One very key victims’ right is the right to seek compensation for wrong done by a perpetrator. Compensation is a monetary award determined by a judge or jury in a civil trial, that seeks to make-up for any wrong doing – a way to bring the victim back to his former state before he was wronged. Punitive damages, on the other hand, are an additional award that seeks to punish a defendant and deter others from committing like “crimes” – crimes being a misnomer since the type of infractions punished by this type of trial and punishment are not necessarily illegal, but are deemed to have caused harm.
In the United States, some states have set limits on the amount of punitive damages that may be awarded. These limits are largely due to lobbying efforts by insurance companies. And when reviewing the facts, one is not hard pressed to find reasons why insurance companies would be so keen to do so. A quick look at examples of punitive damages awarded in civil cases shows that juries tend to be eager to award damages that go way beyond any real damages suffered and even far exceed the original request by the plaintiff. For example, in BMW vs. Gore, the jury awarded the plaintiff $4,000,000 because the defendant had repainted a car and failed to notify said plaintiff.
What accounts for such vehemence in seeking revenge? Though such extreme punitive damages awards may be due to the skill of the plaintiff’s attorney, one wonders if class envy or en vogue hatred of large (read ”rich”) corporations fuels any of this vengeful fire. Either way, the practice of awarding excessive punitive damages punishes everyone, since it is one of the biggest problems related to high health care costs today. And the actual plaintiff is likely to see very little of the money since his attorney will receive 40%-50% of the take, Uncle Sam will have his hand out for 39% and the plaintiff’s state will take what’s left over.