Proponents believe that the most important function that punitive damages serve is that of deterrence. Compensatory damages often take pain and suffering of an injury victim into account as well. This brings Nelly’s total recovery to a hefty $18,021. Punitive damages are a form of compensation that more than makes up for the expenses and effects of the actual damages. Supporters of punitive damages contend that one function for such an award is to provide retribution to the victim of the defendant's reckless or wanton conduct. Punitive damages are also known as vindictive damages, exemplary damages, deterrent damages, additional damages, punitory damages, penal damages, and smart money. Although the purpose behind punitive damages is not to compensate the plaintiff, they are paid to the plaintiff in court, making their financial recovery significantly smoother. § 51–12–5.1 which was adopted by the legislature as part of the Georgia Tort Reform Act of 1987. Compensatory damages often take pain and suffering of an injury victim into account as well. Punitive damages, also known as exemplary damages, are one of the types of money damages that a plaintiff can recover in a lawsuit. A. punitive damages B. compensatory damages C. liability damages D. nominal damages E. consequential damages The court made clear that state courts must employ this analysis or risk reversal. B. punitive damages. Critics contend that allowing punitive damages to early plaintiffs may bankrupt defendants, thereby depriving later plaintiffs of compensatory damages. A judge will award punitive damages if he wishes to make an example of the defendant, or if he believes that compensatory damages are not enough to punish the defendant. Special damages are a form of compensatory damages, intended to compensate a person for monetary expenses incurred because of an injury caused by the defendant’s actions. State legislatures and the courts have attempted to craft ways of ensuring reasonable punitive damage awards, but there is no uniform approach. 2000. Share this: Click to share on Facebook (Opens in new window) Click to share on Twitter (Opens in new window) Click to share on LinkedIn (Opens in new window) Her doctors determined that at least one of the substances contained in the supplement reacts with a number of prescription medications, one of which Amanda was taking, and thus caused her serious illness. Advocates of punitive damage awards also contend that these awards serve a compensation function. These aggravating circumstances typically refer to situations in which the defendant acted intentionally, maliciously, or with utter disregard for the rights and interests of the plaintiff. Punitive damages were first recognized in England in 1763 and were recognized by the American colonies almost immediately. _____ are used to punish the defendant and deter the defendant and others from repeating behavior that is particularly offensive. Punitive Damages Are Impermissible Under Foreign Substantive Law, Purchased a car from lot that filed bankruptcy, Purchased car, received title and car was damaged, Purchased lotion at pharmacy, something sharp in bottle, Purchaser without notice not obliged to discover to his own hurt, Punjab Agricultural University Student's Association, Punjab Agricultural University Teacher's Association, Punjab and Chandigarh College Teachers Union, Punjab and East Punjab States Union Road Transport Corporation. The legal term punitive damages refers to a monetary award ordered by the court to be paid by a defendant to the plaintiff in a civil lawsuit. Also known as exemplary damages, retributory damages or vindictive damages. 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