If you’ve been injured in an accident, chances are you’ve heard the term “damages” when referring to your case.
But unless you’re a practicing attorney, it can be difficult to wrap your head around what it really means.
In most cases, there are two types of compensation or “damages” that can be awarded: compensatory and punitive damages.
While compensatory damages cover the plaintiff’s actual losses, punitive damages serve a different purpose — to punish the defendant and deter similar misconduct.
In this article, we’ll explain what punitive damages are, when they may be awarded, and how they are calculated, and we’ll provide some real-world examples.
What Are Punitive Damages in West Virginia?
Punitive damages, also called exemplary damages, are monetary damages awarded to punish the defendant rather than compensate the plaintiff. They are rewarded in addition to compensatory damages when the defendant’s actions are found to be intentional, malicious, or grossly negligent.
The goal of punitive damages is two-fold:
- To punish the defendant for egregious behavior
- To deter the defendant and others from engaging in similar misconduct in the future
Punitive damages act as a warning that certain unacceptable behavior will not be tolerated. They are awarded in situations where compensatory damages alone are deemed insufficient to accomplish these twin aims.
When Can Punitive Damages Be Awarded in West Virginia?
Not all personal injury cases warrant punitive damages. Generally speaking, punitive damages may be awarded in cases involving:
- Reckless disregard for the safety or rights of others
- Intentional wrongdoing
- Gross negligence
- Willful misconduct
- Wanton behavior
Some examples of cases where punitive damages might be appropriate include drunk driving accidents, medical malpractice, and certain dangerous product liability claims.
It is not enough that the defendant was negligent. To justify punitive damages, their actions must demonstrate a much higher degree of wrongdoing. Our experienced personal injury attorneys can advise whether seeking punitive damages may be warranted in your specific case.
How Are Punitive Damages Calculated in West Virginia?
Punitive damages have no predetermined amount, but compensatory damages are computed using the plaintiff’s actual losses as the basis. Awards can vary substantially based on the specific facts of each case.
However, the U.S. Supreme Court has ruled that punitive damage awards exceeding 10 times the amount of compensatory damages raise constitutional concerns. Most states, including West Virginia, have adopted more conservative caps on punitive damages.
In our state, punitive damages are typically capped at four times the amount of compensatory damages or $500,000, whichever is greater. However, higher awards may be justified if the defendant’s behavior was particularly egregious or reprehensible.
The judge may consider factors like:
- The reprehensibility of the defendant’s misconduct
- How long the misconduct went on
- Whether there was an attempt to conceal the misconduct
- The financial resources of the defendant
Two Real-World Punitive Damages Examples
To better understand how this works, let’s look at two high-profile cases where substantial punitive damages were awarded:
Liebeck v. McDonald’s Restaurants (1994)
This is one of the most famous punitive damages cases, known as the “Hot Coffee Lawsuit.” The key details are:
- Stella Liebeck, a 79-year-old woman, bought coffee from a McDonald’s drive-thru. She spilled the coffee in her lap while in the parked car, causing severe third-degree burns on her legs and groin area requiring extensive treatment.
- Liebeck sued McDonald’s for gross negligence. She argued that McDonald’s coffee was excessively hot (180-190 degrees Fahrenheit) compared to industry standards (135-140 degrees Fahrenheit).
- A jury awarded Liebeck:$200,000 in compensatory damages to cover medical expenses and lost income
- $2.7 million in punitive damages
- The trial judge reduced the final punitive damages to $480,000, which was 3 times the compensatory damages award.
The case highlighted how companies can be punished for reckless disregard for public safety. The punitive damages aimed to deter McDonald’s from selling dangerously hot coffee in the future. It also set an example for the fast food industry.
Storage Tank Violations (2022)
In a 2022 case in Missouri, a gas station was ordered to pay $10 million in punitive damages when an underground gasoline storage tank leaked and contaminated nearby properties. Evidence showed the gas station owners knew about the hazardous leak for months but failed to fix it or warn neighbors promptly.
Specifically:
- A small leak in an underground gas station storage tank can release hundreds of gallons of hazardous petroleum substances like gasoline into surrounding soil and groundwater[8]. Even tiny leaks can spread widely and endanger drinking water.
- Federal and state laws require gas station owners to demonstrate the ability to cover $1 million in damages from contamination leaks. Owners must install leak monitoring systems and secondary containment and follow regulations for operating underground tanks.
- In this case, the Missouri gas station owners neglected regulations and knowingly allowed the leak to persist for months without acting. This showed reckless disregard for public health/safety.
- A jury awarded $10 million in punitive damages, beyond compensatory damages, to explicitly punish this misconduct and deter similar gross negligence by other gas station owners.
Contact a Personal Injury Lawyer to Explore Your Options
These examples demonstrate that punitive damages can greatly increase recovery in some personal injury lawsuits. If you believe the at-fault party’s misconduct in your case was especially egregious, contact an experienced West Virginia injury law firm to discuss whether pursuing punitive damages may be appropriate.
Your personal injury lawyer will thoroughly review the facts and help determine the best legal strategies for obtaining maximum compensation.
The lawyers at Miley Legal have represented injury victims across West Virginia, securing millions in verdicts.
Contact their team today for a free case evaluation.