MBE Rules · Remedies

Punitive Damages

Cal. Civ. Code § 3294

The rule

Punitive damages are recoverable in noncontract cases where the plaintiff proves by clear and convincing evidence that the defendant acted with oppression, fraud, or malice. Amount considers reprehensibility, ratio to compensatory damages, and comparable civil penalties. Punitives are generally unavailable in pure breach-of-contract actions.

In plain English

Punitive damages are additional amounts awarded to a plaintiff to punish a defendant for particularly harmful behavior, such as oppression or fraud. To receive these damages, the plaintiff must provide strong evidence of the defendant's wrongful intent, and the amount awarded will depend on the severity of the defendant's actions and how it compares to any compensatory damages awarded.

Worked example

In a case where a company knowingly sold defective products that caused harm to consumers, the jury found that the company acted with malice and fraud. The plaintiff presented clear evidence of the company's intent to deceive and harm. As a result, the court awarded punitive damages in addition to compensatory damages to punish the company for its actions.

Memory hook

Punitive damages punish the wrongdoer, not just compensate the victim.

The trap

Exams often include scenarios where students must distinguish between torts and contract breaches, leading them to mistakenly apply punitive damages in purely contractual disputes.

How examiners test it

Questions typically present fact patterns involving egregious conduct and ask whether punitive damages are appropriate, often requiring students to identify the necessary elements for recovery.

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