statutory damages cap

A statutory damages cap is a legal limit set on the amount of damages a court can award under certain laws, regardless of the actual harm or loss caused. It ensures that damages awarded do not exceed a specific maximum amount. This cap helps provide predictability for parties involved and prevents excessive payouts, while still allowing courts to penalize wrongful conduct and uphold the law. Essentially, it balances fair compensation with limits to prevent disproportionately large awards.