What Is Excessive Compensation?
Excessive compensation occurs when damages awarded to a plaintiff in a personal injury case are disproportionately high compared to the actual harm suffered. Courts and defendants may challenge such awards, particularly when they involve non-economic or punitive damages that appear excessive.
Causes of Excessive Compensation
- Emotional Factors: Juries may be influenced by the severity of the injury or sympathy for the victim.
- Punitive Damages: Awards intended to punish the defendant can sometimes exceed reasonable limits.
- Unclear Damages: Overestimations of future medical costs or non-economic damages, like pain and suffering.
Legal Implications of Excessive Compensation
- Appeals and Reductions: Defendants may file appeals to reduce the award, citing legal caps or proportionality principles.
- State Caps: Many states impose limits on non-economic and punitive damages to prevent excessive awards.
- Balancing Justice: Courts aim to ensure compensation reflects the actual losses while deterring frivolous lawsuits.
Plaintiffs and their attorneys must carefully calculate damages to ensure fairness and defend against challenges to the award.
