Punitive damages are an additional form of compensation issued as a penalty against the liable party in a lawsuit. Punitive damages are intended to deter particularly egregious behavior and are only awarded in cases involving extreme misbehavior or intentional actions.
Though punitive damages are not available in every lawsuit, they can greatly increase the total value of a personal injury claim. The experienced attorneys with Feller & Wendt, LLC™ can analyze whether your case may qualify for punitive damages and help maximize your potential compensation. Contact us online or call 801-499-5060 today for a free consultation.
Factors That Determine Punitive Damages
Whether punitive damages are available—and how much they’re worth—will vary greatly depending on the specific circumstances of your case. The nature and severity of the other party’s misconduct are the strongest factors, as punitive damages require serious misconduct beyond the scope of a typical personal injury claim.
Your compensatory damages can also impact the value of any punitive damages. Proving the other party’s actions harmed you is key to any successful case and will strengthen your argument for punitive damages as well. Greater harm typically results in greater punitive damages.
As punitive damages serve as a monetary deterrent, the other party’s finances can factor in, with wealthier defendants potentially paying larger penalties. However, some states have laws capping the punitive damages and limiting when they can be awarded.
Are There Caps on Punitive Damages in Utah, Arizona, and Idaho?
The Arizona constitution bars caps on personal injury damages, though governmental defendants are exempt from punitive damages. Utah does not cap punitive damages but requires that any awarded beyond the first $50,000 be split between the claimant and the state.
On the other hand, Idaho law specifically limits punitive damages to three times the amount of compensatory damages or $250,000, whichever is greater. Idaho also forbids claimants from asking for punitive damages in their initial complaint, requiring them to first ask the court to determine their eligibility.
All states require egregious misconduct to award punitive damages, such as malicious or intentional harm. However, certain evidentiary requirements in Utah don’t apply in cases where the defendant operated a vehicle while intoxicated or provided an illegal substance that led to someone’s death.
Do Punitive Damages Impact the Value of a Case?
Punitive damages can greatly impact the value of a claim, potentially multiplying the total amount of compensation available several times over. Even with Idaho’s legal limits, you could receive as much as four times the amount of your baseline compensatory damages.
Beyond their sheer monetary value, punitive damages can also enhance the sense of justice and accountability associated with a successful claim. In addition to receiving legal compensation, having a court flex its authority to punish the party that harmed you can be emotionally significant. It can also make the community safer through deterrence.
Tax Implications of Punitive Damages
Generally, punitive damages are taxable as “other income,” potentially complicating your federal returns. If you’ve won punitive damages, consult with your attorney and a tax professional to ensure you understand how to optimize your return.
Can Insurance Cover Punitive Damages?
Whether insurance covers punitive damages varies depending on state law and policy terms. For instance, Utah specifically prohibits insurance coverage for punitive damages.
Because punitive damages serve primarily as a financial penalty against defendants rather than as compensation for plaintiffs, insurers will likely try to exclude such coverage. We can push back where possible.
Examples of Cases That May Award Punitive Damages
Again, not all personal injuries are eligible for punitive damage awards. Typically, severe negligence or recklessness must have contributed to the accident that caused the injury. For example, sustaining an injury in the following scenarios may qualify:
- A car accident caused by a driver speeding 30 or more miles per hour over the speed limit.
- A trucking company forcing a fatigued driver to work beyond legal limits, leading to a catastrophic accident.
- A repeat drunk driver causes a head-on collision while driving with a blood alcohol level well above the legal limit.
- Reckless “joy riding” or drag racing for the sake of entertainment.
- A person recklessly discharging a firearm in public.
Our personal injury lawyers can assess the circumstances of your case and whether sufficiently reckless behavior played a part. In some cases, this assessment is clear-cut, while others may require an in-depth investigation.
Why Trust Feller & Wendt, LLC™ with Your Personal Injury Claim
Our award-winning legal team has more than 70 years of combined experience handling personal injury claims, including many complex cases involving punitive damages. We have a 99 percent success rate and have recovered more than $85.8 million in high-value case results for injured clients like you.
We’re committed to securing justice while providing unmatched service and personalized attention. Our attorneys give out their personal cell phone numbers and are always available to answer your questions. Hundreds of five-star reviews and glowing testimonials from satisfied clients demonstrate our dedication to providing exceptional representation and support.
If you need help with a personal injury claim or have a question about punitive damages, contact us online or call 801-499-5060. We offer free consultations and a “No-Win, No-Fee Guarantee,” ensuring you pay nothing unless we win your case.
Read more:
*This information provided by Feller & Wendt, LLC™ is for informational purposes only and should be in no way construed as legal advice.
