This first chapter introduces the concept of punitive damages from an American perspective. First, an attempt is made at defining the remedy of punitive damages as it exists in the United States. The chapter then provides insight into the historical origins of this type of damages and into their development within American law. It sets out the requirements commonly put forward for the granting of punitive damages. Subsequently, the objectives behind the awarding of punitive damages are explored. It is further demonstrated that punitive awards do not occur in the amount and the frequency public opinion seems to believe they do. Lastly, the clear trend to limit both the number as well as the amount of punitive damages awards is described. Particular attention is dedicated to the U.S. Supreme Court's line of cases putting constraints on punitive damages by relying on the Due Process Clause of the Fourteenth Amendment to the American Constitution. The chapter lays the foundation and provides the background needed to address the position and treatment of U.S. punitive damages within private international law.

DEFINITION

The victim of a tort committed by another person, a legal entity or the government is entitled to be placed in the situation he or she would have been in had the tort not taken place. This is a fundamental principle of tort law in the United States as well as in the European Union. The tortfeasor must pay damages to compensate for the harm suffered by the plaintiff as a result of the tort. These compensatory damages (also referred to as actual damages) are further categorised into patrimonial (or pecuniary) and non-patrimonial (nonpecuniary or extra-patrimonial) damages. The former serve to reimburse the plaintiff 's quantifiable monetary losses, such as property damage and medical expenses. The latter compensate for non-monetary forms of damage, with physical or emotional pain and suffering and loss of reputation as most common examples.

Punitive damages on the other hand provide plaintiffs in civil procedures with additional monetary relief beyond the value of the harm incurred. The remedy transcends the corrective objective of re-establishing an arithmetical equilibrium of gains and losses between the injurer and the injured. Punitive damages are awarded in excess of any compensatory or nominal damages.