Punitive element may go in damages awards

Additional sums in damages given on top of compensation awards in court cases for the purpose of punishing a defendant may be…

Additional sums in damages given on top of compensation awards in court cases for the purpose of punishing a defendant may be eliminated.

The extra money means that a defendant may have another bill to pay as well as compensation and legal costs.

Now the Law Reform Commission has invited submissions on eliminating all punitive elements from the law of damages.

A consultation paper states that some of the commissioners argue that exemplary damages - additional damages awarded to the person taking a case to signify disapproval, condemnation or denunciation of a defendant's actions - are entirely unacceptable within the civil law.

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The opinions of commissioners vary. Some say that exemplary damages should be abolished, except in cases where they are required to vindicate constitutional rights. Others recommend that exemplary damages should also be available in cases of defamation.

The provisional opinion of the commission is that the availability of exemplary damages should not be extended to cases of breach of contract.

The commission provisionally recommends that, in legal actions where exemplary damages are available, they should be awarded when the conduct of the defendant is found to have been highhanded, insolent or vindictive, or to have exhibited a gross disregard for the rights of the plaintiff.

It considers that where exemplary damages are awarded, the wealth of the defendant should be taken into account only if evidence is given that the defendant would be unable to pay or that the sum would impose undue hardship. It recommends that exemplary damage awards should not be capped.

The commission also examined aggravated damages - damages to compensate for added hurt, distress or insult to a plaintiff caused by the manner in which the defendant committed the wrong. It provisionally recommends that this category should be retained and that the reference to the conduct of the defendant should also be retained.