Damage caps limit recovery amounts for certain damages types, particularly non-economic and punitive damages. Medical malpractice often faces stricter caps than general negligence. Caps influence settlement negotiations by establishing maximum exposure. Constitutional challenges have invalidated some caps. Multiple defendants may face individual or aggregate caps. Caps typically don’t apply to economic damages. Settlement timing may avoid cap application in some jurisdictions. Structured settlements might circumvent certain limitations. Venue selection considers cap differences. Public entity defendants often enjoy lower caps. Strategic case presentation maximizes recovery within cap constraints. Legislative changes require monitoring current limits.