Why Punitive Damages Are Rare in Personal Injury Cases

There is an ongoing misconception about damages awards or settlements in the U.S. When people think of personal injury cases, they automatically assume that victims get paid large sums of money. 

While victims certainly do get awarded reasonable settlements, they are hardly ever into the millions. Large settlements are mostly associated with punitive damages, which are hardly ever awarded in the U.S. 

They are a rare outcome for personal injury claims because punitive damages have a higher burden of proof. 

What Are Punitive Damages?

There are three primary types of damage that victims claim in a personal injury case. These are economic, non-economic, and punitive damages. The first two are very common, especially economic damages. 

Punitive or exemplary damages are not meant to compensate an injured party. The point of punitive damages awards is to punish the at-fault party. This usually happens when the at-fault party’s negligence is extremely egregious. 

Courts that award punitive damages do so, hoping that it will deter the at-fault person from being negligent. 

This also means that punitive damages can serve a greater purpose for a local community. It protects them against at least one very negligent individual and subsequent harm. 

A Higher Burden of Proof

The problem with punitive damages is that it is not easy to prove egregious behavior. 

In Florida, the ‘preponderance of the evidence’ is the standard required for economic and non-economic damages. When it comes to punitive damages, plaintiffs (victims) must meet the ‘clear and convincing evidence’ standard. 

Preponderance means that it is more likely than not that the at-fault party’s actions led to the victim’s injuries. The clear and convincing standard requires factual evidence that proves a victim’s claims are more likely to be true and untrue. 

Punitive damages payouts are not easy to come by for a reason. It prevents punitive damage awards from being handed out in too many cases. In reality, punitive damages should only ever be awarded for egregious misconduct. 

When Can a Victim Claim Punitive Damages?

Victims can only be awarded punitive damages if they can prove the following:

• Intentional misconduct. The victim must prove that the at-fault party knew their actions were wrong. They must also prove that the at-fault party knew their actions would lead to harm, but they proceeded anyway. 
• Gross negligence. Alternatively, the victim must prove that the defendant’s actions showed reckless disregard for others’ safety. 

These are the main criteria that must be fulfilled in a punitive damages case. Punitive damages would be awarded for any personal injury case if not for these criteria. 

Caps on Punitive Damages in Florida

Florida caps punitive damages under Statute 768.73. These caps are as follows:

• $500,000 or three times the amount of compensatory damages, depending on which is greater. 
• If the at-fault party’s misconduct was driven by financial gain while knowing their actions would cause harm, the cap increases to $2 million or four times the compensatory damages (depending on which is greater). 

Some exceptions apply. For instance, if the at-fault party committed fraud or assault, punitive damage caps will likely not apply. Conversely, punitive damages will not be recoverable if the personal injury claim involves a government entity. This is because government entities are protected by sovereign immunity. 

Examples of Situations That Warrant Punitive Damages

Unfortunately, several accidents and incidents warrant punitive damages claims. These include:

• Drunk driving accidents. A driver may be drunk and cause a severe or fatal accident. If the driver is found grossly negligent, victims may claim punitive damages. 
• Product liability. A company may knowingly sell a defective product. The company will be liable for punitive damages if the product harms a customer. 
• Nursing home abuse. This is one of the more horrific examples of a reason for punitive damages claims. Throughout the U.S., older people suffer abuse and neglect in nursing homes. In some instances, the abuse is revealed before it is too late, and victims and their families can file a punitive damages case. 
• Environmental harm. Many companies pollute the environment, knowing the harm it causes. If they are found out, they may face a punitive damages lawsuit.

Punitive Damages Cases Come With Challenges

If you want to file a punitive damages case, you will inevitably face challenges. For instance, you will have to prove misconduct or gross negligence definitively. This requires extensive evidence, including documentation, testimonies, and expert analysis.

Not to mention that getting expert testimonies and analysis costs money. You will have to fork out extra on top of what you are paying your lawyer (if there is no contingency fee). 

If your case goes to court, it will be scrutinized to ensure it meets all punitive damages standards. The defendant’s financial situation will also play a role in a punitive damages case. Your case will likely fail if the defendant does not have assets or money. 

You will also have to go through Florida’s bifurcated trial process. This is a two-trial process that goes as follows:

• Liability phase. During this phase, you must prove that the at-fault party is liable for damages. 
• Punitive phase. If the defendant is found liable, the court must decide whether punitive damages are appropriate. 

This approach ensures punitive damages are considered only if the burden of proof is met. 

Punitive Damages Awards Will Always Be Rare

As mentioned, punitive damage claims are rarely successful to help prevent frivolous claims. It is also true that the challenges brought by punitive damages cases encourage parties to settle. This allows both parties to avoid a drawn-out court case. 

It also protects defendants from having to pay excessive amounts. Punitive damages awards are sometimes unfair and could lead to a defendant’s bankruptcy.

What You Need to Remember

If you insist on pursuing punitive damages, you must hire a lawyer. You must also have strong evidence of misconduct or gross negligence. Still, even if you have all these elements in place, your case will likely take months to years to resolve. 

You do not have to let challenges derail your claim. However, you should stay prepared for how intense and long your case may be. 

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