What are punitive damages?

• A. Compensatory damages
• B. Punitive damages
• C. Economic damages
• D. None of the above

Answer: (B)

Punitive damages are penalties designed to punish the defendant for especially wrongful conduct and to deter similar behavior in the future. They are awarded in addition to the plaintiff’s actual losses, which are compensated through compensatory damages. Economic damages are a subset of compensatory damages that cover quantifiable monetary losses like medical bills and lost wages; they are not meant to punish. Punitive awards come into play only when the defendant’s conduct is egregious—often intentional, fraudulent, or grossly negligent—and many jurisdictions require strong proof of that malice, oppression, or fraud. They are also bounded by constitutional limits to prevent punishment that is excessive relative to the harm caused.