Under limited circumstances, North Carolina law does allow punitive damages for a car accident. However, before focusing on those damages, you must first protect your claim from being barred under North Carolina’s contributory negligence rule, because if you are found even 1% at fault, you may be unable to recover compensation at all.
An attorney can help you avoid contributory negligence issues and help you build and protect your claim. Punitive damages are an additional form of compensation beyond economic and non-economic damages. They are meant to punish the liable party for particularly egregious conduct and are not available in every case.
Punitive damages are reserved for situations involving willful or wanton conduct or actions intended to cause harm, such as if the at-fault driver was under the influence of alcohol or drugs at the time of the crash.
An experienced Charlotte car accident lawyer can help you determine whether punitive damages may apply in your case.
What Are Punitive Damages?
Punitive damages are damages meant to punish the at-fault party for their actions or inaction and discourage similar behavior in the future. North Carolina courts only award punitive damages if the liable party acted with the willful intent of causing harm or engaged in illegal and dangerous behavior, such as driving under the influence.
These damages are significantly different from compensatory damages, which focus on the losses sustained by the injury victim and often include:
- Medical expenses
- Lost income
- Future medical treatment
- Pain and suffering
- Property damage
An experienced attorney can help you determine whether your case is eligible for punitive damages and pursue the full value of your claim.
When Does North Carolina Allow Punitive Damages?
Under North Carolina General Statutes § 1D-15, punitive damages may be awarded only if the injured person proves that the defendant is liable for compensatory damages and that one of the following aggravating factors was present:
- Fraud
- Malice
- Willful or wanton conduct
In car accident cases, the most common basis for punitive damages is willful or wanton conduct. Your car accident lawyer can review the conduct of the at-fault party to determine whether they meet this threshold.
What Is Willful or Wanton Conduct?
Willful or wanton conduct means more than carelessness. It involves a conscious and intentional disregard for the safety of others.
Examples may include:
- Driving while heavily intoxicated
- Street racing
- Intentionally running someone off the road
- Extremely reckless speeding in dangerous conditions
In many cases, ordinary distracted driving or simple speeding is not enough. The conduct must show a reckless indifference to the consequences.
Are Punitive Damages Available in Every Car Accident Case?
No. Most car accidents in North Carolina are based on negligence. Negligence means someone failed to use reasonable care. Even serious injuries do not automatically justify punitive damages.
For example, a driver who glances at their phone and rear-ends another car may be negligent, but punitive damages typically would not apply because their negligence was relatively mild. Meanwhile, a driver who chooses to drive while highly intoxicated and causes a crash may face punitive damages because of the extreme danger and criminal nature of their transgression.
The key issue is how serious the driver’s behavior was. Punitive damages are considered extraordinary and are only awarded in a small percentage of cases. If punitive damages are available, an experienced attorney can help ensure they are included in your final award package.
Is There a Cap on Punitive Damages in North Carolina?
Yes. Under North Carolina General Statutes § 1D-25, punitive damages are capped at the greater of three times the amount of compensatory damages or $250,000. There are limited exceptions, such as when the defendant was driving while impaired, but in most car accident cases, these caps apply.
For example, if a jury awards $100,000 in compensatory damages, punitive damages could be capped at three times that amount, equaling $300,000. Alternatively, if compensatory damages are only $50,000, the punitive damages cap of $250,000 would apply.
What Must Be Proven to Recover Punitive Damages?
Punitive damages require a higher level of proof than ordinary negligence. In North Carolina, the injured party must prove the aggravating factor by clear and convincing evidence. This is a higher standard than the “preponderance of the evidence” standard used for regular negligence claims.
This means the evidence must strongly persuade the jury that the defendant acted with fraud, malice, or willful or wanton conduct. Simply arguing that the driver was careless is not enough. A knowledgeable attorney can help collect evidence and develop persuasive arguments to ensure these damages are included if applicable.
The Impact of Contributory Negligence on Punitive Damages
North Carolina follows the strict rule of contributory negligence. Under this rule, if you are found even 1% at fault for the accident, you may be barred from recovering compensatory damages.
Because punitive damages require an award of compensatory damages first, contributory negligence can also prevent recovery of punitive damages. Insurance companies often try to argue that the injured person shares fault to avoid paying out claims. Protecting your right to compensation requires careful case preparation.
Your lawyer will work to protect you against tactics meant to shift blame onto you so that you can maintain your right to recover both punitive and compensatory damages.
How Often Are Punitive Damages Awarded in Car Accident Cases?
Punitive damages are not common in car accident cases. Most car accident cases resolve based on compensatory damages alone. Punitive damages typically arise in cases involving:
- Driving while impaired (DWI)
- Hit-and-run with aggravating factors
- Intentional misconduct
- Extreme reckless behavior
Even in these cases, you will still need to prove that the qualifying factors were present with strong evidence. A skilled attorney can help.
What Should You Do if You Believe Punitive Damages May Apply?
If the crash involved drunk driving, racing, or other extreme misconduct, you should take these steps to help protect your right to full compensation:
- Seek medical attention immediately
- Preserve any evidence (photos, witness information, police reports)
- Avoid giving recorded statements to insurance adjusters without legal guidance first
- Get legal guidance early to help preserve evidence and protect your right to compensation.
Early investigation can make all the difference when attempting to recover punitive damages. Evidence of intoxication or reckless behavior can fade quickly if not properly documented.
When you hire a lawyer, they will immediately get to work investigating your case to help ensure your rights to recover compensation are fully protected.
Reach Out to an Experienced Car Accident Lawyer in North Carolina Today
Punitive damages are not available in every case, but when they apply, they can significantly impact a claim. Since 1995, Auger & Auger Accident and Injury Lawyers has been advocating for injured clients throughout North Carolina and pursuing punitive damages when available.
We take on clients under the A&A Zero Fee Guarantee™, so you owe no attorneys’ fees unless we secure compensation for you. Reach out to us today by phone or through our online contact form to schedule a free consultation.
We can evaluate your situation, explain your legal rights, and help you understand the next steps.
