Cap on Damages

A cap on damages refers to a legal limit on the amount of money a person can receive in a lawsuit for certain types of harm, such as personal injury or malpractice. This means that even if a court finds that a victim deserves more compensation, the law restricts the maximum amount payable. Caps are often established to control insurance costs and prevent excessive payouts, balancing the interests of victims and defendants. They can vary by jurisdiction and the specific circumstances of a case.