Punitive damages are damages awarded not mainly to compensate the plaintiff, but to punish especially wrongful conduct and deter similar behavior.
Why It Matters
This remedy matters because some civil wrongdoing is considered more blameworthy than ordinary negligence. Punitive damages can signal that the defendant’s conduct was unusually reckless, malicious, or intentional.
Where It Appears
Punitive damages appear in some tort suits involving fraud, intentional torts, reckless misconduct, and other especially serious civil wrongdoing.
Practical Example
A company knowingly hides a serious safety danger and continues harmful conduct. A court or jury may consider punitive damages in addition to compensatory damages if the law allows it.
How It Differs From Nearby Terms
Compensatory damages focus on making the plaintiff whole for actual loss. Punitive damages focus on punishment and deterrence. Liquidated damages are different because they are set by contract rather than awarded as punishment in a tort case.
Related Terms
Knowledge Check
- What is the main purpose of punitive damages? Their main purpose is to punish especially wrongful conduct and deter similar conduct.
- How do punitive damages differ from compensatory damages? Compensatory damages repay loss, while punitive damages are aimed at punishment and deterrence.