Punitive Damages in New Jersey

State-specific overview · Contract Law

Quick summary

New Jersey restricts punitive damages to cases of intentional torts or conduct showing extreme recklessness.

How New Jersey treats Punitive Damages

New Jersey law generally does not permit punitive damages in ordinary negligence cases; instead, they are reserved for intentional torts, fraud, or conduct showing a conscious disregard for the rights of others. When awarded, punitive damages are subject to judicial review for excessiveness and must be supported by clear and convincing evidence. The state emphasizes that compensatory damages are the primary remedy, with punitive damages serving as an exceptional measure in egregious 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.

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This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in New Jersey.