Punitive Damages in Indiana
State-specific overview · Contract Law
Indiana allows punitive damages only for fraud or gross negligence, capped at the greater of three times compensatory damages or $50,000.
How Indiana treats Punitive Damages
Indiana restricts punitive damages to cases involving fraud or gross negligence; ordinary negligence does not support such awards. The state imposes a statutory cap limiting punitive damages to the greater of three times compensatory damages or $50,000. The plaintiff must prove the defendant's wrongful conduct by clear and convincing evidence. Indiana courts apply this cap strictly, making large punitive awards difficult to obtain even in serious misconduct cases.
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 Indiana.