Punitive damages are primarily intended to serve which purpose in legal cases?

Punitive damages are primarily intended to punish and deter wrongful conduct. Unlike compensatory damages, which focus on reimbursing the injured party for actual losses incurred, punitive damages go a step further. They are awarded in cases where a defendant's behavior is found to be particularly harmful, reckless, or egregious. The aim is not just to compensate the victim but to hold the wrongdoer accountable in a way that serves as a warning to others. By imposing financial penalties on those who engage in such misconduct, punitive damages work to discourage similar behavior in the future and promote a sense of justice in the legal system. This is especially important in cases where the defendant's actions may have a broader impact on society, as the penalties encourage adherence to legal and ethical standards.