What are punitive damages?

Punitive damages are a specific type of damages awarded in legal cases that go beyond simply compensating the injured party for actual losses. Their primary purpose is to punish the wrongdoer for particularly egregious or malicious conduct and to deter others from engaging in similar behavior in the future. This form of damages is not aimed at restoring the plaintiff to their original position financially, but rather at addressing the need for accountability and discouraging unacceptable actions within society or a particular industry.

The option discussing compensatory damages refers to payments meant to cover actual losses suffered by the plaintiff, which is a different category focused solely on restitution. Legal fees are associated with the costs incurred during litigation, while court proceeding costs are specific expenses tied to the judicial process itself. Neither of these relates to the idea of punitive damages, which uniquely emphasizes punishment and deterrence.