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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.
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".
The plaintiff, Dr. Ira Gore, bought a new BMW, and later discovered that the vehicle had been repainted before he bought it. Defendant BMW of North America revealed that their policy was to sell damaged cars as new if the damage could be fixed for less than 3% of the cost of the car. Dr. Gore sued, and an Alabama jury awarded $4,000 in compensatory damages (lost value of the car) and $4 ...
For example, compensatory damages may be awarded as the result of a negligence claim under tort law. Expectation damages are used in contract law to put an injured party in the position it would have occupied but for the breach. [7] Compensatory damages can be classified as special damages and general damages. [8]
Similar to the U.S., the courts in the United Kingdom tend to award monetary compensatory damages in tort cases. However, punitive damages are not applicable in the legal systems of the U.K. and Japan or the contractual cases in Australia and occupy a limited but expanding scope in the People's Republic of China.
They awarded Liebeck a net $160,000 [3] in compensatory damages to cover medical expenses, and $2.7 million (equivalent to $5,700,000 in 2024) in punitive damages, the equivalent of two days of McDonald's coffee sales. The trial judge reduced the punitive damages to three times the amount of the compensatory damages, totalling $640,000. The ...
Punitive damages are different from the compensatory damages where the non-breaching party does not want to have compensation that is caused by the defendant. The injured party tends to punish the defendant in a different way in a similar charge. This damages can only exist only in the non-contract action. [15]
Exxon Shipping Co. v. Baker, 554 U.S. 471 (2008), was a case decided by the Supreme Court of the United States.The Court ruled in a 5-3 decision that the punitive damages awarded to the victims of the Exxon Valdez oil spill should be reduced from $2.5 billion to $500 million.