What are punitive damages designed to achieve?

Punitive damages are specifically aimed at punishing defendants for particularly egregious or reprehensible behavior and deterring both the defendant and others from engaging in similar conduct in the future. Unlike compensatory damages, which focus on reimbursing the injured party for their losses (such as medical expenses, lost wages, or property damage), punitive damages go beyond compensation. They are not tied to the actual harm suffered but are intended to serve as a societal condemnation of the defendant's wrongful actions.

In circumstances where a defendant's actions are found to be malicious, fraudulent, or grossly negligent, the court may impose punitive damages to signal that such behavior will not be tolerated. This is why they play a crucial role in discouraging not only the defendant from repeating the behavior but also deterring others from committing similar acts. Hence, this makes the rationale for punitive damages clear and aligned with the choice that highlights punishment for egregious behavior.