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Statutory Damages Overview
Statutory damages refer to payments defined under law for certain violations or as compensation for specific injuries. According to the Wex legal dictionary, statutory damages are provided in some cases because figuring out the actual cost of an injury or incident would be far too complex.
There are different types of statutory damages. Some statutes provide a range of damages depending on the severity of the incident, and others set a minimum or a maximum. Other statutory damages allow judges to “treble” damages or multiply the proposed damages.
Statutory Damages Background
Generally, statutory damages serve any of three purposes. First, statutory damages may allow plaintiffs, or a group of plaintiffs, to obtain redress for when their rights are violated. In certain circumstances, the damages one plaintiff could claim in a lawsuit would be so small, it would not be worth filing the lawsuit. Statutory damages encourage compliance with the law.
Second, lawsuits can proceed faster when statutory damages are claimed. Actual damages may be difficult to calculate in certain circumstances. When statutory damages are provided, the parties can skip the process of determining damages during litigation.
Third, statutory damages imposed for punitive purposes help deter harmful behavior in cases where actual damages wouldn’t be enough of a deterrent.
What Kind of Lawsuits Have Statutory Damages?
Many types of consumer protection laws provide statutory damages. The Telephone Consumer Protection Act of 1991 is one such example. Under the TCPA, statutory damages can range from $500 per violation up to $1,500, if the violation is determined to be willful.
Other consumer protection lawsuits with statutory damages include the Fair Credit Reporting Act, the Truth in Lending Act, and the Fair Debt Collection Practices Act.
Intellectual property laws, such as copyright or trademark laws, often have a provision for statutory damages because damages in these cases are often hard to calculate. Additionally, California’s Unruh Civil Rights Act provides for statutory damages for those harmed by violations of the federal Americans with Disabilities Act.
In addition, many state laws will include statutory damages. An experienced attorney can help you determine if statutory damages apply to your case.
It should be noted that statutory damages, if they apply, can be claimed in addition to other types of damages, including compensatory damages, and pain and suffering.
Settlements
Statutory damages can help in the negotiation for a settlement in lawsuits and class action lawsuits. In a class action lawsuit, a company that allegedly violated consumer protection laws can be held accountable for statutory damages for each Class Member. Adding all of the Class Members’ statutory damages together can total much more than one plaintiff alone – incentivizing the company to settle for a lower amount than the statutory damages put together.
How Can Lawyers Help?
An experienced attorney will investigate the laws, including the statutory damages, that apply to your case. There are a variety of consumer protection and other laws that have a statutory damage provision.
A lawyer will be able to identify and be sure to appropriately demand statutory damages applicable to your case.
