In most personal injury cases, the goal of a lawsuit is to compensate the victim for the losses they’ve suffered. These compensatory damages may include things like medical bills, lost income, and pain and suffering. However, there’s another category of damages that’s much less common but equally important in certain cases: punitive damages.
Unlike compensatory damages, punitive damages are not meant to reimburse the injured party. Instead, they’re intended to punish the wrongdoer and deter others from engaging in similar conduct. Understanding when punitive damages apply, how they’re calculated, and their role in Georgia personal injury law is essential if you’re pursuing a serious injury claim involving reckless or malicious behavior.
What Are Punitive Damages?
Punitive damages are sometimes called exemplary damages. These damages are awarded in civil court cases when the defendant’s actions go beyond simple negligence.
Punitive damages are only available when the wrongdoer acted with:
- Willful misconduct
- Malice
- Fraud
- Oppression
- Conscious indifference to consequences
In other words, the defendant must have done something truly egregious, like driving under the influence, committing assault, or intentionally falsifying records that led to injury.
What Is the Purpose of Punitive Damages?
There are two main purposes for punitive damages in Georgia:
- Punishment: To penalize individuals or entities for conduct that society deems especially dangerous or morally wrong.
- Deterrence: To discourage similar behavior by others in the future by making it clear that there are serious financial consequences.
Punitive damages are not awarded in every personal injury case. In fact, they are only allowed in situations where ordinary negligence is not enough to explain the defendant’s behavior.
When Are Punitive Damages Awarded in Georgia?
Under Georgia law, punitive damages can only be awarded when the plaintiff can prove, through clear and convincing evidence, that the defendant’s actions were especially harmful.
Situations that may justify punitive damages in Georgia include:
- Driving under the influence of alcohol or drugs
- Nursing home abuse or neglect
- Intentional acts of violence or harassment
- Defective product cases involving cover-ups or fraud
- Commercial vehicle cases involving falsified driving logs or ignored safety warnings
Unlike compensatory damages, which can be awarded in nearly all injury claims, punitive damages are strictly limited to rare, severe cases where punishment and deterrence are appropriate.
How Are Punitive Damages Calculated?
Punitive damages are not based on the plaintiff’s losses. Instead, they’re calculated with the intent to make a statement and deter bad behavior.
Georgia law places caps on most punitive damage awards, and generally, the limit is $250,000.
However, the damages may exceed the cap if the case involves:
- Intentional harm
- Product liability claims involving fraud or cover-up
- Driving under the influence of drugs or alcohol
In these exceptional cases, there may be no cap on punitive damages, allowing a jury to award as much as they believe is appropriate based on the severity of the misconduct.
When awarding punitive damages, courts may consider factors such as:
- The degree of misconduct involved
- The financial status of the defendant
- Whether the conduct was part of a pattern of behavior
- Whether the defendant attempted to cover up their actions
Punitive damages are meant to send a message, and that message is stronger when the award is significant enough to impact the defendant.
Are Punitive Damages Taxable?
Yes. While compensatory damages for physical injuries are often non-taxable, punitive damages are typically considered taxable income under federal tax law. If you receive punitive damages, you should speak with a tax professional to understand how your award will be treated.
Do You Have to Request Punitive Damages?
In Georgia, punitive damages must be specifically requested in your lawsuit. You’ll also need to present clear and convincing evidence that the defendant’s behavior meets the legal threshold.
Your lawyer can help determine whether your case qualifies for punitive damages and develop a strategy to pursue the maximum award.
Punitive Damages vs. Compensatory Damages
To understand punitive damages fully, it’s important to distinguish them from compensatory damages:
- Compensatory damages: Reimburse the victim for losses such as medical bills, property damage, lost wages, and pain and suffering.
- Punitive damages: Punish the wrongdoer and deter similar conduct, awarded only in exceptional cases.
In some lawsuits, both types of damages may be awarded. The compensatory damages make the victim “whole,” while the punitive damages send a message about the severity of the defendant’s conduct.
Statute of Limitations for Seeking Punitive Damages in Georgia
Like all personal injury claims in Georgia, cases involving punitive damages are subject to a two-year statute of limitations. You must file your lawsuit within two years of the date of the injury. Failing to file on time can result in losing your right to pursue any compensation, including punitive damages.
Contact Our Atlanta Personal Injury Lawyers for a Free Consultation
If you were seriously injured due to reckless, malicious, or intentional behavior, you may be entitled to punitive damages. Contact Malone Law Medical Malpractice and Severe Injury Lawyers to get the help you deserve.
Our Atlanta personal injury lawyers have over 50 years of combined experience and have recovered hundreds of millions of dollars for accident victims. Contact us today at (770) 390-7550 for a free consultation.