Ark. Code Ann. § 16-55-206 (2026)
Standards for award of punitive damages
In order to recover punitive damages from a defendant, a plaintiff has the burden of proving that the defendant is liable for compensatory damages and that either or both of the following aggravating factors were present and related to the injury for which compensatory damages were awarded:
- The defendant knew or ought to have known, in light of the surrounding circumstances, that his or her conduct would naturally and probably result in injury or damage and that he or she continued the conduct with malice or in reckless disregard of the consequences, from which malice may be inferred; or
- The defendant intentionally pursued a course of conduct for the purpose of causing injury or damage.
History. Acts 2003, No. 649, § 9.
Research References
ALR.
Exemplary or punitive damages for pharmacist's wrongful conduct in preparing or dispensing medical prescription — Cases not under Consumer Product Safety Act (15 U.S.C.A. § 2072). 109 A.L.R.5th 397.
Allowance of Punitive Damages in Motor Vehicles Products Liability Cases, 17 A.L.R.7th Art. 4 (2018).
Case Notes
Conduct Not Warranting Punitive Damages.
Where plaintiff retailer sued defendant supplier on claims of fraud and deceptive trade practices in connection with the supplier's refusal to honor its rebate program for the retailer's customers, and the claims requiring any knowing or intentional wrongful act failed, and no reasonable jury could find that the supplier acted with malice or an intent to harm the retailer, the retailer was not entitled to pursue punitive damages under this section, especially since the standard under this section had to be met by clear and convincing evidence as required by § 16-55-207. Curtis Lumber Co. v. La. Pac. Corp., 618 F.3d 762 (8th Cir. 2010).
In this action for negligent hiring, training, supervision or monitoring, and retention, defendants were granted summary judgment on plaintiffs' claims for punitive damages because plaintiffs had not provided evidence that would allow a reasonable jury to find that defendants knew or ought to have known that their conduct would naturally and probably result in injury or damage to the victim. Perry v. Stevens Transp., Inc., No. 3:11CV00048 JLH, 2012 U.S. Dist. LEXIS 94942 (E.D. Ark. July 9, 2012).
Alleged violations of the Federal Motor Carrier Safety Regulations did not support a punitive-damages award, because there was no evidence that the driver had been drinking alcohol or using controlled substances prior to the accident or that he was or appeared to be under the influence of alcohol or any controlled substances at the time of the accident. Brumley v. Keech, 2012 Ark. 263 (2012).
In an action regarding equipment supplied by defendant to plaintiff to heat-treat pipe, because plaintiff asserted punitive damages only on its gross negligence claim, and could not show gross negligence because defendant sincerely and consistently attempted to fix the defective equipment, the punitive damages claim was dismissed under this section. IPSCO Tubulars, Inc. v. Ajax TOCCO Magnathermic Corp., 779 F.3d 744 (8th Cir. 2015).
Relevant Evidence.
In a negligence case, a trial court erred by granting a motion in limine and excluding evidence of prior driving while intoxicated offenses because they were relevant under Ark. R. Evid. 401 to the determination of whether punitive damages under this section were warranted. Yeakley v. Doss, 370 Ark. 122, 257 S.W.3d 895 (2007).
Defendants were not entitled to summary judgment on punitive damages because a reasonable juror could find that defendant property owner, acting on behalf of defendant entities, knew or had reason to know that proceeding with excavation of the hillside without a recommended retaining wall in place would inflict injury to plaintiff's property, but he proceeded with excavation with conscious indifference to the consequences, from which malice may be inferred. Rivercliff Co. v. Residences at Riverdale GP, LLC, No. 4:10CV00330 SWW, 2011 U.S. Dist. LEXIS 139158 (E.D. Ark. Dec. 2, 2011).