Definition of liquidating damages

The court takes several things into consideration when deciding whether or not to award punitive damages.Commonly considered factors include: In most jurisdictions, the laws place limits on the amount of punitive damages that can be awarded.A company that manufactures and distributes dietary supplements assures customers that their weight loss formula is a safe and effective way to lose weight, advertising the supplement as an “all natural,” and completely safe supplement.

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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.A judge will award punitive damages if he wishes to make an example of the defendant, or if he believes that compensatory damages are not enough to punish the defendant.For example: Tim is answering a text message while driving, when he suddenly slams into the back of a car that had stopped to allow children to cross the street.A punitive damages award is paid to the plaintiff by the defendant.To explore this concept, consider the following punitive damages definition.

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