What is the purpose of "punitive damages"?

Punitive damages serve the primary purpose of deterring wrongful conduct and punishing the defendant for particularly egregious or outrageous behavior. Unlike compensatory damages, which aim to compensate the plaintiff for actual losses suffered, punitive damages are intended to go beyond mere compensation. They are awarded in situations where the defendant's actions are found to be not just negligent but also malicious, reckless, or willfully harmful. By imposing these damages, the legal system seeks to discourage similar behavior in the future, sending a strong message that such conduct will not be tolerated. This underscores the idea that the law has both a corrective and a deterrent function, promoting accountability and responsible behavior within society.