What are Vindictive Damages?
Vindictive damages, also known as exemplary damages, are a form of civil damages awarded by a court to punish a defendant for their wrongful actions. These damages are typically awarded in addition to compensatory damages, which are intended to make the plaintiff whole again after suffering a financial loss. Vindictive damages are not intended to compensate the plaintiff, but rather to punish the defendant for their wrongdoing.
Vindictive damages are most commonly awarded in cases of fraud, breach of contract, or other intentional wrongs. In these cases, the court may find that the defendant’s actions were so egregious that they deserve to be punished. The court may also award vindictive damages to deter the defendant from engaging in similar behavior in the future.
In some cases, a court may award vindictive damages even if the plaintiff has not suffered any financial loss. For example, in the case of a wrongful dishonour of a cheque from a businessman, the court may award exemplary damages even if the plaintiff has not suffered any financial loss. This is because the court may find that the defendant’s actions were so egregious that they deserve to be punished.
However, a non-trader is not typically awarded heavy compensation unless the damages are alleged and proved as special damages. This is because the court may find that the defendant’s actions were not as egregious as those of a businessman and thus do not warrant such a heavy punishment.
In conclusion, vindictive damages, also known as exemplary damages, are a form of civil damages awarded by a court to punish a defendant for their wrongful actions. These damages are typically awarded in addition to compensatory damages, which are intended to make the plaintiff whole again after suffering a financial loss. In some cases, a court may award vindictive damages even if the plaintiff has not suffered any financial loss. However, a non-trader is not typically awarded heavy compensation unless the damages are alleged and proved as special damages.
