North Carolina allows for punitive damages, but they are only awarded in specific circumstances. These “extra-compensatory” damages punish the defendant and deter similar misconduct but are not intended to compensate the plaintiff in a civil case, although they are paid to the prevailing claimant when awarded.
North Carolina law limits punitive damages to cases involving fraud, malice, or “willful and wanton” conduct, and generally caps the amount at the greater of 3x compensatory damages or $250,000.
A Charlotte personal injury lawyer can review the details of a case to determine if pursuing punitive damages may be appropriate.
What are Punitive Damages?
Punitive damages are an “extra-compensatory” award designed to punish especially egregious misconduct and deter similar behavior, not to compensate for losses.
When awarded, they are paid to the prevailing plaintiff. North Carolina defines “willful or wanton conduct” as more than gross negligence; it is a conscious and intentional disregard of others’ rights and safety.
These damages are only awarded in cases where the defendant’s conduct is more than negligence and demonstrates willful or egregious misconduct.
When are Punitive Damages Allowed in North Carolina?
North Carolina allows punitive damages only in cases where the defendant’s behavior is deemed particularly egregious. Under North Carolina law, punitive damages may be awarded if the plaintiff proves by clear and convincing evidence that the defendant’s actions involved:
- Fraud: Intentional misrepresentation or deceit for personal gain that causes harm to another party.
- Malice: Actions done with the intent to harm another person.
- Willful and wanton conduct: Actions showing a conscious and intentional disregard for the rights or safety of others, demonstrating reckless indifference to the consequences.
Examples of Behavior That May Qualify
Punitive damages are typically awarded when the defendant’s actions go far beyond negligence, such as:
- Drunk driving: A driver who causes an accident while knowingly operating a vehicle under the influence of alcohol or drugs.
- Intentional harm: Physical assault, battery, or other acts of violence.
- Fraudulent practices: A company or individual misleading others for financial gain, causing harm in the process.
Punitive damages are not automatically granted and require the plaintiff to meet a high burden of proof. These damages are also capped in North Carolina under N.C. Gen. Stat. § 1D-25, limiting the award to three times the amount of compensatory damages or $250,000, whichever is greater, unless exceptions apply.
Exceptions to the Punitive Damages Cap in North Carolina
Exceptions to North Carolina’s cap on punitive damages apply in cases involving certain types of egregious behavior.
For example, in some impaired driving cases, North Carolina law allows punitive damages without applying the usual cap. This may occur when the defendant has been convicted of impaired driving, and the legal requirements for punitive damages are otherwise met.
This exception to the punitive damages cap reflects the state’s effort to hold impaired drivers fully accountable for their reckless and dangerous actions, as driving under the influence poses a significant threat to public safety. Plaintiffs pursuing punitive damages in such cases must still provide clear and convincing evidence of the defendant’s behavior to qualify for an award.
How a Jury Decides to Award Punitive Damages
In North Carolina, the decision to award punitive damages is made by the jury. Their role is to first determine whether the defendant’s actions meet the legal standard for punitive damages, as defined under N.C. Gen. Stat. § 1D-15.
The jury must find by clear and convincing evidence that the defendant acted with fraud, malice, or willful and wanton conduct. Punitive damages are tried in a separate phase after compensatory liability and amount are decided; the same jury hears both. Once the jury decides that punitive damages are appropriate, it is responsible for calculating the amount.
How a Charlotte Personal Injury Lawyer Can Help
A lawyer can evaluate whether punitive damages may apply by carefully reviewing the details of the case. For example, a Charlotte car accident lawyer or a Charlotte truck accident lawyer can assess whether the defendant’s actions meet the legal standard for fraud, malice, or willful and wanton conduct.
Personal injury attorneys work to gather evidence to meet the high burden of proof needed for punitive damages by:
- Securing police reports, surveillance footage, or accident reconstructions.
- Collecting witness statements that highlight the defendant’s behavior.
- Reviewing medical records to demonstrate the extent of the harm caused.
- Uncovering additional evidence, such as prior incidents of misconduct or violations of the law by the defendant.
A lawyer can then argue for punitive damages and work to hold the defendant accountable for their egregious actions.
We Can Determine if Your Case in North Carolina Allows for Punitive Damages
At Auger & Auger Accident and Injury Lawyers, we are dedicated to holding reckless individuals and companies accountable for their actions. With over $100 million recovered for our clients, we have the experience and resources to help you pursue the compensation you deserve. Through our A&A Zero Fee Guarantee™, you pay nothing unless we win your case.
If you believe your case involves behavior that warrants punitive damages, we’re here to review your situation and fight for justice on your behalf. Contact Auger & Auger today for a free consultation.
