What is the goal of punitive damages?

The goal of punitive damages is primarily to deter future wrongful conduct by the defendant. Punitive damages are awarded not to compensate the plaintiff for actual losses suffered, but instead to punish the defendant for particularly egregious or reckless behavior. The underlying idea is that by imposing a financial penalty that far exceeds the actual damages incurred, it discourages both the defendant and others from engaging in similar wrongful acts in the future. This serves a broader societal purpose, promoting adherence to the law and protecting individuals from misconduct.

While compensatory damages aim to make the plaintiff whole for their losses, punitive damages focus on behavior modification and ensuring that such wrongful actions are not repeated. Therefore, the essence of punitive damages lies in their nature as a punitive measure rather than a compensatory one, aligning with the idea of deterrence.