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Opening The Door To Punitive Damages

Author:Mr Rodrigo Fernández-Guerra
Profession:DAC Beachcroft

"Punitive damages", a concept imported from the US legal system, can be seen in the Admivac case and Resolution 882/2017 issued by the Supreme Court of Justice. These examples incorporate punitive damages as a concept which is aimed at punishing the wrongdoer, to deter others from engaging in harmful conduct and/or the detriment of third parties. This concept is currently embedded within the concept of moral damages in the Mexican legal system.

A recently issued resolution sentenced an insurance company to pay a victim compensation for punitive damages, exclusive of moral damages. This judgment is interesting for three reasons: (i) this is one of the first instances where there is a direct obligation to pay a sum exclusively for punitive damages; (ii) the Court addresses the subject of the quantification of the judgment, which is controversial in itself, as the admissible and...

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