Punitive damages are separate from damages designed to compensate victims of discrimination.
Kolstad involved a claim for sex discrimination by a female employee who was passed over for a promotion. At trial, the judge refused to instruct the jury on the plaintiff's request for punitive damages. This last holding is particularly important to employers. Because strong anti-discrimination policies and effective grievance mechanisms will help shield employers from punitive damage claims, Kolstad creates a strong incentive for employers to develop and vigorously enforce policies against discrimination. Mr. Miller is originally from Charleston.