Damage Caps

A damage cap is a legal ceiling on how much money a court can award for a certain category of harm. Caps usually target noneconomic damages, such as pain and suffering, emotional distress, and loss of enjoyment of life, and punitive damages, which punish especially bad conduct. Economic damages like medical bills and lost wages are usually not capped.

Caps are most common in medical malpractice cases. California's is a well-known example. Under California Civil Code section 3333.2, as amended effective January 1, 2023, noneconomic damages in medical negligence cases are capped at $350,000 for injury cases and $500,000 for wrongful death cases, rising each January 1 by $40,000 and $50,000 respectively for 10 years, up to $750,000 and $1,000,000. Before that change, California's cap had been $250,000 since 1975.

Caps matter because they shape what a case is worth and whether attorneys can take it. If most of a person's harm is pain and suffering rather than lost income, as is often true for children, retirees, and stay-at-home parents, a cap can limit recovery sharply. Some state courts have struck down caps under their state constitutions, so the rules depend on where the case is filed.

Caps rarely affect consumer class actions, which usually seek refunds or statutory damages, but they can matter a great deal in injury cases. See our guides on class action vs. individual lawsuits, how settlement money is divided, and how to sue a company.