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exemplary damages

   Also found in: Dictionary/thesaurus, Medical, Financial, Encyclopedia, Wikipedia, Hutchinson 0.03 sec.

exemplary damages n. often called punitive damages, these are damages requested and/or awarded in a lawsuit when the defendant's willful acts were malicious, violent, oppressive, fraudulent, wanton, or grossly reckless. Examples of acts warranting exemplary damages: publishing that someone had committed murders when the publisher knew it was not true but hated the person; an ex-husband trashes his former wife's auto and threatens further property damage; a stockbroker buys and sells a widow's stocks to generate commissions resulting in her losing all her capital (money). These damages are awarded both as a punishment and to set a public example. They reward the plaintiff for the horrible nature of what she/he went through or suffered. Although often requested, exemplary damages are seldom awarded. There have been major awards in egregious (remarkable or outstanding) cases, such as fraud schemes, sexual harassment, or other intentional and vicious actions even when the provable actual damages were not extensive. (See: damages)



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Punitive or exemplary damages are designed to punish.
In a suit filed last month by Von Dutch in Los Angeles Superior Court, Von Dutch is demanding $3 million in compensatory damages, as well as punitive and exemplary damages.
It also caps the damages for cases tried in federal court at $5 million and bans punitive and exemplary damages at the federal level.
 
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