When do treble damages apply

Statutes exist to award treble damages in cases involving patent infringement, willful trademark counterfeiting, and antitrust violations. Plaintiffs in personal injury cases may also receive treble damages if the violated statute supports them, if the plaintiff requests them, and if the defendant intended to harm the plaintiff.

Treble damages are intended to be punitive in order to deter others from committing the same offense and are three times the compensatory damages awarded. General damages are financial awards made by a court in a civil case in addition to compensatory damages. General damages are usually requested along with compensatory damages but are more difficult to obtain. General damages typically fall under the heading of pain and suffering or mental anguish, for example.

Like treble damages, punitive damages go beyond compensating the aggrieved party and are specifically designed to punish defendants whose conduct is considered grossly negligent or intentional. Punitive damages may be awarded at the discretion of the court when the offense is determined to be particularly harmful. They are also called exemplary damages, in that they are intended to set an example to deter future violators. The Supreme Court has ruled that punitive damages that are grossly excessive or imposed without sufficient procedural protections violate due process.

However, states have broad discretion with regard to setting rules for calculating punitive damages. Treble damages can be awarded when a specific statute proscribes them. The term liquidated damages also refers to financial compensation due to an aggrieved party. They differ in that they are typically specified in a contract for a particular offense.

The act sets guidelines for telemarketing practices, places greater restrictions on the use of automated telephone equipment, and requires companies that make telephone solicitations to maintain do-not-call lists. The TCPA prescribes penalties for violating such rules.

In cases of a willful violation of the TCPA, subscribers can claim treble damages for each instance. Department of Justice. Government Publishing Office. Code Sec. Accessed Feb. Congressional Research Service. Federal Communications Commission. Debt Management. Small Business. In the case of tort liability, courts may choose to apply punitive damages.

In National By-Products Inc. Searcy House Moving Co. With regard to a principal-agent relationship , courts are reluctant to award punitive damages on the principal for the reckless actions of the agent. Some contracts will list certain" liquidated damages " as a consequence of a breach.

A court, however, may choose to ignore this clause if the liquidated are actually punitive damages. There is a 2-part test that courts will typically use to determine whether to apply a liquidated damages clause:. If the clause meets both of these elements, then the court will typically apply the clause, finding no evidence of punitive damages. Recently, courts have begun to evaluate the appropriateness of assigning punitive damages in comparison to the amount of compensatory damages assigned.

The amendment led to a significant increase in wage and hour litigation in Massachusetts. Although the mandatory treble damages provision remains in effect despite numerous attempts in the legislature to repeal or amend it , the Rosnov decision is welcome news for employers.

In light of Rosnov , employers are not subject to mandatory treble damages awards for alleged wage and hour violations that pre-date the amendment. Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney. Subscribe RSS Updates. Skip to main content.

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