What are "punitive damages" designed to achieve?

Punitive damages are specifically intended to serve as a form of punishment for the wrongdoer's particularly egregious or extreme misconduct. Unlike compensatory damages, which are designed to reimburse the victim for actual losses, punitive damages go a step further. They aim to deter the wrongdoer and others from engaging in similar harmful behavior in the future by imposing an additional financial penalty.

This function of punitive damages is significant in the context of tort law, where they are often applied in cases involving deliberate wrongdoing or gross negligence. Such damages are not tied to any specific loss suffered by the plaintiff but rather reflect the severity of the defendant's actions and serve to reinforce social standards of behavior. By focusing on the intent and nature of the wrong conduct, punitive damages highlight society's disapproval of certain types of behavior, encouraging responsible conduct among individuals and corporations alike.