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Utah Punitive Damages: No General Cap, Split Over $50,000

Independently fact-checkedBy Recording Law Editorial Team19 min read

Independently fact-checked against primary sources (last audited October 19, 2026). · 30 primary sources cited on this page. How we verify our legal content

Utah Punitive Damages: No General Cap, Split Over $50,000

Utah allows punitive damages only if compensatory or general damages are awarded and it is established by clear and convincing evidence that the defendant's conduct was "willful and malicious or intentionally fraudulent," or "manifests a knowing and reckless indifference toward, and a disregard of, the rights of others" (Utah Code 78B-8-201(1)(a)). Utah has no general cap on the amount, but the State takes a share: any part of an award over $50,000 is divided equally between the State and the injured party (78B-8-201(3)).

Utah also bars insurers from insuring against punitive damages (31A-20-101), and for claims arising on or after May 6, 2026, an employer is not vicariously liable for punitive damages based solely on the employment relationship (78B-8-204). For how other states compare, see punitive damages laws by state.

Information last verified on 2026-10-19. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers Utah state law on punitive damages in civil cases: Utah Code 78B-8-201 to 78B-8-204, the insurance and government statutes and the decisions named below. It does not cover compensatory or noneconomic damages caps (see Utah medical malpractice law), wrongful-death procedure, deadlines and beneficiaries (see Utah wrongful death law), federal claims, or every statute that authorizes punitive or multiplied damages for a particular claim beyond those named here.

Does Utah allow punitive damages?

Yes. Utah Code Title 78B, Chapter 8, Part 2 governs punitive damages in four sections: the standard, the State's share and the evidence rules (78B-8-201), notice to state officers (78B-8-202), the drug exception (78B-8-203), and employer and agency liability (78B-8-204). Section 78B-8-201(1)(a) opens with the words "Except as otherwise provided by statute," so specific statutes elsewhere in the code can change the rules for particular claims.

What must be proven

Section 78B-8-201(1)(a) provides:

Utah punitive damages laws: trial testimony in injury cases

"Except as otherwise provided by statute, punitive damages may be awarded only if compensatory or general damages are awarded and it is established by clear and convincing evidence that the acts or omissions of the tortfeasor are the result of willful and malicious or intentionally fraudulent conduct, or conduct that manifests a knowing and reckless indifference toward, and a disregard of, the rights of others."

That sets three requirements:

  • A compensatory award. Punitive damages require an award of compensatory or general damages. The shoplifting penalty under 78B-3-108 is the stated exception; it "is not subject to the prior award of compensatory or general damages" (78B-8-201(1)(c)).
  • The conduct. Willful and malicious conduct, intentionally fraudulent conduct, or a knowing and reckless indifference toward, and disregard of, the rights of others.
  • The burden. Clear and convincing evidence.

Impaired driving and illegal drugs. Under 78B-8-201(1)(b), "the limitations, standards of evidence, and standards of conduct of Subsection (1)(a) do not apply" to a punitive claim arising out of the defendant's:

  • "operation of a motor vehicle or motorboat while voluntarily intoxicated or under the influence of any drug or combination of alcohol and drugs as prohibited by Section 41-6a-502";
  • "causing death of another person by providing or administering an illegal controlled substance to the person under Section 78B-3-801"; or
  • providing an illegal controlled substance to any person in the chain of transfer that leads directly to a death caused in whole or in part by the substance.

For the rest of a crash claim, see Utah car accident law.

Is there a cap on punitive damages in Utah?

No general cap. Sections 78B-8-201 through 78B-8-204 set no dollar limit and no ratio to compensatory damages; the only dollar figure in them is the $50,000 threshold for the State's share. Some statutes for particular claims set their own limits:

  • Uniform Trade Secrets Act: for willful and malicious misappropriation, "exemplary damages in an amount not exceeding twice any award made under Subsection (1)" (13-24-4(2)).
  • Negative credit report notice: for a willful violation, "punitive damages in an amount not in excess of two times the amount of the actual damages awarded" (70C-7-107(4)(b)).
  • Public assistance overpayments obtained by fraud: the court "shall assess an additional sum as considered appropriate as punitive damages up to the amount of repayment being sought" (35A-3-603(6)).
  • Bad faith patent infringement letters: punitive damages "of not more than the greater of $50,000 or three times the total of damages, costs, and fees" (78B-6-1904(1)(b)(iv)).
  • Abusive website-access lawsuits: a defending party who proves a website-access suit was abusive may be awarded punitive damages, but punitive damages and monetary sanctions "may not exceed three times the amount awarded" in attorney fees and costs (78B-3-1302(5), effective May 6, 2026).

Noneconomic damages caps do not reach punitive damages. The noneconomic damages limit in medical malpractice actions "does not apply to awards of punitive damages" (78B-3-410(4)), and the landowner noneconomic damages limit in 57-14-501(2)(a) carries the same carve-out, as do the ski area and winter sports limits (78B-4-406(2)(a), 78B-4-806(2)(a)).

How courts weigh the amount. In Crookston v. Fire Insurance Exchange, 817 P.2d 789 (Utah 1991), the Utah Supreme Court listed seven factors that "must be considered in assessing the amount of punitives to be awarded": "(i) the relative wealth of the defendant; (ii) the nature of the alleged misconduct; (iii) the facts and circumstances surrounding such conduct; (iv) the effect thereof on the lives of the plaintiff and others; (v) the probability of future recurrence of the misconduct; (vi) the relationship of the parties; and (vii) the amount of actual damages awarded." The U.S. Supreme Court's due-process limits on the size of punitive awards also apply to Utah verdicts; the punitive damages hub explains them.

Does Utah take a share of the award?

Yes. Section 78B-8-201(3)(a) directs the court to enter judgment "for the first $50,000" in favor of the injured party, and provides that "any amount in excess of $50,000 shall be divided equally between the state and the injured party, and judgment to each entered accordingly." The rest of subsection (3) sets out how that works:

  • Fees and costs. The attorney fees and costs of obtaining and collecting the punitive judgment are treated as incurred by the State and the injured party "in proportion to the judgment entered in each party's behalf" (3)(b).
  • Collection. The State has "all rights due a judgment creditor to collect the full amounts of both punitive damage judgments" (3)(c). Unless all affected parties, including the State, agree otherwise, collection on the punitive judgment is deferred until all other judgments are paid (3)(g).
  • Order of payment. Payments go first to the compensatory judgment and related fees and costs, then to "the initial $50,000 of the punitive damage judgment," then to fees and costs awarded as a direct result of the punitive damages, then to the remaining punitive judgments (3)(h). Partial payments "shall be distributed equally between the state and injured party" (3)(i).
  • Where the State's share goes. After fees and costs, amounts paid on the State's judgment go to the state treasurer: "for an amount received on or before May 11, 2025," to the General Fund, and "for an amount received after May 11, 2025," to "the Victim Services Restricted Fund established in Section 75E-2-305" (3)(j), which 75E-2-305 creates as the Victim Services Restricted Account.

Notice to the State. Whenever a jury verdict or a finding or order in a bench trial awards punitive damages, "the clerk of the court shall immediately notify the attorney general and state treasurer," and must notify them again within five days after entry of a judgment awarding punitive damages (78B-8-202).

How the claim is tried

Wealth evidence comes later. "Evidence of a party's wealth or financial condition shall be admissible only after a finding of liability for punitive damages has been made" (78B-8-201(2)).

Discovery of wealth. Discovery about a party's wealth or financial condition "may only be allowed after the party seeking punitive damages has established a prima facie case on the record that an award of punitive damages is reasonably likely against the party about whom discovery is sought," and, if disputed, after the court is satisfied the discovery is not sought to harass (78B-8-201(2)(a)). That prerequisite does not apply to the impaired-driving and illegal-controlled-substance claims listed in 78B-8-201(2)(b), which also cover causing a person to be addicted.

Arbitration. In an arbitration under the Tort Arbitration chapter, "a claim for punitive damages may not be made in an arbitration proceeding in accordance with this chapter or any subsequent proceeding, even if the claim is later resolved through a trial de novo" (78B-10a-103). The same rule applies when a person injured in a motor vehicle accident elects to arbitrate third-party bodily injury claims under 31A-22-321 (subsection (3)), and when a person injured in a dog attack elects arbitration under 18-1-4 (subsection (3)). In other arbitrations, an arbitrator "may award punitive damages or other exemplary relief if the award is authorized by law in a civil action involving the same claim and the evidence produced at the hearing justifies the award under the legal standards otherwise applicable to the claim" (78B-11-122(1)).

Under federal tax law, punitive damages are carved out of the exclusion for personal physical injury damages (26 U.S.C. 104(a)(2)); the personal injury settlement amounts guide covers taxes.

Employer liability (claims arising on or after May 6, 2026)

Utah's 2026 S.B. 227 (Laws 2026, ch. 139) added 78B-8-204. When a plaintiff seeks punitive damages against an employer, principal or managing agent "based solely on the tortious conduct of an employee or agent," that defendant "may not be held vicariously liable for punitive damages based solely on the agency or employment relationship" (78B-8-204(2)). To obtain the award, the plaintiff must "demonstrate by clear and convincing evidence" that:

  • the employer's, principal's or managing agent's "conduct was willful, malicious, or in reckless disregard to the rights or safety of others";
  • it "authorized, ratified, or approved of the alleged conduct that gave rise to the claim"; or
  • it "was reckless in employing or retaining the employee or agent" (78B-8-204(3)).

These rules apply to any punitive claim, including one arising from impaired driving under 41-6a-502 (78B-8-204(4)). The section is "subject to Section 63G-7-603" and applies "only to a claim arising on or after May 6, 2026" (78B-8-204(5)). Older claims are not governed by it.

Does insurance pay punitive damages in Utah?

Generally no. Section 31A-20-101(1) provides that "no insurer may insure or attempt to insure against" a list of risks that ends with "(d) punitive damages." Since May 6, 2026, subsection (2) also bars an insurer from considering or relying on "the existence, likelihood, possibility, or exposure to punitive damages" in underwriting, rating, risk classification or setting premiums.

The one exception is for captive insurers: "Unless the punitive damages award arises out of a criminal act of an insured, a captive insurance company may provide coverage for punitive damages awarded, including through adjudication or compromise," against its parent or an affiliated company (31A-37-202(6)).

Wrongful death, drugs and other claim types

Wrongful death. Utah's wrongful death statute provides that damages "may be given as under all the circumstances of the case may be just" (78B-3-106(4)). In Behrens v. Raleigh Hills Hospital, Inc., 675 P.2d 1179 (Utah 1983), the Utah Supreme Court held "that the wrongful death statute permits the recovery of punitive damages in appropriate cases." Who brings the claim and the deadlines are on the Utah wrongful death page.

Utah punitive damages laws: damages caps and court filings

Prescription and over-the-counter drugs. Under 78B-8-203(1), punitive damages "may not be awarded if a drug causing the claimant's harm" received FDA premarket approval or licensure, or "is generally recognized as safe and effective under conditions established by the Federal Food and Drug Administration and applicable regulations, including packaging and labeling regulations." The protection does not apply "if it is shown by clear and convincing evidence that the drug manufacturer knowingly withheld or misrepresented information required to be submitted" to the FDA that "was material and relevant to the claimant's harm" (78B-8-203(2)). The section speaks of drugs only.

Illegal controlled substances. The estate of a person whose death was caused in whole or in part by an illegal controlled substance may bring "a civil action for treble damages and punitive damages" against a person described in 78B-3-801(2) (78B-3-801(3)(a)). A person addicted to an illegal controlled substance may bring "a civil action for treble damages, punitive damages, and costs of addiction treatment or rehabilitation" against the same defendants (78B-3-801(3)(b)).

Dram shop claims. A person who provides alcoholic products in violation of the dram shop statute is liable for "any and all injury and damage, except punitive damages," to a third person or the third person's heir (32B-15-201(1)(a)(i)), and a death claim includes "all damages, special and general, resulting from the death, except punitive damages" (32B-15-102(1)).

Self-driving vehicles. "In an action relating to a level four ADS or level five ADS under this chapter, punitive damages may not be awarded" (78B-4-902(3)). The section took effect May 6, 2026.

Nuclear incidents. Under the part of the Judicial Code that coordinates compensation with the federal Price-Anderson Act, "a person may not collect punitive or exemplary damages under this part" (78B-3-603(6)).

Government defendants and officials

Governmental entities. "A judgment may not be rendered against a governmental entity for exemplary or punitive damages" (63G-7-603(1)(a)). But if the entity would have to pay the judgment under 63G-7-902 or 63G-7-903, it "shall pay any judgment or portion of any judgment entered against its employee in the employee's personal capacity even if the judgment is for or includes exemplary or punitive damages" (63G-7-603(1)(b)). Payments to cover punitive damages are treated as "money spent for a public purpose" for a political subdivision's tax levy, even if the levy then exceeds its normal maximum (63G-7-704(2)(a)).

Municipal officials enforcing an invalid ordinance. It is a defense "in any action for punitive damages over the enforcement of an invalid ordinance" if the official "acted in good faith in enforcing an ordinance" or "enforced an ordinance on advice of legal counsel" (10-3-702(2)(b)).

Utah punitive damages at a glance

QuestionUtah ruleSource
Source of the remedyRegulated by statute, "except as otherwise provided by statute"Utah Code 78B-8-201(1)(a)
Conduct standardWillful and malicious or intentionally fraudulent conduct, or knowing and reckless indifference toward and disregard of others' rights (not for impaired-driving or illegal-drug-death claims)78B-8-201(1)(a)-(b)
Burden of proofClear and convincing evidence (not for impaired-driving or illegal-drug-death claims)78B-8-201(1)(a)-(b)
Compensatory award requiredYes, except the shoplifting penalty and the (1)(b) claims78B-8-201(1)(a)-(c)
General capNone; some claim-specific limits78B-8-201 to 204; 13-24-4(2), 70C-7-107(4)(b), 35A-3-603(6), 78B-6-1904, 78B-3-1302(5)
State shareAmounts over $50,000 split equally; State share after May 11, 2025 to the Victim Services Restricted Account78B-8-201(3); 75E-2-305
Wealth evidenceOnly after a finding of liability for punitive damages78B-8-201(2)
Employer liabilityNot based solely on the relationship, for claims arising on or after May 6, 202678B-8-204
DrugsBarred for FDA-approved or generally recognized drugs unless information was knowingly withheld or misrepresented78B-8-203
InsuranceInsurers may not insure punitive damages; captive insurer exception31A-20-101; 31A-37-202(6)
GovernmentNo punitive judgment against a governmental entity63G-7-603
Wrongful deathAvailable in appropriate casesBehrens (Utah 1983)
Dram shopNot recoverable32B-15-201

Recent changes

  • 2025 H.B. 154. Redirected the State's share of punitive awards away from the General Fund for amounts received after May 11, 2025. The current text of 78B-8-201(3)(j) sends those amounts to the Victim Services Restricted Account created in 75E-2-305, a citation updated by a 2026 amendment (Laws 2026, ch. 291) effective July 1, 2026.
  • 2026 S.B. 227 (Laws 2026, ch. 139), effective May 6, 2026. Added the employer and agency rules in 78B-8-204 for claims arising on or after that date, and added the underwriting bar in 31A-20-101(2). The ban on insuring punitive damages in 31A-20-101(1)(d) is older. The enacted bill does not cap punitive damages.
  • Automated driving systems (Laws 2026, ch. 286), effective May 6, 2026. Bars punitive damages in actions relating to level four or level five automated driving systems (78B-4-902(3)).
  • Abusive website-access lawsuits (Laws 2026, ch. 252), effective May 6, 2026. Created the claim in 78B-3-1302, with punitive damages and monetary sanctions limited to three times the attorney fee and cost award (78B-3-1302(5)(b)).
  • Programmable money (2026 S.B. 298, Laws 2026, ch. 235), effective May 5, 2027. Once in effect, 70A-9a-903(3) will provide that punitive damages for violations of 70A-9a-901 or 70A-9a-902 "shall amount to the higher of either three times the actual damages or three times the amount of the awarded attorney fees." It is not in force before May 5, 2027.

This article provides general legal information about Utah punitive damages law as of 2026-10-19. It is not legal advice. For advice about a specific situation, contact a lawyer licensed in Utah.

Last updated: 2026-10-19.

Frequently Asked Questions

Does Utah allow punitive damages?

Yes. Under Utah Code 78B-8-201(1)(a), punitive damages may be awarded only if compensatory or general damages are awarded and clear and convincing evidence shows willful and malicious or intentionally fraudulent conduct, or conduct that manifests a knowing and reckless indifference toward, and a disregard of, the rights of others. Different rules apply to impaired-driving and illegal-drug-death claims.

Is there a cap on punitive damages in Utah?

No general cap. Utah Code 78B-8-201 to 78B-8-204 set no dollar limit or multiplier, but some statutes for particular claims set their own, such as the Uniform Trade Secrets Act (up to twice the 13-24-4(1) award) and the negative credit report notice statute (up to two times actual damages, 70C-7-107(4)(b)).

Does Utah take part of a punitive damages award?

Yes, above $50,000. Under 78B-8-201(3), the first $50,000 goes to the injured party and any amount over $50,000 is divided equally between the State and the injured party, with attorney fees and costs shared in proportion. The State's share received after May 11, 2025 is deposited into the Victim Services Restricted Account (75E-2-305).

Does insurance cover punitive damages in Utah?

Generally no. Utah Code 31A-20-101(1)(d) provides that no insurer may insure or attempt to insure against punitive damages. A captive insurance company may cover punitive damages awarded against its parent or affiliated company unless the award arises out of a criminal act of an insured (31A-37-202(6)).

Are punitive damages available against an employer in Utah?

For claims arising on or after May 6, 2026, not based solely on the employment or agency relationship. Under 78B-8-204, the plaintiff must show by clear and convincing evidence that the employer's own conduct was willful, malicious or in reckless disregard of others' rights or safety, that it authorized, ratified or approved the conduct, or that it was reckless in employing or retaining the employee.

Are punitive damages available in a Utah drunk driving case?

Utah's compensatory-damages precondition, clear and convincing burden and conduct standard in 78B-8-201(1)(a) do not apply to punitive claims arising from operating a motor vehicle or motorboat while voluntarily intoxicated or impaired as prohibited by 41-6a-502. The 2026 employer-liability rules in 78B-8-204 do apply to those claims. A claim for punitive damages may not be made if the injured person elects arbitration of third-party bodily injury claims under 31A-22-321.

Are punitive damages available in a Utah wrongful death case?

Yes, in appropriate cases. The Utah Supreme Court held in Behrens v. Raleigh Hills Hospital (1983) that the wrongful death statute, which allows damages that are just under all the circumstances, permits the recovery of punitive damages in appropriate cases.

Are punitive damages available against a Utah government entity?

No. Utah Code 63G-7-603(1)(a) provides that a judgment may not be rendered against a governmental entity for exemplary or punitive damages, although the entity must pay a judgment against its employee in the employee's personal capacity, even one that includes punitive damages, where 63G-7-902 or 63G-7-903 requires it.

Are punitive damages available against a drug maker in Utah?

Not if the drug received FDA premarket approval or licensure, or is generally recognized as safe and effective under FDA conditions, unless clear and convincing evidence shows the manufacturer knowingly withheld or misrepresented material information it had to submit to the FDA (78B-8-203).

Updates

Independently fact-checked against the cited primary sources

Sources and References

  1. Utah Code 78B-8-201, Basis for punitive damages awards; division of award with state(le.utah.gov).gov
  2. Utah Code 31A-20-101, Underwriting limitations(le.utah.gov).gov
  3. Utah Code 78B-8-204, Punitive damages in an employment or agency relationship(le.utah.gov).gov
  4. Utah Code 78B-3-801, Cause of action for death or addiction caused by illegal controlled substances(le.utah.gov).gov
  5. Utah Code 13-24-4, Uniform Trade Secrets Act: damages(le.utah.gov).gov
  6. Utah Code 70C-7-107, Notice of negative credit report required(le.utah.gov).gov
  7. Utah Code 35A-3-603, Civil liability for overpayment(le.utah.gov).gov
  8. Utah Code 78B-6-1904, Distribution of Bad Faith Patent Infringement Letters Act: remedies and damages(le.utah.gov).gov
  9. Utah Code 78B-3-410, Limitation of noneconomic damages in malpractice actions(le.utah.gov).gov
  10. Utah Code 57-14-501, Limitation of award of noneconomic damages (landowners)(le.utah.gov).gov
  11. Crookston v. Fire Insurance Exchange, 817 P.2d 789 (Utah 1991)(www.courtlistener.com)
  12. Utah Code 78B-8-202, Notice to attorney general and state treasurer of punitive damages awards(le.utah.gov).gov
  13. Utah Code 78B-10a-103, Tort Arbitration: punitive damages(le.utah.gov).gov
  14. Utah Code 78B-11-122, Arbitration remedies(le.utah.gov).gov
  15. 26 U.S.C. 104: Compensation for injuries or sickness(www.govinfo.gov).gov
  16. Utah Code 31A-37-202, Captive insurance: permissive areas of insurance(le.utah.gov).gov
  17. Utah Code 78B-3-106, Death of a person: suit by heir or personal representative(le.utah.gov).gov
  18. Behrens v. Raleigh Hills Hospital, Inc., 675 P.2d 1179 (Utah 1983)(www.courtlistener.com)
  19. Utah Code 78B-8-203, Drug exception(le.utah.gov).gov
  20. Utah Code 32B-15-201, Dram shop liability for injuries and damage(le.utah.gov).gov
  21. Utah Code 78B-4-902, Automated driving system actions: limitation of awards(le.utah.gov).gov
  22. Utah Code 78B-3-603, Nuclear incident liability: limitations on damages(le.utah.gov).gov
  23. Utah Code 63G-7-603, Exemplary or punitive damages prohibited against governmental entities(le.utah.gov).gov
  24. Utah Code 63G-7-704, Tax levy by political subdivisions for payment of claims and judgments(le.utah.gov).gov
  25. Utah Code 10-3-702, Extent of power exercised by ordinance(le.utah.gov).gov
  26. Utah 2025 H.B. 154, Punitive Damages Amendments (enrolled)(le.utah.gov).gov
  27. Utah 2026 S.B. 227, Punitive Damages Amendments (enrolled)(le.utah.gov).gov
  28. Utah Code 78B-3-1302, Abusive website access litigation: action for determination of abuse, damages(le.utah.gov).gov
  29. Utah Code 31A-22-321, Motor vehicle bodily injury claims: arbitration(le.utah.gov).gov
  30. Utah Code 18-1-4, Dog attack bodily injury claims: arbitration(le.utah.gov).gov
  31. Utah Code 70A-9a-903, Programmable money: remedies (effective May 5, 2027)(le.utah.gov).gov
  32. Utah Code 75E-2-305, Victim Services Restricted Account(le.utah.gov).gov
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