Understanding the different types of damages that can be awarded in legal cases is crucial, especially if you are involved in a lawsuit in Ontario. Two commonly confused types of damages are aggravated and punitive damages. These terms often come up in cases involving personal injury, defamation, and employment law, among others. In this article, we will explore what aggravated and punitive damages are, how they differ, and provide examples to clarify their application.

What Are Aggravated Damages?

Aggravated damages are awarded to a plaintiff in cases where the defendant’s conduct has been particularly harmful or humiliating. These damages are designed to compensate the plaintiff for mental distress, anguish, or humiliation caused by the defendant’s actions.

Examples of Aggravated Damages

Aggravated damages can be awarded in a variety of cases. For instance, if an employer intentionally humiliates an employee during the termination process, the employee may be entitled to aggravated damages. Similarly, in defamation cases, if a defendant knowingly spreads false information intending to harm the plaintiff’s reputation, aggravated damages may be awarded.

In the case of Acumen Law Corp. v. Ojanen, the court awarded aggravated damages due to the emotional distress caused by the defendant’s actions. This case highlights how the courts assess the emotional and psychological impact on the plaintiff when determining aggravated damages.

What Are Punitive Damages?

Punitive damages, on the other hand, are not meant to compensate the plaintiff but to punish the defendant. These damages are awarded in cases where the defendant’s conduct is particularly egregious and warrants punishment beyond compensatory damages. The goal is to deter the defendant and others from engaging in similar conduct in the future.

Examples of Punitive Damages

Punitive damages are less common than aggravated damages but can be awarded in cases of severe misconduct. For example, if a company knowingly sells a dangerous product that causes harm, punitive damages may be awarded to punish the company for its reckless behavior.

In the Supreme Court of Canada, punitive damages were awarded in several cases to punish defendants for their outrageous conduct. These cases serve as a warning to others about the severe consequences of engaging in such behavior.

Key Differences Between Aggravated and Punitive Damages

While both aggravated and punitive damages address the conduct of the defendant, they serve different purposes and have distinct characteristics.

Purpose

• Aggravated Damages: Aim to compensate the plaintiff for additional harm caused by the defendant’s conduct.
• Punitive Damages: Aim to punish the defendant and deter future misconduct.

Basis for Award

• Aggravated Damages: Awarded based on the emotional and psychological impact on the plaintiff.
• Punitive Damages: Awarded based on the egregiousness of the defendant’s conduct.

Frequency

• Aggravated Damages: More commonly awarded in personal injury, defamation, and employment cases.
• Punitive Damages: Less commonly awarded and reserved for cases involving severe misconduct.

Legal Standards and Requirements

Both aggravated and punitive damages have specific legal standards that must be met for them to be awarded.

Aggravated Damages Requirements

To qualify for aggravated damages, the plaintiff must prove that the defendant’s conduct was particularly harmful or humiliating and caused additional emotional distress. The plaintiff must provide evidence of the emotional and psychological impact, such as medical records or testimony from mental health professionals.

Punitive Damages Requirements

For punitive damages to be awarded, the plaintiff must prove that the defendant’s conduct was particularly egregious and deserving of punishment. The plaintiff must demonstrate that the defendant acted with malice, fraud, or gross negligence. The court will consider the severity of the defendant’s actions and the need to deter similar conduct in the future.

How Courts Determine the Amount of Damages

The amount of aggravated and punitive damages awarded can vary significantly based on the specifics of the case. Courts consider several factors when determining the amount, including the severity of the defendant’s conduct, the impact on the plaintiff, and the need for deterrence.

Factors Influencing Aggravated Damages

• Severity of Emotional Distress: The more severe the emotional and psychological impact on the plaintiff, the higher the aggravated damages.
• Duration of Harm: The length of time the plaintiff suffered emotional distress can also influence the amount awarded.
• Intent of Defendant: If the defendant’s actions were intentional and aimed at causing harm, this could increase the amount of aggravated damages.

Factors Influencing Punitive Damages

• Egregiousness of Conduct: The more outrageous the defendant’s conduct, the higher the punitive damages.
• Need for Deterrence: The court will consider the need to deter the defendant and others from engaging in similar conduct.
• Financial Status of Defendant: The defendant’s ability to pay may also influence the amount of punitive damages awarded.

Recent Developments and Case Law

Recent case law provides valuable insights into how courts approach aggravated and punitive damages. In the case of Acumen Law Corp. v. Ojanen, the court awarded both aggravated and punitive damages, highlighting the distinct purposes and requirements for each type of damages.

The Supreme Court of Canada has also set precedents in awarding punitive damages, emphasizing the need for punishment and deterrence in cases of severe misconduct.

Conclusion

Understanding the difference between aggravated and punitive damages is essential for anyone involved in a lawsuit in Ontario. While both types of damages address the defendant’s conduct, they serve different purposes and have distinct legal standards. Aggravated damages aim to compensate the plaintiff for additional harm, while punitive damages aim to punish the defendant and deter future misconduct.

By recognizing these differences and understanding the legal requirements, plaintiffs and defendants can better navigate the complexities of the legal system. Whether you are seeking damages or defending against a claim, knowing the nuances between aggravated and punitive damages can significantly impact the outcome of your case.