(a)        Punitive damages may be awarded only if the claimant proves that the defendant is liable for compensatory damages and that one of the following aggravating factors was present and was related to the injury for which compensatory damages were awarded:

(1)        Fraud.

(2)        Malice.

(3)        Willful or wanton conduct.

(b)        The claimant must prove the existence of an aggravating factor by clear and convincing evidence.

(c)        Punitive damages shall not be awarded against a person solely on the basis of vicarious liability for the acts or omissions of another.? Punitive damages may be awarded against a person only if that person participated in the conduct constituting the aggravating factor giving rise to the punitive damages, or if, in the case of a corporation, the officers, directors, or managers of the corporation participated in or condoned the conduct constituting the aggravating factor giving rise to punitive damages.

(d)       Punitive damages shall not be awarded against a person solely for breach of contract. (1995, c. 514, s. 1.)

Terms Used In North Carolina General Statutes 1D-15

  • claimant: includes any party seeking recovery of punitive damages. See North Carolina General Statutes 1D-5
  • Compensatory damages: includes nominal damages. See North Carolina General Statutes 1D-5
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
  • Fraud: Intentional deception resulting in injury to another.
  • Malice: means a sense of personal ill will toward the claimant that activated or incited the defendant to perform the act or undertake the conduct that resulted in harm to the claimant. See North Carolina General Statutes 1D-5
  • Punitive damages: means extracompensatory damages awarded for the purposes set forth in N. See North Carolina General Statutes 1D-5
  • Willful or wanton conduct: means the conscious and intentional disregard of and indifference to the rights and safety of others, which the defendant knows or should know is reasonably likely to result in injury, damage, or other harm. See North Carolina General Statutes 1D-5
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