What is the nature of punitive damages?

Punitive damages serve a distinct purpose within the realm of tort law. Their primary role is to punish the wrongdoer for particularly harmful or egregious behavior and to deter similar conduct in the future. Unlike compensatory damages, which focus on reimbursing the victim for actual losses incurred—such as medical expenses or lost wages—punitive damages emphasize accountability and serve as a financial penalty against the defendant.

This punitive aspect is critical because it signifies societal condemnation of the wrongdoer's actions, encouraging better behavior. Such damages are often awarded in cases involving gross negligence, intentional wrongdoing, or actions taken with malice.

This understanding of punitive damages clarifies their separation from economic losses, fixed amounts, and their association with criminal cases. They are not limited to strictly compensatory roles, nor are they predetermined amounts; instead, they are determined based on the severity of the offense and the desire to discourage future misconduct. Additionally, while punitive damages can arise in tort cases that may also involve criminal acts, they are not exclusive to criminal law, as they can be applied in civil lawsuits as well.