Study On Punitive Damage System

The Punitive Damage System is a unique civil relief system in modern Common Law System that has been generally adopted by the Common Law countries. In common law countries, when the doer's deliberate action causes losses to others, the jury or judge would be entitled to exert judicial discretion to apply punitive damages. However, since the origin of the punitive damages system, debates about its inadequacy has never ceased among the academic circles as well as those who practice in this field, with many questioning the rationality of its existence. In China, the Punitive Damage was first introduced in 1993 in the "Consumers Protection Act". Later, in March 3d, 2003, it was stipulated in the "Supreme People's Court Interpretation on Several Issues in the Application of Law Concerning the Trial of Contract Disputes for the Purchases and Sales of Commercial Housing" that there are five conditions in the purchases and sales of commercial housing under which punitive damage is applicable, therefore, broadening the application of punitive damage beyond the "Consumer Protection Act". Recently, scholars responsible for drafting the civil law code further boosted the process by adopting the punitive damage into the civil law code. With the extensive attentions from various groups paid to the punitive damage, it is inevitable that there will be more fierce debates over the punitive damage in China.The core of this paper is to discuss the importance of establishing the Punitive Damage System in China and to come up with measures to improve the system. The paper is composed of four sections.The first section states on the basic theories on the punitive damage system. In this section, the paper gives the definition of punitive damage abstracted from different versions of its definition and summarizes from the test cases and theoretical studies of common law countries the traits of the punitive damage and its coverage.The second section of the paper compares the punitive damage systems in the Civil Law System and the Common Law System. It thoroughly reviews the origin and development of the punitive damage system in the Common Law System, stating on typical test cases and debates over the system by scholars. It is pointed out in this part that though it has not been clearly established in the Civil Law System, there are many studies on the system in civil law countries and it is reflected in the legislation of some countries.In the third section, the paper offers the discussions over the value objectives and social functions of the punitive damage system. From the discussion, the paper reveals that freedom, fairness and social order are the value objectives the punitive damage system tries to pursue. From the analysis of the social function of the punitive damage system, the paper concludes that the system helps punish illegal behaviors, prevent deliberate tortious behaviors and protect the interests of the disadvantaged; consequently, it helps achieve the social fairness and social justice, realizing the harmonized development of the society.The fourth section is the last part of this paper which is aimed at some practical problems in China. First, it stresses the importance of establishing the punitive damage system in China; Second, it states on the current situation of legislation in China, analyzing the contributions as well as limitations of the "Draft of the Code of Civil Law"; Finally, it comes up with measures to improve the punitive damage system in China, including reasonably broadening the coverage of the system; making clear the core conditions for the punitive damage system; deciding the sum for punitive damages, etc. For those purpose, the paper designed the legislation procedures and drafted the related clauses.