Are There Damage Caps in New Jersey Personal Injury Cases?
The vast majority of personal injury cases filed in New Jersey are not subject to any damage caps, or limits on a victim’s financial recovery. New Jersey does not have any statutory limits on compensation for economic or non-economic damages, in most cases. However, caps do apply to punitive damages and claims against government agencies. Make sure to speak with an experienced injury lawyer in New Jersey.
Your Personal Injury Case Most Likely Won’t Have a Damage Cap
In a typical personal injury case, such as a car accident claim or slip and fall lawsuit, New Jersey does not impose any caps on compensatory damages. This means there is no limit or ceiling on the amount of financial compensation that can be awarded for economic and non-economic damages to make an injured victim (or plaintiff) whole again.
Common compensable damages include:
- Medical bills (present and future)
- Lost wages
- Diminished capacity to earn
- Disability-related costs
- Property damage
- Pain and suffering
- Loss of consortium
- Wrongful death damages
In many states, damage caps have been ruled unconstitutional due to their infringement upon the victim’s right to be made whole again when injured by negligence or wrongdoing. While New Jersey does not control how much a victim can recover in the majority of personal injury cases, there are some statutory caps that apply in unique situations. Make sure to speak with an experienced car accident lawyer in New Jersey for legal guidance and support.
New Jersey’s Damage Caps (As of 2026)
There are two main types of financial compensation available in a New Jersey personal injury case: compensatory and punitive. Compensatory damages are listed above. They address the economic (tangible) and non-economic (intangible) losses sustained by an accident victim. Compensatory damages are not capped in most cases, as they are designed to replace what the plaintiff lost in the incident.
Punitive Damages
The second category of damages, punitive damages, are subject to a cap in New Jersey. Punitive damages in New Jersey are capped at $350,000 or five times the amount of compensatory damages awarded to the plaintiff, whichever is greater.
Punitive damages are awarded in select circumstances where the defendant’s behavior is viewed by a judge as particularly egregious or reprehensible. Examples include gross negligence, recklessness, and wanton disregard for the safety of others, criminal acts and malicious intent to harm.
Government Liability
In New Jersey, the Tort Claims Act determines when and how a government agency can be held liable for an injury. This includes an imposed cap on non-economic damages awarded in any personal injury claim brought against the state or municipal government.
Currently, New Jersey does not allow for the recovery of any compensation for pain and suffering in a lawsuit against a public entity, unless the injury meets a certain tort threshold. An injury must cause significant and permanent physical impairment for the victim to recover non-economic damages from a government agency.
How to Maximize Your Damages in a New Jersey Personal Injury Case
While bills have previously been introduced in New Jersey to establish additional damage caps on medical malpractice claims, none have yet been passed into law. To ensure you receive a fair and full amount of financial compensation as a personal injury plaintiff, it is recommended that you work with an experienced personal injury lawyer in New Jersey.
A lawyer can navigate New Jersey’s personal injury laws and any relevant damage caps on your behalf to fight for a just case value. A lawyer will have experience negotiating settlements with insurance providers and going to trial against defendants in search of justice, when necessary. You can trust your attorney to pursue maximum compensation for all of your losses while you concentrate on your personal recovery. Contact us today.