Are there any limitations on the amount of punitive damages available in a securities arbitration case?

In California, punitive damages are available under securities arbitration law, but there are limits on what individuals may be awarded. Punitive damages are meant to punish wrongdoers for their wrongful conduct and deter others from commiting similar acts. The California Supreme Court has ruled that punitive damages should not exceed the amount necessary to punish the defendant and to deter him from future wrongful acts. Generally, the total award should be proportional to the harm sustained by the claimant, should serve as a deterrent to future violations of the law, and should not exceed the degree necessary to achieve both objectives. The amount of punitive damages available in California securities arbitration usually depends on the facts of the case and the defendant’s conduct. Also, the degree of risk involved, such as whether the conduct was intentional or whether the defendant acted with reckless disregard of the rights of others, is also taken into account. The award might be decreased if the treaty or contract between the parties states that punitive damages are not allowed. Also, if the amount of compensatory damages is low, the amount of punitive damages may be reduced as well. In conclusion, punitive damages are available in a California securities arbitration case, but are subject to limits. The facts of the case and the conduct of the defendant are taken into account to determine the amount of the award, and the amount may be further limited if the contract or treaty between the parties does not allow for punitive damages to be awarded.

Are there any limitations on the amount of punitive damages available in a securities arbitration case?

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