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

Yes, there are limitations on the amount of punitive damages available in a securities arbitration case in North Carolina. Punitive damages are typically awarded in cases involving intentional misconduct, gross negligence, or reckless behavior. However, the amount of punitive damages that can be awarded is limited by the North Carolina Securities Act. According to the Act, punitive damages may not exceed the greater of three times the amount of actual compensatory damages or $50,000. This same limit applies to all cases involving securities arbitration, regardless of whether the case is brought in state or federal court. Additionally, the arbitrator hearing the case must consider the financial resources of the respondent when deciding the amount of punitive damages to award. In other words, an arbitrator may reduce the amount of punitive damages if the respondent does not have the financial means to pay the full amount. It is important to note that punitive damages are not available in every securities arbitration case. These damages are only awarded when the respondent’s actions meet a certain threshold for gross negligence, intentional misconduct, or recklessness. Therefore, even if a claimant is successful in their case, there is no guarantee that punitive damages will be awarded.

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