Punitive Damages in Arizona
State-specific overview · Contract Law
Arizona caps punitive damages at the greater of three times compensatory damages or $100,000, with limited exceptions for certain defendants.
How Arizona treats Punitive Damages
Arizona Revised Statutes § 34-226 establishes the cap, though it may be exceeded in cases involving fraud, a defendant's prior similar conduct, or specific statutory violations. The plaintiff must prove by clear and convincing evidence that the defendant acted with "intent to injure" or "reckless disregard" for the rights of others. Punitive damages are generally not recoverable in contract disputes absent an independent tort. The burden of proof is higher than in compensatory damage claims, protecting defendants from excessive awards.
The general definition of Punitive Damages
Extra money awarded to punish wrongful conduct and deter future misconduct.
Punitive damages go beyond compensating you for your actual loss; they're meant to punish the other party for especially bad behavior and discourage similar conduct in the future. These are rare in contract cases and more common in situations involving fraud, gross negligence, or intentional harm. The amount can be much larger than your actual damages because the goal is deterrence, not just making you whole.
Read the full Punitive Damages entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Arizona.