Punitive damages may violate due process, impacting deterrence in tort law.
Punitive damages in the U.S. can be justified for deterrence or retribution. However, using punitive damages for deterrence may violate due process. To deter risky behavior, tort law should make wrongdoers pay for all harm caused. Compensatory damages can do this, but not all victims sue. Punitive damages can make up for this, but they are based on harm to non-suing victims. If courts can't consider harm to non-suing victims, they can't use punitive damages for deterrence.