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What You Need to Know About Punitive Damages

JUNE 18, 2001

The Center for Justice & Democracy released today a new White Paper entitled, "What You Need to Know About Punitive Damages."

According to co-author and CJ&D Executive Director Joanne Doroshow, "One of the most contentious issues in the congressional debate over the Patients' Bill of Rights is the right of injured patients to seek punitive damages against HMOs. This White Paper is intended to enlighten and inform the debate, which has been distorted by many myths perpetrated by the managed care industry and its allies in Congress."

Accompanying the White Paper is the following CJ&D's Mythbuster, "10 Things You Should Know About Punitive Damages:"

  1. The modern doctrine of punitive damages has ancient origins dating back as early as 2000 B.C. and is mentioned in the Bible.
  2. The median (typical) punitive damages award in this country is $38,000.
  3. Punitive damages are imposed in only 3.3 percent of cases.
  4. Punitive damages are higher and most frequently awarded in intentional tort cases (i.e., rape, assault) and business contracts (i.e., usually one business suing another).
  5. Medical malpractice and products liability cases account for only 2.1 percent and 3.5 percent, respectively, of all punitive damage awards
  6. The median (typical) punitive damages awarded by a judge is $48,000 higher than the typical punitive damages awarded by a jury, an amount which is steadily declining.
  7. The vast majority of punitive damage awards are never collected, due to post-trial reversals, settlements or defendant insolvency.
  8. Data collected from the New York Times, Wall Street Journal, Washington Post, Los Angeles Times and Christian Science Monitor show that from 1980 to 1999, 88 percent of punitive damages mentioned in news articles exceeded the typical punitive award in the country.
  9. The imposition or threat of punitive damages has resulted in untold numbers of dangerous products and services being taken off the market or made safer, saving millions of lives and billions of dollars.
  10. To date, 32 states have interfered with the authority of the courts by enacting arbitrary limits on juries' powers to award punitive damages.

For copies or for more information contact: emily@centerjd.org; 212/267-2801