Nevada Punitive Damages Laws: Cap, Proof and Exceptions (2026)

Nevada allows punitive damages, which its statutes also call exemplary damages, in an action for the breach of an obligation not arising from contract when the plaintiff proves by clear and convincing evidence that the defendant has been guilty of oppression, fraud or malice, express or implied (NRS 42.005(1)). The same section generally caps the award at three times compensatory damages when compensatory damages are $100,000 or more, and at $300,000 when they are less, but the cap does not apply to five listed kinds of actions or to impaired-driving injury claims under NRS 42.010. In 2025 the Nevada Supreme Court held that an unjust enrichment claim can support punitive damages and that, in that case, due process required an award below the statutory maximum.

No general Nevada statute sends part of a punitive award to the state. Nevada law bars punitive damages against a deceased wrongdoer's executor or administrator (NRS 41.100(2)) and in the tort awards against the State, political subdivisions and their officers and employees that NRS 41.035(1) covers. 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 Nevada state law on punitive damages in civil cases: NRS 42.001 to 42.010, the death, survival and government provisions in NRS chapter 41, NRS 681A.095 on insurance, and the claim-specific statutes named below. It does not cover compensatory or noneconomic damages, wrongful-death procedure, deadlines and beneficiaries (see Nevada wrongful death law), federal claims, or every statute that authorizes punitive or multiplied damages for a particular claim beyond those named here.

When Nevada allows punitive damages

NRS 42.005(1) is the general rule:

"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."

Three limits are built into that sentence. The obligation must not arise from contract, so the section does not reach an ordinary breach of contract claim. An unjust enrichment claim is different: in United Healthcare Insurance Co. v. Fremont Emergency Services (Mandavia), Ltd., 141 Nev. Adv. Op. No. 29 (June 12, 2025), the Nevada Supreme Court concluded that "an unjust enrichment claim can support punitive damages." The conduct must be oppression, fraud or malice. And the proof must be clear and convincing evidence.

The statute uses "exemplary or punitive damages" interchangeably. Both terms mean damages awarded "for the sake of example and by way of punishing the defendant," on top of compensatory damages.

Many other Nevada statutes authorize punitive damages for particular claims, and NRS 42.010 creates a separate route for impaired-driving injuries (covered below).

What must be proven: oppression, fraud or malice

NRS 42.001 defines the key terms for the whole chapter:

"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."

Gross negligence is not enough. In Countrywide Home Loans, Inc. v. Thitchener, 124 Nev. 725 (2008), the Nevada Supreme Court read the conscious-disregard definition this way:

"Since its language plainly requires evidence that a defendant acted with a culpable state of mind, we conclude that NRS 42.001(1) denotes conduct that, at a minimum, must exceed mere recklessness or gross negligence."

Bad-faith insurance cases use the common law. The NRS 42.001 definitions apply "except as otherwise provided in subsection 5 of NRS 42.005," and subsection 5 provides that in an action 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."

Is there a cap on punitive damages in Nevada?

Yes, a general one, with exceptions. NRS 42.005(1) provides that, "except as otherwise provided in this section or by specific statute," an award under that 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."

Actions the cap does not reach. Under NRS 42.005(2), the limits "do not apply to an action brought against":

• "A manufacturer, distributor or seller of a defective product";
• "An insurer who acts in bad faith regarding its obligations to provide insurance coverage";
• "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";
• "A person for damages or an injury caused by the emission, disposal or spilling of a toxic, radioactive or hazardous material or waste"; or
• "A person for defamation."

Impaired driving. NRS 42.010(2) provides that "the provisions of NRS 42.005 do not apply to any cause of action brought pursuant to this section," so the NRS 42.005 cap does not limit those awards.

Claim-specific limits. Several statutes outside chapter 42 set their own amounts for the punitive damages they authorize:

The U.S. Supreme Court's due-process limits on the size of punitive awards also apply to Nevada verdicts; the punitive damages hub explains them. The statutory cap is an outer limit: in Fremont (2025), the Nevada Supreme Court said that "[i]n addition to the statutory cap, the court must consider due process in confirming an award of punitive damages," and held that an award at the 3:1 maximum of NRS 42.005(1)(a) "would violate due process, given the economic nature of the harm and the sophistication of the parties" in that case, and ordered the award reduced to a 1:1 ratio. Under federal law, punitive damages are generally taxable income even when they arise from a physical injury (26 U.S.C. 104(a)(2)); the personal injury settlement amounts guide covers taxes.

How the amount is decided

NRS 42.005(3) splits the decision into two steps when punitive damages are claimed under that section:

"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."

A jury makes these findings "by special verdict along with any other required findings," and "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."

Wealth evidence waits. Under NRS 42.005(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."

NRS chapter 42 contains no provision requiring court permission or a preliminary evidentiary showing before a punitive damages claim may be pleaded; the only timing rule in the chapter is the one on financial-condition evidence. The Nevada Rules of Civil Procedure contain no rule specific to punitive damages either; NRCP 8(a)(4) lets a pleading that seeks more than $15,000 request damages "in excess of $15,000" without stating an amount.

When an employer is liable for an employee's conduct

NRS 42.007(1) limits punitive damages sought under NRS 42.005(1) against an employer for an employee's wrongful act. The employer is not liable 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."

For a corporation, one of those elements must be 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." These limits do not apply in an action against an insurer who acts in bad faith regarding its obligations to provide insurance coverage (NRS 42.007(2)).

Drunk and drugged driving: NRS 42.010

NRS 42.010(1) provides:

"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."

Because NRS 42.005 does not apply to this cause of action, its cap does not limit these awards, and the text of NRS 42.010 itself sets no amount limit and does not repeat the clear and convincing language of NRS 42.005. In 2023, Senate Bill 401 amended the section; its Legislative Counsel's Digest says it "removes the requirement that, before consuming or using alcohol or another substance, the defendant knew that he or she would thereafter operate the motor vehicle." The change took effect on July 1, 2023 and applies to all actions pending or filed on or after that date (SB 401, secs. 2 and 3). For the rest of a crash claim, see Nevada car accident laws.

Punitive damages when someone dies

When the injured person dies. In a wrongful death case, NRS 41.085(5) lists what "the personal representatives of a decedent" recover "on behalf of the decedent's estate," including:

"(b) Any penalties, including, but not limited to, exemplary or punitive damages, that the decedent would have recovered if the decedent had lived, but do not include damages for pain, suffering or disfigurement of the decedent."

NRS 41.100(3) similarly lets a decedent's executor or administrator recover "any penalties or punitive and exemplary damages which the decedent would have recovered if the decedent had lived" when a person with a cause of action dies before judgment, but that subsection "does not apply to the cause of action of a decedent brought by the decedent's personal representatives for the decedent's wrongful death."

When the wrongdoer dies. NRS 41.100(2) provides that "in an action against an executor or administrator, any damages may be awarded which would have been recovered against the decedent if the decedent had lived, except damages awardable under NRS 42.005 or 42.010 or other damages imposed primarily for the sake of example or to punish the defendant."

Who brings a death claim, who shares in it and the deadlines are on the Nevada wrongful death page.

Government defendants

NRS 41.035(1) covers an award in "an action sounding in tort brought under NRS 41.031 or against a present or former officer or employee of the State or any political subdivision, immune contractor or State Legislator arising out of an act or omission within the scope of the person's public duties or employment," and provides: "An award may not include any amount as exemplary or punitive damages." The same subsection caps those awards at $200,000 per claimant, exclusive of interest from the date of judgment.

Under NRS 41.035(2), the same limits on the amount and nature of damages, including the bar on punitive damages, also apply to tort actions arising from recreational activity or recreational use of land or water brought against a public or quasi-municipal corporation, a person who made the land or water available to a public agency, or an Indian tribe, band or community.

Defamation

For libel in a newspaper or slander by radio or television broadcast, NRS 41.331 to 41.338 add conditions. The plaintiff "may recover no more than special damages unless a correction is demanded by the plaintiff and not published or broadcast" (NRS 41.336(1)); the written demand must be served within 90 days after the plaintiff learns of the publication or broadcast (NRS 41.336(3)). If the correction is not published or broadcast within 20 days, the plaintiff "may recover exemplary damages if the plaintiff can prove that the defendant published or broadcast the statement with actual malice," and "actual malice shall not be presumed or inferred from the publication or broadcast" (NRS 41.337).

In these sections, "actual malice" has its own meaning: "that state of mind arising from hatred or ill will toward the plaintiff" (NRS 41.332), and exemplary damages are damages recoverable "for the sake of example and by way of punishing a defendant who has made a publication or broadcast with actual malice" (NRS 41.333). A defamation action is also one of the five kinds of actions the NRS 42.005 cap does not reach. For the underlying claim, see Nevada defamation laws.

Associations: where punitive damages are limited

• NRS chapter 116. "Consequential, special or punitive damages may not be awarded except as specifically provided in this chapter or by other rule of law" (NRS 116.1114). Punitive damages "may be awarded for a willful and material failure to comply with any provision of this chapter if the failure is established by clear and convincing evidence," but not against the association, members of the executive board for acts or omissions in their official capacity, or officers of the association for acts or omissions in their capacity as officers (NRS 116.4117(4), (5)).
• NRS chapter 116B. NRS 116B.790 has the same structure: no punitive damages against the association, board members acting in their official capacity or officers, but an award is allowed "for a willful and material failure to comply with this chapter if the failure is established by clear and convincing evidence."
• NRS 119A.528(2). "Punitive damages may not be recovered against the association, but may be recovered from persons whose activity gave rise to the damages."

Does Nevada take a share of the award?

No general Nevada statute diverts part of a plaintiff's punitive award to the state or a fund, and NRS chapter 42 contains no such provision. Three withholding statutes direct the punitive sum they impose on an employer or income payer to a named recipient: the person to whom support is owed (NRS 31A.120(2)), the State Controller (NRS 353C.177(2)) or the Administrator (NRS 612.7112(2)). Those are recipient rules for a statutory penalty, not a division of a tort plaintiff's award.

Does insurance pay punitive damages in Nevada?

It may. NRS 681A.095 provides: "An insurer may insure against legal liability for exemplary or punitive damages that do not arise from a wrongful act of the insured committed with the intent to cause injury to another."

Nevada punitive damages at a glance

Recent changes

The general punitive damages sections, NRS 42.001, 42.005 and 42.007, carry no amendment after 1995. The most recent statutory change is the 2023 amendment of NRS 42.010 by Senate Bill 401, which removed the requirement that the defendant knew, before drinking or using a substance, that he or she would drive afterward, effective July 1, 2023 for all actions pending or filed on or after that date. In 2025, the Nevada Supreme Court held in Fremont that an unjust enrichment claim can support punitive damages and that due process may require an award below the statutory maximum (see above).

Related pages

• Punitive damages laws by state
• Nevada wrongful death law
• Nevada car accident laws
• Nevada defamation laws

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

Last updated: 2026-10-18.

Frequently Asked Questions

Does Nevada allow punitive damages?

Yes. Under NRS 42.005(1), in an action for the breach of an obligation not arising from contract, a plaintiff who proves by clear and convincing evidence that the defendant has been guilty of oppression, fraud or malice, express or implied, may recover damages for the sake of example and by way of punishing the defendant. The Nevada Supreme Court held in 2025 that an unjust enrichment claim can support punitive damages (United Healthcare v. Fremont Emergency Services). NRS 42.010 separately allows them for certain impaired-driving injuries.

What is the cap on punitive damages in Nevada?

Generally three times compensatory damages if compensatory damages are $100,000 or more, or $300,000 if they are less than $100,000 (NRS 42.005(1)). The cap does not apply to defective-product, insurer bad-faith, qualifying discriminatory-housing, toxic or hazardous material, or defamation actions (NRS 42.005(2)), or to impaired-driving claims under NRS 42.010, and some specific statutes set their own limits. Due process can also require less than the cap: in Fremont (2025) the Nevada Supreme Court held that a 3:1 award would violate due process given the economic nature of the harm and the sophistication of the parties in that case, and ordered a 1:1 ratio.

What must be proven for punitive damages in Nevada?

Oppression, fraud or malice, express or implied, proven by clear and convincing evidence (NRS 42.005(1)), as those terms are defined in NRS 42.001. The Nevada Supreme Court held in Countrywide Home Loans v. Thitchener (2008) that conscious disregard must, at a minimum, exceed mere recklessness or gross negligence.

Are punitive damages available in a Nevada drunk driving case?

NRS 42.010 allows punitive damages where the defendant caused an injury by operating a motor vehicle in violation of NRS 484C.110, 484C.130 or 484C.430 after willfully consuming or using alcohol or another substance, and NRS 42.005, including its cap, does not apply to that cause of action.

Are punitive damages available in a Nevada wrongful death case?

NRS 41.085(5)(b) lists, among the damages the personal representatives recover on behalf of the decedent's estate, any penalties, including exemplary or punitive damages, that the decedent would have recovered if the decedent had lived. Separately, NRS 41.100(2) bars punitive damages in an action against the executor or administrator of a deceased wrongdoer.

Does Nevada take part of a punitive damages award?

No general Nevada statute does; NRS chapter 42 contains no provision sending part of an award to the state or a fund. A few withholding statutes direct a punitive sum imposed on an employer or income payer to the State Controller or the Administrator (NRS 353C.177(2), 612.7112(2)).

Are punitive damages available against the government in Nevada?

No, in the actions NRS 41.035(1) covers: an award in a tort action brought under NRS 41.031, or against a present or former officer or employee of the State or a political subdivision, immune contractor or State Legislator arising out of acts within the scope of public duties or employment, may not include any amount as exemplary or punitive damages. NRS 41.035(2) applies the same limits to certain recreational-use tort actions against public or quasi-municipal corporations, persons who made land or water available to a public agency, and Indian tribes.

Does insurance cover punitive damages in Nevada?

It may. NRS 681A.095 allows an insurer to insure against legal liability for exemplary or punitive damages that do not arise from a wrongful act of the insured committed with the intent to cause injury to another.