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A traffic accident in the United States

In September 2021, the U.S. state of South Carolina hosted a road accident site. A 43-year-old motorcyclist collided with a van belonging to the company Amazon. The accident was caused by a traffic error by the driver of the van. The motorcyclist suffered very serious injuries as a result of the accident. personal injury on due to traumatic brain injuries and severe orthopedic injuries.

Jury verdict on personal injury award

The case went to trial in which the jury delivered its verdict on December 7, 2023. Amazon was ordered to pay material and non-material damages of $14.41 million. Almost $10 million for costs of medical care, over $1.3 million for loss of work capacity and a damages of $3.3 million. Such a size of compensation fits with a social system lacking in the United States where medical care must often be self-funded by victims, nor do they typically receive income-replacement benefits for illness and disability.

Punitive damages

But with this it was not finished. The jury also ordered Amazon.com to pay punitive damages of $30 million to the victim. With an order to pay punitive damages a financial penalty is imposed on the liable party, in addition to the obligation to pay damages. As a result, Amazon's judgment totaled $44.41 million. In addition, the director himself also had to pay $175,000 as punitive damages pay. Punitive damages can - unlike in the Netherlands - be imposed in the United States on a party who acts recklessly, intentionally or wantonly and causes damage as a result. The amount of compensation is not related to the amount of damage caused, but to the severity of culpability. In the American system, it is intended to serve as a deterrent to those who fail to exercise social due diligence.

Background of conviction

What was the reason the South Carolina jury came to award punitive damages? Investigation had revealed that there had been distracted driving by the driver of the van. That term means that he was engaged in something other than attentive driving at the time of the accident behind the wheel. Forensic examination of the driver's phone had revealed high data usage that day. As a witness, the driver had acknowledged viewing pornography and other videos while doing his delivery route. The jury concluded that Amazon could have influenced his behavior. Undoubtedly a factor was that in the United States it is estimated that more than 3,000 people lose their lives each year in accidents caused by distracted driving is caused.

How would it have fared in the Netherlands?

The victim would be compensated according to Dutch civil law standards. Depending on police and judicial initiatives, possibly criminal prosecution take place. Such a prosecution would probably be directed exclusively against the driver and not against the company that is practically best placed to influence the behavior of drivers of its vans. What options other than a hefty financial penalty would exist to activate a company to take necessary action here?

I believe punitive damages serve a social purpose in that they aim to correct objectionable behavior. They need not be as high as they are in the United States, and as far as I am concerned they should not have to benefit exclusively the victim whose damages have already been fully compensated.

If you have questions about this blog, please contact the author, John Beer.