What are punitive damages designed to accomplish?

Punitive damages are specifically intended to punish a wrongdoer for particularly egregious or reckless behavior and to deter similar conduct in the future. Unlike compensatory damages, which are aimed at making the victim whole by addressing actual losses, punitive damages are concerned with the behavior of the defendant. They serve as a financial penalty imposed on the perpetrator to signal that the conduct in question is unacceptable and should not be repeated.

This type of damage award is often applied in cases where the defendant’s actions are found to be malicious, fraudulent, or conducted with a gross disregard for the safety and well-being of others. The goal is not only to penalize the wrongdoer but also to provide a public example that can dissuade others from committing similar acts. Therefore, when assessing the role of punitive damages in legal outcomes, it is crucial to recognize their unique purpose of punishment and deterrence, rather than compensation for the victim's direct losses.