Can an arbitrator award punitive damages?

In Virginia, the general rule is that arbitrators are not permitted to award punitive damages. Punitive damages are awards of money given by courts in order to punish wrongdoers and deter other people from engaging in similar wrongdoing in the future. Courts are the only institutions that have the authority to award such damages, so the general rule is that arbitrators cannot do so. However, there are some exceptions to this rule. If both parties to an arbitration agreement agree to allow the arbitrator to award punitive damages, then the arbitrator can do so. This is known as “stipulated authority” and allows the parties to decide whether they want the arbitrator to have the authority to award punitive damages in the arbitration. It is important to remember, however, that punitive damages are rarely awarded and even a court may not do so in many cases. When considering whether or not to allow an arbitrator to award punitive damages, it is important to understand the limitations. If punitive damages are awarded, they are typically only awarded in cases of extreme misconduct or recklessness.

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Can an arbitrator award punitive damages?

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