Punitive Damages

Definition

Punitive damages are damages awarded to a private person against a wrongdoer by way of punishment, and to deter future misconduct.

Purpose

The purpose of punitive damages is to punish the defendant for particularly egregious behavior and to serve as a deterrent to others from committing similar acts.

Examples of Use

• In a lawsuit involving fraud, a court may award punitive damages in addition to compensatory damages.
• Cases of gross negligence, such as a company knowingly selling defective products, may result in punitive damages.
• Punitive damages can be awarded in cases of intentional harm, such as assault or defamation.

Related Terms

• Compensatory Damages: Damages intended to compensate the plaintiff for actual losses.
• Nominal Damages: A small amount of money awarded when a legal wrong has occurred but no substantial harm was done.
• Exemplary Damages: Another term for punitive damages.