Study of the optimal deterrence and the gain elimination theories on punitive damages in tort cases (emphasizing on the United States Jurisprudence)

دانشنامه حقوق اقتصادی

Article 4, Volume 21, Issue 6, February 2015   

Document Type: Scientific research

DOI: 10.22067/le.v21i6.46545

Authors

Azam Amini^{* 1}; Sedighe Abak²

¹Ferdowsi University of Mashhad

²University of Allameh Tabataba’i

Abstract

Punitive damage is a kind of Supra-compensatory damage which is awarded in favor of Plaintiff in Civil actions for punishing the defendant and deterring him from taking action like that in future. The main feature of punitive verdict is deterrence and punishment and in this regard two economic theories exist (optimal deterrence and gain elimination theories). However punitive aspect of this damage is a reason that to be considered as an identity with criminal nature and not to be applied in private actions. Lack of predictability of this damage and sometimes large and backbreaking sentences which make it more complicated, made the United States courts to come up with several strategies for limiting the punitive damages.

Keywords

Punitive Damage; Deterrence Theory; Gain-elimination Theory

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