Does Oklahoma limit punitive damages in personal injury lawsuits

In most cases, Oklahoma law limits punitive damages to the greater of $100,000 or the value of actual damages awarded in a personal injury lawsuit. However, there are exceptions to this rule, and in some cases, the award of punitive damages can be for “any amount the jury deems appropriate.”

What Are Punitive Damages?

Punitive damages (also called exemplary damages) are sometimes awarded in addition to actual damages – the money given to an injured party to compensate them for the specific harm they’ve suffered because of a defendant’s actions. Unlike actual damages, punitive damages are not meant to offset any losses the injured party sustained. Rather, they are intended to punish the defendant for especially harmful behavior.

These damages serve a dual purpose in personal injury claims. First, they aim to penalize the party that caused harm through their reckless or intentional actions, clearly conveying that such behavior is intolerable. Second, they discourage others from engaging in similar behavior by setting a strict, unmistakable example.

In essence, punitive damages go beyond simply compensating an injured party for their medical bills, lost wages, or repair costs. Their additional cost serves as a reprimand of the defendant, penalizing wrongful actions and deterring others from behavior that’s similarly detrimental to the public good.

How Are Compensatory Damages Different from Punitive Damages?

Compensatory damages offset the tangible and intangible losses a person suffers due to the injuries someone else caused them. This compensation usually falls into two categories.

Economic Damages

Also known as special damages, they cover clear-cut financial losses that can be quantified and supported by bills or receipts. Examples include:

• Medical bills, ranging from emergency room visits to ongoing therapy
• Lost wages, or other income lost due to time off work for recovery
• Property damage, such as the costs to repair or replace damaged items

Non-Economic Damages

Otherwise known as general damages, these address the less tangible, emotional, and physical impacts of an injury. While just as real as the financial harm described above, they are not as straightforward to put a dollar amount on. Examples of non-economic damages include:

• Pain and suffering, or the physical pain and emotional anguish the injured party experienced
• Loss of enjoyment, or the inability to take part in favorite activities
• Emotional distress, or the psychological impacts of the injury

Oklahoma used to cap non-economic damages at $350,000, but the state Supreme Court struck down that law in 2019.

Punitive Damages

By contrast, punitive damages are not about compensating the victim for losses. Instead, they operate as a financial reprimand, penalizing the perpetrator for their negligent or dangerous actions. Whereas compensatory damages are meant to undo the harm the injured party suffered, punitive damages send a clear message to the defendant who caused the injuries: reckless and harmful behavior comes with a hefty price.

What Factors Are Used in Determining Punitive Damage Awards?

Two key elements determine whether a plaintiff – the injured party bringing the lawsuit – can recover punitive damages in an Oklahoma personal injury claim. The first element is whether a jury will award punitive damages at all. To recover punitive damages, a plaintiff must take their case to trial and win. Assuming the plaintiff wins, state law requires juries to separately decide whether to award punitive damages based on the following factors:

• The danger to the public presented by the defendant’s actions
• Whether and how much the defendant’s actions profited the defendant personally
• How long the defendant’s dangerous actions lasted, and whether they tried to hide their actions
• Whether the defendant knew their actions were harmful and excessive
• The defendant’s attitude after the discovery of their actions
• How many people were involved in perpetrating or concealing their misconduct
• The defendant’s financial condition

After considering all these factors, the jury will decide whether punitive damages are warranted. If the jury believes they are, they must then decide how much to award. Oklahoma law outlines three different scenarios and places a separate upper limit on punitive damages for each:

• The defendant acted with a reckless disregard for others. If the defendant acted recklessly but did not intentionally harm the plaintiff, the cap on punitive damages is $100,000 or the amount of the plaintiff’s compensatory damages, whichever is higher.
• The defendant acted intentionally. If the defendant intentionally injured the plaintiff through their actions, the punitive damages cap increases significantly. In these cases, the cap on punitive damages is $500,000 or twice the amount of the plaintiff’s compensatory damages, whichever is higher.
• The defendant acted intentionally and put someone’s life at risk. If the defendant intentionally threatened someone’s life through their actions, the law gives juries broad discretion regarding the award of punitive damages. In these cases, the law says juries can award whatever amount of punitive damages they deem appropriate.

Are Punitive Damages Difficult to Prove?

Recovering punitive damages in an Oklahoma personal injury claim is a definite challenge. The law says the jury must have “clear and convincing evidence” that the defendant either engaged in especially reckless conduct or intentionally put someone in danger. That’s a high standard to meet. If you wish to recover punitive damages through a personal injury claim, you need an experienced and dedicated attorney to make your case to a jury.

How Frequently Are Punitive Damages Awarded?

Because of the high legal standard required for juries to award punitive damages, it is rare for plaintiffs to receive them. Another issue is that plaintiffs must take their claim to trial and win to recover punitive damages – a riskier, more time-intensive process than negotiating for and accepting a settlement offer. Our lawyers can review your case and advise you on your odds of securing punitive damages at trial.

Are Punitive Damages Taxable?

While compensatory damages from a personal injury case usually are not taxable, punitive damages awards are taxable, per IRS rules. A personal injury attorney can work to structure a settlement in a way that minimizes your tax liability.

Contact an Oklahoma Personal Injury Lawyer

Did someone hurt you through their especially reckless or intentional behavior? If so, they could owe you much more than the cost of your medical expenses, lost wages, pain, and suffering. The Tulsa personal injury attorneys at Edwards & Patterson have the drive, experience, and knowledge to help you hold the at-fault party to account for their egregious actions, which could include an award of punitive damages.

Call us today or complete our contact form for a free consultation about your personal injury lawsuit and whether you can seek punitive damages.

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