multiplied damages
Damages awarded based upon a statutory directive. For example, the Clayton
Act (a law that prohibits agreements between companies to fix or control prices
for the purpose of lessening competition) provides for treble damages in the
event of an antitrust violation. Therefore, if a jury awarded $1 million in
compensatory damages for violating the Clayton Act, the multiplied damages would
be an additional $2 million, resulting in a total award of $3 million. Multiplied
damages, although similar in nature and intent to punitive damages, are not
always treated in the same manner when determining coverage within a liability
policy. See also Punitive damages.
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