typically reserved for cases where the defendant's actions were particularly malicious, fraudulent, or reckless.

Is compensation from punitive damages taxable?

Punitive damages may be subject to taxes depending on the specific circumstances of the case and the laws in your jurisdiction. It is best to consult with a tax professional for more information.

Are punitive damages awarded in addition to compensatory damages?

Sometimes, yes, punitive damages can be awarded in addition to compensatory damages. Compensatory damages aim to compensate the victim for their losses, while punitive damages serve as a form of punishment and deterrent.

Is there a limit to the amount of punitive damages that can be awarded?

The Supreme Court has stated that excessive punitive damages awards violate the Due Process Clause of the 14th Amendment. However, this determination is made on a case-by-case basis, so it is based on a 10:1 ratio. Put simply, punitive damages cannot exceed ten times the initial award that is granted.

How A Hernando County Car Accident Attorney Can Help

Car, truck, and motorcycle crashes can be devastating and you may not know what areas of damages you are entitled to recover. Therefore, you will need a personal injury attorney to take the proper steps to assure you receive all compensation for your injury, including any potential punitive damages.

If you or someone you care about is injured in an accident, we offer free consultations on all injury cases and will pursue your personal injury claim for free if there is no recovery.  Make sure you receive all the damages you are entitled to.  You have nothing to lose. Call today and speak with a lawyer for free.