Legal Question in Civil Litigation in California

in a civil trial, how do you calculate punitive damages for fraud, going into negotiations. Let's say the case has an underlying value of $1M, but with interest and other damges/ attorneys fees it is now $2M.

Would a jury use the underlying amount of $1M and potentially double it?

or would they use the total amount then times a factor of it?


Asked on 1/29/13, 9:38 am

3 Answers from Attorneys

None of the above, unless you are under a statute that calls for a specific multiplier for punitives (3x is common in the codes). Otherwise you must present evidence of the defendant's financial condition and the jury must come up with a number that is adequate to punish and commensurate with the offense, given what was done and what it would take to financially punish the defendant in question. If you are under a multiplyer statute, it is actual damages, not interest or other add-ons.

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Answered on 1/29/13, 10:38 am
Charles Perry Law Offices of Charles R. Perry

There are three basic types of proof; the egregiousness of the defendant's wrongdoing, the amount of actual damages (but this would not include attorney's fees), and the defendants' wealth. There is no exact formula, but the amount awarded must not exceed an amount necessary to punish and deter. If it is excessively severe, then the award is subject to a reduction or reversal by the courts.

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Answered on 1/30/13, 12:36 am
Anthony Roach Law Office of Anthony A. Roach

I agree with Mr. McCormick. Normally punitives are assessed on the wealth of the defendant. A poor man will pay less of a punishing fine than a wealthy man.

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Answered on 1/30/13, 12:15 pm


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