§ 1D-15. Standards for recovery of punitive damages. - North Carolina Statutes

§1D‑15.  Standards for recovery of punitive damages.

(a)        Punitive damagesmay be awarded only if the claimant proves that the defendant is liable forcompensatory damages and that one of the following aggravating factors waspresent and was related to the injury for which compensatory damages wereawarded:

(1)        Fraud.

(2)        Malice.

(3)        Willful or wantonconduct.

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

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

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