What Do Treble Damages Mean?
When a plaintiff wins a case, they can be awarded treble damages, which is three times the amount of real or compensatory damages.
For instance, if military contractors intentionally submit false claims in an effort to cheat the government, the U.S. government can seek treble damages under the False Claims Act.
How Treble Damages Work
When a civil court rules in favor of the plaintiff, they may award treble damages. The defendant who loses in court must pay these sums to the plaintiff who wins. It is possible for civil damages to be punitive, general, or compensatory, or any combination of these three types. In circumstances of patent infringement, deliberate trademark fraud, and antitrust offenses, there are statutes that allow for the awarding of treble damages.
Additionally, treble damages can be awarded to plaintiffs in personal injury cases if the statute that was broken allows it, if the plaintiff specifically asks for them, and if the defendant had the intent to harm the plaintiff. The purpose of treble damages, which are three times the amount of compensatory damages, is to punish the offender and discourage similar actions.
The worth of other damages will not be tripled by treble damages, as it is based on real damages. The money from actual losses is only meant to replace the things that were lost. The process of calculating general compensatory losses is more involved as these damages do not reflect a monetary expense.
In civil cases, courts can award both compensatory (actual) damages and general damages, which are monetary sums. While compensatory damages are common, general damages are more challenging to get. Examples of general damages include bodily discomfort, emotional distress, and other similar experiences.
Contextualizing Treble Damages
Similar to treble damages, punitive damages aim to penalize offenders whose actions are deemed intentionally or grossly negligent in addition to repaying the wronged party. When a court finds an especially egregious wrongdoing, it may decide to impose punitive damages. Because their purpose is to serve as a model for non-compliance in the future, they are also known as exemplary damages.
Excessive punitive damages or those imposed without adequate procedural safeguards are unconstitutional, according to the Supreme Court’s ruling. Rules for determining punitive damages are, however, broadly subjective with respect to the states.
The exact amount of punitive damages is not always known, however it is usually no more than four times the amount of compensatory damages. Only in cases where a particular statute expressly allows them can treble damages be given.
The word “liquidated damages” can also mean money that someone who was wronged is owed. What sets them apart is the fact that contracts usually spell them out for specific crimes.
An Illustration of Treble Damages
Concerns with telemarketing prompted the United States to enact the Telecommunications Consumer Protection Act (TCPA) in 1991. The act mandates that businesses that conduct telephone solicitations keep do-not-call lists, establishes standards for telemarketing techniques, and tightens regulations on the use of automated telephone equipment.
Violators are subject to the penalties outlined in the TCPA. To illustrate, a subscriber has the option to sue for $500 per violation, demand damages, obtain an injunction, or pursue both. Subscribers have the right to treble damages in the event of a willful breach of the TCPA.
