Punitive Damages in Construction Dispute Context
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| Punitive damages are intended to serve as punishment to a wrongdoer and to deter others from engaging in the same wrongful conduct instead of merely compensating the injured party for his losses. Punitive damages are normally awarded in the tort context. Thus, they are rarely recovered in construction disputes given the, normally, contractual nature of the conflict.
Though not typical, punitive damages have been awarded in breach of contract actions that also contain an independent tortious conduct aspect. For example, if fraud, gross negligence, or the intentional harm to a party is present, the imposition of punitive damages may be appropriate. Essentially, a court will examine the gravity of the wrongdoer's behavior and whether such conduct was deliberately undertaken or in disregard of the rights of others.
Many states have statutorily provided for the imposition of punitive damages in a civil action. Some of these states require that the amount of punitive damages levied be reasonably related to the amount of other damages involved; other states place no such limitations on the amount. Copyright 2010 LexisNexis, a division of Reed Elsevier Inc. |