How do Alabama's punitive-damages caps factor into valuing a case for settlement?

They matter, but you have to know which cap applies — and which cases are exempt. Under Alabama's punitive-damages statute, the general cap is three times the compensatory damages or a fixed floor, whichever is greater, with a higher ceiling for cases involving physical injury and a separate, lower limit for qualifying small-business defendants; those fixed dollar figures are adjusted for inflation over time. Two points drive settlement value most. First, punitive exposure is only in play where the conduct supports it — ordinary negligence doesn't get there — so part of my job is helping each side read the conduct realistically rather than emotionally. Second, and critically, the caps do not apply to wrongful-death claims, which Alabama treats on an entirely different footing (see the next section). Because the exact adjusted figures change, we independently verify any specific number before it's relied on; what the parties need from mediation is the right framework and a realistic read of exposure.