Does a securities arbitration panel have the power to award punitive damages?

In North Carolina, the answer to whether a securities arbitration panel has the power to award punitive damages is yes. According to North Carolina law, a securities arbitration panel may award punitive damages when warranted. Punitive damages are awarded when the defendant’s conduct is determined to be especially egregious or reckless. Punitive damages serve to punish the wrongdoer and can significantly exceed the compensatory damages meant to restore the plaintiff to the status quo before the wrong. In North Carolina, the securities arbitration panel will consider various factors in determining whether to award punitive damages. These factors include the severity of the wrongdoing, the defendant’s financial condition and the degree of injury suffered by the plaintiff. In adjudicating a claims for punitive damages, the panel may require additional evidence to be presented to ascertain the facts and circumstances which led to the defendant’s conduct. In determining the amount of punitive damages to be awarded, the panel considers the factors described above as well as the North Carolina Punitive Damages Act. This Act sets forth the amount of punitive damages that may be awarded as well as limits on the amount of punitive damages which may be imposed depending on the facts of the case. Ultimately, a securities arbitration panel in North Carolina does have the power to award punitive damages. The panel considers evidence of misconduct as well as the facts of the case. Ultimately, the panel weighs the facts and the North Carolina Punitive Damages Act to determine whether punitive damages are appropriate and, if so, the amount of the award.

Does a securities arbitration panel have the power to award punitive damages?

Related FAQs

Related Blog Posts