Punitive Damages System

Originated from English Common law, the punitive damages system was followed by other countries in which the Anglo-American law was employed. Especially in the United States, this system enjoyed full development and consummation, and consequently, developed as an indispensable part of the American Law. It plays a significant role in punishing malicious wrongdoers, deterring outrageous conducts, protecting underprivileged groups and maintaining social stability. The main functions of punitive damages are punishment, deterrence and law enforcement. In addition, it has a subsidiary function of compensation. All the ancient laws have their own description on punitive damages. However, to speak strictly, they are not what the Punitive Damages we say today. The modern system of punitive damages, came into being in Anglo-American Law countries, has been one of the most controversial legal systems in Anglo-American law. In recent years, Mainland legal system countries, which have also been deeply influenced by this system, have not only launched academic discussion but also introduced the very system into their own legislation gradually. It is easy to see that there are relevant cases taken place in Germany as well as academic researches carried out in Japan. Moreover, the punitive damage system has also been adopted by some special civil laws in Taiwan when local scholars begin to notice the system in recent ten years.Our country introduced punitive damages system in People's Republic of China Consumer Rights Protection Law in 1993. It is specifically prescribed in Contract Law, and in Interpretation of the Supreme People's Court on the Relevant Issues concerning the Application of Law for Trying Cases on Dispute over Contract for the Sale of Commodity Houses. However, the system put forward under the social environment by then has shown its deficiencies and limitations when the situation changes greatly.With an investigation on three cases, the present research has revealed deficiencies and limitations of China's present system of punitive damages in its application, the practiced penalties and in the consumer protection and empowerment. It is discussed, as a core part of this thesis, that it is necessary to promote the development of this system viewing from perspectives of the country, the society, the perpetrator and the victim. By referring to the some previous research achievements, its feasibility in our country is specifically analyzed at the end of this paper.