In what circumstances will a plaintiff be able to claim exemplary damages?

Applying that same technique we note that Colorado, as the domicile of the plaintiff corporation, has an interest in imposing a penalty upon those seeking to take advantage of its citizens both individual and corporate. It may also have an interest in deterring fraudulent practices. The statute authorizing exemplary damages, however, is couched in terms of some caution providing that in limited circumstances a jury "may award . . . reasonable exemplary damages." Such caution is in accord with general principles of law that exemplary damages are not favored. In Gombos v. Ashe, 158 Cal.App.2d 517, 322 P.2d 933, 939 (1958), the court said: