Punitive Damages in California
State-specific overview · Contract Law
California allows punitive damages for fraud, oppression, or malice, proven by clear and convincing evidence, with no statutory cap but constitutional limits apply.
How California treats Punitive Damages
California Civil Code § 3294 permits punitive damages when a defendant acts with "oppression, fraud, or malice," requiring clear and convincing proof of these specific states of mind. The statute excludes most contract cases and professional negligence claims unless independent tort conduct exists. While California imposes no statutory dollar cap, the U.S. Supreme Court's due process standards limit awards to a reasonable ratio of punitive to compensatory damages, typically three to one or less. Defendants can request remittitur (reduction) of excessive awards, and appellate courts actively review punitive damage verdicts for constitutional compliance.
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 California.