Opinion ID: 2630496
Heading Depth: 2
Heading Rank: 5

Heading: Limit on Punitive Damages

Text: ¶ 45 As described above, section 7 prohibits an arbitrator from awarding punitive damages unless expressly authorized by statute. The trial judge concluded that this provision was substantively unconscionable. However, Washington is one of only a few states that does not provide generally for punitive damages for particularly egregious conduct. Dailey v. N. Coast Life Ins. Co., 129 Wash.2d 572, 575, 919 P.2d 589 (1996); see also, e.g., Allowance of Punitive Damages in Products Liability Case, 13 A.L.R.4th 52 (1982). Washington does provide a few limited examples of exemplary damages. The relevant example is the Consumer Protection Act, which provides treble damages upon appropriate findings. RCW 19.86.090. We say limited because in the instant case, the damages sought are $2 per month; under Washington's Consumer Protection Act, a prevailing consumer might be awarded up to $6 per month. The agreement permits punitive damages expressly authorized by a statute. CP at 718. Because Washington provides for limited examples of exemplary damages and each example is specifically authorized by statute, we do not read AT & T's Consumer Services Agreement to limit the availability of punitive damages in Washington State. We hold the limitation on punitive damages is not unconscionable.