Calculating Punitive Damages for Gross Negligence

Gross negligence, which is also known as willful and wanton disregard, can lead to punitive damages, also known as Exemplary Damages, for the victim of that negligence.  Punitive damages are monetary compensation to the injured party or parties that is added to and goes beyond actual damages, or what is necessary to compensate the injured party or parties for his/her/their losses.  Punitive damages are meant to punish the offender and to prevent others from committing the same egregious and negligent mistake the offender made. 

When Punitive Damages Are Awarded

Punitive damages are awarded when a defendant is found to have acted intentionally or maliciously that led to the injury and/or damage suffered by the victim.  That intentional or malicious act is what differentiates a gross negligence case from a negligence case. 

How Punitive Damages Are Calculated

In the 1998 trial, Bowden v. Caldor, Inc., the Maryland Court of Appeals established a 9-part test to help trial judges determine whether awarded punitive damages are excessive or not. 

The 9 factors below help to determine the value of the punitive damages that should be awarded:

  1. Punitive damages must be commensurate with the defendant's wrongdoing.
  2. Punitive damages must be commensurate with the defendant's ability to pay, since the purpose is to punish the defendant, not to bankrupt him/her.
  3. The deterrence value of the amount that the jury awards is relevant.
  4. The court can consider the legislative policy reflected in laws setting criminal fines.
  5. The court can compare the award to other punitive damages awarded in the jurisdiction, especially from cases that are similar to the current case.
  6. The trial judge can consider punitive damages that have been awarded against the same defendant for the same conduct.
  7. If the punitive damages come from separate acts of wrongdoing, the court can determine whether the acts of wrongdoing occurred from a single incident or not.
  8. The plaintiff's reasonable costs and expenses, including attorney's fees, can be considered if they were not covered in the award for compensatory or actual damages. 
  9. The punitive damages should bear a reasonable relationship with the compensatory or actual damages that have been awarded.

Changes in punitive damages law and practice during the late 1970s and 1980s have led to an increase in both the number and the amount of punitive damages that have been awarded. 

Getting Legal Help

Gross negligence can lead to considerable punitive damages, but only if you present a strong case that shows that intentional or malicious action on the part of the offender caused your injuries.  An established and experienced personal injury attorney can help you present the strongest case possible in order to receive the maximum amount of compensation you deserve.

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