Under what circumstances can punitive damages be awarded in New York?

Punitive damages in New York are awarded as a form of punishment and deterrence against a defendant's wrongful conduct, particularly when that conduct is egregious. The key circumstances under which punitive damages can be awarded include cases involving malicious intent, fraud, or grossly negligent behavior that demonstrates a reckless disregard for the rights of others. This reflects a fundamental principle that punitive damages are intended to address behavior that goes beyond mere negligence, serving to penalize an individual or entity for particularly harmful or unscrupulous actions and to deter similar conduct in the future.

In contrast, minor negligence does not typically rise to the level necessary for punitive damages, as it lacks the requisite malice or gross misconduct. Similarly, cases settled through mediation or those resolved before trial generally would not involve punitive damages, as the mechanisms of settlement often imply the absence of such egregious conduct that merited punitive measures. Therefore, only in situations where the defendant's actions are found to be particularly reckless or intentionally harmful can punitive damages be justly awarded.