What Are Punitive Damages?

Published on January 28, 2025, by Law Office of Matthew L. Sharp

Personal Injury

What Are Punitive Damages?When a negligent act causes injury or death, the victim or surviving families are entitled to seek a remedy for their losses. Those losses are considered compensatory or exemplary. The compensatory damages are qualified as medical expenses and lost wages. They also have an amount to compensate you for the level of pain and suffering that has impacted your life.

Exemplary damages are also punitive damages, and they are meant to accomplish two things: punish the at-fault party and prevent someone else from engaging in the same type of negligence. Yes, this is a form of punishment against that at-fault party who, under Nevada legislature law, engaged in an egregious act of fraud, malice, or oppression.

It is important to note that punitive damages are not automatically awarded in every personal injury claim, and there are limits to how much you can be awarded. Seeking punitive damages is a critical discussion you need to have with your attorney. It will help to understand how the law in Nevada applies to awarding punitive damages.

How to Go After Punitive Damages

When you’ve suffered damages from someone’s negligence, you are entitled to first file a claim with the insurance company of the person who caused you harm. The insurance company will either approve, negotiate, or deny your claim. If they approve your request for compensation, you’ll need to sign off on a settlement agreement. That means you can’t come back later on and ask for more. You also probably can’t seek punitive damages with a straight-up insurance claim approval.

If the insurance carrier tries to negotiate, you and your attorney can work to find an amount that is fair and reasonable. This might be lower than the number you initially asked for, but it means you can put the matter behind you.

Suppose the insurance company denies the claim outright or offers a “final” number that is unacceptable. In that case, you and your attorney might decide the best option is to file a civil complaint. This is when you can activate the request for punitive damages.

A civil complaint is a fancy way of saying “lawsuit.” It means your attorney will present all the evidence of your accident to a jury. The final jury instructions can be to seek punitive damages. These types of damages are not part of every lawsuit. If you maintain the concept of “punishment,” then you can appreciate how drunk driving cases would be easy to consider for punitive damages.

Nevada Punitive Damages Cap

Every state has the right to limit the amount of punitive damages that can be awarded in a civil complaint. Nevada is one of many states that sets caps on these types of damages. These caps are set for different levels of suits. The initial cap limits a plaintiff (the victim) to punitive damages of $300,000 if their compensatory damages are less than $100,000.

If the compensatory damages are more than $100,000, you’re entitled to seek punitive damages at three times the amount of the compensatory number. For example, if your medical bills and pain and suffering are valued at $200,000, you could seek as much as $600,000 for punitive damages for a total award of $800,000.

The law also stipulates that there is no cap for punitive damages if your lawsuit involves one of the following scenarios:

  • You’re suing a manufacturer, distributor, or seller for a defective product that caused injury.
  • You’re suing someone for violating a state or federal law prohibiting discriminatory housing practices.
  • You’re suing a person or company for damages or an injury caused by the emission, disposal, or spilling of a toxic, radioactive, or hazardous material or waste.
  • You’re suing for defamation.

Recently, a Nevada jury awarded eight plaintiffs a punitive award of $3 billion. That case involved the maker of Real Water and allegations involving liver damage.

Collecting Exemplary Damages

The clearest path for collecting exemplary damages is to prevail in your civil lawsuit. That can happen if you work with an attorney who understands how personal injury claims need to be presented in court. The Law Office of Matthew L. Sharp has this exact type of experience. You can judge for yourself based on our growing list of successful outcomes.

Your immediate need is to have your losses covered. Punitive damages are an important component of those losses.