You may have heard the phrase “punitive damages” but may not know what it means and when it applies. North Carolina’s most punitive damages law is found in Chapter 1D of our General Statutes.
To qualify for punitive damages, victims must first prove eligibility for compensatory damages and that one or more of the following factors apply: (1) fraud, (2) malice, or (3) willful or wanton conduct. These are high standards to meet. Fraud requires intent to deceive, while malice implies a “sense of personal ill will” that causes someone to act unlawfully.
Willful or wanton conduct means “the conscious and intentional disregard of and indifference to the rights and safety of others, which the defendant knows or should know is reasonably likely to result in injury, damages, or other harm.” The most common example of willful or wanton conduct is operating a motor vehicle while under the influence of alcohol. We’ve settled many punitive damages cases involving drunk drivers, even when medical bills for the victim were small.
You should be aware that there is a cap on punitive damage recoveries. N.C.G.S. § 1D-25(b) provides that punitive damages “shall not exceed three times the amount of compensatory damages or two hundred fifty thousand dollars ($250,000.00), whichever is greater.” However, the only situation where this cap does not apply is in situations where the defendant caused an automobile accident because he was driving while impaired.
In many business disputes, the plaintiff will sue for fraud and Unfair and Deceptive Trade Practices. In that situation, they must choose between recovering punitive or treble damages. However, victims are not eligible for both under punitive damages law.
Representation for Punitive Damages
Maginnis Howard regularly represents individuals and businesses in disputes involving punitive damages. Sample cases involve drunk-driving automobile accidents and contract disputes involving intentional misrepresentation (e.g., fraud).
To speak with an experienced civil litigation attorney, contact Maginnis Howard for a free consultation. We represent clients across the Carolinas from our three conveniently located offices in Raleigh, Charlotte, and Fayetteville.
