Punitive Damages: A Striking Deterrent For Fraudsters

What Is Punitive Damages

What Punitive Damage Is

Today there exist legal policies that are aimed solely at preventing crimes rather than gunning for the wrong doers after the crime has taken place. Punishments are in place with the intention of deterring others from committing any sort of activities that are deemed illegal or fraudulent. One of the biggest examples for the same is Punitive damages. So you might be wondering what is punitive damages? Well, this post will explain in detail about punitive damages and you can use this knowledge in future legal endeavors.

If you go by the rulebooks, punitive damages are those that are awarded to the plaintiff in a lawsuit with the intention of sending out a message to potential wrong doers. In the lawsuit, the plaintiff can claim damages in the name of Punitive damages from the defendant if the plaintiff can provide enough evidence to prove that the defendant made a malicious move or that his conduct was reckless and caused severe violations of the plaintiff’s rights.

Also known the world over as exemplary damages, punitive damages can be claimed by the plaintiff for any loss that he or she suffers because of the harm done to him or her due to the direct involvement of the defendant. If we look at a civil point of view, then punitive damages serve as an important and landmark judgment. The victim who is compensated might find justification for the harm done to him and it is also in the best interests of the society. Additional damage costs extracted from the defendant in this way will mean that potential violators will think twice before committing a crime.

Exemplary Damages

Punitive Damage And Its Meaning

What makes it different from other compensatory awards is that it is less predictable as compared to others. The main reason is that they do not occur frequently in verdicts. Most of the time, federal and even state judiciaries have a say in the amount paid as the punitive damage. Mostly if the compensatory amount that the defendant pays to the victim or plaintiff is higher, then punitive damages may be shortened or even waived off at times.

Whatever be the case, punitive damages indeed prove to be a highly deterring factor for people who engage in potential fraudulent practices. The amount of compensation that needs to be paid in this regard becomes too heavy and hence people see it better to avoid doing the crime.

The knowledge of what is punitive damages should be spread across the society so that more people are made aware of it and more people will be deterred from malicious acts.