Punitive damages, american model, european model, Gérard Cornu, european courts, civil liability, European law, public policy, foreign court judgment, arbitral award of punitive damages, French law of extra-contractual liability, tort law, Private Antitrust Litigation, Common Law, article 1231-3 of the Civil Code, LVMH Louis Vuitton Moët Hennessy, Extra Contractual Obligations
In terms of civil liability in Continental Europe, the principle is to compensate only for the damage. Civil liability is not punitive. The purpose is only to put the victim back in the situation she knew before the operative event. If the behavior deserves a sanction, it is a matter of criminal law. It should be noted, however, that punitive damages are also available in Common Law countries in Europe, such as England, Wales, Ireland, and Northern Ireland, and the hybrid system of Cyprus. Moreover, their legal culture does not encourage awarding such damages as in the United States. Therefore, these countries allow punitive damages to a limited extent. Some civil law countries may consider the prohibition on an award of punitive damages in civil actions to be a matter of fundamental public policy.
[...] Why do European courts refuse to enforce U.S. punitive damages? When we seek to stigmatize the weaknesses of American Law, the most frequently used example is the astronomical and imprecise amounts of punitive damages awarded by judges and juries to a plaintiff. Besides, we have all heard about the hot coffee lawsuit, in which an older woman was awarded 3 million dollars after she sued McDonald's, claiming their coffee was too hot. Even if the case is much more complex, the punitive damages awarded are still excessive. [...]
[...] Moreover, any wilful wrongdoer may be liable for punitive damages. In England, it was decided that such damages could not be assessed against a contract-breaker, however inexcusably he behaved. That is why it has since been held that the categories of tortfeasor against whom such damages may be assessed are very restricted. Thus in Australia, only wilful tortfeasors, and in England, only some wilful tortfeasors. Nevertheless, in terms of civil liability in Continental Europe, the principle is to compensate only for the damage. [...]
[...] institutions and only refers to compensation for damages caused. Punitive damages are not mentioned. This shows a pure compensation regime. Nevertheless, it is still being determined whether art has any implication for private law. The Rome II Regulation, which addresses non-contractual responsibilities and is the official name for tort law, is pertinent to this topic. In the initial draft regulation pertaining to the Public Policy Clause, the Commission had intended to add a separate provision for "non-compensatory damages" (i.e., punitive damages), but it would have been obligatory on domestic courts. [...]
[...] However, according to the American understanding of the term, legislators and judges are not considered punitive damages. This observation is illustrated in particular by the fact that foreign judgments with elements of punitive damages are neither recognized nor enforced because of a conflict with fundamental public policy. Also, some high courts, such as the Supreme Court of Germany, clearly state that their approximation of punitive damages should not be compared to the generic American term. The question then arises, why are European courts refusing to enforce U.S. [...]
[...] Indeed, a certain number of mechanisms in Europe are similar to punitive damages by their respective sanction mode. There are several legal devices that similarities to punitive damages could relate. In Germany, for example, in several areas of the law, such as Tort Law and Personal Rights Law, awards of damages above the actual injury incurred are typical. However, even if these losses include a punishing element in the defendant's eyes, they are not regarded as punitive damages according to the American understanding of the term. [...]
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