Research On Punitive Damages

Punitive compensation system is an important civil legal system in countries applying Anglo American legal system. Which means that other than compensatory damages, in order to punish perpetrators of the wrongful act and to deter and curb the occurrence of similar acts, perpetrators should make payment by law to victims, which is more than the actual loss of compensation.With the continuing integration of continental legal system and Anglo American legal system, punitive compensation system has also gained national attention of scholars. China enacted "Consumer Protection Act" in 1993, which officially provides definition of the punitive compensation system, then, the "Contract Law" and other legal provisions have introduced punitive compensation system one after another. In "Tort Liability Act" Issued in December 2009, our country has applied it for the first time in the field of product infringement. This shows that China is more and more widely to accept punitive compensation system in contract, tort and other areas. To adopt punitive compensation system is very helpful for our Chinese stop malicious violation, relieve victims so as that our country can integrate into the world economic and legal system as soon as possible.This paper is divided into four parts. Part I: an overview of punitive compensation system. That is the definition, historical origins and the general description of the current status of punitive compensation system which are applied in continental legal system and Anglo American legal system respectively. The second part discusses the function and value of punitive compensation system. Discussions center on the four functions such as its punitive function, deterrence function, compensation and incentive features. It has analyzed the value of punitive compensation system. The third part has analyzed the legitimacy of punitive compensation system, in this section, it first has expounded China's plight to enforce the current system of tort relief, and then further explored the reasonableness and non-substitutability to adopt punitive compensation system. The fourth part has expounded the specific application of punitive compensation system in our tort law. Through the introduction of the "Tort Liability Act,"applicable conditions, scope and specific methods to determine the amount of compensation are made clear within the scope of infringement.Through analysis, even though punitive compensation system has some flaws and is not applicable to the actual conditions, it is undeniable that it has played an active role to the society. Now China is suitable to apply the system. However, the required conditions in the application and amount to determine need further regulation.