Punitive damages

[WheresTheCakeThen]

Can anyone tell me how paying punitive damages actually works? Eg someone is ordered to pay billions in damages, more than they can possibly earn in a lifetime let alone 'put aside' to pay the damages or any associated loans used to pay it. How then do they pay it, and how do the victims / plaintiffs actually see any of the money when it isn't and realistically never will actually be within the defendant's power to pay it? Does the defendant just declare bankruptcy and the victim of their behaviour never sees any money, in which case what is the point of such impossibly large awards?

The UK h as very very very few areas (unlike the UK) which allow punitive damages. Competition law very occasionally has them.

In normal cases with high damages the damage usually represent the loss suffured and before you sue anyone your main task is to check they have money and won't go bust. If they will you don't even spend £1 on a lawyer never mind sue.

Xenia means unlike the USA, of course.

If you look at the Alex Jones case, he has refused to hand over records so we don't know how much he is worth. However, unless estimates are wildly inaccurate, he doesn't have anywhere near enough to cover the damages awarded. Unless he has insurance that covers it, he will probably have to go bankrupt. Reports say that having this award against him gives them power in his bankruptcy.

Having said that, the courts don't look at the defendant's ability to pay when awarding damages or making orders. Even without punitive damages, it is sometimes the case that the courts will order a defendant to pay more in damages than they can ever afford.

country dependent OP

and very rare in uk

Oops - yes. I meant US has punitive damages and UK hardly ever does.

I read somewhere recently tht the award against Jones does not go away on his personal bankruptcy. Ths will follow him around for life.

Its unlikely in this country ever to be awarded. In America the damages are only given to major corporations

The first sentence is true. The second sentence isn't. Punitive damages are awarded against individuals in the USA, although the larger amounts tend to be against corporations. However, Alex Jones is not a major corporation and he personally (i.e. not his companies) has been ordered to pay nearly $500M in punitive damages.