Treble damages

Treble damages is a term used in law to indicate that a court may triple the amount of the actual/compensatory damages to be awarded to a prevailing plaintiff. Treble damages are usually awarded in antitrust and patent cases, or when authorized by statute.

Overview

The concept of treble damages can be traced back to English common law, but it is now widely used in many areas of the United States law. The purpose of treble damages is not only to compensate the plaintiff, but also to punish the defendant and deter future violations.

Application

In the United States, treble damages are most commonly awarded in antitrust, patent, and real estate cases. The Sherman Antitrust Act, for example, allows for treble damages in cases of illegal business practices that harm competition. Similarly, the Patent Act provides for treble damages in cases of willful patent infringement.

Calculation

The calculation of treble damages is straightforward: the court first determines the amount of actual damages, then multiplies that amount by three. However, the decision to award treble damages is at the discretion of the court, and is not automatic. The plaintiff must usually show that the defendant's conduct was willful or in bad faith.

Criticism

Critics of treble damages argue that they can result in excessive punishment, particularly in cases where the defendant's conduct was not egregious. They also argue that the threat of treble damages can discourage innovation and competition.

See also

• Punitive damages
• Statutory damages
• Compensatory damages