Opinion ID: 2589857
Heading Depth: 2
Heading Rank: 3

Heading: Application of equitable offsets

Text: The district court applied equitable offsets to the compensatory damage award ultimately reducing the award to zero. Because punitive damages cannot be awarded unless compensatory damages are also awarded, [17] Dean Witter contends that the offsets removed the condition precedent to an award of punitive damages, to wit: an award of compensatory damages. We disagree. First, our ruling with regard to the equitable offsets restores the compensatory damage award. Second, we conclude that the term award in NRS 42.005 refers to an award of actual damages by the jury, not the net award calculated after equitable offsets. See Exxon Corp. v. Yarema, 69 Md.App. 124, 516 A.2d 990 (1986). This is based upon the public policy consideration that a tortfeasor legally subject to civil punishment via punitive damages should not escape sanction, or have that sanction reduced, because of the actions of a third party. Thus, restitution made by a third party is irrelevant to whether a defendant's conduct merits punishment. In the instant case, the jury awarded compensatory damages. Thus, appellants satisfied the rule requiring proof of actual loss before punitive damages may be recovered.