Haris Ashley
Maryland law states that punitive damages may be awarded if the defendant acted with intent to injure, fraud, or evil motive. In Maryland, punitive damages are awarded to punish the defendant for egregiously bad conduct toward the plaintiff and to deter the defendant and others from similar behaviour in the future. However, punitive damages are rarely awarded in Maryland, and there are few insurance policies that cover actual malice, making it unlikely that punitive damages will be covered by insurance in Maryland.
| Characteristics | Values |
|---|---|
| Are punitive damages insurable in Maryland? | No, punitive damages are unlikely to be available for tort claims in Maryland that are covered by insurance. |
| Why? | There are few insurance policies for actual malice, which is required for punitive damages in Maryland. |
| What is the standard for punitive damages in Maryland? | The defendant must have acted with "intent to injure, fraud, or evil motive." |
| Are there any caps on punitive damages in Maryland? | No, but punitive damages must be proportionate to the amount of compensatory damages awarded. |
| Are punitive damages common in Maryland? | No, they are exceptionally rare. |
| Are there any notable cases involving punitive damages in Maryland? | In 2019, a Maryland jury awarded $229.6 million in compensatory damages to a plaintiff in a medical malpractice case, but $0 in punitive damages. |
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![Michie's Annotated Code of the Public General Laws of Maryland: Insurance, [Volume 1]: Sections 1-101 to 10-708. Enacted by Chapter 36, Acts 1995, Chapter 11, Acts 1996, and Chapter 35, Acts 1997, and Including All Amendments. 2011 Replacement Volume, with 2012 Supplement, Annotated through decisions posted as of July 10, 2012](https://m.media-amazon.com/images/I/01RmK+J4pJL._AC_UY218_.gif)
What You'll Learn
Maryland's strict requirements for punitive damages
Maryland's laws regarding punitive damage awards are strict and require a high standard of proof. Punitive damages are a type of monetary compensation awarded in civil lawsuits to punish the defendant for their actions and deter similar conduct in the future. While punitive damages are available in Maryland, they are rarely awarded due to the high bar set by the state's laws.
To succeed in a claim for punitive damages in Maryland, the plaintiff must demonstrate that the defendant's conduct was characterized by "actual malice" or "evil motive". This means proving, by clear and convincing evidence, that the defendant acted with the deliberate intent to harm. The plaintiff must show that it is highly probable that the defendant acted with actual malice, which can be challenging to prove in many personal injury cases.
Maryland's standard for punitive damages is higher than the standard for compensatory damages, which only requires a "preponderance of the evidence". This means that the plaintiff must provide strong and persuasive evidence that the defendant's actions were malicious or egregious.
In addition to proving actual malice, the plaintiff must also demonstrate that the defendant's conduct resulted in their injuries. This can be challenging, especially in cases where there are multiple factors contributing to the injuries. Maryland law requires a direct link between the defendant's actions and the plaintiff's damages.
Overall, Maryland's strict requirements for punitive damages reflect the state's high standard for awarding such damages. Plaintiffs must provide clear and convincing evidence of the defendant's malicious intent and the direct impact of their conduct on the plaintiff's injuries. These requirements make punitive damages challenging to obtain in Maryland, but they are not impossible to secure if the plaintiff can meet the high standard of proof.
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Motor vehicle accident cases
In Maryland, punitive damages are a type of monetary compensation awarded in civil lawsuits. They are designed to punish the defendant for particularly egregious or malicious conduct and to deter similar conduct in the future. Maryland law sets a high bar for awarding punitive damages. To succeed in a claim for punitive damages, the plaintiff must demonstrate that the defendant's conduct was characterised by "actual malice". This means that the plaintiff must prove, by clear and convincing evidence, that the defendant acted with evil intent, ill will, or a deliberate intent to harm.
In the context of motor vehicle accident cases, punitive damages are rarely awarded. Maryland does not permit the recovery of punitive damages against tortfeasors who consume excessive quantities of alcohol or mind-altering drugs. However, there is a bill in the Maryland General Assembly that would allow punitive damages against drunk drivers who cause "injury or wrongful death while operating a motor vehicle". The proposed law would set specific blood alcohol concentration levels and additional criteria for punitive damages to be awarded.
Although punitive damages are rare in motor vehicle accident cases, they are not impossible to obtain. If a negligent driver was driving under the influence during a crash, punitive damages may be awarded. Additionally, if a defendant is a well-known person or institution and demonstrated gross negligence, a Maryland judge or jury might award punitive damages to a victim.
It is important to note that punitive damages are not covered by insurance in Maryland. As a result, the defendant is personally liable for paying them out of their own assets, which can create a significant financial burden. This may also lead to additional challenges for plaintiffs pursuing punitive damages, especially against third parties who may not have been directly involved in the misconduct.
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Maryland's standard of proof for punitive damages
Maryland has a restrictive punitive damages law that requires a plaintiff to prove actual malice or deliberate wrongdoing to bring a claim. The standard of proof for punitive damages in Maryland is ""clear and convincing evidence", which is a higher standard than the "preponderance of evidence" used for compensatory damages. This means that a plaintiff must provide substantial evidence to prove that the defendant's conduct was particularly egregious or done with malice, intent to injure, fraud, or evil motive.
Maryland's high burden of proof for punitive damages makes them a rare event in most standard, negligence-based lawsuits, especially those involving motor vehicle accidents. In these cases, Maryland does not permit the recovery of punitive damages against tortfeasors who consume excessive quantities of alcohol or mind-altering drugs.
In one notable case, a Maryland jury awarded $229.6 million in compensatory damages to a plaintiff in a medical malpractice case. It was speculated that the plaintiff did not meet the high legal standard for awarding punitive damages, and as a result, the jury may have inflated the compensatory award to make up for its inability to punish the defendant.
Overall, Maryland's standard of proof for punitive damages is designed to ensure that such damages are only awarded in cases where the defendant's conduct was intentional, reckless, or malicious.
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The role of insurance companies in Maryland
The Maryland Insurance Administration is led by the Maryland Insurance Commissioner, who ensures that all insurance laws of the state are executed faithfully. The Commissioner is also responsible for licensing insurance companies, producers, adjusters, and advisors for various types of insurance, including fire, casualty, life, accident, health, title, and bail bonds. They also approve all insurance policies offered for sale in Maryland by authorized companies and authorize rating bureaus and advisory organizations.
The Life and Health Division within the Maryland Insurance Administration reviews life, health, and dental insurance policies used by Maryland insurance providers. They also review each annuity contract and health maintenance organization (HMO) subscriber and provider contract used in the state. This division ensures that premium rates are not excessive, inadequate, or discriminatory by reviewing initial rate filings by insurers.
The Market Regulation and Professional Licensing Division, formed in 2002, handles agent enforcement and market conduct examinations for both the Life and Health Section and the Property and Casualty Section. This division ensures fair and compliant practices in the insurance market and handles professional licensing for the industry.
The Financial Regulation Division, previously known as the Examination and Auditing Section, is responsible for auditing and examining the financial aspects of insurance companies and their operations in Maryland. This division ensures financial stability and compliance with regulatory requirements.
Additionally, the Maryland Insurance Administration tracks and analyzes industry trends, providing insights into the insurance market's direction and performance. The Office of the Attorney General acts as legal counsel to the Administration, interpreting state insurance laws and representing the Commissioner in state court.
While punitive damages are insurable in some states, Maryland has specific standards for awarding them. Punitive damages in Maryland require proof of "intent to injure, fraud, or evil motive" by the defendant. This higher standard may result in higher compensatory awards if the jury cannot award punitive damages.
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The rarity of punitive damages awards in Maryland
Maryland law makes punitive damages difficult to obtain, and they are rarely awarded in lawsuits. The state's punitive damage laws require proof that the defendant acted with "actual malice", an evil motive, ill will, or a deliberate intent to harm. This is a high bar to clear, and as a result, Maryland does not see punitive damages awarded with the same frequency as in other jurisdictions.
Maryland's standard for awarding punitive damages was established in the landmark case of Owens-Illinois, Inc. v. Zenobia in 1992. The Maryland Supreme Court ruled that punitive damages cannot be awarded without clear and convincing evidence of actual malice. This standard was reiterated in the 1998 case of Bowden v. Caldor, Inc., which emphasised that not all forms of actual malice are pertinent to every type of tort action. For example, in defamation cases, punitive damages are only recoverable if it can be proven that the falsehood was made with actual knowledge that it was false.
The high burden of proof required to demonstrate actual malice makes punitive damages a rare occurrence in most standard, negligence-based motor vehicle accident lawsuits. Maryland law also makes it difficult to obtain punitive damages against individuals, who often have limited means compared to corporations and other entities. As a result, no motor vehicle accident case in Maryland has ever resulted in punitive damages being awarded against a driver.
In addition to the high standard of proof required, Maryland law also requires that punitive damages be proportionate to the amount of compensatory damages awarded. This means that a plaintiff cannot recover punitive damages without also receiving compensatory damages, and the amount of punitive damages must not be disproportionate to the gravity of the defendant's wrong and their ability to pay. These factors further contribute to the rarity of punitive damages awards in the state.
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Frequently asked questions
Punitive damages are unlikely to be available for tort claims in Maryland that are covered by insurance because there are few insurance policies for actual malice.
The purpose of punitive damages in Maryland is to punish the defendant for egregiously bad conduct toward the plaintiff and to deter the defendant and others from similar behaviour.
Punitive damages may be awarded in Maryland when the plaintiff has established that the defendant's conduct was characterized by evil motive, intent to injure, ill will, or fraud.
No, there is no cap on punitive damages in Maryland. However, the amount of punitive damages must be proportionate to the amount of compensatory damages awarded and the gravity of the defendant's wrong.
No, no motor vehicle accident case in Maryland has ever resulted in an award of punitive damages against a tortfeasor-driver.
