What is the purpose of punitive damages in a legal case?

Punitive damages serve a specific function in the legal system, primarily aimed at punishing the defendant for particularly egregious or malicious conduct that goes beyond mere negligence or breach of contract. When a court awards punitive damages, it is expressing societal disapproval of the defendant’s actions and aiming to deter not only the defendant but also others from engaging in similar wrongful behavior in the future.

The rationale behind punitive damages rests on the belief that financial repercussions can influence behavior and encourage adherence to legal and societal norms. In essence, while compensatory damages are designed to make the victim whole for their actual losses, punitive damages focus on the defendant's behavior, signaling that such conduct is unacceptable.

This purpose underscores the judicial system's role in promoting justice and accountability, reinforcing the idea that individuals and entities will be held to account for their actions when they cause harm through willful or reckless behavior.