 Punitive damages cannot generally be awarded in contract disputes.The main exception is in insurance bad faith cases in the US if the insurer's breach of contract is alleged to be so egregious as to amount to a breach of the "implied covenant of good faith and fair dealing", and is therefore considered to be a "tort" cause of action eligible for punitive damages (in excess of the value of the insurance policy).In Australia, punitive damages are not available for breach of contract, but are possible for tort cases.