Legal Definitions - poena pecuniary

Poena pecuniary refers to a financial penalty or a sum of money that an individual or entity is legally obligated to pay as a form of punishment for an offense, a violation of a rule, or a breach of a legal duty. It is commonly understood as a fine.

Here are some examples to illustrate this concept:

• Imagine a driver who exceeds the speed limit on a highway. A police officer issues them a ticket requiring them to pay $150. This $150 payment is a poena pecuniary because it is a monetary penalty imposed for violating traffic laws.

• Consider a construction company that fails to complete a building project by the agreed-upon deadline, causing financial losses for the client. If a court orders the construction company to pay the client $10,000 in liquidated damages (a pre-agreed penalty for delay), this payment represents a poena pecuniary. It is a financial sum imposed as a consequence of breaching the contract terms.

• Suppose a restaurant is found by health inspectors to have significant hygiene violations. As a result, the local health department imposes a $5,000 fine on the restaurant. This $5,000 is a poena pecuniary, a monetary punishment for failing to comply with public health regulations.