Is there a limit on punitive damages in the US?
There is no fixed federal cap, but the Due Process Clause limits grossly excessive awards. In State Farm v. Campbell (2003), the Supreme Court stated that few awards exceeding a single-digit ratio between punitive and compensatory damages will satisfy due process, and that a 1:1 ratio may be the outer limit where compensatory damages are substantial.
What are the BMW v. Gore guideposts?
BMW v. Gore (1996) established three guideposts for reviewing punitive awards: the degree of reprehensibility of the defendant's conduct, the disparity (ratio) between the harm suffered and the punitive award, and the difference between the punitive award and civil penalties authorized for comparable misconduct. Reprehensibility is the most important.
Do states cap punitive damages?
Many do. Some states impose fixed dollar caps, some tie punitive damages to a multiple of compensatory damages (for example a 3:1 ratio or a set dollar figure, whichever is greater), and some bar punitive damages entirely in certain claim types. A minority, like California, have no statutory cap but apply the constitutional due process limits.
Can punitive damages exceed a single-digit ratio?
Occasionally. Where compensatory damages are very small but the conduct is extremely reprehensible, courts have upheld higher ratios because a single-digit multiple would not adequately punish or deter. Conversely, where compensatory damages are large, even a low single-digit ratio may be reduced.