Caps on damages sometimes work to prevent “windfall” damages that are much more than the victim deserves. Other times, they exist to protect defendants – like the government – from being asked to pay as much as other defendants might.

In Arizona, there are no caps on damages for death or injury claims. This is actually part of the Arizona Constitution, and the government cannot pass laws limiting damages. There are two important exceptions: one dealing with punitive damages and one with liability to felons.

For help with an injury case, call Phoenix Accident and Injury Law Firm’s Arizona personal injury lawyers at (480) 428-0816 today.

What Are the Damages Caps for Injuries in Arizona?

Arizona’s Constitution specifically blocks the government from passing damage caps. This means when you get hurt in an accident, the courts cannot cap the damages that pay you back for your injury.

This also applies to wrongful death cases, so there can be no limit on the damages for a loved one’s death.

Medical Malpractice Caps

Many states pass laws to limit damages in medical malpractice cases. Arizona has no such caps.

Tort Claims Act Damage Limit

The Tort Claims Act is the law that allows lawsuits against the government for injuries. Some states place caps on the damages you can claim against the government, but Arizona cannot because of the constitutional prohibition on damage caps.

Economic Damage Caps

Economic damages are the damages paid for your monetary harms. These pay you back for things like medical expenses, lost wages, vehicle repairs, etc.

These damages are not typically capped in any state, except, perhaps, in medical malpractice claims or claims against the government. The law in Arizona does not cap economic damages.

Non-Economic Damage Caps

Some states cap non-economic damages for things like pain and suffering.

Arizona does not, so you can claim as much as you actually suffered.

Punitive Damage Caps Allowed in Arizona

Although there is no cap on damages for injury or death claims, that only applies to the amounts paid for the injury or death. Punitive damages are extra damages that a court issues to punish the victim for what they did, not to reimburse you for the injury or death. This means these damages can be capped.

Courts in Arizona have typically allowed punitive damages in a 1:1 ratio with the other “compensatory” damages in the case. Federal courts do not typically restrict damages until they reach a level of 4:1 or 10:1, but Arizona law restricts punitive damages at a much lower threshold.

Exception: Lawsuits By Felons Against Their Victims

The section of the Arizona Constitution that prevents damage caps has one very specific carve-out: felons cannot sue for damages against the victim of their crimes.

This could potentially come up in cases where a burglar injures themselves on your property or something to that effect. Instead, the Constitution clearly blocks them from suing their victim.

This is the only limit on damages under Arizona law, and most people would probably agree that this is a fair limitation on damages.

How Do Policy Limits Work with Damage Caps in Arizona?

Arizona makes it illegal for the courts or the government to cap damages in an injury case, but this says nothing of the insurance company’s ability to set policy limits.

Contracts

When you get hurt, you file a claim against the defendant’s insurance policy. That policy is a contract between the insurance customer (insured) and the insurance company. If the company wants to limit how much it agrees to pay, it is free to do this.

Effect of Policy Limits

In reality, this often means you cannot sue for more than the insurance policy, because that is all the defendant and their insurance can afford to cover. However, this is not a “cap on damages” in the same way that it would be if the government set this limit.

You can still get additional compensation from your own insurance in some cases (e.g., if you have underinsured motorist coverage on your car insurance) or by suing the defendant directly.

FAQs on Damage Caps in Arizona

Do Other Types of Cases Have Damage Caps?

Damage caps are allowed under the Constitution, just not for injury or death cases. However, there haven’t really been laws passed capping damages in other areas of the law, either.

Are There Limits on Damages from Insurance?

Keep in mind that legal limits on damages and policy limits under insurance policies are completely different. While the government cannot cap your damages, an insurance policy can.

This means that it is legal for an insurance company to say that their policy only covers X damages or Y situations, and to refuse to pay anything beyond that limit. Instead, you would have to file a claim directly against the defendant for damages beyond their policy limit.

What Are Compensatory vs. Punitive Damages?

“Compensatory” damages are the damages that pay you back for harms you suffered. This compensation cannot be capped under Arizona law when it comes to injury and death cases.

Punitive damages are there to punish a wrongdoer. Because they are not compensating an injury or death, they can be capped. Arizona courts tend to block punitive damages as excessive if they are higher than the compensatory damages.

How Much Am I Allowed to Claim for Injury?

Without damage caps, you are allowed to claim the full value of your damages, as high as that might go. However, you need proof of all of the amounts you are claiming.

You cannot claim damages beyond what you actually have proof of.

Is Arizona a “No Pay No Play” State?

Some states block your ability to receive compensation for a car accident claim if you do not carry car insurance. Different states vary in whether they limit economic or non-economic damages (or both) if you do not pay for car insurance.

Arizona does not have these laws, as this would be an unconstitutional limit on damages.

Call Our Personal Injury Lawyers in Arizona Today

Call (480) 428-0816 for a free case evaluation with the Tempe, AZ personal injury lawyers Phoenix Accident and Injury Law Firm.