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Penal damages are liquidated damages which exceed reasonable compensatory damages, making them invalid under common law.While liquidated damage clauses set a pre-agreed value on the expected loss to one party if the other party were to breach the contract, penal damages go further and seek to penalise the breaching party beyond the reasonable losses from the breach. [1]
In Australia, punitive damages are not available for breach of contract, [5] but are possible for tort cases.. The law is less settled regarding equitable wrongs. In Harris v Digital Pulse Pty Ltd, [6] the defendant employees knowingly breached contractual and fiduciary duties to their employer by diverting business to themselves and misusing its confidential information.
Punitive damages (sums intended to punish the defendant) may be awarded in addition to actual damages intended to compensate the plaintiff. Punitive damage awards generally require a higher showing than mere negligence, but lower than intention. For instance, grossly negligent, reckless, or outrageous conduct may be grounds for an award of ...
In Browning-Ferris Industries of Vermont, Inc. v. Kelco Disposal, Inc., 492 U.S. 257 (1989), the Supreme Court ruled that the Excessive Fines Clause does not apply "when the government neither has prosecuted the action nor has any right to receive a share of the damages awarded". While punitive damages in civil cases are not covered by the ...
The punitive damages commonly occurred in the civil action in which there does not exist a criminal sanction. [15] The jury or judge can make a decision to this damages that will impact more to a richer person that may pay more to encounter punitive damage since this damages are not hooked by the law. [15]
They can sue for their actual damages, meaning the amount they paid the credit repair company or the amount of their damages — whichever is more. Courts may also award punitive damages to punish ...
State Farm Mutual Automobile Insurance Co. v. Campbell, 538 U.S. 408 (2003), was a case in which the United States Supreme Court held that the due process clause usually limits punitive damage awards to less than ten times the size of the compensatory damages awarded and that punitive damage awards of four times the compensatory damage award is "close to the line of constitutional impropriety".
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related to: when do punitive damages apply to criminal law office