New Jersey Punitive Damages Laws: Cap, Proof and Rules (2026)

New Jersey allows punitive damages under the Punitive Damages Act, N.J.S.A. 2A:15-5.9 to 2A:15-5.17, only if the plaintiff proves by clear and convincing evidence that the harm resulted from acts or omissions "actuated by actual malice or accompanied by a wanton and willful disregard of persons who foreseeably might be harmed" (2A:15-5.12(a)). Under 2A:15-5.14(b), no defendant is liable for more than five times its compensatory damages liability or $350,000, whichever is greater, but the cap does not apply to Law Against Discrimination, Conscientious Employee Protection Act, bias-crime and child sexual abuse claims, among others listed, or where the defendant has been convicted of murder, manslaughter or drunk driving.

Other New Jersey statutes set their own limits for particular claims, punitive damages are barred against public entities, and they are not part of a Wrongful Death Act recovery, though the New Jersey Supreme Court allows them in a Survivor's Act claim. 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 New Jersey state law on punitive damages in civil cases: the Punitive Damages Act (N.J.S.A. 2A:15-5.9 to 2A:15-5.17) and the other statutes and decisions named below. It does not cover compensatory or noneconomic damages in medical malpractice cases (see New Jersey medical malpractice law), wrongful-death procedure, deadlines and beneficiaries (see New Jersey wrongful death law), federal claims, or every New Jersey statute that authorizes punitive or multiplied damages for a particular claim beyond those named here.

Does New Jersey allow punitive damages?

Yes. Punitive damages are available in New Jersey, and the Punitive Damages Act of 1995 (L.1995, c.142) governs how they are proven, tried and limited. The Act does not create new claims: "Nothing contained in this act is to be construed as creating any claim for punitive damages which is not now available under the law of this State" (2A:15-5.15).

The Act defines the term broadly. "Punitive damages" "includes exemplary damages and means damages awarded against a party in a civil action because of aggravating circumstances in order to penalize and to provide additional deterrence against a defendant to discourage similar conduct in the future" (2A:15-5.10).

What must be proven

Section 2A:15-5.12(a) sets both the conduct standard and the burden:

"Punitive damages may be awarded to the plaintiff only if the plaintiff proves, by clear and convincing evidence, that the harm suffered was the result of the defendant's acts or omissions, and such acts or omissions were actuated by actual malice or accompanied by a wanton and willful disregard of persons who foreseeably might be harmed by those acts or omissions. This burden of proof may not be satisfied by proof of any degree of negligence including gross negligence."

The Act's definitions (2A:15-5.10) explain the key terms:

• Actual malice "means an intentional wrongdoing in the sense of an evil-minded act."
• Wanton and willful disregard "means a deliberate act or omission with knowledge of a high degree of probability of harm to another and reckless indifference to the consequences of such act or omission."
• Clear and convincing evidence "means that standard of evidence which leaves no serious or substantial doubt about the correctness of the conclusions drawn from the evidence."

Negligence, even gross negligence, is not enough.

Setting the amount. In deciding the amount, the trier of fact considers all relevant evidence, including the factors in 2A:15-5.12(b), "the profitability of the misconduct to the defendant," "when the misconduct was terminated," and "the financial condition of the defendant" (2A:15-5.12(c)).

Is there a cap on punitive damages in New Jersey?

Yes, a general cap with listed exceptions. Section 2A:15-5.14(b) provides:

"No defendant shall be liable for punitive damages in any action in an amount in excess of five times the liability of that defendant for compensatory damages or $350,000, whichever is greater."

Because the cap is the greater of the two figures, it never falls below $350,000.

Exceptions. Under 2A:15-5.14(c), the cap does not apply to causes of action brought under:

• the bias-crime civil action, P.L.1993, c.137 (C.2A:53A-21 et seq.);
• the Law Against Discrimination, P.L.1945, c.169 (C.10:5-1 et seq.);
• P.L.1989, c.303 (C.26:5C-5 et seq.), a law on AIDS and HIV infection;
• the child sexual abuse civil action, P.L.1992, c.109 (C.2A:61B-1);
• the Conscientious Employee Protection Act (CEPA), P.L.1986, c.105 (C.34:19-1 et seq.).

The cap also does not apply "in cases in which a defendant has been convicted pursuant to N.J.S.2C:11-3, N.J.S.2C:11-4, R.S.39:4-50 or section 2 of P.L.1981, c.512 (C.39:4-50.4a) or the equivalent under the laws of any other jurisdiction." Those sections are murder (2C:11-3), manslaughter (2C:11-4), driving while intoxicated (39:4-50) and refusal (39:4-50.4a). The exception turns on a conviction, not just on proof of the conduct in the civil case. For the rest of a drunk-driving crash claim, see New Jersey car accident law.

The jury is not told. "The jury shall not be informed of the cap on punitive damages established by section 6 of this act" (2A:15-5.16).

The judge reviews every award. "Before entering judgment for an award of punitive damages, the trial judge shall ascertain that the award is reasonable in its amount and justified in the circumstances of the case, in light of the purpose to punish the defendant and to deter that defendant from repeating such conduct. If necessary to satisfy the requirements of this section, the judge may reduce the amount of or eliminate the award of punitive damages" (2A:15-5.14(a)).

The U.S. Supreme Court's due-process limits on the size of punitive awards also apply to New Jersey verdicts; the punitive damages hub explains them.

Claim-specific limits in other statutes

Some New Jersey statutes for particular claims set their own measure of punitive or exemplary damages:

The trade secrets limit is measured against the award under subsection a. of 56:15-4, not against a fixed dollar figure.

Does New Jersey take a share of the award?

Not from a private plaintiff. None of the nine sections of the Punitive Damages Act sends any part of an award to the State, and no general New Jersey statute does so.

Attorney General discrimination suits. The Law Against Discrimination has a state-payee rule for cases the State brings. When the Attorney General or the director brings the case, they may seek civil penalties, and "in the alternative, in lieu of these penalties, the Attorney General or director may seek and obtain punitive damages payable to the State upon a finding that the provisions of P.L.1995, c.142 (C.2A:15-5.9 et al.) are satisfied" (N.J.S.A. 10:5-13(a)(2)(c)).

Civil fines paid to the General Fund are separate. Under CEPA, "the court or jury may order: the assessment of a civil fine of not more than $10,000 for the first violation of the act and not more than $20,000 for each subsequent violation, which shall be paid to the State Treasurer for deposit in the General Fund; punitive damages; or both a civil fine and punitive damages" (N.J.S.A. 34:19-5). Under P.L.2006, c.53, the law on employer communications to employees about religious or political matters, the court may award the employee punitive damages not greater than treble damages or a civil fine of not more than $1,000 for a first violation and $5,000 for each later one, paid to the State Treasurer for the General Fund (34:19-13). These fines are not a share of the employee's punitive award.

How a punitive damages claim is pleaded and tried

Pleading. "An award of punitive damages must be specifically prayed for in the complaint" (2A:15-5.11). The Act adds no leave-of-court requirement before the claim is pleaded.

Bifurcation on request. "Any actions involving punitive damages shall, if requested by any defendant, be conducted in a bifurcated trial" (2A:15-5.13(a)). In the first stage, the trier of fact decides liability for compensatory damages and the amount of compensatory or nominal damages, and "evidence relevant only to the issues of punitive damages shall not be admissible in this stage" (5.13(b)). In the second stage, it decides whether the defendant is liable for punitive damages (5.13(d)).

Compensatory damages come first. "Punitive damages may be awarded only if compensatory damages have been awarded in the first stage of the trial. An award of nominal damages cannot support an award of punitive damages" (5.13(c)). The Act defines nominal damages as damages "that are not designed to compensate a plaintiff and are less than $500" (2A:15-5.10).

Separate awards for each defendant. "In any action in which there are two or more defendants, an award of punitive damages must be specific as to a defendant, and each defendant is liable only for the amount of the award made against that defendant" (5.13(e)).

Referral to prosecutors. "Upon the conclusion of any action in which punitive damages have been awarded, the court shall refer the record of that action to the prosecutor of the county in which the case was tried and to the Attorney General for investigation as to whether a criminal act has been committed by the defendant" (2A:15-5.17).

Arbitration. An arbitrator "may award punitive damages or other exemplary relief if such an award is authorized by law in a civil action involving the same claim and the evidence produced at the hearing justifies the award in accordance with the legal standards otherwise applicable to the claim," and must state the factual and legal basis and "state separately the amount of the punitive damages or other exemplary relief" (N.J.S.A. 2A:23B-21(a), (e)).

Employer liability in discrimination cases

In Rendine v. Pantzer, 141 N.J. 292 (1995), a Law Against Discrimination case decided shortly before the Punitive Damages Act, the New Jersey Supreme Court restated the rule from Lehmann v. Toys 'R' Us, Inc. (1993) that "the employer should be liable for punitive damages only in the event of actual participation by upper management or willful indifference." The Court added "a requirement of proof that the offending conduct be especially egregious."

The Law Against Discrimination makes "all remedies available in common law tort actions" available to prevailing plaintiffs (N.J.S.A. 10:5-13(a)(2)(b)), and LAD claims are outside the 2A:15-5.14(b) cap. One LAD provision is different: for a violation of the salary-history section, "an award of punitive damages shall not be an available remedy" (N.J.S.A. 10:5-12.12(b)).

Punitive damages in New Jersey wrongful death cases

A death in New Jersey can give rise to two claims, and punitive damages follow only one of them. Under the Wrongful Death Act, the jury may award damages "with reference to the pecuniary injuries resulting from such death, together with the hospital, medical and funeral expenses incurred for the deceased" (N.J.S.A. 2A:31-5). Under the Survivor's Act, executors and administrators may sue for any trespass to the person or property of the decedent "and recover their damages as their testator or intestate would have had if he was living" (2A:15-3(a)(1)).

In Smith v. Whitaker, 160 N.J. 221 (1999), the New Jersey Supreme Court held:

"Initially, we conclude that punitive damages are a permissible form of recovery under the Survivor's Act. ... Unlike the Wrongful Death Act, which on its face provides recompense only for the direct pecuniary losses sustained by the beneficiaries, the Survivor's Act expressly allows a plaintiff to pursue any cause of action that would have been available to decedent had she lived."

The Court also concluded that "the recent amendments to the Punitive Damages Act, requiring an award of compensatory damages as a predicate for a punitive damages award, are inapplicable to a survival action where the decedent was killed instantly." That case began before the 1995 Act took effect. Who brings each claim, and the deadlines, are on the New Jersey wrongful death page.

Products approved by the FDA

The Product Liability Act bars punitive damages for drugs, devices and foods approved or licensed by the federal Food and Drug Administration, with one exception. "Punitive damages shall not be awarded if a drug or device or food or food additive which caused the claimant's harm was subject to premarket approval or licensure by the federal Food and Drug Administration ... and was approved or licensed; or is generally recognized as safe and effective pursuant to conditions established by the federal Food and Drug Administration and applicable regulations, including packaging and labeling regulations. However, where the product manufacturer knowingly withheld or misrepresented information required to be submitted under the agency's regulations, which information was material and relevant to the harm in question, punitive damages may be awarded" (N.J.S.A. 2A:58C-5(c)).

Government defendants and public employees

Public entities. "No punitive or exemplary damages shall be awarded against a public entity" (N.J.S.A. 59:9-2(c)).

State employees. The State does not have to pay punitive damages imposed on a State employee, but it may choose to: "Nothing in this section requires the State to pay for punitive or exemplary damages or damages resulting from the commission of a crime. The State may, however, indemnify a State employee for exemplary or punitive damages resulting from the employee's civil violation of State or federal law if, in the opinion of the Attorney General, the acts committed by the State employee upon which the damages are based did not constitute actual fraud, actual malice, willful misconduct, or an intentional wrong" (N.J.S.A. 59:10-1).

Local and school employees. A local public entity may indemnify an employee on the same terms, if its governing body finds the acts "did not constitute actual fraud, actual malice, willful misconduct or an intentional wrong" (59:10-4). For school board members and school employees, "indemnification for exemplary or punitive damages shall not be mandated and shall be governed by the standards and procedures set forth in N.J.S.59:10-4" (N.J.S.A. 18A:12-20, 18A:16-6).

Senate Bill 3315, introduced in 2026, would add to 2A:15-5.13 a provision that "No public entity is liable for punitive damages. No public employee acting within the scope of his employment is liable for punitive damages." It is a bill, not law.

Other statutes that authorize punitive damages

Several New Jersey statutes name punitive damages as a remedy for a specific claim:

• Bias crimes. The bias-crime civil action allows "such punitive damages as may be assessed, and any reasonable attorney's fees and costs of suit incurred" (N.J.S.A. 2A:53A-21(d)(1)). It is on the cap exception list.
• Child sexual abuse. A prevailing plaintiff "shall be awarded damages in the amount of $10,000, plus reasonable attorney's fees, or actual damages, whichever is greater," and "actual damages shall consist of compensatory and punitive damages and costs of suit" (N.J.S.A. 2A:61B-1(h)). It is on the cap exception list.
• Wiretapping. The civil action under the wiretap act allows recovery of "actual damages, but not less than liquidated damages computed at the rate of $100.00 a day for each day of violation, or $1,000.00, whichever is higher," plus "punitive damages" and a reasonable attorney's fee (N.J.S.A. 2A:156A-24).
• Domestic violence. In a final restraining order's monetary relief, "where appropriate, punitive damages may be awarded in addition to compensatory damages" (N.J.S.A. 2C:25-29(b)(4)).
• Nursing homes. "A person shall have a cause of action against the nursing home for any violation of this act," and "the action to recover actual and punitive damages shall be brought in a court of competent jurisdiction" (N.J.S.A. 30:13-4.2). Section 30:13-8 likewise allows an action "to recover actual and punitive damages" for violations of residents' rights.
• Residential health care facilities and dementia care homes. Parallel residents' rights statutes allow actions "to recover actual and punitive damages" (N.J.S.A. 26:2H-14.7; 26:2H-154(c)).
• Drug dealer liability. Under the Drug Dealer Liability Act, family members, employers and others named in the statute may sue a person who illegally distributed or dispensed a controlled dangerous substance to the user, and the damages they may recover include "punitive damages" (N.J.S.A. 2C:35B-5(c)(3)).
• Human trafficking. In a civil action by a person injured by a human trafficking offense, the court awards relief that includes "punitive damages" in addition to other damages (N.J.S.A. 2C:13-8.1(c)).
• Intimate images and deepfakes. The civil action for recording or disclosing intimate images in violation of N.J.S.A. 2C:14-9 allows "punitive damages upon proof of willful or reckless disregard of the law" (N.J.S.A. 2A:58D-1(c)). The civil action against a natural person who violates the 2025 deceptive audio and visual media (deepfake) law allows "punitive damages upon proof of willful disregard of the law" (N.J.S.A. 2C:21-17.8(f), P.L.2025, c.40).
• Computer-related offenses. A person or enterprise damaged in business or property "may recover compensatory and punitive damages and the cost of the suit" (N.J.S.A. 2A:38A-3).

Does insurance pay punitive damages in New Jersey?

The Appellate Division has said no as a matter of public policy. In Variety Farms, Inc. v. New Jersey Manufacturers Insurance Co., 172 N.J. Super. 10 (App. Div. 1980), the court stated: "We consider the sounder rule to be that public policy does not permit a tortfeasor to shift the burden of punitive damages to his insurer." That decision predates the 1995 Act.

Two guaranty-fund statutes for insolvent insurers point the other way on their text: their definitions of a covered claim exclude "punitive damages unless covered by the policy" (N.J.S.A. 17:30A-5; 17:22-6.72). For public employees, the indemnification statutes described above apply.

New Jersey punitive damages at a glance

Recent changes

The Punitive Damages Act was enacted in 1995 (L.1995, c.142). The cap section, 2A:15-5.14, was last amended in 2005 (L.2005, c.323 and c.329). A more recent change is a 2025 amendment (L.2025, c.138) to the law on employer communications to employees about religious or political matters, including its civil-action section, 34:19-13, which allows punitive damages not greater than treble damages. In 2025 the Legislature also enacted a civil action for deceptive audio and visual media (deepfakes) that allows punitive damages upon proof of willful disregard of the law (P.L.2025, c.40, N.J.S.A. 2C:21-17.8).

Related pages

• Punitive damages laws by state
• New Jersey wrongful death law
• New Jersey car accident law
• New Jersey medical malpractice law
• New York punitive damages laws
• Pennsylvania punitive damages laws

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

Last updated: 2026-10-18.

Frequently Asked Questions

Does New Jersey allow punitive damages?

Yes. The Punitive Damages Act (N.J.S.A. 2A:15-5.9 to 5.17) allows them only if the plaintiff proves by clear and convincing evidence that the harm resulted from conduct actuated by actual malice or accompanied by a wanton and willful disregard of persons who foreseeably might be harmed (2A:15-5.12(a)).

Is there a cap on punitive damages in New Jersey?

Generally yes: no defendant is liable for more than five times its compensatory damages liability or $350,000, whichever is greater (2A:15-5.14(b)). The cap does not apply to Law Against Discrimination, CEPA, bias-crime, child sexual abuse and other listed claims, or after a conviction for murder, manslaughter, drunk driving or refusal, and some statutes for particular claims set their own limits.

Is gross negligence enough for punitive damages in New Jersey?

No. Section 2A:15-5.12(a) provides that the burden of proof may not be satisfied by proof of any degree of negligence including gross negligence; the plaintiff must show actual malice or wanton and willful disregard.

Are punitive damages available in a New Jersey wrongful death case?

Not in the Wrongful Death Act recovery, which is measured by pecuniary injuries plus hospital, medical and funeral expenses (2A:31-5). The New Jersey Supreme Court held in Smith v. Whitaker (1999) that punitive damages are a permissible form of recovery under the Survivor's Act.

Are punitive damages available for drunk driving in New Jersey?

The Punitive Damages Act's standard of actual malice or wanton and willful disregard applies. If the defendant has been convicted of driving while intoxicated under R.S. 39:4-50, or of refusal under 39:4-50.4a, the 2A:15-5.14(b) cap does not apply (2A:15-5.14(c)).

Does New Jersey take part of a punitive damages award?

Not from a private plaintiff's award; the Punitive Damages Act sends no share to the State. In a Law Against Discrimination case brought by the Attorney General or director, punitive damages may be sought payable to the State in lieu of civil penalties (10:5-13(a)(2)(c)).

Are punitive damages available against a government agency in New Jersey?

No. N.J.S.A. 59:9-2(c) provides that no punitive or exemplary damages shall be awarded against a public entity. The State and local public entities may, but need not, indemnify an employee for punitive damages if the employee's acts did not constitute actual fraud, actual malice, willful misconduct or an intentional wrong (59:10-1, 59:10-4).

Does insurance cover punitive damages in New Jersey?

The Appellate Division held in Variety Farms v. New Jersey Manufacturers Insurance Co. (1980) that public policy does not permit a tortfeasor to shift the burden of punitive damages to his insurer. Guaranty-fund statutes for insolvent insurers exclude punitive damages unless covered by the policy (17:30A-5; 17:22-6.72).

Does the jury know about the punitive damages cap in New Jersey?

No. N.J.S.A. 2A:15-5.16 provides that the jury shall not be informed of the cap; the trial judge reviews the award and may reduce or eliminate it (2A:15-5.14(a)).