What are punitive damages intended to accomplish?

Punitive damages are a form of financial compensation awarded in civil lawsuits that go beyond simply making the victim whole for their losses. Their primary purpose is to impose a punishment on the offender for particularly egregious or reckless behavior. This serves not only to penalize the wrongdoer but also to deter similar conduct in the future from both the offender and others in society. By establishing a financial consequence for actions that are deemed harmful, punitive damages aim to promote accountability and discourage individuals or entities from engaging in harmful behavior.

While compensating the victim for losses is an important aspect of civil law, that function is primarily carried out by compensatory damages rather than punitive ones. Encouraging settlements and reducing future legal claims are also functions that can arise in the context of the legal system, but they are not the main objective of punitive damages. The focus of punitive damages lies specifically in punishing wrongful actions and preventing their recurrence.