Punitive damages or exemplary damages are awarded in addition to actual damages in civil cases. Exemplary damages are viewed as punishment and are often granted at the court’s discretion. But only when the defendant’s actions have caused great harm to the plaintiff (the party who files the case).
Courts award damages to make up for a party’s loss during a case. Punitive damages goes beyond compensating the aggrieved party. In short, punitive damages or exemplary damages are to set an example to others not to do the same.
Furthermore, damages aims to put the plaintiff in the same situation they would have been in if the wrongdoing did not happen. Simply, the court should not grant a party more damages than their actual loss. So courts should be careful when determining damages. Read on to know more about these types of damages.
Definition of Damages in Law
Damages is a type of legal compensation that the defendant pays to a plaintiff if the former’s conduct is malicious, contumelious, or insolent. In short, damages is compensatory in nature rather than punitive or vindictive. Moreover, the burden of proving causation between the defendant and the losses for which damages are sought rests with the plaintiff. But the plaintiff must prove that:
- Every loss for which the plaintiff is seeking damages was directly related to, or substantially caused by, the defendant’s acts.
- The plaintiff took reasonable measures to prevent further damages from being worsened by unrelated factors, like the plaintiff’s own negligence.
- There is a chance that the breach caused the losses. The minimum standard appears to be that the loss or harm was “not unlikely to result” from the wrongdoing. Although the required level of likelihood or certainty of the losses occurring may vary among remedies for damages.
4 Types of Awardable Damages
| 1. Nominal Damages | A party may get nominal damages when the court or tribunal feels that the plaintiff has not suffered a substantial loss despite the violation of a legal right.2 |
| 2. Compensatory Damages | There are many legal grounds that may result in the payment of exemplary damages including 1. Damage to property; 2. Personal injury; 3. Outrageous and deliberate privacy violations; 4. Acts of deceit; and 5. Abuse of power. |
| 3. Aggravated Damages | Aggravated damages is one type of financial award. This type of damage is to hold the defendant accountable for the plaintiff’s mental anguish and injury. |
| 4. Punitive Damages | There are many legal grounds that may result in the payment of exemplary damages including: 1. Damage to property; 2. Personal injury; 3. Outrageous and deliberate privacy violations; 4. Acts of deceit; and 5. Abuse of power. |
Note: Punitive damages awards should be, at most, no greater than nine times the amount of compensatory damages awards.
Punitive Damages Award
Australian courts rarely grant damages with punitive elements since they are a punishment by nature. Moreover, courts will only grant this damage if an offender intentionally engaged in behaviour that displayed an arrogant or disdainful disrespect for another person’s rights. Hence, courts may not award punitive damages for:
- Defamation claims
- Breach of contractual duty of confidence
- Breach of equitable obligations
Note: Even if the plaintiff wins his/her case, payments for exemplary damages are typically minimal or, at most, moderate. It’s highly important to seek legal advice when seeking damages in civil cases.
Reviewing Punitive Damages in a Case Study
The Supreme Court, in Cheng v Farjurdi [2016], considered whether the trial judge erred in awarding exemplary damages. Mr. Cheng (appellant) and Mr. Farjudi (respondent) had a dispute in the gaming area of the Parramatta Leagues Club. Mr. Farjudi suffered post-traumatic stress disorder and a fracture of the right orbit as a result of the assault by the respondent.
The appellant was charged with an offence in relation to the assault on the respondent. At trial, the appellant claimed he acted in self-defence rather than admitting he hit the respondent. The trial judge found the appellant guilty and awarded damages including $10,000 in exemplary damages.
Case Facts
Cheng and his wife were playing poker at the Parramatta Leagues Club. Farjudi and his wife were seated across from each other, facing the poker machines. Chau, a friend, was nearby. Behind Farjudi was a tall, solid-built man. Farjudi’s wife and another woman asked Cheng to quiet down, which Cheng ignored.
When Cheng or his wife won the jackpot, they got louder. This led to Mrs. Farjudi arguing with them when she asked them to be quiet again. Mr. Farjudi heard the exchange but not the exact words that were said.
He then moved towards them or towards the appellant, passing the big man who was standing behind Cheng. Farjudi raised his left arm with his hand facing upwards. Her Honour pointed out that neither a witness nor the CCTV footage showed the respondent making a fist with either hand.
Despite no evidence to support it, the respondent spoke to the appellant. After getting up, Cheng and Farjudi got into a physical fight. Her Honour found that Cheng chased Farjudi across the room during the altercation. The CCTV footage showed Cheng holding Farjudi’s shirt on his left shoulder and throwing several punches.
This caused Farjudi to stumble backwards due to the two punches he received on his face. The respondent suffered a fracture to the right orbital floor. He had pain between his eyes and nose, impaired vision and bruising around both his eyes. His main ongoing impairment is a psychological injury from post-traumatic stress
Awarding Punitive Damages
Mr Cheng acknowledged his response was not reasonable even if Mr. Farjudi did an illegal act. As a result, the respondent’s claim could not be fully defended by self-defence.
The appellant, however, argued the damage cap applied under the Civil Liability Act 2002 (NSW). The following are the exemplary damages awarded to Mr. Farjudi:
- General damages—$100,000
- Past out-of-pocket expenses – $2,500
- Future out-of-pocket expenses – $28,009 (corrected to $18,181 due to miscalculations)
- Past domestic assistance – $40,824
- Future domestic assistance – $20,594
The court dismissed Mr Cheng’s appeals and ordered him to pay Mr. Farjudi’s costs.
Importance of Seeking Legal Advice
JB Solicitors has a team of experienced lawyers who can assist with any kind of damages in civil cases. We can help identify what kind of damages people can claim.
Our firm also offers affordable mediation and arbitration services instead of going to court. These methods of dispute resolution help parties in dispute reach an amicable resolution.
Contact us today if you are entitled to nominal, aggravated, punitive, and compensatory damages.
Last updated: 24 April 2025
