XXI. Monetary Relief

• Library: Sword and Shield: A Practical Approach to Section 1983 Litigation (ABA) (2015 Ed.)

XXI. MONETARY RELIEF

A. Compensatory Damages

Compensatory damages in § 1983 actions are normally determined according to common-law tort principles. In Memphis Community School District v. Stachura⁴³⁸ and Carey v. Piphus,⁴³⁹ the Supreme Court held that compensatory damages for a constitutional violation under § 1983 must be based upon the actual injuries suffered by the plaintiff. As with common-law tort actions, the defendant's conduct must be a proximate cause of the plaintiff's injuries. The Court in Memphis Community School District and Carey ruled that when a § 1983 plaintiff suffers a violation of constitutional rights, but no actual injuries, he is entitled to an award of only $1 nominal damages.⁴⁴⁰ Like common-law tort plaintiffs, § 1983 plaintiffs are required to take reasonable steps to mitigate their damages.

B. Punitive Damages

In Smith v. Wade,⁴⁴¹ the Supreme Court held that a § 1983 plaintiff may recover punitive damages against an official in her personal capacity if the official acted with a malicious or evil intent or in callous disregard of the plaintiff's federally protected rights.⁴⁴² "Although the specific intent to violate plaintiff's federally protected right will support a punitive damages award, 'reckless indifference' towards a plaintiff's federally protected right also suffices to authorize liability for punitive damages under § 1983."⁴⁴³ The Smith v. Wade standard does not require a showing that the defendant engaged in "egregious" misconduct.⁴⁴⁴ The burden is on the defendant to introduce evidence of his financial circumstances.⁴⁴⁵ These financial circumstances may be relevant to a determination of the amount of punitive damages appropriate to carry out the twin purposes of punitive damages— namely, punishment and deterrence.

In City of Newport v. Fact Concerts,⁴⁴⁶ the Supreme Court held that punitive damages may not be awarded against a municipal entity. The rule that state, state entities, and state officials sued officially are not suable § 1983 "persons," and Eleventh Amendment state sovereign immunity would bar a federal court award of punitive damages payable out of the state treasury.⁴⁴⁷

Supreme Court decisional law holds that punitive damage awards that are "grossly excessive" violate substantive due process.⁴⁴⁸ To determine whether the award is "grossly excessive," consideration must be given to (1) the degree of reprehensibility of the defendant's conduct—the most important factor—(2) the ratio between the harm or potential harm to plaintiff and the punitive damages award, and (3) the disparity between the punitive damages award and civil penalties authorized or...