Under North Carolina law, there are two types of damages available to successful libel plaintiffs: actual or compensatory damages, designed to repay the plaintiff for the harm he or she suffered; and punitive damages, designed to punish the defamer and serve as a deterrent. According to the N.C. Supreme Court, actual or compensatory damages “include (1) pecuniary loss, direct or indirect, i.e., special damages; (2) damages for physical pain and inconvenience; (3) damages for mental suffering; and (4) damages for injury to reputation.”[193]
Both the U.S. Constitution and North Carolina law impose certain restrictions on damage awards. Under the First Amendment, a public official or public figure who sues for libel cannot win, and therefore cannot collect any damages, unless he or she proves actual malice. A private person plaintiff need prove only negligence to collect actual damages but must prove actual malice for punitive damages if the subject of the defamatory report was a matter of public interest.[194]
As discussed above, under North Carolina law, punitive damages are prohibited if a proper retraction was published or broadcast. Plaintiffs claiming libel per quod must plead and prove special damages, as must plaintiffs in trade libel or product disparagement suits.
[193] Osborn v. Leach, 135 N.C. at 632.
[194] Dun & Bradstreet, Inc. v. Greenmoss Builders, Inc., 472 U.S. 749, 761 (1985).
