Indiana Enacts Caps on Punitive Damage Awards
Recently, the Indiana State Supreme Court upheld, by unanimous decision, Indiana statutes placing caps on punitive damage awards and how distribution is made.
Under Indiana statute IC § 34-51-3-4, awards granted to plaintiffs for punitive damages are capped at three times compensatory damages or $50,000, whichever is greater. Under IC § 34-51-3-6 the plaintiff would receive 25% of the punitive damage award with the greater amount of the award (75%) going to the state’s Violent Crime Victim Compensation Fund.
In State v. Doe the plaintiff was awarded $5,000 for compensatory damages and $150,000 for punitive damages by a jury. But under Indiana statute capping punitive damage awards, the plaintiff would receive the full amount of $5,000 for compensatory damages and 25% of $50,000 ($12,500) for a total award of $17,500. Indiana’s Violent Crime Victim Compensation Fund would receive $37,500.
A law firm with experience.
The law firm of Ward & Ward has over 85 years of combined experience in breaking down the facts of a personal injury claim and working with insurance companies on behalf of their clients. Although caps on punitive damage awards may not generate the desired effect on large corporations, the legislation has been upheld when reviewed in the highest court.
If you have been injured in an automobile, trucking, motorcycle, or bicycle accident, or suffered in a pedestrian accident, please feel free to call me at 317-639-9501 for a free consultation.
(317) 639-9501Ward & Ward Law Firm 728 S Meridian St Indianapolis, IN 46225