Buffalo Creek and the Issue of Punitive Damages versus Compensatory DamagesDamages are a fundamental principle of the American legal system. However, several recent cases in the United States have sparked debate on the issue, the most famous being the "Hot Coffee Trial"1. In 1994, Stella Liebeck bought coffee at a McDonald's restaurant, spilled it and was severely burned. She sued the McDonald's company, awarded $160,000 in compensatory damages and $2.9 million in punitive damages. A judge then reduced the punitive damages to $480,000. The final out-of-court settlement was approximately $500,000. To many, this case is frivolous (i.e. the plaintiff's chances of success were slim to none), but it truly highlights the issue of punitive damages being excessive in relation to the harm suffered and its causes . Damages in the United States include two categories. Compensatory damages are intended to compensate the plaintiff for the loss. Punitive damages, on the other hand, are intended to punish the defendant. Punitive damages exceed the plaintiff's loss, in order to deter the defendant from further wrongdoing. For example, requiring a company to pay significant punitive damages may cause it to be more cautious. Another difference between the two categories is the money involved. If the damages are compensatory, the money usually goes entirely to the plaintiff, but if they are punitive, part of the money goes to the law firm and part to the plaintiff. However, we can ask ourselves the following questions. How are punitive damages actually awarded? And what is the current trend in the United States and France in this area? In order to answer these questions, we will first see how American lawyer Gerald M. Stern man...... middle of paper..... The delays were excessive in relation to the damage suffered by the plaintiffs and “the defendant’s breaches of its contractual obligations”15. This decision could be a first step towards the introduction of punitive damages in France, even if two conditions would have to be met for them to be awarded: proportionality both to the damage suffered and to “breaches of contractual obligations”. of the defendant. not a problem at the moment. However, the main problem with punitive damages in the United States is their amount, which is often considered excessive. The question is therefore to limit their amount or to restrict their allocation. In France, on the contrary, the question is whether they should be introduced and under what conditions. French judges appear willing to introduce such damages, and if so, France would be the first country in Europe to do so..