Arkansas Punitive Damages Laws: Standard and the Struck Cap (2026)

Arkansas generally allows punitive damages when a plaintiff proves, by clear and convincing evidence, that the defendant is liable for compensatory damages and either acted with malice or in reckless disregard of consequences it knew or ought to have known would naturally and probably cause injury, or intentionally pursued a course of conduct to cause injury (Ark. Code 16-55-206, 16-55-207). Arkansas has no general cap: the Code still prints a cap in 16-55-208, but the Arkansas Supreme Court held that section unconstitutional in Bayer CropScience LP v. Schafer, 2011 Ark. 518, so it is not current law.

Some statutes for particular claims set their own limits, including employer-size caps on combined compensatory and punitive damages in Ark. Code 16-123-107 and 12-62-805. For how other states compare, see punitive damages laws by state.

Information last verified on 2026-10-18. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers Arkansas state law on punitive damages in civil cases: the punitive damages sections of the Arkansas Code (16-55-206 through 16-55-211), Arkansas Rule of Civil Procedure 42(b)(2), and the other statutes and decisions named below. It does not cover compensatory or noneconomic damages (see Arkansas medical malpractice law for malpractice claims), wrongful-death procedure, deadlines and beneficiaries (see Arkansas wrongful death law), federal claims, or every statute that authorizes punitive or multiplied damages for a particular claim beyond those named here.

Does Arkansas allow punitive damages?

Yes. Arkansas courts award punitive damages in tort cases, and a 2003 statute (Acts 2003, No. 649) sets the standard and the burden of proof. The statute does not itself create the remedy: Ark. Code 16-55-209 provides that nothing in those sections "shall be construed as creating a right to an award of punitive damages."

Punitive damages generally require liability for compensatory damages first. Under 16-55-206, the plaintiff has the burden of proving "that the defendant is liable for compensatory damages" and that an aggravating factor was "present and related to the injury for which compensatory damages were awarded." One statute departs from this: in a college's civil action under 16-118-110 over athletic-association rule violations, "[a] court may award punitive damages even if the court does not award compensatory damages" (16-118-110(c)(2)).

What must be proven

The two aggravating factors. Ark. Code 16-55-206 requires proof that either or both of these were present:

"(1) The defendant knew or ought to have known, in light of the surrounding circumstances, that his or her conduct would naturally and probably result in injury or damage and that he or she continued the conduct with malice or in reckless disregard of the consequences, from which malice may be inferred; or (2) The defendant intentionally pursued a course of conduct for the purpose of causing injury or damage."

The first factor has two parts: knowledge, actual or what the defendant ought to have known, that the conduct would naturally and probably cause injury, and continuing the conduct with malice or in reckless disregard of the consequences.

The burden of proof. Ark. Code 16-55-207 provides: "A plaintiff must satisfy the burden of proof required under 16-55-206 by clear and convincing evidence in order to recover punitive damages from the defendant."

Is there a cap on punitive damages in Arkansas?

There is no general cap. Section 16-55-208 still appears in the Code with a limit of the greater of $250,000 or three times compensatory damages, not to exceed $1,000,000, but that section is not current law. In Bayer CropScience LP v. Schafer, 2011 Ark. 518, 385 S.W.3d 822 (2011), the Arkansas Supreme Court held:

"We hold that section 16-55-208 is unconstitutional under article 5, section 32 as it limits the amount of recovery outside the employment relationship."

The court treated punitive damages as part of "the amount recovered for injuries resulting in death or for injuries to persons or property," and explained that its precedents "firmly establish that article 5, section 32 bestows upon the General Assembly the power to limit the amount of recovery only in matters arising between employer and employee." The punitive damages sections of the Code (16-55-201 through 16-55-211) contain no replacement general limit.

Claim-specific limits. Some statutes for particular claims set their own limits:

• Employment discrimination claims under 16-123-107. "The total compensatory and punitive damages awarded" under 16-123-107(c)(2)(A) may not exceed $15,000 for an employer with fewer than 15 employees, $50,000 for more than 14 and fewer than 101, $100,000 for more than 100 and fewer than 201, $200,000 for more than 200 and fewer than 501, and $300,000 for more than 500 (16-123-107(c)(2)(B)).
• Actions under 12-62-805. "The total compensatory and punitive damages awarded under this section" are limited by the same employer-size tiers, from $15,000 for an employer with no fewer than five but fewer than 15 employees up to $300,000 for an employer with more than 500 employees, counting employees in each of 20 or more calendar weeks in the current or preceding calendar year (12-62-805(d)(2)).
• Special passenger excursion trains. The liability of a nonprofit sponsor, owner or operator, and the railroad or rail authority "for all claims, whether for compensatory damages or punitive damages," arising from a rail incident involving a special passenger excursion train "shall not exceed ten million dollars ($10,000,000)," but the limit does not apply to "a person whose intentional misconduct causes a rail incident or accident" (23-10-213(a)).
• Individual sewage disposal systems. A person who willingly and knowingly violates the sewage disposal systems chapter is liable for actual damages, costs and attorney's fees and "additional punitive damages equal to twenty-five percent (25%) of the damages proven by the aggrieved party," after 20 days' written notice of the violation (14-236-106(a)(1)).
• A floor, not a ceiling. A utility supplier with a cause of action under 16-121-103 may recover "actual, consequential, and punitive damages" and "shall be entitled to no less than three (3) times the amount of damages" (16-121-103(a)-(b)).

The Code's misappropriation damages section, 4-75-606, provides for damages for "the actual loss caused by misappropriation" and for unjust enrichment not counted in that loss; it contains no exemplary-damages clause.

Does Arkansas take a share of the award?

No general Arkansas statute diverts any part of a private plaintiff's punitive award to the state or a fund. The one fund link is the State's own claim: a person liable for a hazardous-substance release who fails without sufficient cause to carry out an ordered remedial or removal action "may be liable to the state for punitive damages in an amount equal to three (3) times the amount of any costs incurred by the state" (8-7-517), and the remedial action trust fund receives "all punitive damages collected pursuant to 8-7-517" (8-7-509).

How a punitive damages claim is tried

Bifurcation on request. Arkansas Rule of Civil Procedure 42(b)(2), as amended effective April 1, 2015, provides:

"Notwithstanding paragraph (1), all actions tried before a jury in which punitive damages are sought shall, on the motion of any party and if warranted by the evidence, be conducted in a bifurcated trial before the same jury."

The jury first decides compensatory liability and the amount of compensatory damages and, "at the discretion of the circuit court," punitive liability. If needed, the same jury then decides in a separate proceeding punitive liability, if not already decided, and the amount of punitive damages. "Evidence of a defendant's financial condition shall not be admitted in the first proceeding unless relevant to an issue other than the amount of punitive damages."

The older statutory bifurcation section, 16-55-211, is superseded: in the per curiam order adopting the amendment (2015 Ark. 88), the Arkansas Supreme Court stated that "with the adoption of the amendment to Rule 42, Ark. Code Ann. 16-55-211 is superseded pursuant to Ark. Code Ann. 16-11-301."

Court review. Ark. Code 16-55-210 preserves the duty of trial and appellate courts to "scrutinize all punitive damages awards," to ensure that awards "comply with applicable procedural, evidentiary, and constitutional requirements," and to "order remittitur where appropriate." The U.S. Supreme Court's due-process limits on the size of punitive awards also apply to Arkansas verdicts; the punitive damages hub explains them.

Several liability. In any action for personal injury, medical injury, property damage or wrongful death, "the liability of each defendant for compensatory or punitive damages shall be several only and shall not be joint," and each defendant is liable only for the damages allocated to it "in direct proportion to that defendant's percentage of fault" (16-55-201(a)-(b)).

There is an exception: notwithstanding 16-55-201, a party is responsible for another's share "if both the party and the other person or entity were acting in concert or if the other person or entity was acting as an agent or servant of the party" (16-55-205(a)). Acting in concert means a conscious agreement to commit an intentional tort and active participation in it (16-55-205(b)(1)). The rule that lets a court shift uncollectible shares to other defendants does not apply to punitive damages (16-55-203(b)).

Employers

In Southern Farm Bureau Casualty Insurance Co. v. Daniel, 246 Ark. 849 (1969), the Arkansas Supreme Court noted that it had "permitted punitive damages to be assessed against an employer under the doctrine of respondeat superior even in the absence of the employer's knowledge or authorization of the employee's acts." That decision predates the 2003 statute.

Punitive damages in Arkansas wrongful death cases

The wrongful death statute, Ark. Code 16-62-102, does not mention punitive damages. It provides that the death action "shall survive the death of the person wrongfully causing the death of another and may be brought, maintained, or revived against the personal representatives" of that person (16-62-102(a)(2)), and the survival statute allows an action against the wrongdoer's executor or administrator after the wrongdoer's death (16-62-101(a)(1)).

The punitive damages chapter does reach death cases: its several-liability rule in 16-55-201, subject to the acting-in-concert and agent exception in 16-55-205, applies to "compensatory or punitive damages" in any action for wrongful death. Beneficiaries, deadlines and the rest of the death claim are on the Arkansas wrongful death page.

Statutes for particular defendants and claims

Nursing homes and long-term care. A resident injured by a deprivation of the rights listed in the long-term care subchapter may sue the licensee under the Medical Malpractice Act, 16-114-201 et seq., and the action may be brought by the resident, a guardian, or the personal representative of a deceased resident's estate (20-10-1209(a)(1)-(2)). The action under Ark. Code 20-10-1209 may be brought "to recover actual and punitive damages," and "for the purpose of this section, punitive damages may be awarded for conduct which is willful, wanton, gross or flagrant, reckless, or consciously indifferent to the rights of the resident" (20-10-1209(a)(3), (c)). That is a different wording from the general standard in 16-55-206.

State and local employees. The State "shall pay actual, but not punitive, damages" adjudged against state officers or employees for acts or omissions made "without malice and in good faith within the course and scope" of employment (21-9-203(a)). A parallel rule applies when a judgment is rendered against a city, incorporated town, county or its employees in the circumstances 21-9-304(b) describes: the state "shall pay actual, but not punitive, damages."

Financial institutions. If a claim against a financial institution is determined by the court to be a breach of contract claim arising out of a loan or other extension of credit, "punitive damages shall not be awarded to the person asserting the claim unless it is found that the person asserting the claim suffered personal injury or physical damage to property as a result of the financial institution's alleged action or inaction" (16-64-130(b)).

Elders and persons with disabilities. An elder person or person with a disability who suffers damage or injury as a result of an offense or violation described in title 4, chapter 88 of the Code "has a cause of action to recover actual damages, punitive damages, if appropriate, and reasonable attorney's fees" (4-88-204).

Does insurance pay punitive damages in Arkansas?

For accidents, it can. In Daniel (1969), the Arkansas Supreme Court wrote: "Neither can we find anything in the state's public policy that prevents an insurer from indemnifying its insured against punitive damages arising out of an accident, as distinguished from intentional torts." The court added that it could "perceive of no good reason why an employer should be prohibited from insuring himself against such losses, since the losses are in effect a business loss."

Insurers may exclude punitive damages. Under Ark. Code 23-79-307(a)(8), "policies containing an exclusion for punitive damages must include a definition of punitive damages substantially similar to the following: 'Punitive damages' are damages that may be imposed to punish a wrongdoer and to deter others from similar conduct."

Arkansas punitive damages at a glance

Recent changes

The general rules date from Acts 2003, No. 649. The two later changes that matter are the 2011 Schafer decision, which struck the 16-55-208 cap, and the 2015 amendment to Rule 42, which replaced the statutory bifurcation section. None of the four statewide measures on Arkansas's November 3, 2026 general election ballot concerns damages: they address voter eligibility, the right to keep and bear arms, public-money programs and economic development districts, and water and pollution-abatement bonds.

Related pages

• Punitive damages laws by state
• Arkansas wrongful death law
• Arkansas medical malpractice law

This article provides general legal information about Arkansas punitive damages law as of 2026-10-18. It is not legal advice. For advice about a specific situation, contact a lawyer licensed in Arkansas.

Last updated: 2026-10-18.

Frequently Asked Questions

Does Arkansas allow punitive damages?

Yes. A plaintiff generally must prove liability for compensatory damages and, by clear and convincing evidence, that the defendant acted with malice or reckless disregard of injury it knew or ought to have known would naturally and probably result, or intentionally pursued a course of conduct to cause injury (Ark. Code 16-55-206, 16-55-207).

Is there a cap on punitive damages in Arkansas?

No general cap. The Arkansas Supreme Court held the 16-55-208 cap unconstitutional in Bayer CropScience v. Schafer (2011), although the section still appears in the Code. Some statutes for particular claims set their own limits, such as the employer-size caps on combined compensatory and punitive damages in 16-123-107 and 12-62-805 and the $10 million excursion-train limit in 23-10-213.

Why was the Arkansas punitive damages cap struck down?

In Bayer CropScience v. Schafer (2011), the Arkansas Supreme Court held that 16-55-208 violates article 5, section 32 of the Arkansas Constitution because it limits the amount of recovery outside the employment relationship.

Does Arkansas take part of a punitive damages award?

No general Arkansas statute diverts part of a private plaintiff's punitive award to the state. Punitive damages the State itself recovers under 8-7-517 in a hazardous-substance case are deposited in the remedial action trust fund (8-7-509).

Are punitive damages tried separately in Arkansas?

On the motion of any party, and if warranted by the evidence, Ark. R. Civ. P. 42(b)(2) requires a bifurcated jury trial before the same jury, with the amount of punitive damages decided in a separate proceeding.

Are punitive damages available in an Arkansas wrongful death case?

The wrongful death statute, 16-62-102, does not mention punitive damages, but the several-liability rule in 16-55-201 applies to compensatory or punitive damages in any action for wrongful death, subject to the acting-in-concert and agent exception in 16-55-205.

Are punitive damages available against a nursing home in Arkansas?

Ark. Code 20-10-1209 lets a resident's action seek actual and punitive damages, and provides that punitive damages may be awarded for conduct that is willful, wanton, gross or flagrant, reckless, or consciously indifferent to the rights of the resident.

Does insurance cover punitive damages in Arkansas?

It can for accidents. In Southern Farm Bureau v. Daniel (1969), the Arkansas Supreme Court found nothing in public policy preventing an insurer from indemnifying punitive damages arising out of an accident, as distinguished from intentional torts. Policies that exclude punitive damages must define them as 23-79-307(a)(8) requires.