Definition of liquidating damages
While the exact limits vary from state to state, each court can only award an amount that is considered relatively proportionate and reasonable.In general, the amount of punitive damages cannot exceed four times the amount of compensatory damages that are awarded to a plaintiff.The judge orders Tim to pay punitive damages in the amount of ,000.
Punitive damages are award in addition to any compensatory or other damages, increasing the plaintiff’s total award.
The judge quickly determines the accident to be Tim’s fault, as he should have been more watchful of the cars in front of him, and awards Nelly compensatory damages for the full amount requested.
In addition, however, the judge points out that texting, or using a cell phone in any way, while driving, is an illegal act, and that Tim recklessly endangered the lives of others by doing so.
Tim, who tries to tell police that Nelly stopped “out of nowhere,” and that it was her fault because her brake light didn’t work, refuses to pay for her expenses.
Nelly files a civil lawsuit requesting ,521 for repairs to her car, and ,500 for medical expenses.