Punitive damages, which are also known as exemplary damages, are a form of monetary compensation that may be granted in a legal case. They are intended to punish a defendant for particularly egregious conduct and to deter similar behavior from happening again in the future. Unlike compensatory damages, which are meant to compensate the plaintiff for their actual losses or injuries, punitive damages go beyond compensation and aim to penalize the defendant.
The primary purposes of punitive damages include three main objectives. Firstly, to punish the defendant for their willful, malicious, or grossly negligent actions. Secondly, to serve as a deterrent to others who might engage in similar misconduct by imposing substantial financial consequences on the defendant. The hope is that the fear of facing punitive damages will discourage individuals and companies from engaging in wrongful behavior. Lastly, punitive damages are often seen as a means of achieving a sense of justice, especially when the defendant’s actions are particularly reprehensible. They can help address situations where compensatory damages alone may not be sufficient to rectify the harm caused.
It is important to understand that not all legal systems allow for punitive damages, and the availability and standards for awarding them can vary from one jurisdiction to another. For instance, in the United States, punitive damages are awarded less frequently than compensatory damages, and there are constitutional limits on their size to prevent excessive punishment.
To be eligible for punitive damages, it is usually necessary to prove that the defendant acted intentionally, recklessly, or with gross negligence. The specific criteria and requirements for awarding punitive damages depend on the jurisdiction and the legal system involved.
