In 2016, the Louisiana Third Circuit Court of Appeal upheld a $23 million award in punitive damages to the family of a 21-year-old passenger who was killed when the boat’s steering failed. He was thrown overboard and struck by the propeller nineteen times, resulting in his death.
A jury originally found in favor of Teleflex, the manufacturer and supplier of the boat’s hydraulic steering system, and dismissed the claims. On appeal, the appellate court noted that not only did Teleflex know about the steering loss problems, but it had tested the system and documented the test results nine years before the accident.
The jury ultimately reasoned it was reckless to ignore the results when a stick-on warning decal costing only thirty cents could have saved the young man’s life.
Punitive damages serve a unique purpose—they punish the wrongdoer and act as a deterrent to others. While they are rarely imposed, they have long been an available remedy where reckless conduct amounts to a conscious disregard for the rights of others. Here’s what you need to know about punitive damages in Louisiana personal injury cases.
How do Punitive Damages Differ from Compensatory Damages?
Punitive damages are distinct from compensatory damages, which cover your actual losses. Compensatory damages typically fall into two categories: general and special damages. Special damages are generally quantifiable and include things like medical expenses. General damages are not easily quantifiable and include pain and suffering, mental anguish, and future lost wages.
Instead of focusing on the victim’s suffering, punitive damages aim to penalize the defendant for extreme misconduct. They send a message that gross negligence, fraud, or intentional harm will not be tolerated.
Where Louisiana Law Allows Punitive Damages
In Louisiana personal injury law, punitive damages are generally not allowed. The circumstances where punitive damages are allowed in personal injury cases include:
- Causing a car accident while intoxicated.
- Committing a sex crime against a child under 18 years old.
- Injuring someone through an act involving child pornography.
- Recklessly or wantonly killing someone in an act of hazing.
- Injuring someone in an act of domestic violence.
Louisiana’s punitive damages statute states that courts in Louisiana can only award punitive damages if:
- The law of the state where the injury occurred authorizes it.
- The law of the state where the injury occurred or the state where the defendant was domiciled authorizes it.
It’s important to note that punitive damages are not automatically included in every personal injury claim.
Are There Caps on Punitive Damages in Louisiana?
The U.S. Supreme Court has set guidelines to prevent excessive punitive damage awards, often suggesting that they should not exceed a single-digit ratio to compensatory damages.
In State Farm Mut. Automobile Ins. Co. v. Campbell, the Supreme Court said that a ratio of punitive damages to compensatory damages that exceed 9:1 will generally be found unconstitutional. For example, in this hypothetical case, the compensatory damages amounted to $100,000, and punitive damages exceeding $900,000 would probably be deemed excessive.
When a Case Could Result in Punitive Damages
Punitive damages are rare in Louisiana. Because punitive damages can significantly increase the total compensation a victim receives, certain factual considerations must be considered, including:
- The severity of misconduct. The more serious the misconduct, the more consideration a court may give to punitive damages.
- The magnitude of harm. Similar to the misconduct, the more serious the harm, the more likely a court will award punitive damages.
- The defendant’s finances. If compensatory damages alone may not deter the defendant from future misconduct, punitive damages may be considered.
- The likelihood of repeat misconduct. If a defendant is likely to repeat their conduct, a court may be more willing to award punitive damages.
Why Punitive Damages Matter in Louisiana
Punitive damages are about more than financial penalties. They can be a powerful tool to hold wrongdoers accountable and create safer communities. Pursuing punitive damages requires a deep understanding of Louisiana’s legal framework and the ability to present compelling evidence of gross negligence or intentional misconduct.
If you’ve been injured due to someone else’s reckless or malicious behavior and you wish to discuss the specifics of your case in a free consultation with an experienced personal injury lawyer, please contact us today.