Legal Study On The System Of Punitive Damages

Based on the research of punitive damages system’s history and current situationin China and other countries, here we discuss whether should we establish acomprehensive punitive damages system in China. Punitive damages, sentenced bythe court or an arbitration institution, are damages paid from infringer to infringeewhich exceed the amount of the actual loss. The punitive damages in common-lawsystem is more mature than its in civil-law system which is only in the initial stage.Many problems need to research seriously when we introduce this system into ourcountry. For example: How to coordinate punitive damages system with traditionalcivil-law system in China? How to formulate the punitive terms so that they can bemore suitable for the judicial practice? How to improve the existing legal provisions?This paper studies punitive damages system by using historical analysis method, caseanalysis method and comparative analysis method. The innovation of this paper is:From the angle of the combination of economics and law analysis why thecompensatory principle is not reasonable。 Thus proposed the rationality ofestablishing punitive damages system in China。At the same time，from the angle ofthe combination of economics, law, China conditions, The author puts forward Chinashould adopt the point of view:"Double limit in the cognizance of the punitivecompensation amount, exception breakthrough". Finally, the author of this system inour legislation and put forward a series of innovative views. And it includes5parts.The first part is the introduction of punitive damages system in theory. Theauthor expounds the definition, characteristics and functions of the system of punitivedamages. About the feature of punitive damages system, the paper lists and analyzes various viewpoints in academic field, and forwards the view that the nature ofpunitive damages is civil liability. By summarizing the main function of the system,the paper also forwards the view that punitive damages system can make up theshortage of compensatory principle.The second part is introduction to the generation and development of punitivedamages in common-law system and civil-law system. History shows that thecommon use of punitive damages in America and Britain is not going smoothly. Thesehistorical debates are the threshold which we have to cross if we want to establishpunitive damages system in China.The third part is comparison of current situation of punitive damages betweencommon-law system and civil-law system. With the method of comparative analysis,the paper concludes the similarity and the difference of using punitive damages incommon-law system and the process from complete rejection of the system to partialacceptance of the system in civil-law system.The fourth part discusses necessity and feasibility of punitive damages system inChina. In the aspect of social development, peoples’ demand and limit ofcompensatory principle, the author analyzes the necessity of establishing the systemin China. Based on Chinese History and actual law, the paper proves that it is possibleto execute the system in China. Then, the author comments and rebuts the mainopposition to punitive damages from the academic circles, which are not thereasonable grounds against punitive damages system.The fifth part analyzes the legislative defects of punitive damages system inChina, and gives some proposals. The author emphatically puts forward the defects inChinese existing legislation. For example: limited scope of application, incompleteconstitutive elements, unreasonable amount of compensation, and so on. In order tosolve these defects, the more perfect legislation is needed. The proposals in this paperinclude: extend scope of application in aspect of civil law, criminal law andadministrative law; improve constitutive elements in aspect of illegality, objectiveconditions and subjective conditions; adjust standard of damages calculation, such as:set the limit of compensation, clarify the factors of damages, etc. It will be helpful toestablishing a comprehensive punitive damages system in China.