In Texas you can sue for treble damages Fin
Post# of 22465
(Total Views: 417)
Posted On: 11/25/2020 9:50:17 AM
In Texas you can sue for treble damages
Finance »Money Managing »Personal Money Management »
When Are Treble Damages Awarded?
By: Beverly Bird
Occasionally, someone does something so egregious that simply repaying the victim for his damages isn't sufficient. The American justice system recognizes this. Treble damages are a concept provided for by law in certain types of lawsuits. If you're the plaintiff and the court rules in your favor, it can go one step further and award you three times the amount of certain damages. Treble damages only apply in certain situations, however, and they might not be the windfall you imagine.
Grounds
Treble damages are awarded at the discretion of the court, but the court needs grounds – a legally acceptable reason. The individual you've sued must not only be guilty of some wrongdoing, but he must have committed the act deliberately, knowing it was wrong. This is in contrast to negligence, which can occur out of ignorance or oversight. An order of treble damages is meant as punishment, not just to compensate you for money you lost because of the defendant's actions. Courts generally award treble damages in corporate lawsuits, such as antitrust matters or patent violations, but they can extend to personal injury lawsuits as well.
Purpose
Courts generally award treble damages as a deterrent. The intention is to convince the defendant – or anyone else considering the same crime, for that matter – that he really doesn't want to commit the illegal act again because the repercussions might be far greater than he ever anticipated. Treble damages are typically awarded in situations where the defendant violated the public good, such as excessive or repeated drunk driving charges that finally result in a fatality.
Burden of Proof
Judges and juries don't award treble damages lightly. If you or your attorney believe that the defendant in your case acted with intentional malice, you must prove to the court that this is so, that a law exists that should have prohibited him from taking the action, and that he willfully disregarded the law. You have the burden of proof to establish these things, and you must usually establish the request when you begin your case, requesting such an award in your initial lawsuit.
Calculations
Lawsuit damages typically fall into two categories: compensatory and punitive. Compensatory damages compensate you for some harm or damage, such as physical injury, lost wages, lost income, or interference with your business. They're also sometimes referred to as actual damages. Punitive damages act as punishment and are typically awarded in addition to compensatory damages. Because treble damages are also punitive in nature, you may not be able to request both these and punitive damages in your lawsuit – it's double-dipping in eyes of some courts. This can vary by state, however. When calculating treble damages, the court triples your compensatory award, not the punitive damages. You don’t get the original compensatory damages in addition to three times the amount – you receive three times the amount in lieu of the original compensatory award.
Disadvantages
Although recoveries under tort lawsuits are not generally subject to federal income tax, the Internal Revenue Service taxes you on at least a portion of treble damages. Only the amount of your original award is exempt from taxation. You must claim the other two-thirds as income. For example, if you receive treble damages on a $500,000 compensatory award, the first $500,000 is tax-free, provided it meets IRS rules for tort lawsuits. Tort suits stem from a violation of law that causes harm to another. You'll have to pay taxes on the additional $1 million representative of your treble damages.
References
About the Author
Photo Credits
Read More:
Are Negligence Settlements Taxable?Are Negligence Settlements Taxable?
Do Insurance Settlement Payouts Due to Injuries Get Taxed by the Federal Government as Income?Do Insurance Settlement Payouts Due to Injuries Get Taxed by the Federal Government as Income?
How to Report Insurance Settlement Proceeds on IRS Form 1040How to Report Insurance Settlement Proceeds on IRS Form 1040
Recommended Articles
Are Monetary Settlements From Accidents Taxable?Are Monetary Settlements From Accidents Taxable?
Can You Sue Your Homeowners Insurance Company if It Doesn't Repair Your Home Properly?Can You Sue Your Homeowners Insurance Company if It Doesn't Repair Your Home Properly?
Do You Need to Claim an Insurance Lawsuit Award on Your Income Taxes?Do You Need to Claim an Insurance Lawsuit Award on Your Income Taxes?
Related Articles
When Does Homeowners Insurance Pay for Legal Fees?When Does Homeowners Insurance Pay for Legal Fees?
Is Injury Settlement Income Taxable?Is Injury Settlement Income Taxable?
What Happens if I Ignore an Insurance Subrogation Letter for Homeowner Property Damage?What Happens if I Ignore an Insurance Subrogation Letter for Homeowner Property Damage?
Editor's Picks
Do You Have to Pay State & Federal Taxes on a Civil Lawsuit Settlement?Do You Have to Pay State & Federal Taxes on a Civil Lawsuit Settlement?
Will My Insurance Pay an At-Fault Injury Involving Alcohol?Will My Insurance Pay an At-Fault Injury Involving Alcohol?
Define Homeowners Insurance Broad-Form PolicyDefine Homeowners Insurance Broad-Form Policy
Free: Money Sense E-newsletter
Each week, Zack's e-newsletter will address topics such as retirement, savings, loans, mortgages, tax and investment strategies, and more.
Enter your email address
Trending Topics
Latest Most Popular
Top Ranked Growth Stocks to Buy for November 25th
3 Refining & Marketing Stocks Resilient to Industry Challenges
Find Cheap Stocks Under $10 to Buy with this Screener
Top Analyst Reports for PayPal, BHP & American Tower
Alibaba (BABA) Reversal Means Big Money For Savvy Investors
More Commentary
Quick Links
Services
Account Types
Premium Services
Zacks Rank
Research
Personal Finance
Commentary
Education
My Account
Manage Account
Update Profile
Subscriptions
Preferences
Login/Password Help
Upgrade to Premium
Resources
Help
About Zacks
Disclosure
Privacy Policy
Performance
Site Map
Client Support
Contact Us
Share Feedback
Media
Careers
Affiliate
Advertise
Copyright © Zacks Investment Research
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1986 it has nearly tripled the S&P 500 with an average gain of +26% per year. These returns cover a period from 1986-2011 and were examined and attested by Baker Tilly, an independent accounting firm.
Visit performance for information about the performance numbers displayed above.
NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.
Finance »Money Managing »Personal Money Management »
When Are Treble Damages Awarded?
By: Beverly Bird
Occasionally, someone does something so egregious that simply repaying the victim for his damages isn't sufficient. The American justice system recognizes this. Treble damages are a concept provided for by law in certain types of lawsuits. If you're the plaintiff and the court rules in your favor, it can go one step further and award you three times the amount of certain damages. Treble damages only apply in certain situations, however, and they might not be the windfall you imagine.
Grounds
Treble damages are awarded at the discretion of the court, but the court needs grounds – a legally acceptable reason. The individual you've sued must not only be guilty of some wrongdoing, but he must have committed the act deliberately, knowing it was wrong. This is in contrast to negligence, which can occur out of ignorance or oversight. An order of treble damages is meant as punishment, not just to compensate you for money you lost because of the defendant's actions. Courts generally award treble damages in corporate lawsuits, such as antitrust matters or patent violations, but they can extend to personal injury lawsuits as well.
Purpose
Courts generally award treble damages as a deterrent. The intention is to convince the defendant – or anyone else considering the same crime, for that matter – that he really doesn't want to commit the illegal act again because the repercussions might be far greater than he ever anticipated. Treble damages are typically awarded in situations where the defendant violated the public good, such as excessive or repeated drunk driving charges that finally result in a fatality.
Burden of Proof
Judges and juries don't award treble damages lightly. If you or your attorney believe that the defendant in your case acted with intentional malice, you must prove to the court that this is so, that a law exists that should have prohibited him from taking the action, and that he willfully disregarded the law. You have the burden of proof to establish these things, and you must usually establish the request when you begin your case, requesting such an award in your initial lawsuit.
Calculations
Lawsuit damages typically fall into two categories: compensatory and punitive. Compensatory damages compensate you for some harm or damage, such as physical injury, lost wages, lost income, or interference with your business. They're also sometimes referred to as actual damages. Punitive damages act as punishment and are typically awarded in addition to compensatory damages. Because treble damages are also punitive in nature, you may not be able to request both these and punitive damages in your lawsuit – it's double-dipping in eyes of some courts. This can vary by state, however. When calculating treble damages, the court triples your compensatory award, not the punitive damages. You don’t get the original compensatory damages in addition to three times the amount – you receive three times the amount in lieu of the original compensatory award.
Disadvantages
Although recoveries under tort lawsuits are not generally subject to federal income tax, the Internal Revenue Service taxes you on at least a portion of treble damages. Only the amount of your original award is exempt from taxation. You must claim the other two-thirds as income. For example, if you receive treble damages on a $500,000 compensatory award, the first $500,000 is tax-free, provided it meets IRS rules for tort lawsuits. Tort suits stem from a violation of law that causes harm to another. You'll have to pay taxes on the additional $1 million representative of your treble damages.
References
About the Author
Photo Credits
Read More:
Are Negligence Settlements Taxable?Are Negligence Settlements Taxable?
Do Insurance Settlement Payouts Due to Injuries Get Taxed by the Federal Government as Income?Do Insurance Settlement Payouts Due to Injuries Get Taxed by the Federal Government as Income?
How to Report Insurance Settlement Proceeds on IRS Form 1040How to Report Insurance Settlement Proceeds on IRS Form 1040
Recommended Articles
Are Monetary Settlements From Accidents Taxable?Are Monetary Settlements From Accidents Taxable?
Can You Sue Your Homeowners Insurance Company if It Doesn't Repair Your Home Properly?Can You Sue Your Homeowners Insurance Company if It Doesn't Repair Your Home Properly?
Do You Need to Claim an Insurance Lawsuit Award on Your Income Taxes?Do You Need to Claim an Insurance Lawsuit Award on Your Income Taxes?
Related Articles
When Does Homeowners Insurance Pay for Legal Fees?When Does Homeowners Insurance Pay for Legal Fees?
Is Injury Settlement Income Taxable?Is Injury Settlement Income Taxable?
What Happens if I Ignore an Insurance Subrogation Letter for Homeowner Property Damage?What Happens if I Ignore an Insurance Subrogation Letter for Homeowner Property Damage?
Editor's Picks
Do You Have to Pay State & Federal Taxes on a Civil Lawsuit Settlement?Do You Have to Pay State & Federal Taxes on a Civil Lawsuit Settlement?
Will My Insurance Pay an At-Fault Injury Involving Alcohol?Will My Insurance Pay an At-Fault Injury Involving Alcohol?
Define Homeowners Insurance Broad-Form PolicyDefine Homeowners Insurance Broad-Form Policy
Free: Money Sense E-newsletter
Each week, Zack's e-newsletter will address topics such as retirement, savings, loans, mortgages, tax and investment strategies, and more.
Enter your email address
Trending Topics
Latest Most Popular
Top Ranked Growth Stocks to Buy for November 25th
3 Refining & Marketing Stocks Resilient to Industry Challenges
Find Cheap Stocks Under $10 to Buy with this Screener
Top Analyst Reports for PayPal, BHP & American Tower
Alibaba (BABA) Reversal Means Big Money For Savvy Investors
More Commentary
Quick Links
Services
Account Types
Premium Services
Zacks Rank
Research
Personal Finance
Commentary
Education
My Account
Manage Account
Update Profile
Subscriptions
Preferences
Login/Password Help
Upgrade to Premium
Resources
Help
About Zacks
Disclosure
Privacy Policy
Performance
Site Map
Client Support
Contact Us
Share Feedback
Media
Careers
Affiliate
Advertise
Copyright © Zacks Investment Research
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1986 it has nearly tripled the S&P 500 with an average gain of +26% per year. These returns cover a period from 1986-2011 and were examined and attested by Baker Tilly, an independent accounting firm.
Visit performance for information about the performance numbers displayed above.
NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.
(0)
(0)