Punitive Damages
North Carolina provides victims of negligence the right to pursue compensation for their injuries. Most often, this includes what is known as compensatory damages to compensate you for the damages you incurred due to their negligence.
However, in some circumstances, working with a personal injury lawyer may help you recover punitive damages that go beyond your compensable losses and target abhorrent behavior.
The Purpose of Punitive Damages
Punitive damages are meant to punish and dissuade the conduct that caused your injuries. Examples of situations that may warrant punitive damages include a civil lawsuit for damages from an assault where the individual intended to cause harm. It might also include a product liability case in which a company knowingly distributed a defective product that caused your injury.
Punitive damages may not be awarded for injuries resulting from an act of omission but must be related to intentional conduct. The North Carolina Code Chapter 1D states that this may apply to a corporation in situations where leadership participated in or condoned the conduct.
Criteria for Punitive Damages in North Carolina Personal Injury Cases
While it may seem simple to make a case for punitive damages, the defendant’s behaviors must meet certain criteria. You must show that the defendant is liable for compensatory damages and that one or more aggravating factors apply. The claimant must establish one of these aggravating factors with clear and convincing evidence.
Fraud
Regarding punitive damages, fraud refers to situations in which deception, theft, or coercion resulted in injuries. This might include misleading branding or labeling of a product.
Malice
Malice is interpreted as actions born with a sense of personal ill will toward the defendant in a personal injury case. The courts may find evidence of malice in defamation or some instances of road rage.
Willful and Wanton Conduct
Willful and wanton conduct might be considered negligence that surpasses carelessness and moves to a near-intentional disregard for the safety and well-being of others. This may be someone who drives drunk, which knowingly puts people at risk. It may also include a property owner who ignores clear safety hazards that cause an injury.
Limitations on Punitive Damages in North Carolina
The value of punitive damages a judge awards can vary drastically because it must consider all relevant factors, such as the harm done, the defendant’s history of similar conduct, whether they profited from their behavior, and their ability to pay.
Within the context of the above factors, North Carolina limits the amount of recovery and caps damages at three times the compensatory damages, or $250,000, whichever is greater. If the jury returns an amount in excess of $250,000, the judge should reduce the amount to the maximum penalty.
Exceptions to Punitive Damages Limitations
North Carolina recognizes two types of cases that may be exempt from this cap. These are cases where the defendant was driving while impaired or caused damage or injury to a water, wastewater, or manufacturing facility.
Amount of Compensatory Damages in a Personal Injury Claim
You must make a case for compensatory damages before a judgment regarding punitive damages and potential caps. These are meant to compensate you for your losses through special and general damages. When a judgment awards these damages, it establishes the defendant’s liability for your injuries, allowing a separate judgment for punitive damages.
Special Damages
Special damages are specified costs of your injuries, such as medical bills, repair costs, or lost wages. These have a specified cost and are often determined based on estimates, invoices, or receipts, making them easier to quantify and support. These establish the baseline from which general damages are calculated.
General Damages
General damages account for the bigger-picture losses that may not be as tangible. This can include the cost of a decreased quality of life, pain and suffering, or the general experience of emotional duress from the process.
The value of general damages often depends on the value of special damages. For example, the stress of an accident that leaves you with a broken arm will differ greatly from one that leaves you paralyzed, and the damages should reflect that.
Punitive Damages in Your Personal Injury Case
Punitive damages are rarely awarded in North Carolina personal injury lawsuits. If you believe there were aggravating factors or gross negligence involved with your accident, you may be entitled to increase your settlement amount with punitive damages.
However, according to Chapter 1D-45, you may face the cost of reasonable attorney fees if the court determines you filed a claim for punitive damages when you knew or should have known it to be excessive or unfounded. It may be beneficial to discuss your situation with one of our attorneys at Chandler Volta Personal Injury Lawyers to assess the situation and the strength of your case for punitive damages. Contact us today at (704) 980-9999 to schedule a free consultation.