Research On Punitive Damages

Punitive Damages are damages, other than compensatory damages, awarded against a defendant in to punish him for his outrageous conduct and to deter the defendant and other latent wrongdoers from the same or similar conduct in the future. Unlike normal civil or tort law compensatory or actual damages awarded to a person as compensation, indemnity or restitution for harm sustained, punitive damages are aimed at different purpose of deterrence and retribution, which will set an example for similar wrongdoers by punishing the defendant over and above compensatory damages.In most countries of Continental-European legal system, the system of punitive damages is not be admitted, The courts of both Japan and Germany hold that punitive damages award is incompatible with the public order and good moral and deny the recognition and enforcement thereof. However, the academic sides of Japan and Germany have different thoughts concerning the system merits continuous observation.Consumer problem has become an issue that concerns modern legal systems due to the rapid development of scientific research and economic prosperity, P. R. China has adopted the system of punitive damages in our consumer protection legislation with a view to carrying out the protection of consumers' rights, which is special in civil law legislation among states adopting Continental-European legal system. However, the many problems were resulted from the application of the punitive damages system under the consumer protection act of the P. R. China, which are attributable to the legal effect to be achieved under the developing legislative background. The system has derived a number of controversial issues such as the so-called "Wang Hai Phenomenon" and "Commercial Housing Sales Contracts:, in which disputes over unjustifiable, disproportionate, excessive punitive damages have been raised and not yet settled,The civil code of the P. R. China is under draft at this moment, it is worth noting that comments by scholars and many others have recommended to incorporate the system of punitive damages into the civil code, this paper has some discussion on such issue as well. Now that the economic development of our country has made a progress, the legal system has been made complete gradually, the legal effect of the provision of punitive damages should be restored to what it would have intended to be aimed at the purposes of punishment and deterrence.The author has endeavored to propose her thoughts in this paper with view to providing concrete suggestions for the consummate legislation of the system of punitive damages.