In Quebec, punishment for abusive behaviour is not reserved for the criminal and penal courts. Some civil law statutes allow for punitive damages to be awarded. This compensation is in addition to that awarded as compensation for the harm actually suffered. Keep reading to learn more about the legislative framework and how punitive damages work.
What is punitive damages?
A punitive damage is a sum of money awarded to a victim in order to punish the malicious and reprehensible behavior of a moral or physical person. Punitive damages are known in Quebec law as exemplary damages. They remain an exception and can only be awarded if they are expressly authorized by law.
Why does the legislator allow punitive damages?
According to Article 1621 of the Civil Code of Quebec, the award of punitive damages is intended to:
- Punish the perpetrator of misconduct;
- Discourage others from doing the same;
- Demonstrate court disapproval.
The purpose of this civil liability regime is therefore to prevent and discourage unacceptable conduct in society.
What are the two categories of damages?
Specific damages
They are awarded for material, provable and quantifiable damages that occurred after the defendant’s fault, but before the trial. For example, medical expenses and lost wages.
General damages
They are awarded for future damages, suffered after the trial, and which are difficult to prove. These damages can be classified into two divisions according to the nature of the loss:
- Non-pecuniary damages: these are non-quantifiable, non-tangible and non-measurable damages, such as reduced life expectancy, pain, suffering and loss of enjoyment of life. The amount of non-pecuniary damages is relative to the cost of living. In 2017, the cap was set at $367,000.
- Monetary damages: are intended to compensate for monetary damages such as the costs of meeting the victim’s health and rehabilitation needs as well as lost income.
How do punitive damages work?
The claim for punitive damages is governed by several Quebec laws. The best known are the Quebec Charter, the Civil Code of Quebec and the Consumer Protection Act.
The Quebec Charter
The Quebec Charter is the Charter of Human Rights and Freedoms. It aims to defend individual freedoms and fundamental rights:
- The right to life and dignity;
- Freedom of expression and religion;
- Protection against discrimination.
One way to achieve these goals is to impose penalties on those who violate the Charter. Section 49 of the Charter provides that where there is an intentional and unlawful infringement of a Charter right, the infringer may be ordered to pay punitive damages to the victim. The victim, on the other hand, must prove the intentional nature of the facts.
The Supreme Court of Canada defines the criteria for application as follows:
- Unlawful interference: this is the infringement of a Charter right as a result of wrongful conduct;
- Intentional infringement: the question is whether the perpetrator intended to cause the consequences of the infringement, or whether he/she was aware of the damage that could result from his/her wrongful conduct.
Example of case law
A daughter misused the bank card of her mother, who had Alzheimer’s disease and was placed in a nursing home. The daughter was responsible for making the monthly payments to the center. A Desjardins caisse representative reported suspicious transactions in the mother’s account. It was verified that the mother’s account was subject to multiple unauthorized purchases and withdrawals.
Section 48 of the Quebec Charter protects the elderly from all forms of exploitation. The daughter’s behaviour therefore violated her mother’s rights under the law. The Court of Quebec ordered the daughter to pay $3000 in punitive damages.
The Civil Code of Quebec
The Civil Code provides for punitive damages only for landlords. Article 1899 of the Code penalizes landlords who refuse to rent to women on the grounds that they are pregnant or have children. Thus, any landlord is subject to punitive damages if he or she does not allow the tenant to enjoy a good condition of habitability.
Examples of case law
Example 1:
A landlady deprived a tenant of access to her unit for several days by changing the lock on the door. Repeated harassment was shown to cause the tenant to leave the premises, even though she was not at fault. The Court imposed on the landlady $10,000 in punitive damages for the violation of the provisions of the Civil Code.
Example 2:
In Martin v. Lavoie, the tenants identified several problems in the unit:
- Water infiltration;
- Poor air quality;
- Fungal contamination;
- Lessor’s inaction;
- Abandonment of housing.
Therefore, they asked:
- Breach of the lease contract;
- A rent reduction of $2,050;
- Damages;
- Moral damages of $5,000.
After completing an air quality report that confirmed fungal contamination as well as other tenant health issues, the court granted:
- 1,500 in rent reduction;
- 1,141 for moving expenses;
- 313 in damages;
- 1,500 to each of them as moral damages.
The Consumer Protection Act
Under section 272 of the Consumer Protection Act (CPA), consumers can seek punitive damages against any merchant who fails to comply with an obligation under the Act. The purpose of this law is to deter merchants from engaging in malicious conduct that could harm consumers.
Examples of case law
The Supreme Court has awarded punitive damages to an individual who was the victim of misleading advertising by Time magazine. Punitive damages claims under the CPA are often pursued through a class action against the merchant. Examples include:
- Class action against misrepresentations concerning “recyclable” bags made by the defendants (Dollarama, Rona inc. and Lowe’s, Metro inc., Costco, Giant Tiger etc.);
- Class action against Walmart for pricing errors;
- Class action against Audi Canada for defective occupant detection system.
What is the amount of damages?
Article 1621 of the C.C.Q. leaves a margin of freedom to judges to determine the appropriate amount of damages. However, it provides that the amount awarded must not exceed the value necessary to ensure the preventive function. The same article sets out the criteria to be considered in assessing the amount of the penalty:
- The seriousness of the fault: this is an analysis of the impact of the fault on the victim’s rights;
- The financial situation of the defendant: the amount of punitive damages increases according to the financial situation of the offender in order to support the preventive effect of the sanction;
- The value of compensatory damages: if the compensatory damages are not too high, the amount of punitive damages could be higher;
Who pays the punitive damages?
The perpetrator is the one who must pay the punitive damages.
Need legal assistance?
If you are the victim of misconduct, it is important to work with a civil rights lawyer to prove the perpetrator’s bad faith and obtain the punitive damages you are owed.
