Punitive damages sometimes benefit "uncompensated tort victims"

The original version of Thursday's News Tribune story on the final attorneys' fees and costs in the Pat Kerr case against the state reported that some punitive damages award money goes to the state's Crime Victims Compensation Fund.

That was wrong.

Instead, the money goes to the separate Tort Victims' Compensation Fund established by a state law.

When punitive damages are assessed in a court-tried or jury-tried case, that fund collects half of the award that's left "after deducting attorney's fees and expenses."

The fund then is used to help an uncompensated tort victim, defined in the law as, "a person who is a party in a personal injury or wrongful death lawsuit; or is a tort victim whose claim against the tort-feasor has been settled for the policy limits of insurance and such policy limits are inadequate in light of the nature and extent of damages due to the personal injury or wrongful death."

That uncompensated person is eligible for the fund's assistance if he or she "has obtained a final monetary judgment in that lawsuit has exercised due diligence in enforcing the judgment and has not collected the full amount of the judgment."

Corporations, companies and other commercial entities don't qualify - and the law lists some other restrictions.

Cases resolved by arbitration, mediation or compromise settlement prior to a punitive damage final judgment are exempt from paying into the fund.

Upcoming Events