Damage Caps

Term: Damage CapsDefinition: Limits set by law on the amount of compensatory or punitive damages that can be awarded in a lawsuit.Phonetic Pronunciation: (DAM-ij KAPS)Origin: The term "damage" derives from the Latin word "damnum," meaning loss or injury. "Caps" comes from the Latin "cappa," meaning a head covering, which metaphorically extends to a limit or ceiling. The concept of damage caps emerged as a legislative response to concerns about excessive jury awards in civil litigation.Significance in Asbestos Context: Damage caps are significant in asbestos litigation because they can limit the financial recovery for victims, potentially affecting the willingness of lawyers to take on cases and the overall strategy in pursuing claims. These caps can vary by jurisdiction and type of damage, influencing the outcome of asbestos-related lawsuits.Example Sentence: In the asbestos lawsuit, the plaintiff's potential recovery was significantly impacted by the state's damage caps on punitive damages.Related Terms: Compensatory Damages, Punitive Damages, Tort Reform, Statutory Limits, Asbestos LitigationNotes: - Damage caps can be controversial, with arguments that they either protect defendants from excessive awards or unfairly limit compensation for victims. - Some states have different caps for different types of damages, such as economic versus non-economic damages. - The constitutionality of damage caps has been challenged in various courts, with mixed outcomes.