Punitive damages are used to make an example out of defendants, which is why they are also known as exemplary damages in New Jersey. When preparing your case, our lawyers can determine if punitive damages are available based on the defendant’s conduct during the accident.
You may sue for punitive and compensatory damages if another party showed a wanton and willful disregard for your safety or actual malice during an accident. Gauging whether a defendant’s actions rise above ordinary negligence is challenging, and our attorneys can consider the same factors juries do when confirming whether you can get exemplary damages. While New Jersey limits punitive damages, the limits are high and based on a victim’s actual losses, such as medical expenses, lost income, and emotional distress. You can only get punitive and compensatory damages if you bring your lawsuit before the two-year statute of limitations runs out, and our lawyers can make sure you file on time in New Jersey.
For a confidential and free case review from Agrapidis & Maroules, call (201) 777-1111 and speak to our New Jersey personal injury lawyers today.
When Can You Sue for Punitive Damages in New Jersey?
Suppose you were harmed because of actual malice or a total disregard for your safety. In that case, you may get punitive damages in addition to compensatory damages if you take your case to court.
The courts use punitive damages to punish defendants for their egregious conduct. For example, juries might award punitive damages in drunk driving cases or premises liability cases where defendants knew of serious hazards to visitors but failed to warn them.
Malice or Wanton and Willful Disregard for Safety
To get punitive damages on your behalf, our Jersey City, NJ personal injury lawyers must prove that the defendant acted with actual malice or a wanton and willful disregard for others’ safety, according to N.J.S.A. § 2A:15-5.12(4)(a).
Actual malice often involves an intent to cause harm or an evil-minded act. For example, in a car accident case where the collision was a genuine accident, you likely would not receive punitive damages. However, if you proved that the other driver intentionally crashed into you because they wanted to hurt you, you may receive punitive damages.
A wanton or willful disregard for safety may take many forms, and it is very similar to what might be called “gross negligence.” Put another way, this kind of behavior may involve actions that are so dangerously reckless as to cause shock or outrage. Often, we must show that the defendant knew or should have known that their behavior created a very serious and unreasonably risk of harm.
Examples of Punitive Damages Awards
Punitive damages are often awarded in drunk driving cases because of the known dangers of driving under the influence. Getting behind the wheel of a car while intoxicated may be considered an example of wanton and willful disregard for safety.
This can help victims seeking exemplary damages, as juries consider various factors when awarding these damages, such as the chance that serious harm would come from the defendant’s conduct. Being under the influence of drugs or alcohol seriously reduces one’s reaction times, and the dangers of drunk driving are well-documented.
Other examples of cases that often warrant punitive damages are those involving fraud. Fraud is an intentional act of dishonesty, and the defendant often knows that they will be enriched at the unfair cost of the victim.
Punitive Damages Not Automatically Considered
Victims might not know they can seek punitive damages after an accident, especially since punitive/exemplary damages are so rare. Our lawyers can review the facts of their cases to determine if these damages are available.
Punitive damages must be specifically requested in initial complaints, and our attorneys can request them if the defendant’s actions warrant it. We will also cite your actual losses in the complaint and request compensation for your hospital expenses, lost wages, and pain and suffering.
Since punitive damages are not considered automatically, we must think carefully about claiming them. If we leave them out, they may be completely off the table.
Does New Jersey Limit Punitive Damages in Injury Lawsuits?
New Jersey limits the award of punitive damages in injury lawsuits. The limit sometimes depends on a victim’s specific losses, so our attorneys must accurately calculate your economic and non-economic damages. While punitive damages can increase your award, getting compensatory damages should be your main priority.
According to § 2A:15-5.14, New Jersey’s limit on punitive damages is five times the amount of a victim’s compensatory damages or $350,000, whichever amount is greater.
Because punitive damages calculations could rely on your compensatory damages, car accident lawyers must also calculate your economic and non-economic losses. Even if you get punitive damages from a jury, most of your recovery will be for compensatory damages, like medical expenses, lost wages, and pain and suffering. Unlike punitive damages, compensatory damages are not limited in New Jersey.
Factors a Jury May Consider for Punitive Damages
When determining punitive damages awards, juries consider multiple factors, including the defendant’s financial ability. Juries often use punitive damages to make examples of defendants and deter others from engaging in similar behavior.
Defendant’s Finances
An important factor that jurors may consider when deciding punitive damages is the defendant’s financial resources and ability to pay. If a defendant has significant financial resources, punitive damages must be high to act as a sufficient deterrent. Otherwise, punitive damages would be a small price for big companies to pay to get away with bad behavior.
If your injury case involves a large, wealthy corporate entity as the defendant, punitive damages can and should be greater to serve as an effective penalty and deterrent.
Profitability of the Misconduct
Jurors must also consider whether the defendant profited from their behavior. If their profits outweigh the costs of punitive damages, they have an overall net gain. This is not an effective deterrent and is not much of a penalty.
The defendant’s profits often come up in cases involving fraud or misrepresentation. For example, suppose the defendant misrepresented material facts to get you to sign a contract that enriched them at your detriment. In that case, jurors must consider how much money the defendant made when deciding punitive damages.
Likelihood of Harm
The likelihood that harm would result from the defendant’s actions is another crucial factor that jurors must consider. If harm was not very likely at all, punitive damages might not be warranted. However, if serious harm was highly likely, punitive damages may be higher, as the defendant likely knew or should have known that their conduct would cause harm to others.
Key Considerations for Punitive Damages in NJ
When claiming punitive damages, we must consider some important details about how damages are determined and the overall process. Arguing over punitive damages is rarely simple or quick, and we must decide whether pursuing these damages is worth your time and effort.
Two-Stage Hearing
Punitive damages may receive their own hearings and proceedings. Under N.J.S.A. § 2A:15-5.13(a), any actions involving claims for punitive damages shall be conducted in a bifurcated trial, if requested by the defendant. This means the hearing will occur in two stages.
At the first stage of the bifurcated trial, the trier of fact will determine the defendant’s liability for compensatory damages, including economic and non-economic damages. Evidence relevant only to punitive damages claims may not be presented at this stage.
At the second stage, the trier of fact determines the defendant’s liability for punitive damages. However, punitive damages may not be awarded if the defendant is not found liable for any compensatory damages.
Caps and Limitations
As mentioned earlier, there are caps on punitive damages that cannot be exceeded. These caps limit punitive damages to 5 times the value of the total compensatory damages or $350,000, whichever is more. While we might know about these caps before your trial begins, the juror likely does not.
Generally, jurors are not informed about damage caps or limitations before they decide on punitive damages. If jurors knew about the caps, they might influence their final decision. Instead, jurors often decide on punitive damages without knowledge of statutory limitations. If the award is higher than the caps, the court may reduce it to the statutory maximum.
Your Lawyer’s Skills
Your attorney’s skills in arguing for punitive damages and their experience with these kinds of cases could make a huge difference in the outcome of your case. If you have a lawyer who has successfully argued for punitive damages before, they may have a better understanding of how to claim punitive damages in your case.
How Long Do You Have to Sue for Punitive Damages in New Jersey?
Statutes of limitations restrict how long victims can seek compensation from negligent parties after accidents, including punitive damages. According to § 2A:14-2(a), you may only have two years to do this in New Jersey.
While getting punitive damages can maximize your financial recovery after an accident, this is only possible if you file your lawsuit on time. Claims filed more than two years after an incident will be dismissed by the courts, and victims may not get compensation for their actual losses, let alone punitive damages.
We can help you bring your case on time by promptly investigating the accident and preserving relevant evidence, such as security camera footage and eyewitness statements.
Punitive Damages and Settlements in NJ
It is also important to note that you cannot get punitive damages from a settlement; you can only get them from a jury award. Settling your case out of court, especially too soon after filing, could leave certain damages uncompensated, making it harder for victims to financially, physically, and emotionally recover from their injuries.
Leveraging evidence of gross negligence during settlement negotiations could convince the opposing side to increase their offers to avoid the time and resources associated with a trial.
Because punitive damages are awarded in court, you must go through a trial and satisfy the burden of proof to get them. Trials take time, and our lawyers can help victims weigh the pros and cons of going to court based on the likelihood that they will get punitive damages and, more importantly, compensation for their actual losses, such as medical expenses and missed income.
How Likely Are Punitive Damages to Be Awarded?
While punitive damages may arise in various injury cases and claims in New Jersey, they tend to be somewhat unusual. Most personal injury cases do not receive awards for punitive damages, as these damages are typically reserved for more severe situations. Even so, your case might be one of those that warrants punitive damages, and it is worth discussing with your lawyer.
If you believe the defendant in your case acted maliciously or with an evil intent, tell your attorney right away. This is a clear indication that punitive damages may be on the table if we can find the right evidence. Alternatively, if the defendant’s actions were so reckless as to cause outrage or shock, punitive damages awards may be much more likely.
Frequently Asked Questions About Punitive Damages in New Jersey
Punitive damages can be a complex area of law, and you and your attorney may consider reviewing the following frequently asked questions before starting your case.
Are Punitive Damages Available in NJ Lawsuits?
Yes, punitive damages may be available in New Jersey lawsuits if plaintiffs can meet the requirements to prove that punitive damages are warranted.
How Much Are Punitive Damages Worth in NJ?
The value of punitive damages may vary from case to case, but they tend to be substantial if awarded. They are often calculated based on the value of compensatory damages. The more compensatory damages you are awarded, the higher your punitive damages may be.
Is There a Limit to Punitive Damages in NJ?
Punitive damages may be capped at 5 times the value of your compensatory damages or $350,000, whichever amount is more.
When Are Punitive Damages Awarded?
Punitive damages may be awarded if a plaintiff proves by “clear and convincing evidence” that the defendant acted with actual malice or a wanton or willful disregard for safety in the face of a high risk of harm.
Is it Difficult to Prove Punitive Damages?
Punitive damages are notoriously hard to prove. Even when cases are eligible, many do not receive punitive damages. They are more common in cases involving more extreme facts or circumstances.
Can I Get Punitive Damages if I Accept a Settlement?
Settlements do not have to account for punitive damages. However, what goes into your settlement is up for negotiation, and you may argue for the inclusion of punitive damages.
Call Our New Jersey Injury Lawyers to Discuss Your Case Today
Call Agrapidis & Maroules at (201) 777-1111 for help with your case from our Elizabeth, NJ personal injury lawyers.