What are "punitive damages"?

Punitive damages are a specific form of compensation awarded in legal cases that extend beyond merely compensating the plaintiff for their losses. Their primary purpose is to punish the defendant for particularly egregious or malicious conduct and to deter similar behavior in the future. The underlying principle is to go beyond just making the injured party whole; these damages serve as a societal condemnation of conduct that is deemed excessively harmful or morally unacceptable.

In contrast, compensation for lost wages directly relates to covering the economic impact of an injury, while damages for medical expenses specifically address the costs incurred for healthcare related to the injury. Emotional trauma damages aim to address the psychological harm suffered by the plaintiff, but these do not carry the punitive intent behind punitive damages. Thus, punitive damages occupy a unique role in the legal system, emphasizing accountability and deterrence in cases of severe wrongdoing.