Can an arbitrator award punitive damages?
In Iowa, an arbitrator can technically award punitive damages, but it is highly unlikely. Punitive damages are given as a form of punishment for someone’s actions, and they are meant to deter similar actions in the future. These damages are far more difficult to prove than regular damages, and they are less likely to be awarded in arbitration proceedings. Arbitration proceedings are known for their speed and the informality of the process, which isn’t compatible with the strict proof requirements of punitive damages. If punitive damages are requested, the arbitrator usually requires the parties to provide additional evidence or go to court. This extra step takes time, and it can also become costly. Additionally, punitive damages are not typically available for matters that are dealt with in arbitration. Arbitration is generally used in contractual disputes, which means that punitive damages are not applicable. If a party is seeking punitive damages, they are usually better off taking their case to court, where damages are easier to prove. In conclusion, it is possible for an arbitrator to award punitive damages, but it is not very likely. Parties seeking punitive damages should generally proceed in a court of law to ensure a better outcome.
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