North Carolina allows punitive damages, but they are capped at either three times the compensatory damages or $250,000—whichever is greater. Punitive damages are also only awarded in cases where egregiously wrongful conduct was present.
These damages are not intended to compensate the victim, but rather, they punish the wrongdoer.
Punitive damages also aim to discourage the at-fault party from engaging in similar behavior in the future. If you are interested in seeking justice in the form of punitive damages, a Charlotte personal injury lawyer can help.
The Definition of Punitive Damages in Personal Injury Cases
Also known as exemplary damages, punitive damages are a type of personal injury damages that can be awarded in addition to compensatory damages. While compensatory damages can reimburse victims for their losses, punitive damages serve a different purpose.
They aim to penalize the defendant for their egregious misconduct while deterring people from partaking in similar decision–making in the future. While punitive damages are often considered when someone is injured, they are not awarded in every personal injury case.
Rather, punitive damages are generally reserved for circumstances in which the at-fault party acted with gross negligence, intentional malice, or willful disregard for the safety of others. They also might be able to increase the total amount of compensation you are awarded as the victim.
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What Are North Carolina’s Laws Regarding Punitive Damages?
While North Carolina allows punitive damages in some personal injury cases, they are only applicable under certain circumstances. Let’s take a look at the specific criteria that must be met and the limitations that might apply.
Legal Standard for Awarding Punitive Damages
Under North Carolina law, punitive damages can only be awarded if the plaintiff proves that the defendant’s actions involved one—if not more—of the following behaviors:
- Fraud: This term refers to the intentional act of deceiving someone to cause harm or gain an unfair advantage.
- Malice: You and your lawyer have to show that the other person carried out their actions with the deliberate intent to harm someone.
- Willful or wanton conduct: This entails a scenario in which the at-fault party showed a reckless disregard for the rights or safety of other people.
Compared to compensatory damages, punitive damages carry a higher standard of proof because you—as the victim—must present clear and convincing evidence that at least one of these factors was present at the time of the behavior that caused you harm.
Caps on Punitive Damages
North Carolina imposes a cap on punitive damages with the goal of preventing victims from receiving excessively large compensation awards. The maximum amount of punitive damages is either $250,000 or three times the amount of compensatory damages.
However, there are exceptions to this cap. It does not apply in personal injury cases involving impaired driving. In other words, situations where the at-fault party was under the influence of drugs or alcohol are not held to the cap mentioned above.
When Might Punitive Damages Be Awarded in North Carolina?
Punitive damages are not available in every personal injury case because the courts reserve these awards for situations where the defendant’s behavior exceeds negligence. They are applied to circumstances that venture into the realm of egregious misconduct.
These are three examples of scenarios where punitive damages might apply:
Drunk Driving Accidents
Punitive damages are often awarded in cases that involve drunk driving. Operating a vehicle while intoxicated shows a blatant disregard for the safety of others.
Medical Malpractice
In rare instances, punitive damages may be awarded in medical malpractice cases. Situations like this can arise when a healthcare provider either intentionally harms a patient or acts with reckless indifference to the consequences of their actions.
Intentional Acts
If the defendant’s actions were deliberate—such as in cases of assault or intentional fraud—punitive damages may be appropriate. The court will evaluate the severity of the misconduct and its impact on the victim when deciding if punitive damages should apply.
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Challenges When Pursuing Punitive Damages as a Personal Injury Victim
While punitive damages can send a strong message to those who did you wrong and caused you harm, they are not necessarily easy to secure. Let’s take a look at why this is the case.
Higher Burden of Proof
Unlike compensatory damages—which require proof of the defendant’s negligence—you must have clear and convincing evidence of malicious or reckless behavior before you can pursue punitive damages. This higher standard of proof makes it harder to win.
Complicated Defense Strategies
Defendants and their insurance companies will often do everything in their power to avoid paying punitive damages. They may even argue that the at-fault party’s actions do not meet the legal standard for gross negligence or willful misconduct.
However, you don’t have to let the insurance company take you for a ride. Instead of accepting offers from insurance companies or speaking with adjustors directly, reach out to our law firm. We can help ensure you do not accept a low offer.
Recovery-Related Limitations
The cap on punitive damages can limit the total amount that you are awarded in cases that are held to North Carolina laws. While this cap is designed to prevent excessive awards, it can also incidentally reduce the financial impact of punitive damages for victims who deserve them.
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Call a Charlotte Personal Injury Law Firm for Legal Advocacy When Pursuing Fair Compensation
If you were harmed because of someone else’s behavior—be it reckless or intentional—you might be eligible to pursue punitive damages when seeking justice for your injuries. This is one of the many ways by which you can hold the at-fault party accountable.
At DeMayo Law Offices, we’re Your North Carolina Law Firm™ when you need someone you can trust to advocate for you as a personal injury victim. We believe in People Over Profits™, and that’s why we work on a contingency basis.
This means you won’t owe us any money until we obtain a fair compensation offer as part of your personal injury case. Reach out to us today to schedule a consultation with our team and learn more about what we can do for you.
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