Reviewed by Laurence P. Banville, Esq.Is there a punitive damages statute in New York?
No. New York has no single statute that sets out when punitive damages are allowed or caps them. The rule comes from case law, and it requires more than negligence. The conduct has to be wanton, reckless or malicious, the kind of behavior that shows a conscious disregard of other people’s safety or rights. A driver who misjudges a turn is negligent. A driver who knowingly gets behind the wheel badly impaired may be something more.
A few statutes mention punitive damages for particular claims, such as Public Health Law §2801-d for nursing home residents, but none sets a general rule.
Punitive damages are not compensation
Compensatory damages pay you back for losses such as medical bills, lost wages and pain and suffering. Punitive damages do something different. They exist to punish the wrongdoer and deter similar conduct, on top of any compensatory award.
They also cannot stand alone. In Rocanova v. Equitable Life Assurance Society (1994), the Court of Appeals described a demand for punitive damages as parasitic: it has no life unless it is attached to a valid underlying claim, such as negligence, assault or wrongful death. If that claim fails, the punitive demand fails with it. It also means the deadline that matters is the one for the underlying claim, for example three years for most negligence claims under CPLR §214(5) and one year for assault and battery under CPLR §215(3).
Are punitive damages insurable in New York?
Generally, no. New York public policy bars insurance coverage for punitive damages. The Court of Appeals reached that conclusion in Home Insurance Co. v. American Home Products Corp. (1990) and reaffirmed it in Zurich Insurance Co. v. Shearson Lehman Hutton, Inc. (1994). If an insurer could pay, the punishment would miss the person who did wrong.
For an injured person, that matters:
- Collectability. A punitive award has to be paid from the defendant’s own assets. A defendant with few assets may never pay it.
- Settlement leverage. With the defendant’s own money exposed, a credible punitive claim can affect settlement talks, though it guarantees nothing.
- Employers. Under Loughry v. Lincoln First Bank (1986), an employer is generally not liable for punitive damages based on an employee’s conduct unless a superior officer authorized, participated in, consented to or ratified it.
Can you get punitive damages against the city or the State?
No. In Sharapata v. Town of Islip (1982), the Court of Appeals held that punitive damages cannot be recovered against a municipality; the waiver of governmental immunity does not extend to punishment paid by taxpayers. The same principle protects the State and other public entities. You can still pursue compensatory damages against a city, county or town, but strict notice rules apply: a notice of claim generally within 90 days under General Municipal Law §50-e and a lawsuit within one year and 90 days under General Municipal Law §50-i.
Where punitive damages come up in injury cases
- Intoxicated or extremely reckless drivers. This is the most common setting. See punitive damages in a NY car accident case and suing a drunk driver.
- Nursing homes. Public Health Law §2801-d gives residents a private right of action when their rights are violated, and allows punitive damages where the violation was willful or in reckless disregard of the resident’s rights. See nursing home abuse and neglect.
- Wrongful death. Under EPTL §5-4.3(b), punitive damages may be recovered in a wrongful death action if the person who died could have recovered them had they lived. The wrongful death claim itself must be brought within two years of death under EPTL §5-4.1.
- Intentional assaults. Deliberate violence can qualify (one-year deadline above).
How large can an award be?
There is no fixed formula. Juries consider how reprehensible the conduct was, and the award must stay within constitutional limits: in State Farm v. Campbell (2003), the U.S. Supreme Court said few awards that exceed a single-digit ratio to compensatory damages will satisfy due process. In practice, awards are rare and turn on evidence of the defendant’s state of mind. For the basics, see what punitive damages are or our overview of New York personal injury case types. Banville Law reviews these claims and refers or co-counsels them with trial counsel where a case calls for it.
Frequently asked questions
Is there a punitive damages statute in New York?
No. New York has no general statute that defines or caps punitive damages; the standard comes from court decisions. The conduct must be wanton, reckless or malicious enough to show a conscious disregard of others’ rights. A few specific laws, such as Public Health Law §2801-d for nursing home residents, mention punitive damages for particular claims.
Will insurance pay punitive damages in New York?
Generally not. The Court of Appeals held in Home Insurance Co. v. American Home Products (1990) and Zurich Insurance Co. v. Shearson Lehman Hutton (1994) that New York public policy bars insurance coverage for punitive damages. That means the wrongdoer pays personally, which affects whether an award can actually be collected.
What kind of conduct justifies punitive damages in New York?
Ordinary negligence is not enough. The defendant’s conduct has to be wanton, reckless or malicious, showing a conscious disregard for other people’s safety or rights. Examples that can qualify include driving while heavily intoxicated, deliberate assaults and willful violations of a nursing home resident’s rights.
Can I get punitive damages from New York City or the State?
No. In Sharapata v. Town of Islip (1982), the Court of Appeals held that punitive damages cannot be awarded against a municipality, and the same principle protects the State and other public entities. You can still seek compensatory damages, but a notice of claim is generally due within 90 days under General Municipal Law §50-e.
Are punitive damages available in a New York wrongful death case?
They can be. EPTL §5-4.3(b) allows punitive damages in a wrongful death action if the person who died could have recovered them had they lived. The wrongful death claim must be filed within two years of the death under EPTL §5-4.1.