April 12, 2011

How Often Do Litigants Seek Punitive Damages and How Often Do Courts Award Them?

Courts award punitive damages not to compensate an injured plaintiff but to punish a defendant and deter others from committing similar acts. A study by the federal Bureau of Justice Statistics found that:
  • litigants sought punitive damages in 12% of the estimated 25,000 civil trials concluded in 2005,
  • plaintiffs received punitive damages in 30% of the 1,761 civil trials in which these damages were requested and the plaintiff prevailed, and
  • the median punitive damage award was $64,000 but 13% of cases with punitive damages awards had damages of at least $1 million.

Researchers sampled state courts from around the country to reach these conclusions. The data includes tort and contract trials.

The study also finds that parties sought punitive damages most frequently in cases involving tortuous interference with a contract (42% of these trials) and slander or libel (33% of these trials). Individuals suing the government sought punitive damages in 21% of the trials, a higher rate than when suing other individuals, businesses, or hospitals.

The judge or jury awarded punitive damages in 5% of the 14,359 trials where the plaintiff prevailed. Punitive damages were awarded most frequently in trials involving intentional torts (30% of the trials where the plaintiff prevailed), contract fraud (23% of these trials), and employment discrimination or disputes (22% of the trials).

The report includes additional details about the types of claims, types of plaintiffs and defendants, award amounts, and appeals. The report notes that it focuses on punitive damages in the 3% of tort and contract cases that are concluded by trial and there is no information on punitive damages as part of settled cases.