Are there any limitations on the amount of punitive damages available in a securities arbitration case?
Yes, punitive damages are limited in North Dakota in securities arbitration cases. Punitive damages may only be recovered if the claimant can prove malicious or grossly negligent conduct. This means the negligent party must have had knowledge of or a reckless disregard for the consequences of their actions. Additionally, punitive damages are limited to three times the amount of compensatory damages awarded or a maximum of $10,000, whichever is higher. Punitive damages are not intended to be a windfall for the claimant and as such, the amount awarded will be determined based on the exact circumstances in the case. The primary purpose of punitive damages is to punish the negligent party for their wrong actions, and deter future similar conduct. It is not intended to be used as a way to compensate the claimant for their losses. Since punitive damages will only be awarded in limited circumstances, it is important that claimants understand the requirements of their case and all the applicable laws before proceeding forward. It is also important to note that punitive damages are not available in all securities arbitration cases, as it is limited to cases involving malicious or grossly negligent conduct.
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