Opinion ID: 1159025
Heading Depth: 2
Heading Rank: 1

Heading: Applicability of Punitive Damages

Text: Although punitive damages ordinarily are not allowed in breach of contract actions, Stewart v. Potter, 44 N.M. 460, 466, 104 P.2d 736, 740 (1940), in contract cases not involving insurance, a court may award punitive damages when the defendant's actions are malicious, fraudulent, oppressive, or committed recklessly with a wanton disregard for the plaintiff's rights, Romero v. Mervyn's, 109 N.M. 249, 255, 784 P.2d 992, 998 (1989). See also Construction Contracting & Management, Inc. v. McConnell, 112 N.M. 371, 375, 815 P.2d 1161, 1165 (1991). Evidence of a culpable mental state is required because the purpose of punitive damages is to punish such conduct and to deter others from similar conduct. McGinnis v. Honeywell, Inc., 110 N.M. 1, 9, 791 P.2d 452, 460 (1990). Pan Am contests the district court's finding of fact characterizing Adams's conduct as fraudulent, malicious, and oppressive. It argues that his conduct was justifiable and not reprehensible, but we disagree. There is substantial evidence in the record to support the district court's finding that Adams's conduct was oppressive, malicious, and fraudulent. See Brannock v. Brannock, 104 N.M. 385, 387, 722 P.2d 636, 638 (1986) (describing substantial evidence standard of review).