Punitive Damages in Tennessee
State-specific overview · Contract Law
Tennessee requires clear and convincing evidence and caps punitive damages at two times compensatory damages or $500,000.
How Tennessee treats Punitive Damages
Tennessee law sets a high evidentiary standard—clear and convincing evidence—before awarding punitive damages. The cap is generally the greater of two times the compensatory damages awarded or $500,000, though exceptions exist for certain cases. The defendant's conduct must be intentional, fraudulent, malicious, or reckless. Punitive damages serve both to punish and to deter similar future conduct.
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 Tennessee.