When are punitive damages awarded in Canada?
Punitive damages are exceptional. They are awarded only where the defendant's conduct is high-handed, malicious, arbitrary, or a marked departure from ordinary standards of decent behaviour, and where other damages are insufficient to punish and deter. They punish the wrongdoer rather than compensate the plaintiff.
Is there a ratio limit on punitive damages in Canada?
Canada has no fixed numerical cap or ratio. In Whiten v Pilot Insurance (2002), the Supreme Court upheld a $1 million punitive award against roughly $318,000 in compensatory damages. The governing principle is rational proportionality to the objectives of punishment, deterrence, and denunciation, not a mechanical ratio.
What factors do Canadian courts weigh?
From Whiten: the degree of blameworthiness of the conduct, the plaintiff's vulnerability, the harm directed at the plaintiff, the need for deterrence, any advantage or profit wrongfully gained by the defendant, and any other fines or penalties already suffered. The award should be the lowest amount that will serve these purposes.
How do Canadian punitive awards compare to US ones?
Canadian punitive awards are far more restrained. Multi-million-dollar or double-digit-ratio awards common in some US states are rare in Canada. Canadian courts emphasise moderation and proportionality, and most awards are at or below a low single-digit ratio to compensatory damages.