Is There a Limit to the Amount of a Lawsuit Settlement?


Quick Answer

Many states place limits on lawsuit settlements, explains All Law. For instance, non-economic damage caps, which limit compensatory damages for subjective issues such as pain and suffering or loss of enjoyment of life, are common in medical malpractice suits. Some states also cap non-economic damages in personal injury lawsuits.

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Is There a Limit to the Amount of a Lawsuit Settlement?
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Full Answer

Non-economic damage caps range from $350,000 to $750,000, states All Law. However, state laws typically make exceptions in cases of severe injury, such as loss of a limb, or death. In these instances, the cap is higher or, at times, completely removed.

Punitive damages, or awards that punish intentional wrongdoing, are also subject to limits in some states, All Law explains. Some states set a fixed dollar amount, such as $200,000 up to a maximum of $10 million, while others set fixed multipliers based on the other damages in the case. For example, a state might limit punitive damages to three times the total of all economic and non-economic damages awarded in a settlement.

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