How to Get “Punitive Damages” in a Nevada Injury Lawsuit

To win punitive damages in a Nevada personal injury trial, you must show that the defendant acted with

• fraud,
• malice or
• oppression.

Also called “exemplary damages,” punitive damages are awarded in the most egregious cases: They are meant to punish the wrongdoer and to set an example that deters dangerous conduct.

When granted, punitive damages are in addition to whatever compensatory damages (such as medical expenses and lost wages) you receive in a civil lawsuit.

In this article, our Las Vegas personal injury lawyers will address the following key topics regarding Nevada punitive damages laws:

• 1. Eligibility
• 2. Caps
• 3. Judicial Process
• 4. Labor Claims
• 5. Compensatory Damages
• 6. Frequently Asked Questions
• 7. Punitive Damages Statutes
• Additional Resources

1. Eligibility

In Nevada, punitive damages are most common in cases involving:

• medical malpractice, where the physician intentionally hurt the plaintiff or concealed their mistakes;
• products liability, where a manufacturer knowingly designed or created a defective product; and
• drunk driving, where a voluntarily intoxicated driver causes an accident.

An example where a Nevada court awarded punitive damages is Smith Food and Drug Centers Inc. v. Bellegarde:

A Smiths employee handcuffed and pepper-sprayed a suspected shoplifter. The suspected shoplifter sued Smiths for excessive force. Ultimately, Smiths was ordered to pay the suspected shoplifter $65,000 in punitive damages. The reason for the punitive damages was to punish Smiths for inadequate policies and employee oversight.

Ultimately, punitive damages are appropriate if the defendant acted with either fraud, malice, or oppression:

• Fraud is intentionally deceiving you regarding a material fact with the intent to harm you.
• Malice is conduct that is intended to injure you, or despicable conduct done with conscious disregard of the rights or safety of others.
• Oppression is despicable conduct that subjects you to cruel and unjust hardship with conscious disregard of your rights.¹

In short, whether punitive damages are granted turns on the extent of the defendant’s bad behavior, not the seriousness of your injuries.

Note that punitive damages are not awarded in breach-of-contract cases.

2. Caps

Under NRS 42.005, punitive damage awards in Nevada have a cap of:

• $300,000 if the amount of compensatory damages awarded to you is less than $100,000, or
• Three times the amount of compensatory damages awarded to you if the amount of compensatory damages is $100,000 or more.

However, there is no limit on the amount of punitive damages you can recover if your case involves any of the following:

• A manufacturer, distributor or seller of a defective product;
• An insurer who acts in bad faith regarding its obligations to provide insurance coverage;
• A landlord or entity that violates a state or federal fair housing law prohibiting discriminatory housing practices;
• Damages caused by the emission, disposal or spilling of a toxic, radioactive or hazardous material or waste;
• Defamation; or
• A motor vehicle accident caused by a driver who willfully consumed alcohol and/or drugs (DUI).²

According to the United States Supreme Court, punitive damages are constitutional. They should amount to no more than nine times the compensatory damages (“a single digit ratio”), except in the most extreme cases.³

3. Judicial Process

Getting an exemplary award in a Nevada personal injury case is a three-step process:

1. Win your trial.
2. Ask for exemplary damages.
3. The jury (or judge in a bench trial) renders a decision.⁴

These steps are discussed below. Although punitive damages are decided at the very end of a case, you should file your initial complaint (“pleading”) with punitive damages in mind. The complaint should allege behavior that would justify punitive damages if you win.

Note that the vast majority of personal injury cases settle out of court: We can often negotiate a settlement big enough that it not only covers your losses but also punishes the defendant as well.

1) Win Your Trial

Every cause of action has different elements that you need to prove in order to win your trial. For instance, winning a negligence case requires you to prove four elements by a preponderance of the evidence:

1. The defendant had a duty of reasonable care;
2. The defendant breached this standard of care;
3. This breach was the proximate cause of your injuries; and
4. These injuries resulted in a financial loss.

“By a preponderance of the evidence” means it is more likely than not that the defendant is liable.

2) Ask for Exemplary Damages

To get an exemplary award, you must request it from the court. To ensure the defendant gets due process, the court will hold a hearing on the matter.

At the punitive damages hearing, you have to prove by clear and convincing evidence that the defendant acted with fraud, oppression or malice. “Clear and convincing evidence” is:

• a higher standard than “by a preponderance of the evidence”, which is the burden of proof in negligence cases, and
• a lower standard than “beyond a reasonable doubt,” which is the burden of proof in criminal cases.

The best way to prove punitive damages are appropriate is to show that the defendant acted intentionally or at least with a conscious disregard for the well-being of others. This can be done with documents (such as memos or emails) showing the defendant’s intent. It can also be established with testimony.

3) The Jury (or Judge in a Bench Trial) Renders a Decision

When a jury is deciding whether the defendant should pay you punitive damages, the jurors are not informed about:

• Nevada’s cap on exemplary awards or
• the defendant’s finances.

Though if the jury decides that punitive damages are warranted, jurors can factor in the defendant’s ability to pay when they calculate the amount of punitive damages to award you.

The judge will then reduce the exemplary award, if necessary, to keep it within the legal limits and the defendant’s ability to pay. The judge can also reduce exemplary awards to make them “proportional” to the compensatory awards.⁵

If you are awarded punitive damages, the defendant will surely file a “motion to strike” to reduce or eliminate the punitive damages. The judge will likely deny it unless the punitive damages are:

• unreasonably high and excessive, especially compared to the punitive damages awarded in comparable cases,
• arbitrary and disproportionate to the compensatory damages, or
• too much for the defendant to afford.

A punitive damage award can be appealed by you or the defendant, though it is unlikely to be changed as long as there is sufficient justification for it.

4. Labor Claims

If you are suing an employer for the wrongful acts of an employee, there is an additional hurdle to clear to get punitive damages.

If the employer is an individual, you must show that:

• The employer knew the employee was a risk to the rights or safety of others;
• The employer authorized or approved the employee’s wrongful act; or
• The employer was personally guilty of oppression, fraud or malice.⁶

If the employer is a corporation, the employer is not liable for exemplary damages unless:

1. An officer, director or managing agent of the corporation committed one of the above acts, and
2. That person had authorization to direct or ratify the employee’s conduct on behalf of the corporation.

This limitation on corporate employers does not apply in bad-faith insurance cases.⁷

5. Compensatory Damages

While punitive damages punish defendants for their behavior, compensatory damages reimburse you for your losses. There are two types of compensatory damages: Economic and non-economic.

Economic damages are easy to calculate. Examples are:

• medical expenses (based on medical bills),
• lost wages (based on past paychecks),
• lost earning potential (based on past paychecks and the testimony of a vocational expert witness), and
• property repairs (based on invoices).

In contrast, non-economic damages are intangible losses that cannot be calculated. Examples include:

• pain and suffering,
• mental anguish, and
• scarring and disfigurement.

In many cases, non-economic damages far exceed economic damages since no price tag can be put on emotional turmoil.

6. Frequently Asked Questions

Does the jury know there is a “cap” on punitive damages?

Not in Nevada. Under NRS 42.005(3), the jury is strictly prohibited from being informed about the statutory caps (the $300,000 or 3-to-1 limits).

The jury hears the evidence and decides on an amount they believe is fair to punish the defendant. If the jury’s award exceeds the legal limit, the judge will automatically reduce the award to the maximum allowed by law after the trial concludes.

When is the defendant’s “net worth” allowed to be brought up in court?

Evidence of a defendant’s financial condition is inadmissible during the initial phase of the trial. As per NRS 42.005, Nevada uses a “bifurcated” system to ensure the jury isn’t prejudiced by a defendant’s wealth when deciding if they are liable for the accident.

Financial records and net worth are only revealed in a subsequent proceeding (Phase 2), after the jury has already determined that the defendant acted with “oppression, fraud, or malice.”

How hard is it to prove “clear and convincing” evidence?

It is significantly harder than proving standard negligence.

In a normal personal injury case, you only need to prove your claims by a “preponderance of the evidence” (meaning it is more likely than not). However, for punitive damages, the law requires “clear and convincing” evidence. This means the evidence must be so highly probable and “clear” that it leaves no substantial doubt in the minds of the jury.

Are punitive damages based on how badly I was injured?

No. While compensatory damages (like pain and suffering) are measured by the severity of your physical and emotional injuries, punitive damages in Nevada are measured by the “despicability” of the defendant’s conduct. The primary goal is to deter and punish. A defendant can be hit with high punitive damages for extremely reckless behavior even if the physical injury to the plaintiff was relatively minor.

Can a judge take away a punitive award after the jury grants it?

Yes. Even if a Nevada jury awards punitive damages, the defense can file a “motion to strike” or a motion for a new trial. They may argue that the award is “constitutionally excessive” under U.S. Supreme Court precedents (like State Farm Mut. Auto. Ins. Co. vs. Campbell (2003) 538 U.S. 408).

The court must ensure the award is proportional to the “reprehensibility” of the act and the actual harm caused to the plaintiff.

Can I get punitive damages if I am suing a city or the state?

No. Under NRS 41.035, you cannot recover punitive or “exemplary” damages against the state, any of its political subdivisions (like a city or county), or government employees acting within the scope of their duties. Furthermore, total damages in tort actions against government entities are strictly capped at $200,000 per claimant.

Is there a different cap for medical malpractice cases?

Yes. While the “3-to-1” ratio for punitive damages still applies to the final calculation, medical malpractice cases are also subject to a cap on non-economic damages (pain and suffering).

As of 2026, this non-economic cap has increased to $590,000 under NRS 41A.035. Because punitive damages are often calculated based on the total compensatory award, this “soft cap” on pain and suffering effectively limits the potential “base” for a 3x punitive award.

 Can I hold a company liable for punitive damages caused by one employee?

Only under specific conditions. In Nevada, an employer is not automatically liable for punitive damages just because their employee acted with malice. To recover these damages from an employer, you must prove one of the following according to NRS 42.007:

• The employer knew the employee was “unfit” but hired them anyway with conscious disregard for safety;
• The employer expressly authorized or ratified the wrongful act; or
• An officer, director, or “managing agent” of the corporation was personally guilty of the fraud, oppression, or malice.

Are there special rules for “small businesses”?

Yes. NRS 42.005 provides a specific protection for small business defendants.

While the standard cap is the greater of $300,000 or 3x compensatory damages, the $300,000 “floor” is often interpreted in the context of the defendant’s ability to pay. Juries are instructed to ensure an award is not “financially ruinous.”

Furthermore, if a defendant is a smaller entity, the statutory caps are strictly enforced to prevent awards that would lead to immediate insolvency. As the Nevada Supreme Court said in Truck v. Kahn (1987) 103 Nev. 503, “Unreasonableness and disproportionality between punishable conduct and the amount of the punitive award come forward as most viable concepts in establishing a workable standard for judging excessiveness of punitive damages.”

7. Punitive Damages Statutes

NRS 42.001 Definitions; exceptions. As used in this chapter, unless the context otherwise requires and except as otherwise provided in subsection 5 of NRS 42.005:

1. “Conscious disregard” means the knowledge of the probable harmful consequences of a wrongful act and a willful and deliberate failure to act to avoid those consequences.

2. “Fraud” means an intentional misrepresentation, deception or concealment of a material fact known to the person with the intent to deprive another person of his or her rights or property or to otherwise injure another person.

3. “Malice, express or implied” means conduct which is intended to injure a person or despicable conduct which is engaged in with a conscious disregard of the rights or safety of others.

4. “Oppression” means despicable conduct that subjects a person to cruel and unjust hardship with conscious disregard of the rights of the person.

 

NRS 42.005 Exemplary and punitive damages: In general; limitations on amount of award; determination in subsequent proceeding.

1. Except as otherwise provided in NRS 42.007, in an action for the breach of an obligation not arising from contract, where it is proven by clear and convincing evidence that the defendant has been guilty of oppression, fraud or malice, express or implied, the plaintiff, in addition to the compensatory damages, may recover damages for the sake of example and by way of punishing the defendant. Except as otherwise provided in this section or by specific statute, an award of exemplary or punitive damages made pursuant to this section may not exceed:

(a) Three times the amount of compensatory damages awarded to the plaintiff if the amount of compensatory damages is $100,000 or more; or

(b) Three hundred thousand dollars if the amount of compensatory damages awarded to the plaintiff is less than $100,000.

2. The limitations on the amount of an award of exemplary or punitive damages prescribed in subsection 1 do not apply to an action brought against:

(a) A manufacturer, distributor or seller of a defective product;

(b) An insurer who acts in bad faith regarding its obligations to provide insurance coverage;

(c) A person for violating a state or federal law prohibiting discriminatory housing practices, if the law provides for a remedy of exemplary or punitive damages in excess of the limitations prescribed in subsection 1;

(d) A person for damages or an injury caused by the emission, disposal or spilling of a toxic, radioactive or hazardous material or waste; or

(e) A person for defamation.

3. If punitive damages are claimed pursuant to this section, the trier of fact shall make a finding of whether such damages will be assessed. If such damages are to be assessed, a subsequent proceeding must be conducted before the same trier of fact to determine the amount of such damages to be assessed. The trier of fact shall make a finding of the amount to be assessed according to the provisions of this section. The findings required by this section, if made by a jury, must be made by special verdict along with any other required findings. The jury must not be instructed, or otherwise advised, of the limitations on the amount of an award of punitive damages prescribed in subsection 1.

4. Evidence of the financial condition of the defendant is not admissible for the purpose of determining the amount of punitive damages to be assessed until the commencement of the subsequent proceeding to determine the amount of exemplary or punitive damages to be assessed.

5. For the purposes of an action brought against an insurer who acts in bad faith regarding its obligations to provide insurance coverage, the definitions set forth in NRS 42.001 are not applicable and the corresponding provisions of the common law apply.

 

NRS 42.007 Exemplary and punitive damages: Limitations on liability by employer for wrongful act of employee; exception.

1. Except as otherwise provided in subsection 2, in an action for the breach of an obligation in which exemplary or punitive damages are sought pursuant to subsection 1 of NRS 42.005 from an employer for the wrongful act of his or her employee, the employer is not liable for the exemplary or punitive damages unless:

(a) The employer had advance knowledge that the employee was unfit for the purposes of the employment and employed the employee with a conscious disregard of the rights or safety of others;

(b) The employer expressly authorized or ratified the wrongful act of the employee for which the damages are awarded; or

(c) The employer is personally guilty of oppression, fraud or malice, express or implied.

Ê If the employer is a corporation, the employer is not liable for exemplary or punitive damages unless the elements of paragraph (a), (b) or (c) are met by an officer, director or managing agent of the corporation who was expressly authorized to direct or ratify the employee’s conduct on behalf of the corporation.

2. The limitations on liability set forth in subsection 1 do not apply to an action brought against an insurer who acts in bad faith regarding its obligations to provide insurance coverage.

 

NRS 42.010 Exemplary and punitive damages: Injury caused by operation of vehicle after consumption or use of alcohol or another substance.

1. In an action for the breach of an obligation, where the defendant caused an injury by the operation of a motor vehicle in violation of NRS 484C.110, 484C.130 or 484C.430 after willfully consuming or using alcohol or another substance, the plaintiff, in addition to the compensatory damages, may recover damages for the sake of example and by way of punishing the defendant.

2. The provisions of NRS 42.005 do not apply to any cause of action brought pursuant to this section.

Additional Resources

For more in-depth information, refer to the following:

• Punitive Damages Jury Instructions – Model jury instructions in the Ninth Circuit.
• A Punitive Damages Overview: Functions, Problems and Reform – Villanova Law Review.
  
• Punitive Damages for Deterrence: When and How Much – Alabama Law Review.
• Punitive Damages as Societal Damages – Yale Law Journal.
• Punitive Damages: From Myth to Theory – Iowa Law Review.

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