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Punitive Damages

By statute, punitive damages in Virginia are capped at $350,000. Punitive damages are not allowed in actions for breach of contract in Virginia. Punitive damages (also known as exemplary damages) are awarded on two grounds: to punish the defendant for his actions and to deter other from engaging in the same conduct. When the plaintiff is awarded punitive damages, they are not meant to compensate him, but rather to protect the public by deterring others. Punitive damages are not favored and are awarded only in the most egregious cases.

A defendant’s conduct must be reckless or willful and wanton, showing a conscious disregard for the rights of others. In other words, her conduct must show a knowledge and consciousness that injury is likely to result from her act, not mere gross negligence. Further, punitive damages may be awarded only if the plaintiff obtains compensatory damages.

The fact that a defendant was intoxicated at the time of an accident, by itself, is not sufficient to justify an award of punitive damages. However, evidence of intoxication may be considered on the issue of whether punitive damages should be awarded. The plaintiff still has the burden of proving the defendant’s conduct was so willful or wanton as to show a conscious disregard for the rights of others.

By statute, a defendant’s conduct is deemed sufficiently willful or wanton if the following facts are proved: (1) the defendant had a blood alcohol concentration of 0.15 percent or higher when the accident occurred. If the defendant unreasonably refused to submit to a BAC test, this element will be satisfied; (2) the defendant knew when she was drinking that she was going to drive; and (3) the defendant’s intoxication was the cause of the accident.

Because punitive damages are meant to punish the defendant, they may be much larger than a compensatory damage award. The amount of punitive damages a defendant should have to pay should vary according to her financial circumstances.