Punitive damages, also known as exemplary damages, are monetary awards given in civil lawsuits not to compensate the plaintiff for actual losses but to punish the defendant for particularly harmful, intentional, reckless, or grossly negligent behavior and to deter similar conduct in the future
. Key characteristics of punitive damages include:
- They are awarded in addition to compensatory damages, which cover actual losses like medical bills or property damage
- Their purpose is to punish the defendant and serve as a deterrent to others, rather than to make the plaintiff whole
- Courts typically award punitive damages at their discretion when the defendant's conduct is especially egregious or malicious
- Punitive damages are more common in tort cases (e.g., personal injury, product liability) and are rarely awarded for breach of contract claims
- There are often caps on punitive damages, commonly up to four times the compensatory damages, though exceptions exist for particularly reprehensible conduct
- The plaintiff receives the punitive damages awarded, even though the primary goal is punishment and deterrence
In summary, punitive damages serve as a legal tool to penalize and discourage wrongful acts that go beyond mere negligence, emphasizing accountability and prevention of future harm
