Document Type

Article

Publication Title

Southern Economic Journal

Publication Date

7-2017

ISSN

0038-4038

Page Number

82

Keywords

punitive damages, reforms, detering bad behavior

Disciplines

Law | Legal Remedies

Abstract

State punitive damages reforms have altered how courts award punitive damages. We model the decision to award punitive damages as a two-step process involving the decision to award any punitive damages and the decision of what amount to award. Using samples of trial court verdicts from the Civil Justice Survey of State Courts, we find that punitive damages caps reduce the amount of damages awarded but do not affect whether they are initially awarded. Additionally, we find that maintaining lower evidentiary standards increases both the probability that punitive damages are awarded and the size of those awards.

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