Legal Challenges and Shortcomings of Claims for Punitive Damages

The fact that civil liability is based on full compensation and enjoys a restorative nature has afflicted some claims such as those for punitive damages with shortcomings and ambiguities. Such a challenge is not limited only to systems not having recognized punitive damages, rather it affects all legal systems. However, the level of legal systems’ affliction with this problem depends on the amount of formality which they attach to such an institution. Anyway, in the light of economic law development and the formulation of legal rules in areas such as economy, paying attention to the functions and challenges of institutions like punitive damages is quite justifiable. In the current situation, in addition to the issues of identification, the most important challenge facing the above-mentioned institution constitutes the problems resulting from claiming such damages. Therefore, in order to prove the effectiveness and success of the legal entity, we must present appropriate solutions to the challenges in addition to achieving its objectives. The present article, which is based on a pathological review, aims at providing a picture of legal shortcomings which claims for punitive damages suffer from. In line with this, after providing a brief explanation of the concept, objectives, and issues of punitive damages, we examine the obstacles on the way of this institution to gain better understanding meant to provide appropriate solutions for accepting putative damages. What eventually becomes clear is that despite the capabilities of punitive damages for settling some legal problems related to responsibility and deterrence, it does not still enjoy a stable and definitive status it deserves and that legal systems are trying to remove barriers to such an achievement.