How Are Punitive Damages Used in Personal Injury Law?

In personal injury law, punitive damages are difficult to prove, and are rarely pursued because they are difficult to prove. However, in cases in which a plaintiff (victim) can prove that the act which caused their injury was reckless, malicious, or egregious, punitive damages can be pursued.

Like most other damages, the amount of punitive damages a plaintiff can pursue varies based on factors surrounding the incident that caused the injury, including the severity of the injuries, the extent of the misconduct, and the defendant’s financial status.

When it comes to misconduct, punitive damages can be calculated based on the severity of the malice, reckless behavior, and whether the action was part of a pattern of behavior.

The severity of the injuries is another factor that can help calculate punitive damages. This can include physical, financial, and emotional harm, and any aggravating factors that could have contributed to the injury.

While compensatory damages can include the plaintiff’s financial losses, punitive damages focus on the financial status of the defendant. Because punitive damages are designed to punish a defendant in an effective way reviewing the defendant’s financials is a way to substantially deter the defendant from the negligent or malicious act that caused harm.

Famous Cases Punitive Damages Were Used

Liebeck V. McDonald’s

If you’ve ever heard a joke about someone suing someone for hot coffee, you probably already know a little bit about the Liebeck V. McDonald’s case. In 1992, Stella Liebeck suffered second- and third-degree burns when a cup of McDonald’s coffee spilled in her lap. Liebeck required skin grafts and spent nine days in the hospital.

Although Liebeck only sued for $20,000 to cover her medical bills, however, when McDonald’s denied the claim, the case went to court. Evidence proved that the McDonald’s in question had over 700 complaints about the temperature of the coffee, suggesting they knew about the dangers of the high temperatures. The jury in this matter awarded Liebeck $200,000 in compensatory damages and $2.7 million in punitive damages.

In this case, the punitive damages set forth to punish the defendant led to McDonald’s lowering the temperature of their coffee.

When Are Punitive Damages Used in the Legal Process?

The decision to pursue punitive damages comes early in the legal process. If you are in discussions with a personal injury attorney, they can help you decide whether or not your case has enough evidence to prove gross negligence or malicious intent. There could potentially be extenuating circumstances in which a deeper investigation shows that malicious intent is evident enough to pursue punitive damages.

Are Punitive Damages Used in Kentucky Personal Injury Law?

In Kentucky, personal injury victims can pursue punitive damages. Although there are no limitations or caps on the amount of punitive damages that can be awarded in Kentucky, the Due Process Clause in the state’s constitution ensures that punitive damages are appropriate for the injury.

Are Punitive Damages Used in Tennessee Personal Injury Law?

In Tennessee, plaintiffs can pursue punitive damages in personal injury cases; however, there are limitations and stipulations.

For example, according to Tennessee § 29-39-104 “Punitive damages may only be awarded if the claimant proves by clear and convincing evidence that the defendant… acted maliciously, intentionally, fraudulently or recklessly.” Additionally, plaintiffs may have to take additional steps, including an evidentiary hearing and a trial by jury.

Punitive damages in Tennessee are limited to two times the total amount of compensatory damages awarded, or $500,000, which ever amount is greater.

How Does Hughes & Coleman Injury Lawyers Use Punitive Damages?

During your case review, your personal injury attorney at Hughes & Coleman will ask you specific questions that help them better understand the circumstances surrounding your case. If there are any flags that may tell us we can help you pursue punitive damages, we will focus on them to get a better understanding of areas to focus our investigation.

Additionally, Hughes & Coleman also has a full staff of experienced investigators, and if they uncover gross negligence or malicious intent in the evidence they collect, your attorney can discuss options with you.

Frequently Asked Questions About Punitive Damages

Punitive damages are damages an injury victim seeks that go beyond compensatory damages. For example, compensatory damages would include covering medical bills, pain and suffering, and lost wages. Whereas punitive damages might be awarded if the plaintiff proves an injury was caused with intent or gross negligence.

Punitive damages are considered taxable income in Kentucky. Because punitive damages aren’t meant to make up for losses, but are meant to punish a defendant, punitive damages are considered additional income.

Punitive damages are considered taxable income in Tennessee. Compensation for punitive damages is considered additional income because it is not meant to recover losses for the plaintiff.