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Multiplied Damages

Multiplied Damages

Definition

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.

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