N.C. Gen. Stat. » Chapter 1D
NC General Statutes

N.C. Gen. Stat. § 1D-15 (2026)

Standards for recovery of punitive damages

✓ current as of July 2026
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(a) Punitive damages may be awarded only if the claimant proves that the defendant is liable for compensatory damages and that one of the following aggravating factors was present and was related to the injury for which compensatory damages were awarded:

(1) Fraud.

(2) Malice.

(3) Willful or wanton conduct.

(b) The claimant must prove the existence of an aggravating factor by clear and convincing evidence.

(c) Punitive damages shall not be awarded against a person solely on the basis of vicarious liability for the acts or omissions of another.  Punitive damages may be awarded against a person only if that person participated in the conduct constituting the aggravating factor giving rise to the punitive damages, or if, in the case of a corporation, the officers, directors, or managers of the corporation participated in or condoned the conduct constituting the aggravating factor giving rise to punitive damages.

(d) Punitive damages shall not be awarded against a person solely for breach of contract. (1995, c. 514, s. 1.)

 

Notes of Decisions
Cited in 179 cases (56 in the last 5 years), 1996–2026 · leading case: Scarborough v. Dillard's, Inc., 693 S.E.2d 640 (N.C. 2009).
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Scarborough v. Dillard's, Inc., 693 S.E.2d 640 (N.C. 2009). · cites it 49× “N.C.G.S. § 1D-15 Subsections 1D-15(a) and (b) state that: (a) Punitive damages may be awarded only if the claimant proves that the defendant is liable for compensatory damages and that one of the following aggravating factors was present and was related to the injury for which…”
Scarborough v. Dillard's Inc., 655 S.E.2d 875 (N.C. Ct. App. 2008). · cites it 46× “N.C. Gen.Stat. § 1D-15. A party need only show one of the aggravating factors to recover punitive damages.”
Miller v. B.H.B. Enter., Inc., 568 S.E.2d 219 (N.C. Ct. App. 2002). · cites it 35× “N.C. Gen.Stat. § 1D-15 (2002). Defendant argues that plaintiff's position that its employees acted willfully and wantonly by failing to intercede must fail because there is no evidence that defendant's employees could have prevented plaintiff's injuries.”
Joyce McKiver v. Murphy-Brown, LLC, 980 F.3d 937 (4th Cir. 2020). · cites it 4× “N.C. Gen. Stat. Ann. § 1D-15(a). A plaintiff bears the burden of proving the existence of one of the aggravating factors by clear and convincing evidence.”
Harrell v. Bowen, 655 S.E.2d 350 (N.C. 2008). · cites it 20× “Section 1D-10 details the scope of the Chapter, and section 1D-15 delineates the "[s]tandards for recovery of punitive damages.”
Desmond v. The News & Observer Publ'g Co., 823 S.E.2d 412 (N.C. Ct. App. 2018). · cites it 14× “9 In contrast, "Notwithstanding, with regard to punitive damages, a private figure/private matter plaintiff seeking such damages currently must also satisfy the following statutory provisions: N.C. Gen. Stat. § 1D-15." N.C.P.I.-Civil 806.”
Keith Ward v. AutoZoners, LLC, 958 F.3d 254 (4th Cir. 2020). · cites it 4× “25 N.C. Gen. Stat. § 1D-15(a). The existence of an aggravating factor must be proved by clear and convincing evidence.”
Haarhuis v. Cheek, 805 S.E.2d 720 (N.C. Ct. App. 2017). · cites it 8× “N.C. Gen. Stat. § 1D-15. Therefore, to ensure that a jury does not award compensatory damages based on issues relevant only to punitive damages, our General Assembly has granted a defendant the right to a bifurcated trial, which allows "issues of liability for *475 compensatory…”
BDM Invs. v. Lenhil, Inc., 826 S.E.2d 746 (N.C. Ct. App. 2019). · cites it 4× “Punitive Damages Plaintiff asserted a punitive damages claim against Hollingsworth and the Lennon Hills Defendants for constructive fraud, among other things. As discussed supra , a claim for punitive damages is not an independent claim; rather, punitive damages must only be…”
Seraph Garrison, LLC v. Garrison, 787 S.E.2d 398 (N.C. Ct. App. 2016). · cites it 4× “Punitive Damages Plaintiff next contends that because the trial court erred in denying compensatory damages, the court also erred in failing to consider an award of punitive damages.”
LeCann v. Cobham (In re Cobham), 551 B.R. 181 (E.D.N.C. 2016). · cites it 3× “§ 1D-15. The Business Court grounded its award of punitive damages in defendant’s “willful or wanton conduct,” as that term is defined by N.”
Seguro-Suarez by & Through Connette v. Key Risk Ins. Co., 819 S.E.2d 741 (N.C. Ct. App. 2018). · cites it 4× “As set forth supra , however, we hold that Plaintiff has stated tort claims for malicious prosecution, abuse of process, and UDTP sufficient to survive Defendants' motion to dismiss. His allegations of fraudulent, malicious, and willful and wanton conduct on the part of…”
Show all 179 citing cases →
— N.C. Gen. Stat. § 1D-15(a) — 105 cases
Scarborough v. Dillard's, Inc., 693 S.E.2d 640 (N.C. 2009). “N.C.G.S. § 1D-15 Subsections 1D-15(a) and (b) state that: (a) Punitive damages may be awarded only if the claimant proves that the defendant is liable for compensatory damages and that one of the following aggravating factors was present and was related to the injury for which…”
BDM Invs. v. Lenhil, Inc., 826 S.E.2d 746 (N.C. Ct. App. 2019). “Punitive Damages Plaintiff asserted a punitive damages claim against Hollingsworth and the Lennon Hills Defendants for constructive fraud, among other things. As discussed supra , a claim for punitive damages is not an independent claim; rather, punitive damages must only be…”
Joyce McKiver v. Murphy-Brown, LLC, 980 F.3d 937 (4th Cir. 2020). “N.C. Gen. Stat. Ann. § 1D-15(a). A plaintiff bears the burden of proving the existence of one of the aggravating factors by clear and convincing evidence.”
Haarhuis v. Cheek, 805 S.E.2d 720 (N.C. Ct. App. 2017). “N.C. Gen. Stat. § 1D-15. Therefore, to ensure that a jury does not award compensatory damages based on issues relevant only to punitive damages, our General Assembly has granted a defendant the right to a bifurcated trial, which allows "issues of liability for *475 compensatory…”
LeCann v. Cobham (In re Cobham), 551 B.R. 181 (E.D.N.C. 2016). “§ 1D-15. The Business Court grounded its award of punitive damages in defendant’s “willful or wanton conduct,” as that term is defined by N.”
— N.C. Gen. Stat. § 1D-15(a)(1) — 1 case
Edgewater Servs., Inc. v. Epic Logistics, Inc., 2009 NCBC 20 (N.C. Bus. Ct. 2009).
— N.C. Gen. Stat. § 1D-15(a)(1999) — 1 case
Pack Bros. Paint & Body Shop v. Nationwide Mut. Ins. Co., 2003 NCBC 1 (N.C. Bus. Ct. 2003).
— N.C. Gen. Stat. § 1D-15(a)(3) — 3 cases
Haarhuis v. Cheek, 805 S.E.2d 720 (N.C. Ct. App. 2017). “N.C. Gen. Stat. § 1D-15. Therefore, to ensure that a jury does not award compensatory damages based on issues relevant only to punitive damages, our General Assembly has granted a defendant the right to a bifurcated trial, which allows "issues of liability for *475 compensatory…”
Mohebali v. Hayes (N.C. Ct. App. 2025).
Simmons, Jr. v. Wiles (Bankr. E.D.N.C. 2021).
— N.C. Gen. Stat. § 1D-15(b) — 24 cases
Scarborough v. Dillard's, Inc., 693 S.E.2d 640 (N.C. 2009). “N.C.G.S. § 1D-15 Subsections 1D-15(a) and (b) state that: (a) Punitive damages may be awarded only if the claimant proves that the defendant is liable for compensatory damages and that one of the following aggravating factors was present and was related to the injury for which…”
Scarborough v. Dillard's Inc., 655 S.E.2d 875 (N.C. Ct. App. 2008). “N.C. Gen.Stat. § 1D-15. A party need only show one of the aggravating factors to recover punitive damages.”
Keith Ward v. AutoZoners, LLC, 958 F.3d 254 (4th Cir. 2020). “25 N.C. Gen. Stat. § 1D-15(a). The existence of an aggravating factor must be proved by clear and convincing evidence.”
Desmond v. The News & Observer Publ'g Co., 823 S.E.2d 412 (N.C. Ct. App. 2018). “9 In contrast, "Notwithstanding, with regard to punitive damages, a private figure/private matter plaintiff seeking such damages currently must also satisfy the following statutory provisions: N.C. Gen. Stat. § 1D-15." N.C.P.I.-Civil 806.”
Rodriguez v. Suzuki Motor Corp., 936 S.W.2d 104 (Mo. 1996).
— N.C. Gen. Stat. § 1D-15(c) — 29 cases
Miller v. B.H.B. Enter., Inc., 568 S.E.2d 219 (N.C. Ct. App. 2002). “N.C. Gen.Stat. § 1D-15 (2002). Defendant argues that plaintiff's position that its employees acted willfully and wantonly by failing to intercede must fail because there is no evidence that defendant's employees could have prevented plaintiff's injuries.”
Scarborough v. Dillard's Inc., 655 S.E.2d 875 (N.C. Ct. App. 2008). “N.C. Gen.Stat. § 1D-15. A party need only show one of the aggravating factors to recover punitive damages.”
Scarborough v. Dillard's, Inc., 693 S.E.2d 640 (N.C. 2009). “N.C.G.S. § 1D-15 Subsections 1D-15(a) and (b) state that: (a) Punitive damages may be awarded only if the claimant proves that the defendant is liable for compensatory damages and that one of the following aggravating factors was present and was related to the injury for which…”
Joyce McKiver v. Murphy-Brown, LLC, 980 F.3d 937 (4th Cir. 2020). “N.C. Gen. Stat. Ann. § 1D-15(a). A plaintiff bears the burden of proving the existence of one of the aggravating factors by clear and convincing evidence.”
Keith Ward v. AutoZoners, LLC, 958 F.3d 254 (4th Cir. 2020). “25 N.C. Gen. Stat. § 1D-15(a). The existence of an aggravating factor must be proved by clear and convincing evidence.”
— N.C. Gen. Stat. § 1D-15(d) — 14 cases
Legacy Data Access, Inc. v. Cadrillion, LLC, 889 F.3d 158 (4th Cir. 2018).
Interstate Narrow Fabrics, Inc. v. Century USA, Inc., 218 F.R.D. 455 (M.D.N.C. 2003).
Akzo Nobel Coatings Inc. v. Rogers, 2011 NCBC 41 (N.C. Bus. Ct. 2011).
Tai Sports, Inc. v. Hall, 2012 NCBC 62 (N.C. Bus. Ct. 2012).
Scigrip, Inc. v. Osae, 2018 NCBC 10 (N.C. Bus. Ct. 2018).
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