Under what condition may punitive damages be considered for AIC purposes?

Punitive damages can only be considered for AIC (amount in controversy) purposes when allowed by state law. This is because the determination of whether punitive damages can contribute to the AIC hinges on the specific statutes and case law of the jurisdiction in which the case is being pursued. Some states have explicit provisions that limit or govern the awarding of punitive damages, so unless the law allows for them in the context of the case, they cannot be included in the calculation of AIC.

If the law does allow for punitive damages, then they can be factored into the overall amount being sought by the plaintiff to determine if the case meets the jurisdictional threshold necessary for federal court or for other legal proceedings. Thus, the other options do not accurately reflect the conditions under which punitive damages might be considered for AIC determinations.