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

Punitive damages serve the specific purpose of punishing wrongful conduct and deterring similar actions in the future. Unlike compensatory damages, which aim to reimburse a plaintiff for actual financial losses or harm incurred, punitive damages go beyond compensation and are intended to hold the wrongdoer accountable for particularly egregious, reckless, or malicious behavior. This type of damage is awarded at the discretion of the court when it believes that the defendant's actions warrant additional consequences due to their severity or intent.

In legal contexts, punitive damages can also send a message to society and potential wrongdoers that such conduct will lead to significant repercussions, thereby promoting adherence to legal and ethical standards. This distinction highlights the role punitive damages play as a tool for societal justice, rather than merely monetary restitution.