Recovery of Punitive Damages

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When a contract is breached it can cause damages and headache for all parties involved. If this unfortunate event does occur, the damages can be mitigated by arranging a settlement with the party in violation before the breach has occurred.

Punitive Damages Defined

While compensatory damages have long been a widely accepted purpose of the US civil court system, punitive damages are a widely debated subject. They are so divisive that laws surrounding punitive damages differ greatly from one state to the next.

In the most extreme circumstances, the court can grant punitive damages paid to the plaintiff, hopefully preventing the defendant from repeating their behavior in future agreements.