Nevada generally limits punitive damages, but those limits do not apply to an action against a manufacturer, distributor, or seller of a defective product. That exception is in NRS 42.005. Punitive damages are not automatic and require clear and convincing evidence.
This guide explains the rule and how product liability settlements generally work. It does not list settlement amounts, because each case depends on its own facts.
Key Takeaways
- NRS 42.005 generally caps punitive damages, with exceptions.
- The cap does not apply to an action against a manufacturer, distributor, or seller of a defective product.
- Punitive damages require clear and convincing evidence of oppression, fraud, or malice.
- No reliable average applies to a specific product liability settlement.
- A signed release generally ends the claims it covers.
What Does Nevada Law Say About Punitive Damages?
Under NRS 42.005, a plaintiff may recover punitive damages in addition to compensatory damages if it is proven by clear and convincing evidence that the defendant has been guilty of oppression, fraud, or malice, express or implied.
| Situation | Statutory limit on punitive damages |
|---|---|
| Compensatory damages of $100,000 or more | Three times the compensatory damages |
| Compensatory damages of less than $100,000 | $300,000 |
| Action against a manufacturer, distributor, or seller of a defective product | Those limits do not apply |
What Must Be Proven for Punitive Damages?
The standard is higher than for ordinary damages. NRS 42.001 defines conscious disregard as knowledge of the probable harmful consequences of a wrongful act and a willful and deliberate failure to act to avoid them. It defines malice to include conduct intended to injure a person, or despicable conduct engaged in with a conscious disregard of the rights or safety of others.
A defect alone is not enough. Evidence of what the company knew, and what it did about it, is often the focus. NRS 42.007 also limits when an employer can be liable for punitive damages for an employee’s conduct.
Do Punitive Damages Affect Settlement Talks?
They can be one of many issues the parties consider, depending on the case. Many product cases do not involve punitive damages at all, and the statutory exception removes only the cap. It does not lower what has to be proven.
What Factors Shape a Product Liability Settlement?
| Factor | Why it matters |
|---|---|
| Proof of defect | Expert evidence and the product’s condition |
| Causation | Whether the defect caused the injury |
| Injuries and future care | The documented effect on health and work |
| Defenses | Misuse, assumption of the risk, or preemption |
| Number of defendants | More companies and insurers can complicate talks |
| Company knowledge | What internal records show about the risk |
Published averages say little about any one case. Prior results do not guarantee a similar outcome.
What Damages Can a Settlement Address?
- Medical expenses, past and future
- Lost income and reduced earning capacity
- Damage to other property
- Pain and suffering and other non-economic losses
See economic damages for how financial losses are shown.
How Does a Product Liability Settlement Work?
- Investigation. The product and records are reviewed.
- Demand or lawsuit. A claim is presented, or a lawsuit is filed.
- Discovery. Company records and expert opinions are exchanged, if a suit is pending.
- Negotiation or mediation. The parties discuss resolution.
- Release. Agreed terms are put in writing and generally end the claims covered.
- Distribution. Attorney’s fees, case costs, and liens are addressed as applicable.
Attorney’s fees and case costs are different. Your written agreement explains how each is handled. See how settlements and releases work in Nevada.
What Is the Deadline?
Nevada generally allows 2 years to sue for personal injury under NRS 11.190(4)(e). Exceptions can apply, and negotiating may not stop the period from running. Our Nevada defective products page has more on these claims.
Talk With a Nevada Defective Product Lawyer
Vaksman Khalfin, PC handles Nevada defective product claims and has an office in Las Vegas. A lawyer can review your situation and explain the options that may be available. Contact us or visit our Nevada defective products page to learn more.
General information, not legal advice. This page is provided for general informational purposes only and is not medical advice. No attorney-client relationship is formed by reading this page or contacting the firm. Prior results do not guarantee a similar outcome.
Reviewed by Robert B. Vaksman, Partner, Vaksman Khalfin, PC (admitted in Nevada). Last reviewed: 11/05/2026
Frequently Asked Questions
The limits in NRS 42.005 do not apply to an action against a manufacturer, distributor, or seller of a defective product. Punitive damages still require clear and convincing evidence of oppression, fraud, or malice.
There is no reliable average that applies to a specific claim. The outcome depends on the defect evidence, causation, injuries, defenses, and the parties involved.
Not necessarily. Punitive damages depend on evidence of oppression, fraud, or malice. In a settlement, the parties decide how to resolve claims, and the agreement's terms control.
Many civil cases settle, but some do not. Whether a case settles depends on the facts, the parties, and whether they can agree.
