Alberta, Canada
The following excerpt is from Polansky Electronics Ltd. v. AGT Ltd., 1999 ABQB 816 (CanLII):
In the award of exemplary damages, punishment is also coupled with deterrence: Exemplary damages may be awarded only where the combined award of general and aggravated damages would be insufficient to achieve the goal of punishment and deterrence. In addition, it is necessary for such an award to serve a rational purpose, that is, was the misconduct of the defendant so outrageous that punitive damages were rationally required to act as a deterrence: Hill v. Church of Scientology of Toronto, 1995 CanLII 59 (SCC), [1995] 2 S.C.R. 1130, per Cory J., at 1205-1206.
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