What is a punitive damage claim in an insurance litigation case?

A punitive damage claim is a type of civil lawsuit that is taken against an individual or entity when they have acted in a way that is so reckless or egregious that it warrants a punishment beyond what they legally owe to the plaintiff. This type of action is also known as exemplary damages. In an insurance litigation case, a punitive damage claim is often used when the defendant’s behavior is outrageous and goes beyond the reasonable injury or harm caused by a breach of contract. Punitive damages can be sought when the defendant’s controversial behavior is so outrageous that a financial penalty is needed to deter them from engaging in such behavior in the future. In New York, punitive damages are not to exceed the greater of three times the amount of economic losses or $250,000. Additionally, punitive damages can only be awarded to the plaintiff if the court finds that the defendant acted with “fraudulent, malicious, or oppressive intent.” Punitive damage claims are commonly seen in cases involving insurance companies since they tend to be very strict on their contracts. Punitive damage claims can help ensure that people are held accountable for their actions and that a proper punishment is given. This helps to deter future acts of negligence or recklessness.

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What is a punitive damage claim in an insurance litigation case?

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