Can an arbitrator award punitive damages?

In California, an arbitrator does not have authority to award punitive damages in most cases. Punitive damages are a special type of money awarded to a plaintiff for the purpose of punishing a defendant for particularly egregious behavior. Punitive damages are not allowed in arbitration unless specifically stated in the contract that the parties entered into prior to the beginning of the dispute. This means that the parties must agree in writing to allow arbitrators to award punitive damages before an arbitrator can award such damages. In California, as with many other states, punitive damages are generally discouraged as a form of remedy in favor of other forms of relief. Still, punitive damages are sometimes applicable, and if the parties have agreed that an arbitrator may award punitive damages, then the arbitrator may do so. In most cases, however, the award of punitive damages is much rarer than other remedies, such as compensatory damages. Even if the parties have agreed to give the arbitrator the power to award punitive damages, the arbitrator should still take other, more common forms of relief into consideration before awarding punitive damages. The court also has the ability to modify or reduce an award of punitive damages, as appropriate.

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Can an arbitrator award punitive damages?

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