What implications do damage caps have in a lawsuit?
Damage caps can have significant implications for both plaintiffs (people suing) and defendants (people being sued) in a lawsuit, particularly personal injury and medical malpractice cases. Here’s a breakdown of the effects:
- Limited compensation: The biggest effect is on the amount of compensation a plaintiff can receive. Damage caps restrict how much they can recover, especially for non-economic damages like pain and suffering. This can be a major concern in severe injuries with long-term consequences.
- Discourages lawsuits: Knowing there’s a limit on damages might discourage some plaintiffs from filing lawsuits, especially if the projected costs of litigation outweigh the potential capped award.
- Settlement encouragement: Damage caps can push both sides towards settlement negotiations, as they provide a clear upper limit on what a plaintiff can expect in court.
- Debate on fairness: There’s ongoing debate about the fairness of damage caps. Some argue they protect defendants from excessive awards, while others believe they unfairly limit compensation for severely injured plaintiffs.
A word about punitive damages
Kentucky Revised Statute 411.184 defines punitive damages as damages awarded to punish a person and discourage them and others from similar conduct in the future. Punitive damages are different from compensatory and nominal damages.
A plaintiff can only recover punitive damages if they can prove by clear and convincing evidence that the defendant acted toward them with oppression, fraud, malice, or gross negligence. For the purpose of punitive damages, fraud is defined as the intentional misrepresentation, deceit, or concealment of material fact known to the defendant and made with the intention of causing injury to the plaintiff.
Punitive damages are awarded when the defendant’s conduct is determined to have been so “willful, malicious, or fraudulent” that it exceeds the legal criteria for mere or gross negligence.
