§ 1D-15. Standards for recovery of punitive damages.

175 words·~1 min read·/nc/chapter-1d/1d-15

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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.)